A joint venture between Trammell Crow Co., a global real estate developer, and real estate investment manager Clarion Partners announced that vertical construction on the final subphase of development at the Center at Needham Ranch in Santa Clarita is underway.
The final phase of the project’s development pipeline includes 391,588 square feet of speculative industrial space across three buildings. The final phase also includes a 278,670-square-foot build-to-suit cross-dock facility for a global ecommerce tenant. Construction on the final phase is slated to be completed by year-end 2023.
In addition to the BTS facility, the final subphase at CANR includes the construction of three hyper-functional industrial buildings and one fully improved ancillary parking lot:
• Building 14 will include 198,451 square feet of logistics space. The facility has been pre-leased by DrinkPAK, an alcoholic and non-alcoholic beverage manufacturer, which currently occupies 172,324 square feet in Building 2 and 400,095 square feet in Buildings 3 and 4 at CANR.
• Building 17 will include 107,361 square feet of speculative logistics space.
• Building 18 will include 85,811 square feet of speculative logistics space.
• Parking Lot 16 will include a 3.3-acre paved, lit and fenced parking lot for auto and trailer parking.
“We are thrilled to be starting this final phase and to be delivering new Class A industrial space to the highly supply-constrained Los Angeles North submarket, which continues to have record vacancy due to significant barriers to entry,” John Balestra, principal with TCC Los Angeles, said in a prepared statement. “Our development is ideally located to capture the growing demand from tenants, which has remained strong based on a diverse range of occupiers who are active in the Los Angeles North market. Since TCC commenced construction in 2017, we have enjoyed significant support from the city of Santa Clarita and the Santa Clarita Valley Economic Development Corp. in partnering to attract high-quality companies to the project.”
Phillip Tsui, senior vice president for TCC, added that “TCC and Clarion recently completed the preleasing for Building 14 and the adjacent 3.3-acre trailer lot to DrinkPAK. The company will now occupy 770,000 square feet at CANR, representing one of the largest food and beverage transitions in Los Angeles history. We are grateful for the efforts of Patrick DuRoss, John DeGrinis and Jeff Abraham of Newmark in assisting DrinkPAK in three separate transactions over the past two years.”
In addition to DrinkPAK, current tenants at CANR include LA North Studios, which leased 113,640 square feet in Building 5 for a satellite soundstage, and Illumination Dynamics, which leased 67,600 square feet at the development’s first completed building.
This final phase of TCC’s development pipeline is part of the larger CANR development, which spans 250 acres and includes 1.9 million square feet of Class A industrial space. The entire CANR development is expected to be complete in the fourth quarter of 2023.
Consistent with earlier phases, the general contractor for the project is Oltman’s Construction Co., the architect is HPA Inc. and the civil engineer is Alliance Land Planning & Engineering. CBRE’s Craig Peters, Doug Sonderegger and Cameron Merrill are the leasing agents for the property. Construction financing is being provided by Comerica Bank and Citizens Bank.
CANR is adjacent to the San Fernando Valley, approximately a mile north of Interstate 5 and adjacent to Highway 14, providing immediate access to the greater Los Angeles region with more than 5 million people within a 30-minute commute. Situated at the southern entrance to the city of Santa Clarita, the CANR is positioned for a breadth of uses, including but not limited to last-mile and regional distribution, studio and entertainment, manufacturing, research and development, and corporate offices.