A Path to Building New Industrial Product

LOS ANGELES—Industrial developer Seventh Street Development has completed a near impossible feat: bringing new industrial product to the notoriously tight San Gabriel Valley market. The developer has broken ground on a 195,130-square-foot industrial project in Irwindale on one of the last remaining plots of land. It is the first speculative project in a decade, and the developer won the deal by partnering with the city and donating a portion of the land to American Veterans Post 113 Headquarters and Event Center.

“To be successful, we had to make sure that we could entitle the property and deliver something that the public wanted,” Craig Furniss, president at Seventh Street Development, tells GlobeSt.com about the firm's strategy to win the project. “The AMVETS is on the Eastern boarder of the property, and they had been there for 56 years. When we looked at the land, we knew that we couldn't tear down the AMVETS, so as part of this transaction, we made a donation to the AMVETS of California charity, and they allowed the location to buy the facility. We got the 10-acre site next door. This turned out to be the best solution. If we hadn't done that, we could have had a bigger project, but we would have had some very unhappy people. We didn't want to displace them ethically or morally. We are very pleased that the AMVETS now own their facility, and that we are able to move forward with our project. This is an example where doing good is good business.”

The redevelopment site became available after the dissolution of the Redevelopment Agencies. The particular site was attractive to Seventh Street not only because of the high demand in the market—where industrial vacancy rates dip below 2%—but also because of its proximity to public transit. “This is our most active market, and it is our third project in Irwindale,” says Furniss. “What we really liked about this site was the proximity to the metro station and the bus station. It is walking distance to both. Because of its proximity to transit, these buildings will be state-of-the art light industrial buildings with 26-foot clearance and ESFR sprinkler systems, so we could have small distribution facilities and we also think that manufacturers and R&D companies will be attracted. We see a lot more of that in the San Gabriel Valley, and because we parked these well and the public transportation, it will probably be a mix of those types of companies. The San Gabriel Valley has been rich in entrepreneurs that have an assembly operation and distribution all in the same place.”

Seventh Street has been involved with the site since 2014, when they first put in an offer to purchase the property. Because 10-acre infill sites in this market are very rare, there was a competitive bidding process. “We had been tracking this redevelopment site since 2014,” says Furniss. “There was a competitive and lengthy process held through the City of Irwindale. We were selected in 2015 and then there was a permit process to secure all entitlements before we closed escrow. We have a good relationship with the City of Irwindale, and this was a positive experience.”

Once complete, the project will bring five individual buildings to the market ranging in size from 28,420 to 49,380 square feet, with each building featuring 5,570 square feet of two-story executive office, large fenced private yards, 26-foot minimum clear height, dock-high and grade level loading, ESFR sprinkler systems, and ample parking. It is scheduled for completion in June 2017.

LOS ANGELES—Industrial developer Seventh Street Development has completed a near impossible feat: bringing new industrial product to the notoriously tight San Gabriel Valley market. The developer has broken ground on a 195,130-square-foot industrial project in Irwindale on one of the last remaining plots of land. It is the first speculative project in a decade, and the developer won the deal by partnering with the city and donating a portion of the land to American Veterans Post 113 Headquarters and Event Center.

“To be successful, we had to make sure that we could entitle the property and deliver something that the public wanted,” Craig Furniss, president at Seventh Street Development, tells GlobeSt.com about the firm's strategy to win the project. “The AMVETS is on the Eastern boarder of the property, and they had been there for 56 years. When we looked at the land, we knew that we couldn't tear down the AMVETS, so as part of this transaction, we made a donation to the AMVETS of California charity, and they allowed the location to buy the facility. We got the 10-acre site next door. This turned out to be the best solution. If we hadn't done that, we could have had a bigger project, but we would have had some very unhappy people. We didn't want to displace them ethically or morally. We are very pleased that the AMVETS now own their facility, and that we are able to move forward with our project. This is an example where doing good is good business.”

The redevelopment site became available after the dissolution of the Redevelopment Agencies. The particular site was attractive to Seventh Street not only because of the high demand in the market—where industrial vacancy rates dip below 2%—but also because of its proximity to public transit. “This is our most active market, and it is our third project in Irwindale,” says Furniss. “What we really liked about this site was the proximity to the metro station and the bus station. It is walking distance to both. Because of its proximity to transit, these buildings will be state-of-the art light industrial buildings with 26-foot clearance and ESFR sprinkler systems, so we could have small distribution facilities and we also think that manufacturers and R&D companies will be attracted. We see a lot more of that in the San Gabriel Valley, and because we parked these well and the public transportation, it will probably be a mix of those types of companies. The San Gabriel Valley has been rich in entrepreneurs that have an assembly operation and distribution all in the same place.”

Seventh Street has been involved with the site since 2014, when they first put in an offer to purchase the property. Because 10-acre infill sites in this market are very rare, there was a competitive bidding process. “We had been tracking this redevelopment site since 2014,” says Furniss. “There was a competitive and lengthy process held through the City of Irwindale. We were selected in 2015 and then there was a permit process to secure all entitlements before we closed escrow. We have a good relationship with the City of Irwindale, and this was a positive experience.”

Once complete, the project will bring five individual buildings to the market ranging in size from 28,420 to 49,380 square feet, with each building featuring 5,570 square feet of two-story executive office, large fenced private yards, 26-foot minimum clear height, dock-high and grade level loading, ESFR sprinkler systems, and ample parking. It is scheduled for completion in June 2017.