RANCHO DOMINGUEZ, CA – Responding to the needs of companies seeking relief commensurate with current market conditions, The Klabin Company announces the successful completion of a cost saving plan to extend a lease by City Logistics and Transport for 80,000 square feet of warehouse/distribution space in Rancho Dominguez, CA.
Frank J.H. Schulz III, SIOR, in the Klabin firm’s Torrance office reports that the new 64-month lease for property at 2000 University Dr. was secured in exchange for certain landlord concessions.
Schulz and Todd N. Taugner, SIOR, also in The Klabin Company’s Torrance office, represented City Logistics and Transport in the negotiations. Lease consideration was $2.65 million. Prudential Insurance Company is the landlord.
“Given current market conditions, we initiated a plan to meet City Logistics’ goals to secure a new five-year lease at a current market rate, and to free itself from certain obligations, including substantial exit provisions and maintenance obligations, as well as having the landlord perform building refurbishment items. In exchange, we helped City Logistics and Prudential complete a mutually beneficial lease extension,” Schulz said.
Schulz reports that as a result of the lease extension plan, City Logistics will immediately realize savings over the remaining 18 months of the initial lease term, a tenant improvement allowance, and a fully negotiated lease shifting tenant responsibility for capital items and providing tenant protection for the entire lease term.
Formed in 1980, City Logistics and Transport focuses on the distribution needs of the fashion industry’s retail and manufacturing sectors. The Rancho Dominguez facility, part of 200,000 square feet of warehouse/distribution space the company occupies in the South Bay, is a concrete tilt-up structure featuring 20 dock high loading positions and 21-foot warehouse clear height.
About The Klabin Company
Now in its fifth decade, The Klabin Company is ranked among the top 20 commercial real estate companies based in Los Angeles. The firm has offices in Los Angeles and Torrance, and is affiliated with CORFAC International. For more information go to www.klabin.com.
CORFAC International is one of the largest commercial real estate services organizations in the world. CORFAC is comprised of privately-held entrepreneurial firms serving more than 150 markets in The Americas and internationally through its KingSturge CORFAC International alliance. Last year, CORFAC firms completed over 9000 commercial real estate transactions, encompassing more than 300 million square feet and valued in excess of $30 billion. For more information on CORFAC visit www.corfac.com.