Deal Keeps 99 Cents Only Headquarters In Commerce
By Jacqueline García, EGP Staff Writer
The 99 Cents Only Store Inc. has signed a multi-million dollar lease that will keep the company’s operations in the City of Commerce.
The retail chain store operator needed larger facilities to accommodate its growing business and has signed a 10-year agreement with KTR Capital Partners that will allow it to stay in the city.
Jesse Allen, vice president of estate development & property management for 99 Cents Only Stores, told EGP that it was important to them to stay in Commerce, where they have been located for more than 20 years. Since day one, we have had the support of the city and Commerce residents, Allen said. “We thought it was important to continue our business in this area.”
The giant discounter will move its’ warehousing operations from its site on Union Pacific to a facility being built at the Garfield Corporate Center on Garfield Avenue. The Union Pacific site will remain open and will handle other areas of the company’s business, according to Allen.
Commerce city Administrator Jorge Rifa said he is pleased 99 Cents Only will stay in the city. It was a “time-intensive process,” Rifa told EGP. He said Commerce has continued to act on the “fundamental principles of business retention,” which makes businesses want to stay in the city. He added that the new facility will be more than just warehouse space; it will be a corporate center.
“So, instead of having 15 guys working with forklifts, the company will have 300-400 employees,” Rifa said.
Although the terms of the contract were not disclosed, the lease of the 615,000 sq. ft. property is estimated at “nearly $44.4 million,” according to the LA Business Journal, which calculated the deal “at an average of 60 cents a square foot” a month.
“We have been working together with KTR Capital staff and representatives of the 99 Cents store to ensure the city find resolutions,” in regards to the lease, said Rifa. “We had to establish a process that is fair for all and it worked,” he added.
Considered a Class A property, the new location’s amenities include a 185-foot plus truck court, a 36-foot clearance height with 109 high loading positions and 430 parking spots for employees. For the last decade, it has been considered the largest “free-standing industrial building” in Los Angeles County.
The Garfield Center is located about a half a mile from the I-5 Freeway and about a mile from the I-710 Freeway, both major hubs of transportations for goods movement from the Ports of Los Angeles and Long Beach. It is about 5 miles from its current headquarters on Union Pacific.
Hoping to increase jobs for city residents, the Commerce Employment Business and Development Center announced in the city’s monthly “Report to the People” that they will be help refer job applicants to 99 Cents Only Store for hiring.
“We do not have a confirmed move date” yet, Maider Izeta, communications specialist with 99 Cents Only Stores told EGP. “However, it is our goal to relocate during summer/fall of 2015,” she said.Print This Post
July 3, 2014 Copyright © 2012 Eastern Group Publications, Inc.