"The facility that the railroad intends to construct will improve goods movement at the Kaiser Commerce Center," says Nelson C. Rising, chairman and chief executive officer of Catellus. "The land sale also fits within our overall strategy for Kaiser, and will further enhance its value as one of the premier distribution warehouse sites in the Inland Empire."
The purchase price of the acreage should be revealed in a conference call scheduled for next week. In June 2000, Catellus acquired the 588-acre former steel mill site for $16 million. After the land sale to BNSF, the planned business park will be capable of supporting up to seven million square feet of additional development.
The California Transportation Commission has approved $18.6 million in state transportation funds for the design and construction of an improved highway overpass at the site, which is located near the intersection of Interstates 10 and 15, a freeway exchange that accommodates forty percent of the truck traffic that enters and leaves the state of California.
Catellus has recently signed an 86-month lease with Exel, PLC, a global supply chain management company, for an 830,000 sf build-to-suit distribution warehouse at Kaiser and a five-year lease for a 607,000 sf distribution warehouse for Specialty Merchandise Corporation, an import distribution company. SMC has an option to purchase the building upon completion, which is scheduled for the third quarter 2002.
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