August 26, 2002 Orange County Business
Journal
Small Gains – Building
Buying by Owner-Users Helps Prop Up
Wobbly Market By Daniel D. Willams
Nine years ago, Bob Mosey, owner
of Anaheim-based Moseys’ Production
Machinists Inc., faced a dilemma.
His lease was nearly up on Fullerton
and initial talks with his landlord
suggested higher rent was in his
future. So he
called a broker to find another property
for his company, which makes machined
parts and assemblies.
The broker sat
Mosey down and told him he should
think about buying
his own
place instead of paying rent.
Mosey said he shook his head. He
was a businessman, not a real estate
investor,
he said. “I can guarantee you
the lease rates will be even higher
in the
future,” Mosey’s broker
told him. “You want to be shopping
for leases again in five years?” Mosey
didn’t relish the idea. “Then
let’s crunch some numbers,” his
broker said.
When Mosey and his broker
ran the numbers, they noticed an
interesting
projection:
Mosey could save $500 per month if
he bought instead of leased. “That’s
money I can keep in my own pocket
and not put in somebody else’s.” Mosey
said.
Nine years after making his first
buy in Anaheim, Mosey saw his business
was
bursting at the seams. He needed
more space and made another call
to his broker.
Earlier this year, Mosey bought just
more than 50,000 square feet of space
at 1550 N. Lakeview Ave. in Anaheim.
He then subdivided the building,
taking 31,000 square feet for his
company’s
operations and opening up some 20,000
square feet for sublease.
Mosey came
full circle, becoming a landlord
himself at his property.
He subleased
the space to Deco-Pac Corp., a
bottle labeling company.
Mosey’s company is a family-run
business co-owned with his sister Sheila. “It’s
a family business we’ve had for
27 years,” Mosey said. “We
make the parts that are then used
to build everything from laboratory
equipment
to aircraft refueling.”
Mosey’s situation hasn’t
been the norm. In the past, brokers
had a hard time selling business
owners on
buying instead of renting. The argument
back then was that business owners
would pay only a little more for
the luxury
of owning vs. leasing.” |