Tile Firm Expands Corporate Space in New Lease

ANAHEIM, CA-Eleganza Tile Inc. has signed a 144,000-square-foot lease that expands its corporate facility by roughly 50% and represents one of the largest leases signed in Northern Orange County this year, according to the Voit Real Estate Services team that represented the tile firm in the transaction. The property is located at 3125 E. Coronado St. in Anaheim and is centrally located near the 91 and 57 freeways. It is an industrial building, with 12% of the space space built out as office.

Mitch Zehner and Seth Davenport of Voit’s Anaheim Metro office, who represented the firm, have worked with Eleganza on seven real estate transactions during the last six years and “worked strategically to locate the ideal high-image property for this growing firm,” Davenport said. Explained Davenport: “We also created an economic package that allowed Eleganza to phase its move and its extensive tenant improvement plans without the firm having to absorb rental expenses at two facilities at the same time.” Landlord, Kilroy Realty, was instrumental in understanding Eleganza’s objectives and worked swiftly to ensure that the deal was brought to a successful close, he added.

Terms of the transaction were not disclosed. According to the latest Voit market report on the Orange County industrial market, the average asking triple-net lease rate for industrial space in the county was 52 cents per square foot per month. That figure was down 14.5% when compared with last year’s third-quarter asking rate of 61 cents and was two cents lower than last quarter’s rate. The record high rate of 80 cents was established in the first and second quarters of 2008. The Voit report noted that the county’s industrial market “displayed more promise of stabilization” in the third quarter, with availability continuing to descend from the high rates of 2009 and vacancy increasing only slightly.