$13M Home Depot Lease Takes 650,000 SF

CB Richard Ellis, which represented the tenant in both deals, reports that the Home Depot transaction is a $13-million, five-year lease for 650,000 sf for a facility now under construction at Majestic Realty's Grand Crossings Industrial Park. The tenant is the Home Depot Supply Inc. division of the chain, which services business-to-business customers such as building and property managers and maintenance professionals.The CBRE team that represented Home Depot included Frank Geraci, Walt Chenoweth, Laird Perkins and Dan De la Paz. The 650,000-sf facility, at 21535-21651 Baker Parkway, will serve as a warehouse/distribution center for the company. Construction of the facility is expected to be complete by the end of the year.The Home Depot lease is typical of the kinds of deals that many large national concerns have been signing for years now at the large distribution centers in the San Gabriel Valley, the Inland Empire and other industrial centers in Southern California. But the Restoration Hardware deal is unusual, just a one-month lease for 151,092 sf at 13220 Orden Dr. in Santa Fe Springs. Jamie Kim of CBRE's Diamond Bar office explains that Restoration Hardware needs the space to hold public weekend warehouse sales in the month of May, a move designed to increase short-term cash flow on an interim basis to support the opening of new outlet stores around the country. The lease was considered by brokers to be one of the more difficult lease requirements to fill due to the short-term need, a tight budget and a tight window to ink the deal. Kim represented Restoration Hardware, with landlord Golden Springs Development Co. LLC represented by Clyde Stauff at Colliers Seeley International.Restoration Hardware contacted CBRE on March 29 to fill the requirement, with a deadline for closing the deal within weeks. Kim reports that finding a landlord who was willing to sign a one-month lease for a building this size was very difficult, particularly because the client had a tight budget and wanted to pay a less than market lease rate. "The landlord response was minimal and left only two choices based on feasibility of the requirement," Kim says.Restoration Hardware will hold weekend warehouse sales this month beginning May 13.