Tejon Ranch Co. (NYSE: TRC) today announced that it has agreed to terms on a lease with a company that will relocate its western US distribution operations from the Los Angeles area to the Tejon Ranch Commerce Center (TRCC) in the fourth quarter of this year. The company, which wishes to remain anonymous for the time being due to competitive reasons, will occupy approximately 390,000 square feet of space in a new 580,000-square-foot building TRC is developing in partnership with Majestic Realty Co. The new building represents the third partnership between TRC and Majestic Realty. Construction has commenced, and the building will be ready for occupancy in approximately eight months.
“This decision to move its western distribution warehouse from the Los Angeles area to TRCC underscores Tejon Ranch’s value as a proven and opportune place for companies wanting to locate and/or expand in California,” said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co. “Coming on the heels of L’Oréal USA’s decision last fall to move its professional salon distribution subsidiary, SalonCentric, from its Valencia facility to Tejon, it reinforces our location as a place where companies find great value in our compelling logistics model, our outstanding labor force, and where they have opportunity to grow and expand.”
“Majestic Realty is extremely pleased the partnership has been able to pre-lease a large portion of the new building we’re developing in partnership with Tejon Ranch Co.,” said Brett Tremaine, senior vice president at Majestic Realty Co. “Working in Tejon Ranch, the time required to deliver a building ready for occupancy is as efficient and expeditious a process as you’ll find anywhere in the state, and perhaps the country. And with L’Oréal, and now a second company moving up from Los Angeles, we believe many more companies currently located in the Los Angeles basin will want to avail themselves of the Tejon Ranch Commerce Center’s strategic location at the southern gateway to Kern County.”
“It makes perfect sense for growing companies located in Los Angeles to consider relocating operations to Tejon Ranch,” said John DeGrinis, SIOR, executive managing director of Newmark Knight Frank, who represented TRCC and the other party in this transaction. “As available space is at a premium in Los Angeles—and commanding premium prices—Tejon Ranch represents an attractive alternative for companies needing additional space and seeking value for their businesses.”
“TRCC’s central location with direct access to Interstate 5 allows companies to get their goods to market easily and quickly,” Rentfro added. “In addition, employees and professional drivers have access to a wide variety of adjacent amenities. And with total operating costs among the lowest in the state, TRCC gives companies opportunities to take their distribution operations to the next level.”
This newest tenant at TRCC imports goods for sale throughout the US and beyond and will therefore have opportunity to take advantage of TRCC’s status as a Foreign Trade Zone. All industrial sites within TRCC, totaling nearly 1,100 acres, are included in FTZ #276, which was re-established and expanded last year by the U.S. Department of Commerce in conjunction with Kern County. FTZ #276 is locally administered by the County of Kern and is one of the largest activated FTZs in California.
The Tejon Ranch Commerce Center is Tejon Ranch Co.’s 1,450-acre master planned commercial/industrial development located at the junction of Interstate 5 and Highway 99 in Kern County, about an hour north of the Los Angeles basin. It’s entitled for more than 20 million square feet of commercial and industrial space, with about 15 million square feet still available. In addition to the previously mentioned L’Oréal USA, the Commerce Center is also home to major distribution centers for IKEA, Famous Footwear, Dollar General (NYSE: DG), Vision Media and Caterpillar Inc. (NYSE: CAT).
About Tejon Ranch Company (NYSE: TRC)
Tejon Ranch Company is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. For more information on the company, please go to www.tejonranch.com. For more information on the Tejon Ranch Commerce Center, please go to www.tejoncommerce.com.
About Majestic Realty Co.
Celebrating its 70th Anniversary in 2018, Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. With more than 78-million-square-feet in its portfolio, Majestic provides real estate solutions for tenants large and small, creating jobs, tax revenue and community benefits across the country. Headquartered in Southern California, Majestic has regional offices in Atlanta, Bethlehem, Penn., Dallas, Denver, Fort Worth and Laredo, Texas, Las Vegas and Phoenix, Ariz.
About Newmark Knight Frank
Newmark Knight Frank ("NKF"), operated by Newmark Group, Inc. ("Newmark Group") (NASDAQ: NMRK), is one of the world's leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF's 16,000 professionals operate from approximately 430 offices on six continents. NKF's investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
Barry Zoeller (661) 663-4212