Tenant’s Big Expansion At Needham Ranch

DrinkPak, which last November signed a seven-year, 172,324-square-foot lease at The Center at Needham Ranch, already is more than tripling its space – expanding by 400,095 square feet at the Santa Clarita industrial park.The alcoholic and non-alcoholic beverage manufacturer, which has been occupying Building 2 at Needham Ranch, has now committed to leasing Buildings 3 and 4 for a total of 572,419 square feet at the site, which was developed in a joint venture by Trammell Crow Co. and Clarion Partners.“Demand for our production services has far exceeded our initial expectations, so we needed the additional space to support manufacturing operations,” said DrinkPak Chief Executive Nate Patena in a statement. “Our initial building will be manufacturing only, and the two new warehouses will be raw material and finished goods storage.”DrinkPak’s product line includes energy drinks, canned cocktails and hard seltzers. This quarter, DrinkPak began operations at Building 2, which currently houses the company’s procurement support, complex batching and processing, filling, packaging, on-site storage and distribution.  Building 3 and 4 will expand on that production. Building 2 features 36-foot clear height, 14 dock positions and 204 parking spaces. Building 3, at 212,236 square feet, and Building 4, at 187,859 square feet, have identical features.Collectively at these three warehouses, DrinkPak will create three beverage packaging lines capable of producing up to 4,900 cans per minute. At full operation, DrinkPak intends to employ 200 employees with the goal of producing 1.9 billion cans of product annually.  “We are thrilled to deepen our roots in Santa Clarita and grateful for the ongoing support of Holly Schroeder and her team at the Santa Clarita Economic Development Corp. and the City of Santa Clarita to help us expedite a complex permitting process for this facility,” said Patena.John Balestra, principal with Trammell Crow’s SoCal – Los Angeles Business Unit, added: “We are excited to welcome DrinkPak’s additional space requirements at the Center at Needham Ranch.” As with last November’s original lease signing, CBRE’s Craig Peters and Doug Sonderegger represented landlords Trammell Crow and Clarion in the transaction while Newmark’s John DeGrinis, Patrick DuRoss and Jeff Abraham represented tenant DrinkPak.“It’s nice to see a massive operation that’s manufacturing in this ecommerce market,” said DeGrinis, whose industrial domain has been dominated by warehouse leases for Amazon.com Inc. distribution centers in recent quarters.The Center at Needham Ranch industrial park currently has 850,000 square feet of industrial space. Later this year, the developers will embark on creating another 725,000 square feet as part of the project’s second phase.“DrinkPak is on its way to becoming a major employer in the Santa Clarita Valley and we look forward to their continued growth and success,” said Schroeder of the Santa Clarita Economic Development Corp. in a statement.