Trammell Crow Co. officials are so confident in their industrial project, the Irwindale Business Center, that they have entered an option to buy a second phase.
The $63 million, 1.2 million-square-foot development is located near the San Gabriel River (605) and Foothill (210) freeways. After adding an additional 1.2 million square feet, the center will be the largest speculative industrial project in the San Gabriel Valley, according to Tom Bak, managing director of Trammell’s development investment group.
“This is generating very strong interest from the tenant community because most of what’s been developed out there has been larger buildings ranging from 250,000 to 400,000 square feet,” Bak said. “What we’ve put together is a series of buildings that vary in size to appeal to a number of tenants.”
Construction broke ground last October on the first phase, which consists of 10 buildings ranging in size from 33,000 to 324,000 square feet. Previously owned by Cal Mat Properties Inc., the site was a former quarry and was backfilled with compacted soil to bring it up to saleable condition.
Although no sales or lease deals have yet been signed, Bak said he is in negotiations with a number of distribution and manufacturing tenants who either want to lease or purchase the buildings.
“Our environment is a distinguishing factor in this project,” he said. “We have a Spanish motif, with lots of ample parking and lush landscaping. We wanted a real business park environment.”
Trammell Crow wasn’t just the builder of the largest project in the county last year, it was also L.A.’s most active industrial developer.
Other major projects included the Kearn Creek Distribution Center in the City of Industry. The 310,000-square-foot project cost $12 million and is 100 percent leased to logistics firm Universal Warehouses. Also in Industry was the 192,000-square-foot Turnbull Canyon Distribution Center. The $7 million project was pre-leased to furniture manufacturer Poundex.
Trammell is certainly not new to the development scene. Begun in 1948 in Dallas, the company moved to the Southern California market in 1972. Since 1997, it has acquired 375 acres of property and built 46 industrial buildings totaling 6.3 million square feet of space.
“It’s been difficult to assemble large blocks of space in this market,” Bak said. “We’ve seen tremendous amounts of confidence from tenants to expand and grow.”
Bak thinks 2000 will be another banner year. The company has several deals pending, including a contract to purchase a 660,000-square-foot parcel near Van Nuys Airport.
