Investment Group Purchases 410,000-Square-Foot, Class A Warehouse in Fontana, Calif.
Entire building leased to Anna's Linens for new distribution facility
Orange County, CA (July 19, 2011)
The investment group, 10721 Jasmine LLC, purchased a 410,000-square-foot, Class A industrial warehouse in Fontana, Calif. The property is located at 10721 Jasmine Street in the West Inland Empire submarket. The sale is valued at approximately $25 million.
Anna’s Linens, headquartered in Costa Mesa, Calif., signed a long-term lease for the entire building, which will serve as the national retailer’s new, centralized distribution center for the Western United States. The facility also includes 20,000 square feet of office space.
“We’re very pleased to have structured a long-term lease in a Class A industrial building that supports Anna’s Linens’ long-term business and customer fulfillment goals,” said Scott Gladstone, COO of Anna’s Linens. “By repositioning and expanding our distribution facility on the West Coast, we can significantly improve inventory allocation and fill rates at the store level. This represents a material change in Anna’s Linens’ operations, with the goal of enhancing customer service and increasing customer satisfaction.”
Jeff Cannon, corporate managing director, and Paul Jones, associate, of Studley’s Southern California Industrial Services Group represented the buyer in the transaction. “This was an opportunity to buy a building at below replacement costs and secure a long-term lease for the tenant at very favorable rents,” said Cannon. “The Inland Empire submarket is on the cusp of a monumental shift due to increased demand, and we anticipate significant rental rate increases over the next 12 – 24 months. In fact, rental rates are already on the march upwards.”
The building was owned by BlackRidge Real Estate Group, who was represented in the transaction by Tom Taylor and Steve Bellitti of Colliers.
The Inland Empire is widely considered to be the logistics capital of North America, and has convenient access to the I-10 highway, I-15 Highway and CA-60.
Studley is the only global tenant advisory firm with a pure tenant representation delivery platform. Founded in 1954, Studley pioneered this conflict-free business model. Today, with 19 offices nationwide and an international presence through its London office and AOS Studley throughout Europe, Studley provides strategic real estate consulting services to top-tier corporations, law firms, nonprofits, government agencies and institutions of higher education. Information about Studley and the Industrial Services Group is available at www.studley.com.
About Anna’s Linens:
Anna’s Linens, headquartered in Costa Mesa, California, was founded in 1987 by its current Chairman and CEO, Alan Gladstone. The company was named after his mother, Anna. Anna’s Linens is a rapidly growing specialty retailer of high quality, value priced home furnishings. Anna’s offers a broad selection of bedding, window coverings, bath accessories and other home décor items, including decorative pillows, housewares, kitchen textiles and area rugs. Anna’s Linens is a family run business dedicated to the altruism of its associates as well as giving back to the community. Anna’s currently operates over 275 stores in 18 states, with over 2,300 employees in retail locations including Alabama, Arizona, California, Florida, Georgia, Illinois, Louisiana, Maryland, DC, Mississippi, Nevada, New Jersey, New Mexico, North Carolina, South Carolina, Pennsylvania, Texas, Virginia, and Wisconsin.