Services

Client: FMI International
Property: Warehouse distribution/logistics, 924,807 SF, San Pedro, California
Transaction: Lease – LAREM is the tenant representative broker

Summary: FMI International, based out of Carteret, New Jersey, expanded its operations to the West Coast in the mid-1990’s to accommodate its clients’ increasing import cargos through the Ports of Long Beach and Los Angeles. Before too long, they had outgrown their 315,000 SF logistics building located close to the ports in the South Bay area of Los Angeles.

Challenge: Assist this port–area-based logistics firm in the expansion of their Southern California operations by identifying a facility close to the Ports of Los Angeles and Long Beach that could accommodate the anticipated tripling of their space requirement and the associated high volume of truck traffic and container staging/storage.

Solution: After an exhaustive search, LAREM identified the newly developed 1.9M SF Port of Los Angeles Distribution Center as the site that would best accommodate FMI’s rapid growth and high truck/container volume. This project was chosen because it satisfied all of FMI’s operating efficiency criteria: single expansion location, close to the ports, superior dock-high loading, state-of-the-art fire prevention systems and large container staging/storage yard. At the same time it also met FMI’s financial relocation goals: phased ramping up to the final space, competitive new building lease rate and low new construction property maintenance costs.

Result: FMI was able to satisfy its large expansion requirement in one project, gradually absorbing its final space. At the same time operating efficiencies were significantly improved resulting in labor cost savings and increased customer satisfaction. All this was accomplished with a competitive lease rate structure that helped the company meet its bottom-line objectives.

Client: Mariak Industries
Property: Single-tenant industrial building, 83,494 SF, Compton, California & 4 smaller single-tenant standalone buildings totaling 40,000 SF, Torrance, California
Transaction: Purchase & Sale – LAREM was the tenant representative broker for the acquisition of a single, larger industrial building. LAREM also served as sale listing agent for the disposition of their four smaller buildings

Summary: Over the years Mariak Industries had facilitated their expanding business operations by acquiring neighboring properties as they came available. At the peak, they operated 4 separate facilities, which was not only inefficient, but also unable to accommodate future growth.

Challenge: Identify a suitable light manufacturing/assembly facility for Mariak Industries to acquire. Complete the necessary improvements to the expansion property to accommodate a relocation of its business with minimal interruptions to operations. Commence with the marketing for sale of Mariak’s four existing buildings and time the sales to close escrow within six months after the acquisition of the new property to facilitate an IRS 1031 Tax-deferred Reverse Exchange. Also time the purchase and sale escrow closings so as to allow for the orderly relocation of ongoing business operations to the new facility.

Solution: In a historically low-vacancy market, LAREM’s tenant rep team identified for Mariak’s consideration all suitable properties that were on the market for sale. In addition, LAREM’s market research group checked its data bases for any properties with upcoming lease expirations, and contacted these ownerships regarding any interest in selling. Through this process, a property ideally suited for Mariak’s operations was uncovered, and LAREM was able to negotiate a purchase. During the escrow, LAREM’s asset management team assisted the client in defining and competitively bidding the work items required to make the property ready for their occupancy. Contractors were lined up and work was scheduled to commence immediately upon closing. Concurrent with the escrow for the relocation facility, LAREM commenced with the marketing of Mariak’s four existing buildings for sale. LAREM guided the timing of these sales to facilitate an orderly transition to the new property and at the same time qualify each closing as an IRS 1031 Tax-deferred Reverse Exchange.

Result: With its move into a new facility, Mariak was able to consolidate its operations and accommodate its plans for future growth. The resultant improvement in operating efficiencies will benefit the company for many years to come. Lastly, the sale of the four smaller buildings at 40-50% higher prices per square foot than the acquisition cost of the expansion facility provided irrefutable financial justification for the principal of Mariak to make this sound investment in his company’s future.

Client: NewAge Electronics
Property: Warehouse distribution, 111,500 SF Carson, California; 185,629 SF Carson, California; 172,912 SF Grove City, Ohio & 31,975 SF Miami, Florida
Transaction: Lease – LAREM is the tenant representative broker

Summary: In the early 1990’s, NewAge Electronics operated its business out of a 35,000 SF warehouse distribution facility in Rancho Dominguez, California. Their consumer electronics product line was imported through the Port of Long Beach and their nationwide distribution network was just beginning to evolve. When NewAge principals decided to pursue an ambitious plan for growing the company, LAREM was given the assignment of representing them in the securing of new facilities.

