LOS ANGELES–Outer space and baked food. Two items that don't usually go together. But both were involved in separate big lease deals in the South Bay that saw tenants take on 233,108 square feet of industrial property.
In the first deal, Space Exploration Technologies, known as SpaceX, has subleased a building in a deal valued at more than $8 million. The Saywitz Co. represented Radiant Logistics, a national logistics provider headquartered in Bellevue, Wash., in the sublease of 142,000 square feet of industrial and distribution space at 2701-2705 El Segundo Blvd. in Hawthorne. The sublease is a result of consolidation efforts by Radiant Logistics for its operations in Southern California.
SpaceX was represented by Jeff Kernochan of Fisher and Co. Scot Kelly of the Saywitz Co. represented Radiant Logistics. The transaction allowed Radiant Logistics to divest more than $3 million in lease obligations and incorporates a long term lease by SpaceX directly with the owner of the building, Karney Real Estate.
The second deal involved Two Chefs on a Roll, a manufacturer and distributor of custom savory and baked food products, with a specialization in desserts, sauces and specialty food items for restaurant chains.
Barry Saywitz, president of the Saywitz Co., completed a lease renewal that saw Two Chefs renew its headquarters facility lease at 18201 Central Ave. in Carson. The 11-year transaction for 91,108 square feet is valued at more than $10 million. The landlord, the Carson Cos., represented itself in the transaction.
“This transaction provided for a lease restructuring to allow our client to invest considerable additional monies for infrastructure and expansion of their operations in the building itself and to secure its presence here in Southern California on a long term basis,” said a statement from Saywitz. “The transaction also provided the landlord with the security of a long-term credit tenant.”
Two Chefs on a Roll is owned by Bakkavor Group in the United Kingdom.
As previously reported by GlobeSt.com, the South Bay industrial market has turned around dramatically. Vacancies are dropping and there are record rates of absorption.
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