Leasing
DEALS of the YEAR
tranches over the 20-year term. Brookfield was
repped in-house by Jeremiah Larkin.
Whirlpool Corp.’s new Southwest distribution center at 3691 Perris Blvd.
Last August, Duke Realty Co. nabbed
Kelloggs Sales Co., an operating arm of
Kelloggs, as a tenant at its new industrial park
in Columbus, OH. The firm will use a 1.1-mil-
lion-sf-plus facility on 75 acres for its Midwest
warehouse and distribution operations. The
10-year BTS deal at Duke’s Park 70 at West
Jefferson is worth $36.6 million. Jim Clark,
SVP of Duke’s Columbus operations, acted
for the landlord in the deal, while Newport
Real Estate Services’ Glen Allen and Jenny
Shih, along with Mike Spencer of Ruscilli Real
Estate Services Inc., represented Kelloggs.
Whirlpool Signs on to Fill
Largest Spec Facility in US
When Whirlpool Corp. set out three
years ago to consolidate its Inland Empire
operations into one facility, its broker,
Jones Lang LaSalle, was faced with the
daunting task of finding a huge amount of
space in a very tight market. So tight, in
fact, that the team originally considered
buying land on which to build a facility.
That effort petered out after the firm was
unable to find a shovel-ready site of adequate size.
In November, they zeroed in on the
Perris Distribution Center, a 1.7-million-sf
asset IDS Real Estate Group was building
on a speculative basis. The value of the
transaction was not disclosed. Cushman &
The
DEALMAKERS
Tenant: Whirlpool Corp.
Landlord: IDS Real Estate Group
Tenant’s Representatives: Sam Foster,
SVP, Jones Lang LaSalle and Leslie Wendel,
senior real estate manager, Whirlpool. JLL’s
Judy Caruthers and Jon Holzer will monitor
the capital improvement process.
Landlord’s Representatives: Charles R.
Belden, executive director of Cushman &
Wakefield Inc. and IDS senior vice presidents Dan Sibson and Rob Fuelling.
“Whirlpool choosing this building is proof
that distribution facilities in the Inland Empire
Wakefield Inc. spoke for IDS in the deal.
Located on 80 acres at 3691 Perris Blvd.
in Perris, CA, the facility is believed to be
the largest single industrial structure ever
built on spec and amounts to the equivalent
of about 31 football fields.
Whirlpool will use the building to
house its Southwest regional distribution
operations. The firm’s total space usage
didn’t change by much—the three smaller
facilities that it consolidated out of are
together roughly the same size as its new
property. The new asset features cross-docking, 30-feet minimum interior clearance, 277 dock-high and four ground-level loading doors, ESFR sprinkler
system, 223-foot and 249-foot concrete
truck courts, trailer parking for 842 units
and 1,400 parking spaces.
continue to grow larger and move further
outside the Los Angeles basin, due in large
part to changes in the finished goods inven-
tories impacting the industry’s requirements
for fewer and larger warehouses.”
SAM FOSTER
“Global companies for several years now
have identified the Inland Empire as a key
strategic distribution location. Perris
Distribution Center provides a rare opportu-
nity combining excellent location, thoughtful
building design and function, as well as
proximity to a deep quality of surrounding
labor into one solution.”
CHARLES R. BELDEN
The technology giant Cisco Systems tapped
Jones Lang LaSalle to help it search for a million sf of office space in the Silicon Valley to
house 18,000 employees. The firm ended up
signing four leases in the San Jose area, one of
the tightest markets in the country. One of
them, brokered by JLL’s Scott Mathisen and
Erich Sengelmann in May, was a 12-year deal
for 471,580 sf of office and R&D space at the
Campus at McCarthy Ranch in Milpitas, CA.
DLA Piper’s Daniel Seubert and in-house rep
Dana Pesce were also part of the Cisco team.
The landlord, BRE/Milpitas LLC, was repped
by Equity Office Properties’ John Moe.
An 862,000-sf lease signed by the General
Services Administration kicked off the redevelopment of the former US Post Office Building in
Downtown Philadelphia. Located in
Brandywine Realty Trust’s Cira Centre, the
$265-million revamp of the historic site will give
the GSA a modern facility to house up to 5,000
Internal Revenue Service employees when it
delivers in July 2010. The 20-year deal is worth
$600 million. Tony Rimikis spoke for ownership, while Ellen Beears represented the GSA.
BMW of North America LLC tapped CB
Richard Ellis to help it finish its expansion plan,
which called for an 800,000-sf facility expandable to nearly 1. 4 million sf in the Northeast, a
450,000-sf asset in Chicago, and to dispose of
a facility in New Jersey. CBRE’s John Porter
worked to structure the deals to occur simultaneously. Ultimately ProLogis, repped by Steve
Bryan agreed to build both facilities, the largest
of which was an 870,000-sf asset at ProLogis
Park 33 in Lower Nazareth, PA. That 10-year
lease closed in July and is worth $44.3 million.
