Kearny is uniquely qualified given its development expertise and experience, land holdings and capital relationships to assist tenants and buyers with their build-to-suit requirements. Kearny has completed in excess of 1.5 million square feet of office and industrial build-to-suits.
Kearny was pleased to have been awarded the contract for the construction of the Los Angeles Air Force Base, a 542,000 sf build-to-suit and private sector development of the excess land in El Segundo and Hawthorne. Total project costs were approximately $500 million and this was one of the most complicated and creative public-private partnership build-to-suits in the nation.
Scripps Northridge has been the beneficiary of two build-to-suit projects for Nokia Mobile Phones. Both are office and research & development facilities. Kearny completed the entitlements for a 23 acre master plan development in El Segundo, Grand Avenue Corporate Center, and developed a build-to-suit for Infonet Services Corporate Headquarters. Kearny’s expertise extends to industrial product as well, completing a 413,000 sf industrial and manufacturing facility for The Scotts Company in Temecula, California, a 23,000 sf cold storage warehouse for Baja Fridge in Otay Mesa and a 100,000 sf warehouse and manufacturing facility for 9 to 5 in Hawthorne where Kearny designed and entitled the project and then sold the land.
Kearny’s significant experience with build-to-suits has taught us that every transaction is unique. We are thoughtful and diligent in working with our clients and consultants to provide the right solution. We have negotiated and completed build-to-suits for sale and for lease. We have completed highly specialized facilities with significant over-standard tenant improvements and have successfully competed in competitive RFP build-to-suit situations.
We have structured the transactions in which the land cost and developer fees were agreed to up front and the lease rate was determined at the completion of the job based on a negotiated return on costs. In this manner both Kearny and our client worked as partners to design and value engineer the project with both parties’ interests aligned. We have also structured build-to-suit transactions in which the client needed a fixed rent or sales price and Kearny took the risk to build the project within budget to the agreed upon specifications.
Kearny’s current land basis in master planned parks in San Diego, Riverside and Los Angeles Counties provide build-to-suit clients ready access to outstanding locations. The combination of this outstanding land basis, Kearny’s development expertise and experience, and ready access to capital, provide all the elements of a successful build-to-suit.