Regency Lighting Moving to Chatsworth, Adding Jobs

Regency Lighting, a wholesale lighting distributor based in Van Nuys, is consolidating operations, moving to a new headquarters in Chatsworth, and hiring more than a dozen new employees. “We currently have three separate buildings in Van Nuys, which makes it difficult to have a rhythm with employees,” said Ron Regenstreif, co-owner and CEO, adding it will shut down all Van Nuys operations and move 130 employees to Chatsworth by late May or early June. Last summer, Regency purchased a 47,500 square foot industrial building at 9261 Jordan Ave. in Chatsworth. The company paid $5.7 million or $120 per square foot, according to CoStar Group. It added 14,400 square feet of mezzanine space to the property. Matt Dierckman and team of CBRE represented Regency and Robert Stratton of Stratton Industrial/Commercial represented the seller. Bank of the West financed 70 percent of the transaction. The bank also assisted Regency in the purchase of a 30,000 square foot industrial space in Atlanta. “We’ve looked into moving for the past 10 to 15 years, and have come close to buying,” said Regenstreif, adding the company decided to jump because it’s financially stable, real estate prices have dropped, and the Chatsworth facility was a shell that could be built out. Site: The 47,500-square-foot building at 9261 Jordan Ave. Nationwide presence Regency Lighting, dba of Regency Enterprises Inc., opened in 1983. It has six offices nationwide including operations in the Valley, Northern California, Atlanta, Dallas, New York/New Jersey, and Orlando. The company’s revenues increased from $2.5 million in 1986 to $77.9 million in 2006. Revenues in the past three years were flat, the highest level of growth in the economic downturn, joked Regenstreif. Financing a capital expansion at a time when credit markets are tight is no small deal, said Jason Horstman, senior VP and manager of the national banking division of Bank of the West. “The leadership and commitment by Regency’s owners and family members have demonstrated growth and the ability to manage growth,” said Horstman. “In our business, when you’re supporting a company that’s growing, that’s the best thing you can do.” Commercial real estate is a different ball game than a few years ago, he said, and Bank of the West has revisited some of its lending practices. But the bank remains a reliable source of capital for qualified borrowers. Horstman said Bank of the West has been Regency’s primary banking partner since 2006. “It’s a family-owned business with three sons in the company and a 50/50 business partner,” he said, adding that’s a good combination. Michael Goldstone is Regency’s chief operating officer and co-owner. Extensive search Matt Dierckman said the CBRE team helped Regency look at a dozen or more properties throughout the Valley, including build-to-suit, existing, for lease, for sale and more. And the company had a heavy requirement for office space. “Finding the building in Chatsworth was almost an accident,” said Dierckman, adding they decided to look at it with Regency principals after checking out another property around the corner. The selling point: Regency could build its offices from the ground up and the price was right. The deal was also good for Chatsworth, because sales and leasing activity has been slow in the area, said Dierckman. Regency incorporated energy efficient designs into the new facility, such as a cool roof, upgraded air conditioning, sky lights, and energy efficient lighting. Woodland Hills-based Pinnacle Contracting Corp. is general contractor on the project. The company plans on using 33,000 square feet for warehouse space and 29,000 square feet for offices. It plans on hiring 14 or 15 new employees companywide. Evan Regenstreif, Ron’s son, said Regency also hopes to use a portion of the new facility as a training center to educate professionals in the electrical wholesale, engineering, architectural, and public utility communities. “We have every piece of lighting technology in our building,” he said, adding the company wants to help professionals better understand lighting and energy efficiency.