Almost all development projects have unexpected challenges (think Murphy’s Law). Moreno Valley was no exception. El Dorado Stone had a lease on 2/3’s of the site thru 2015 and an option to extend on a smaller portion of the site. Our underwriting, including a tenant interview, left us confident that the tenant would not exercise their option. The unexpected happened and the tenant exercised their option for 1/3 of the site – the worst outcome. Indicative of Kearny’s problem solving abilities, Kearny was able to secure a 20-year ground lease on the Orange Avenue site, successfully process a Mitigated Negative Declaration and complete $5mm of improvements needed for El Dorado Stone’s use and lease the site to El Dorado Stone. El Dorado Stone has a better site, with freeway visibility and lower rent – a true Win-Win and Kearny was able to free up the 52 acre Moreno Valley site for development.