Tejon Ranch Co. and Majestic Realty Co. form a new joint venture to construct a 580,000-square-foot Class-A industrial facility
TEJON RANCH, Calif.–(BUSINESS WIRE)–Nov. 2, 2018– Tejon Ranch Co. (NYSE: TRC) announced today a third joint venture agreement with Majestic Realty Co., the nation’s largest privately-held industrial developer, this one to build an approximate 580,000-square-foot speculative industrial building at the Tejon Ranch Commerce Center (TRCC).
The new building will be located next to a 480,480-square-foot building Tejon and Majestic built in 2017 and subsequently leased to Dollar General and L’Oréal USA in 2018. Dollar General’s lease effectively increased its footprint at TRCC by 40-percent, as it currently leases more than 600,000-square feet in a separate building located on the west side of Interstate 5. L’Oréal USA is moving its SalonCentric operation from a facility in Valencia, about 40 minutes south of TRCC.
“Given the success with our most recent building, and with the demand we’re seeing out of Southern Californiaand elsewhere, we wanted to move as quickly as possible to bring another new building online,” said Joseph N. Rentfro, Tejon Ranch Co.’s Executive Vice President of Real Estate. “Whoever occupies the space will find an abundant and high-quality labor pool to draw from and the opportunity to apply for tax incentives through the County of Kern’s AdvanceKern initiative, as did L’Oréal USA, which was approved for $2.3 million in tax rebates.”
“There continues to be a very tight market in terms of both available product and land available for the development of large scale distribution centers in Southern California,” said Majestic Realty Co. Senior Vice President, Brett Tremaine. “The Tejon Ranch Commerce Center features turn-key sites for distribution, manufacturing and e-commerce operations that allow users to serve southern and northern California, as well as all 11 western states, from one location, and as we believe many more companies currently located in the Los Angeles basin, like SalonCentric, will want to avail themselves of the Tejon Ranch Commerce Center’s strategic location and outstanding labor pool, it’s important to have a building ready for them.”
The building’s 34-acre site has more than 2,000 feet of frontage along the east side of I-5, just a half-mile north of the I-5/Laval Road interchange, providing almost immediate access to California’s principal north/south highway, with the ability to serve nearly 90% of California consumers within a single day truck turn. The Class-A cross-dock distribution facility will feature a 36-foot clear height, ESFR sprinkler system, 62 dock high doors, 177 trailer parking stalls and 327 vehicle parking stalls. A 180-foot wide truck court will allow for maximum efficiency and maneuverability.
Construction is expected to begin later this year or early 2019, with completion anticipated in the third quarter of 2019.
Tejon Ranch and Majestic also jointly own a fully-leased 651,909-square-foot industrial building within the Tejon Ranch Commerce Center on the west side of I-5, adjacent to IKEA’s 1.8 million square foot distribution center.
John DeGrinis, SIOR, senior executive vice president of Colliers International will serve as the listing broker for the new development.