Submarket’s Strength Trumps Economy For Developer
WESTERN REALCO ANNOUNCES $40 MILLION ‘SPEC’ DISTRIBUTION CENTER IN COMMERCE; OLTMANS CONSTRUCTION BEGINS WORK
CITY OF COMMERCE, CA – With uncertainty the watchword for the nation’s economy and commercial real estate, launching a 400,000 square foot speculative distribution facility in the close-in Los Angeles area might shake a few heads.
But, for developer Western Realco of Newport Beach, CA, there’s substantial comfort in knowing that its newest project in City of Commerce, CA stands alone in one of the Southland’s strongest submarkets with under three percent vacancy and a solid rent history.
Valued at over $40 million, Randolph Business Center is now under construction by Oltmans Construction Co. of Whittier, CA on a 16-acre site at 5959 Randolph St. James Wu, project manager for Oltmans Construction Co., reports that the building’s slab is complete and walls are scheduled to be erected around Christmas time. Total project completion is scheduled for May, 2009.
“We anticipate a successful project despite the economy because we feel we have a ‘Main on Main’ location in a strategic close-in Los Angeles market. Though we understand that there’s weakness in the overall market, the Mid-Cities submarket and Commerce have historically had low vacancy rates along with rents that have held up while other Southland submarkets have suffered,” Gary Edwards, principal of Western Realco, said.
Edwards added that the type of building Western Realco is developing is another positive factor. “A state-of-the-art 400,000 square foot facility is unique in the Commerce submarket and is a primary reason why we’ve moving forward. You just don’t find new buldings featuring 30-foot clearance, Early Suppression Fast Response (ESFR) sprinkler system, and on-site trailer parking in the close-in L.A. area,” he said.
Edwards explained that the site just south of the Santa Ana (5) Freeway near the Long Beach Freeway (710) via the Eastern Ave. exit is well located for manufacturing distribution or assembly use, and provides easy accessibility from the Ports of Los Angeles and Long Beach.
Designed by Bastien and Associates, Inc. of Tustin, CA, Randolph Business Center is a concrete tilt-up structure featuring 30-feet clear height, ESFR, 59 dock high loading spaces, skylights, a total of 356 on-site parking spaces, including truck spaces, an additional 60 truck trailer parking stalls, a 165-foot deep secured service yard, and over 10,000 square feet of office space. The building is available for lease by one or two tenants.
The striking building exterior is distinguished by a series of vertical and horizontal members that extend from the two-story focal point entrance areas, complemented by generous use of tinted glass. Ample landscaping is included.
John McMillan and Jeff Sanita of Cushman & Wakefield’s Los Angeles office are exclusive marketing agents for the new project.
“Randolph Business Center sits in the center of the City of Commerce, at the heart of the Central Industrial submarket of Los Angeles, which as of the 3rd Quarter of 2008, registered a direct vacancy rate of only 2.6 percent. It is literally the bull’s-eye of the Greater L.A. Basin. Land is expensive, in short supply, and large parcels rarely come available, so the barriers for new big box construction are substantial,” McMillan said. “When completed, Randolph Business Center is expected to be the only Class A industrial facility of its size available in the Central, South Bay, and Mid Counties submarkets.”