KTR Capital Preleases 615 KSF Project in LA to 99¢ Only Stores
- Jun 17, 2014
KTR Capital Partners has broken a record at its Garfield Corporate Center project in Commerce, Calif. The industrial real estate company just signed 99¢ Only Stores to a prelease for the entire 615,000-square-foot development, marking the largest industrial infill lease in Los Angeles County history.
Garfield Corporate Center, a speculative project sited on a 28-acre parcel at 6100 Garfield Ave., holds the distinction of being the largest free-standing industrial building to be constructed in metropolitan Los Angeles in 10 years, and one of a mere 14 state-of-the-art, 500,000-square-foot-plus distribution centers to sprout up in Los Angeles County within the last 16 years.
KTR was able to reel in the big fish for its development with the assistance of commercial real estate services firm JLL.
“The lease up of the building prior to completion is a testament to the quality of KTR’s design,” Paul Sablock, an executive vice president with JLL, said in a prepared statement. It’s also a testament to the strength of the local industrial market. As JLL notes, the Central Los Angeles submarket is the tightest in the Southern California region, having recorded a 3.5 percent vacancy rate in the first quarter of the year.
And the Garfield Corporate Center transaction was quite a coup for the 99¢ Only Stores, as well. As commercial real estate services firm Colliers International notes in a first quarter report, “[Garfield Corporate Center] is the type of state-of-the art modern distribution facility that would normally only be seen within the Inland Empire.
KTR, which is relying on C.E.G. Construction to serve as general contractor, expects to wrap up development of Garfield Corporate Center by the close of the second quarter.