Challenge: Assist this growth-oriented firm in the securing of a larger import warehouse distribution facility in proximity to the Port of Long Beach. As the nationwide distribution network requirements dictated, help identify additional facilities throughout the United States that would off-load the Southern California operations and improve customer service. Accomplish NewAge’s growth objectives without compromising budgetary goals and while still maintaining the high-image building requirement associated with the consumer electronics industry. Throughout this process of expansion, serve as a single broker point-of-contact for all of the client’s real estate needs, eliminating the need for management to expend valuable time interviewing and qualifying real estate brokers for each assignment.

Solution: For its first expansion in Southern California, LAREM assisted NewAge in the lease of a newly developed, high-image 111,500 SF distribution warehouse facility. The new project afforded NewAge the ability to have extensive offices built-to-suit to house its corporate executive staff and sales organization. LAREM worked closely with NewAge principals and landlord space planners to optimize the office layout for existing operations and to provide for future growth. As the company grew, LAREM assisted in the leasing of another newly developed 185,629 SF expansion facility, that once again provided an opportunity to have front offices built-to-suit for maximum operating efficiencies today and tomorrow. Simultaneously LAREM subleased to a third party the original premises, thereby off-setting the remaining lease rental obligation. As the need arose to expand the nationwide distribution network, LAREM’s team served as a single broker point-of-contact for NewAge, researching markets of interest through its national network of industrial real estate professionals. LAREM pre-screened all available properties that satisfied NewAge’s facilities criteria for each target market area. Executive management was briefed on those findings and LAREM accompanied the client on tours of each target market to view the most promising alternatives. Leases were negotiated and finalized and LAREM served as the liaison between landlord and tenant to ensure that all tenant improvement work was timely completed by the dates designated for move-in.

Result: NewAge executed its ambitious growth plan and expanded its operations ten-fold in the last fifteen years. Every step of the way, LAREM assisted NewAge in securing appropriately sized and configured facilities at competitive lease rates. Expansions were accomplished with minimal disruption to operations and customer satisfaction improved as a result.

Client: Price Transfer
Property: Warehouse distribution, 1.1 M SF, Carson, California
Transaction: Lease – LAREM is the tenant representative broker

Summary: In the mid–1990s, the number of import/export cargo containers handled by the ports of Long Beach and Los Angeles was projected to double every five years. As a result, Price Transfer’s business was positioned for explosive growth. Price interviewed numerous brokerage firms to identify the one that could best assist the company with its increased facilities requirements, which were expected to evolve as the company grew.

Challenge: Help this port-area-based logistics firm grow its operations fourfold in a manner that would keep achieved lease/rental costs for expansion facilities competitive for their industry and maximize operating efficiencies.

Solution: For Price Transfer’s expansion, LAREM targeted the Watson Industrial Center South, the largest single-owner industrial park in the South Bay. As its space needs grew, Price was able to lease adjacent buildings from a cooperative and familiar landlord. LAREM’S guidance enabled the company to negotiate leases that provided landlord assistance with tenant improvements and with reconfiguration of the building yards to create a single, contiguous, highly secure compound.

Result: Price was able to accommodate its growth step-by-step, eventually completing three additional lease transactions for adjacent buildings in the park. With this built-in, next-door expansion capability, the company was able to grow its operations without relocations. In addition, by concentrating its growth in one location, Price significantly improved operating efficiencies and accommodated seamless coordination between various business units. Moreover, expansion relocation costs have been avoided and disruptions to business operations minimized.

Client: Fairmont Designs
Property: Warehouse distribution, 227,500 SF, Memphis, Tennessee
Transaction: Built-to-suit for purchase – LAREM is the tenant representative broker

Summary: As the U.S. furniture manufacturing industry shifted overseas due to high labor costs and increasing environmental regulations, this China-based furniture manufacturer and importer was poised for significant expansion. Over the years, Fairmont’s Southern California operations had grown to more than 400,000 SF to accommodate its import cargos through the ports of Los Angeles and Long Beach. Servicing its growing national network of customers put tremendous strain on its single West Coast distribution warehouse.

