Dedeaux Properties has acquired a 12-acre land parcel from Tejon Ranch Co. entitled for up to 250,000 square feet of industrial development within the Tejon Ranch Commerce Center.
Dedeaux has submitted plans for a speculative dry bulk warehouse/distribution facility with 32-foot clear height and excess trailer parking. Once plans have been approved, Dedeaux expects construction to be completed in nine to 12 months.
Dedeaux currently manages a portfolio of more than 6 million square feet of warehouse, trucking and logistics properties, located in Los Angeles, the Inland Empire, Santa Clarita, and the San Francisco Bay Area.
Tejon Ranch provides another foothold in an important regional submarket as the firm continues to broaden its scope of warehouse for retailers and logistics firms throughout California.
“The greater Los Angeles market is increasingly becoming supply constrained putting upward pressure on rents, which in turn places greater pressure on supply chain costs,” Dedeaux Properties’ Rishi Thakkar said in a statement. “Tejon Ranch, which is strategically located in the southern portion of California’s Central Valley, is a location that has proven to represent a superior value proposition for regional users who need to move goods throughout the Western United States.”
The Tejon Ranch Commerce Center is a 20-million-square-foot master-planned development on 5 Freeway, just north of the Los Angeles basin. It already has nearly 6 million square feet of industrial, commercial and retail space, including distribution centers for Ikea, Caterpillar, Famous Footwear, L’Oreal and Dollar General.
“Dedeaux’s planned development further solidifies the attractiveness of the Tejon Ranch Commerce Center,” Joseph Rentfro, Tejon Ranch Co.’s executive vice president of real estate, said in a statement. “Tejon Ranch Commerce Center offers companies both a strategic location and significant logistics-based amenities, including ample fuel, parking and food options for their employees. Its location at the junction of I-5 and Highway 99 gives immediate access to the interstate, proximity to the Ports of Los Angeles and Long Beach, and provides a strategic base where companies can efficiently serve all of California and the adjacent western states.”
Shares of Tejon Ranch (TRC) closed Friday up 4 cents or a fraction of a percent to $16.50 on the New York Stock Exchange on a day the Dow fell 1.4 percent.