As demand for shortened delivery timelines continues to grow, a team of Colliers International brokers has completed a landmark 255,528-square-foot lease transaction at the state-of-the-art Sun Valley Business Center now under construction in the east San Fernando Valley. The two-building project has an expected completion date of July 2017. The building is located at 11063 Pendleton Street, Sun Valley, very close to Interstate 5, and just North of Burbank Airport, making it an excellent location for goods distribution.
The developer is a joint venture between Xebec Realty Partners, long a pioneer in building urban infill warehousing and distribution buildings, and Barings Real Estate Advisers, the global real estate investment adviser. The tenant is OnTrac, a logistics company specializing in contracting regional shipping services in the Western United States.
“Although we faced a number of challenges in the pre-construction process (due to the site’s undocumented and hydraulically sleuthed material), our team of contractors, geologists and engineers, working with city planners, are turning this once undevelopable truck storage yard into a 15-acre, two-building logistics masterpiece,” said Xebec’s Chief Operating Officer Gretchen Sauer. “It will serve as a model as we move forward to find more urban, infill sites to fulfill the need for ever-faster deliveries of products by e-commerce firms.”
The Sun Valley Business Center will be the first in the valley to include cross-dock loading, 32-foot minimum height clearances, abundant dock-high loading positions, a power platform to provide heavy electricity use, fenced loading areas, drive-through truck and van loading paths, and other specialized amenities utilized by logistics companies.
The second building will total 96,970 square feet and, upon total buildout, the center will encompass 352,498 square feet. “We have never seen such strong demand for a project so far in advance of construction completion,” noted SVP John DeGrinis, SIOR, one of the listing brokers for the project. “We had several groups negotiating on the 255,528 square foot building with over one year remaining prior to delivery and we currently have more interest in the smaller building. We attribute this to the lack of available supply but also to the unique attributes of the site that accommodate today’s growing e-commerce and warehousing industries.”
The Colliers team that represented Xebec and Barings Real Estate Advisers, who acted on behalf of an institutional investor, in this long-term lease transaction, was led by Senior Executive Vice President John DeGrinisSIOR, Senior Vice President Patrick DuRossSIOR, and Vice President Jeff AbrahamSIOR, all based in the brokerage firm’s Encino, California, office. George Stavaris and Colette Ramirez, both partners in Triniti Commercial Real Estate of Los Angeles partnered with Team DeGrinis in representing the landlord. The Colliers team, along with Colliers brokers John Kovaleski and David Buchholz, from Colliers Silicon Valley office, also represented OnTrac in the landmark lease transaction.