FAQ: DAUM Commercial Secures New Headquarters for Off-Road Racing Tire Company in Santa Fe Springs

What is the main purpose of this real estate transaction?

DAUM Commercial secured a new 104,667 square-foot headquarters location for a leading manufacturer and distributor of off-road racing tires and wheels to support the company’s expansion phase and growing operations.

Where is the new headquarters located and what are its key location advantages?

The facility is located at 10000 Pioneer Boulevard in Santa Fe Springs, California, with immediate access to I-605 and I-5, and less than 20 miles from the Ports of Los Angeles and Long Beach, providing strategic proximity to key partners and client bases.

What are the key terms of the lease agreement?

The lease is for 94 months with a total value of $18.79 million for a 104,667 square-foot industrial building that is part of the Rexford Pioneer Logistics Center complex.

Why did the off-road racing tire company need to relocate?

The company is in an expansion phase and needed a larger, high-quality headquarters location to facilitate its growing operations while maintaining proximity to its existing operations and key business partners.

What are the key features and amenities of the new facility?

The Class A facility includes sustainable features like an air exchange system, EV charging stalls, and water-efficient landscaping, plus operational features such as 32’ warehouse clearance height, 11 dock-high positions, two ground-level positions, and Class A two-story office space.

How does the current real estate market affect this type of transaction?

According to Chuck Brill, businesses can currently lock in Class A product at prices well below what they were two to three years ago, though rates are steadily increasing from where they were just 6 months ago due to substantial absorption of quality Class A space.

Who were the key parties involved in this transaction?

DAUM Commercial, represented by Executive Vice President Chuck Brill, negotiated the lease with Rexford’s leasing team headed by Danielle Bray, Vice President of Leasing, on behalf of the off-road racing tire and wheel manufacturer.

What benefits does this new location provide for the tenant’s business operations?

The state-of-the-art features and strategic location with immediate freeway access and proximity to major ports will benefit the tenant’s business operations in the long term by supporting efficient distribution and logistics.

How did DAUM Commercial secure competitive terms for this lease?

DAUM evaluated many competing properties in the market, put out multiple offers, and ultimately negotiated a competitive lease rate for this new construction property through strategic negotiation.

What makes this property particularly suitable for industrial operations?

The building features 32’ warehouse clearance height, ESFR sprinklers, 1,800-amp electrical capacity (expandable to 3,000-amp), 11 dock-high positions, two ground-level positions, a large fenced yard, and a 139’ truck court designed for efficient industrial operations.