Kearny Real Estate

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Scotts Build-to-Suit

Armed with local market knowledge and build-to-suit expertise, Kearny was able to capture a 412,580 sf build-to-suit assignment for the Scotts Company. The Scotts Company is the largest supplier of consumer garden products in the United States. The building is 412,580 sf and is the worldwide manufacturing and distribution facility for Scotts' lawn spreader division. The facility is located in Temecula, California, on 22.5 acres and was developed for a cost of $22 million. The industrial facility includes 185,000 sf of distribution space, 200,000 sf of manufacturing space, and 25,000 sf of office. It is tilt-up concrete construction, has 31 dock-high doors and a clear height of 29 feet. Kearny also provided Scotts with a $4 million over-standard tenant improvement allowance to assist them in funding the installation of their new state-of-the-art manufacturing lines. Kearny recognized the efficiencies The Scotts Company would achieve by relocating them from three separate facilities in Carlsbad, California. Kearny then spent the necessary time working with Scotts to understand their requirements and designed a facility to meet their needs. Once the preliminary design and concept was complete, Kearny negotiated a 15-year lease based on a fixed rent schedule and detailed building specifications. The project was developed on a fast track schedule with Scotts occupying 10 months after signing the lease. The leased investment was sold in March 2002 for $26.8MM net, which set a record per square foot price for an industrial facility in Riverside County. Architect: Smith Consulting Civil: Leppert Engineering Contractor: Keeton Construction