In the second lease executed in a six-month period, Tejon Ranch Co.
signs confidential agreement with a company that will relocate its west
coast distribution operation to TRCC, the logistics hub located at the
gateway to Kern County--California’s fast-growing distribution region
TEJON RANCH, Calif.--(BUSINESS WIRE)--Feb. 14, 2019--
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,
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190214005350/en/
Source: Tejon Ranch Co.
Barry Zoeller (661)
For Majestic Realty Co.
Marty Schechter (303) 987-8163