Another industrial developer has bought a chunk of the Tejon Ranch Commerce Center.
Los Angeles-based Dedeaux recently announced it had closed on 12 acres, becoming the latest arrival to the 460-acre work in progress. Dedeaux paid $4.68 million, a representative said.
The site is located in Kern County, on the boundary line with Los Angeles County. Dedeau billed the location – about 85 miles north of Downtown Los Angeles – as a lower-cost alternative in the booming industrial segment.
“The Greater Los Angeles market is increasingly becoming supply constrained putting upward pressure on rents,” Rishi Thakkar, the firm’s director of real estate investments, said in a release, “which in turn places greater pressure on supply chain costs.”
He added that Tejon Ranch’s location near the southern end of the Central Valley — the most productive agricultural region in the country — made it a “superior value proposition” for companies moving goods throughout the west.
The Tejon Ranch Commerce Center is a roughly 460-acre commercial and industrial hub just off Interstate 5. The property is currently home to distribution centers for companies including IKEA, Caterpillar, Famous Footwear and L’Oreal; it still has 322 acres and approximately 14 million square feet available for development, according to its website.
Along with its relative proximity to the ports of Los Angeles and Long Beach, a critical nexus for trade with Asia, the location is also less than a day’s drive from San Diego, Phoenix, Las Vegas and the San Francisco Bay Area. In December, Scannel Properties, an Indianapolis-based firm, bought a 17-acre chunk of the site that will be leased by the San Bernardino-based prefab startup Plant Prefab.
The burgeoning commercial center is part of the Tejon Ranch Company’s master plan, which, along with a major retail center, aims to eventually build 35,000 homes. In December, after years of battles, an environmental group agreed to drop its suit against the residential project when Tejon Ranch committed to a “net-zero” community that includes 30,000 electric vehicle chargers.
Dedeaux develops warehouse, trucking and logistics facilities throughout Southern California and in the Bay Area. At Tejon Ranch, the company submitted plans for a dry bulk warehouse and distribution facility, according to the release, and expects construction to be completed in less than a year once those plans are approved.