Challenge: Identify property for a Midwest facility that would assume some of the load that was severely straining the capacity of Fairmont’s Southern California distribution warehouse.

Solution: LAREM’s team of professionals worked with Fairmont to identify a location in Memphis, Tennessee that best accommodated this need. In doing so, LAREM enlisted the assistance of expert Memphis brokers, who provided detailed market information about available industrial land appropriate for a warehouse distribution built-to-suit. LAREM analyzed and previewed all available properties that could accommodate Fairmont’s requirement. The results of this study were presented to Fairmont’s management team. LAREM then accompanied Fairmont Design executives on tours of the target industrial market to help them select the most suitable sites for their facility. Proposals for land purchase and build-to-suit were solicited from four finalist property owners/developers. A clear-cut best alternative surfaced through this competitive proposal solicitation process.

Result: LAREM’s team, together with the local broker team LAREM assembled, negotiated an attractive land purchase and warehouse distribution facility built-to-suit. LAREM worked with the client and developer throughout the land entitlement and acquisition processes and the building design and construction phases to ensure timely completion of the project. Fairmont moved into its new facility on schedule, realizing immediate improvement in distribution network operating efficiencies and customer satisfaction. Fairmont’s principals took ownership of real property that will fix Midwest distribution warehouse facility costs into the future and that has since completion significantly appreciated in value.

Q:

Why should I select LAREM to represent my company in our search for a new facility?

A:

LAREM’s team of brokerage professionals will provide you with the best representation in the industry. For example, we give you accurate up-to-date market data that helps you better assess individual properties. In addition, we have extensive experience negotiating both sale and lease transactions, and are highly skilled at guiding companies through local city hall and fire department regulations to obtain necessary approvals for occupancy of a new facility. Our job is not complete until you have moved in to your new facility and are completely satisfied.

Q:

If I hire LAREM to be my tenant rep broker, will I be obligated to pay a commission?

A:

No, LAREM will look to the landlord to pay a brokerage commission for any completed transaction.

Q:

Operating my business and contemplating a move seems like a daunting task. How can LAREM help me through this process?

A:

LAREM’s team will not only find a facility and negotiate a fair market deal, but also ensure a smooth transition by assisting you with many of the tasks that need to be completed after the lease is signed. For example, we can assist with applying for and receiving required operating permits, monitoring the timely completion of building refurbishments and tenant improvements, and coordinating a walk-thru of completed facilities prior to occupancy. We also can serve as a liaison between the tenant and the landlord after occupancy to address any on going issues.

Q:

If I hire LAREM as my exclusive tenant rep broker, how do I know that I will be exposed to all (other broker listed) available properties that might satisfy my requirement?

A:

LAREM is a member of the American Industrial Real Estate Association (A.I.R.) which is the premier multiple listing service for available industrial properties in Southern California. All major industrial brokers in Southern California are members of the A.I.R. and submit their exclusively listed properties to the multiple for publication and distribution to member firms.

Q:

Why should I hire LAREM as my exclusive tenant rep broker? Wouldn’t working with multiple brokers improve my service level?

A:

As your exclusive tenant rep broker, LAREM will take the time to fully understand your business goals and property needs. As a result the available properties that we submit to you for consideration will be pre-screened to satisfy your criteria, saving time that would be spent reviewing alternatives that don’t work and duplicate submittals by multiple brokers.

Q:

How will I know I am making the best possible market deal?

A:

LAREM gathers and maintains accurate, current market data to ensure that your lease or purchase negotiation is conducted with the highest degree of confidence.

Q:

What sets LAREM apart from other tenant-rep brokers?

A:

LAREM principals, Jay Jasaitis and Ed Whittemore, have closed over 2,500 lease and sale transactions during their combined 50 years’ industrial real estate experience. Put this experience to work for your company, not only to find appropriate properties but also to counsel you during the selection process and to negotiate the best possible terms for your lease or purchase.