The signing of a record 255,500-plus-square-foot lease has been announced for a vast warehouse and distribution center under construction in Sun Valley.
OnTrac, a regional overnight package delivery service based in Chandler, Ariz., has leased the space at 11063 Pendleton St. in the new Sun Valley Business Center. It is the first lease agreement for the new industrial park, according to leasing agent Colliers International in Irvine.
Once finished, Sun Valley Business Center will also include a smaller, roughly 97,000-square-foot warehouse for a total 352,500 square feet. The industrial park, announced last year as a $58 million project, is a joint venture between Seal Beach’s Xebec Realty Partners, a warehouse and distribution center developer, and global asset management firm Barings’ investment advisory arm, Barings Real Estate Advisers. Barings represented an institutional investor in the lease negotiations.
According to Colliers, once built, the warehouses will be the first in the San Fernando Valley with several logistics and e-commerce-oriented features under one roof, including cross-dock loading doors on opposite sides of the building, 32-foot minimum height clearances, numerous dock-high loading openings, sufficient power for heavy electricity use and fenced loading areas.
Key to the property and its targeted logistics and e-commerce tenant market, which need increasingly faster delivery capabilities to key population areas, is its closeness to surface, air and rail transportation, including the Interstate 5 freeway. It’s also just north of Hollywood Burbank Airport.
Colliers Senior Executive Vice Presidents John DeGrinis and Patrick DuRoss, along with Vice President Jeff Abraham, represented OnTrac, with help from brokers John Kovaleski and David Buchholz. George Stavaris and Colette Ramirez, of Triniti Partners Inc. in Sherman Oaks, represented the owners.
“We have never seen such strong demand for a project so far in advance of construction completion,” DeGrinis said in a statement. “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.”
Construction is expected to finish in July.