Making the Move

Turbonetics Inc., manufacturer of military and industrial equipment, recently relocated from Simi Valley to a larger industrial space in Moorpark to accommodate its growing business. The company held a grand opening in its newly leased, 47,000-square-foot facility at 14399 Princeton Ave. in late May. Last month, the company completely vacated its primary Simi Valley facility at 2255 Agate Court, where it has operated for more than 10 years, and the building it leased next door at 2267 Agate Court. The properties combined provided about 35,000 square feet of space. “We wanted the newer building so we could build it out just as we wanted,” said Ken Haney, director of sales and marketing. California Lasers Inc., a firm that provides sub-contract laser welding, cutting, drilling and other services to the medical, aerospace and semiconductor industries, on July 13 purchased the 21,700-square-foot space at 2255 Agate Court for $2.13 million, according to real estate brokerage firm Lee & Associates Commercial Real Estate Services. The company outgrew its current location in Simi Valley, brokers said. Market observers say the moves are indicative of the strong demand for industrial space that is both functional and located in a desirable area, attributes that often are tough to find in the greater San Fernando Valley area where the industrial vacancy rates are low. Turbonetics lease Turbonetics started in 1978 with about 500 square feet in Long Beach and over the years moved to six spaces, Haney said. The company last year decided to begin searching for a new space to accommodate its growing manufacturing business, which includes building turbochargers, intercoolers and regulators. The company’s turbochargers are used to power unmanned military vehicles, or drones, as well as industrial equipment such as generators, water stations and mining equipment, Haney said. Another sector of the company’s business is serving the automotive performance aftermarket, which uses the turbochargers in the racing circuit. Joe Jusko, a principal at Lee & Associates in Calabasas, handled the new lease in Moorpark for Turbonetics. Jusko said it took six to nine months to find the property because the company sought a space with specific criteria, including a securable yard, free-standing structure and percentage of office space to warehouse manufacturing. The company also wanted the new facility to be located in the same vicinity as its former space, Haney said. “We are about six miles away from our old space and being in the same area allowed us to keep our skilled labor force.” The lessor of the property at 14399 Princeton Ave., Sunbelt Enterprises LLC, was represented by Bob Kahn, first vice president of CBRE Group Inc. in Camarillo. Kahn could not comment on the lease due to a confidentiality agreement, according to CBRE. California Lasers purchase Spar Investment Company, the owner of the property at 2255 and 2267 Agate Court, put the 2255 Agate Court property for sale Oct. 14. It was listed for about $2.7 million, or a lease rate of $13,454 per month, as the seller was open to both options, according to Lee & Associates. Spar purchased the 2255 Agate Court property in September 2008. It took about six months for the property to go into escrow, which is normal for a property of this size, according to Grant Fulkerson, a principal at Lee & Associates Calabasas office who worked on the deal for Spar along with John Ochoa and Grant Harris, both principals in the Oxnard office. The buyer, California Lasers, could not be reached for comment as of press time. California Lasers was represented by John DeGrinis, senior executive vice president, Patrick DuRoss, associate vice president, and Jeff Abraham, senior associate of Colliers International in Encino. “This building was larger than we were looking for, but they are growing and it will accommodate them,” said DuRoss, who worked with California Lasers CEO Arthur Barukh on the deal. “The layout works well for them, as does the location.” The company was looking to stay in Simi Valley because the location was good for its employees, he added. California Lasers searched for a new space for more than a year before it found the Agate Court property, DuRoss said. The company had been operating in the roughly 4,000-square-foot facility it owns at 650 Cochran Street for about 15 years before deciding to move. The sale of the 2255 Agate Court property took a little longer than anticipated because Turbonetics was moving into its new space and had issues with it being ready, Fulkerson said. “We couldn’t close escrow until it was empty. They only moved out in early July and we had to do improvements, as per the sale agreement, and then it sold.” According to DeGrinis, California Lasers will make some improvements to the new building and will move in later this year.