*Courtesy of Commercial Observer (Source Article)
*Image Above: Brett Dedeaux, chief executive and managing partner of Dedeaux Properties; Gregory S. Bielli, outgoing President and CEO of Tejon Ranch Company; and Tejon Ranch Warehouse and Distribution Facility in Lebec, Calif.of Commercial Observ
October 11, 2024
By Nick Trombola
As Southern California’s industrial market becomes increasingly saturated, developers are looking to move projects farther north into less developed territory.
Case in point is Tejon Ranch Company (TRC) and Dedeaux Properties’ joint venture plan to develop a 510,500-square-foot warehouse at the Tejon Ranch Commerce Center (TRCC), a sprawling mixed-use, master-planned community in California’s Kern County.
The new warehouse will be constructed on a 25-acre parcel, on the east side of Interstate 5. JLL (JLL)’s Mac Hewett, Mike McCrary, and Brent Weirick will handle leasing efforts for the facility.
“Our new partnership with Dedeaux reinforces our commitment to growing Tejon Ranch Company’s portfolio of Class A industrial assets at TRCC,” Derek C. Abbott, executive vice president of real estate at TRC, said in a statement. “We currently enjoy 100 percent occupancy of industrial space at TRCC, and this project brings new supply to serve tenants actively seeking the advantages that our strategic location, strong labor pool and operational efficiencies can provide.”
Tejon has delivered 8.2 million square feet of industrial property at TRCC to date, with another 11.1 million square feet entitled and primed for development.
Industrial isn’t the only asset type represented at the center, however, as the company has also developed 674,000 square feet of other commercial space, including the 320,000-square-foot Outlets at Tejon, an open-air retail plaza. The 228-unit first phase of apartment complex Terra Vista at Tejon is also under development, and is expected to open in Spring 2025.
“We learned from our first development that both third-party logistics companies and major retailers are finding that TRCC has become an efficient distribution hub for shipping goods throughout California and the West,” Brett Dedeaux, chief executive and manager partner of Dedeaux, said.
Even as the Inland Empire bounces back from a period of slowing growth, Central California counties like Kern are poised to become the next beacon of industrial development in the state due to sheer open space, cheaper land and legislation like AB 98, which aims to push development away from existing neighborhoods.
Take for example billionaire couple and The Wonderful Company owners Stewart and Lynda Resnick, who earlier this year submitted rezoning applications to double the size of a 1,625-acre, master-planned industrial campus they own near Shafter, Calif.
Dedeaux also recognizes the opportunity, having sold a 233,000-square-foot warehouse at TRCC with partner Basis Investment Group to an unnamed clothing distributor for $37.1 million in March.
Nick Trombola can be reached at [email protected].