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Friday, Sep 22, 2023

Santa Clarita Firm Takes Advantage of Tenant Market

In another example of strong businesses seizing opportunities in the current industrial real estate market, Alternative Metal Supply Inc. recently moved to a 50,688 square foot industrial property in Valencia. The transaction is one of the largest leases to date in the 3rd Quarter in the Santa Clarita area, according to the AIR Commercial Real Estate Association. Alternative Metal Supply, founded in 2004, designs and builds almost anything clients request out of metal and the company is also a metal recycling house. They serve the general public and small local businesses, as well as some of the largest contractors and aerospace companies in the nation. The company’s move to the industrial property at 28106 Avenue Crocker in the Valencia Industrial Center, will allow it to expand with additional product lines and services. The interior of the facility is currently being redesigned to include a new showroom that will showcase the company’s new capabilities in precision machining and sheet metal services. The new facility also enhances the company’s capacity to perform large scale projects, according to Leticia Tramondo, co-owner of Alternative Metal Supply. “This has been a long and gratifying journey for our company but we are confident the best is yet to come,” she said in a statement. For companies that are continuing to expand in a struggling economy the benefits of relocating in the current market can be significant. In what has become a tenant’s market, landlords are offering lower lease rates, increased tenant improvement concessions and staggered lease structures where the rates increase over time to accommodate for growth, among other benefits. “We’re seeing that anyone that is financially capable of taking advantage of the market is taking action,” said Jim Ebanks, of the LA North Team of Realty Advisory Group, Inc. Ebanks, along with Andrew Starnes and Lauren Ebanks, represented both the landlord and the tenant in the transaction. Details of the ten year lease agreement were not disclosed. “We see this transaction as having a positive effect, the new lease enables Alternative Metal Supply to substantially expand its presence and services within Valencia’s master planned business community and it will enable their employee base to expand,” Ebanks said. As prices seem to be reaching -or have reached- the bottom, transactions may be picking up speed. “With attractive pricing of properties, we see momentum to the industrial market heading into the fourth quarter, especially in sales because of the extraordinary financing opportunities available for qualified buyers,” he said, adding that interest rates are at or near all-time lows. When it comes to large transactions, the Valencia-based LA North Team of Realty Advisory Group, Inc. also represented RAH Industries in their purchase of the largest industrial building sold in the Greater San Fernando Valley in 2009 – the building that housed The Daily News, Ebanks added. Signs of Recovery A 21.52 acre parcel of land in Westlake Village drew numerous offers in a competitive bidding process recently. The last remaining development site in Westlake Village at 30800 Russell Ranch Road was acquired by a local commercial developer following a foreclosure by Bank of America. It was formerly owned by Opus West, which had planned to construct a 450,000 square foot office development with a fitness center at the site. Mike Tingus, president of Lee & Associates-LA North/Ventura, Inc., and Lee’s Grant Fulkerson, represented the buyer and the seller in the transaction. Although the commercial real estate market has been picking up in recent months, interest in this property was unusually high, said Tingus who interpreted this as a true vote of confidence for the Conejo Valley and its prospects going forward. Terms of the transaction were not disclosed. The buyer that prevailed in the bidding process, Selleck Development Group, purchased the property without entitlements. “Obviously there are challenges that go with acquiring land that is not entitled,” said Dan Selleck, president and owner of Selleck Development Group, in a statement. “But we live in the area and have done business with this community for over 20 years, so we are very confident that that we can come up with a development plan that the city and community will embrace.” Selleck has a track record of successfully developing projects during difficult economic times. In the mid-90s Selleck developed a 100-acre mixed use retail and industrial complex in Panorama City called The Plant, which came to market as the last recession was abating. The site had been the location for a General Motors factory that shuttered early in the 1990s. The Plant, which created 2,500 jobs, was largely credited with helping to revitalize the area, according to Selleck. The site on Russell Ranch Road has not been productive for more than 10 years. “This is one of the last great pieces of property in the Conejo Valley,” he said. “And once we have a development plan in place, we are confident we will enhance the community even more.” Business Growing American Heritage Landscape is also in expansion mode. The Canoga Park-based company that builds and enhances landscapes in homes, retail centers, and theme parks, recently opened a new facility in Chatsworth. The company’s recent projects include Los Angeles County Museum of Art, NBC Universal King Kong, Disney World of Color, Westmont College, Pomona College, Children’s Institute of Los Angeles, Naval Base Ventura County, Los Amigos Golf Course, and Los Verdes Golf Course. It has been operating since 1973. Kevin Cooper & David Hoffberg of Delphi Business Properties, Inc. represented American Heritage Landscape in the lease of the 30,000 square foot property in Chatsworth, which includes two buildings. Cooper also represented the landlord, the Care Family Trust. Previously, the property had been the home of Carey Steel. More Transactions Bay Alarm, one of the largest independently owned and operated burglar alarm companies in the country, has acquired an industrial building in Glendale to relocate its Van Nuys facility. The 9,700 square-foot building located at 1728 Standard Ave, was purchased for $1.73 million, according to Lee & Associates-LA North/Ventura, Inc. principals Brett Warner and Randall Kobata, who transacted the sale. It was important for Bay Alarm to be close to its customer base, said Kobata and this building provides good access for Bay Alarm’s greater Los Angeles operations, and it provides the office space they need with secured parking. The building had been on the market for only 30 days which is a reflection of the quality and features of the building, said Warner, who represented the sellers, Jack D and Myra S Taylor, Trustees. The buildings assets include tilt-up construction, higher, unobstructed clearance, private yard and ample parking, he said. Headquartered in Northern California, Bay Alarm operates 13 branch offices and serves more than 100,000 residential and commercial customers and communities throughout California. Pool Water Products, a national wholesaler of pool and spa chemicals and products, bought the building in Van Nuys it had been leasing for the past 30 years. Chuck Carmichael with NAI Capital, represented both Pool Water Products and the seller, The Heller Trust, in the transaction valued at $3.3 million. The 20,000 square foot industrial building is situated on 39,461 square feet of land at 8151 Orion Avenue. A 4,149-square-foot property that houses a Denny’s Restaurant in Palmdale was sold for $1.76 million August 27. Brandon Michaels, vice president of investments in Marcus & Millichap’s Encino office, represented the seller, a private investor. Staff Reporter Andrea Alegria can be reached at (818) 316-3124 or at aalegria@sfvbj.com.

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