Tejon Ranch Company and Dedeaux Properties Announce Joint Venture to Develop Industrial Warehouse at the Tejon Ranch Commerce Center

Rhea-AI Summary

Tejon Ranch Company (NYSE: TRC) has announced a joint venture with Dedeaux Properties to develop a 510,500-square-foot industrial warehouse at the Tejon Ranch Commerce Center (TRCC). Located at the intersection of Interstate 5 and Highway 99, TRCC serves as a important logistics hub for California and the western United States. The new warehouse will be situated on a 25-acre parcel with immediate access to Interstate 5, designed as a Class-A divisible cross-dock facility with 185' truck courts and 36' clear height.

Tejon Ranch Company has already developed 8.2 million square feet of industrial space at TRCC, with an additional 11.1 million square feet of entitled property remaining. The company also has 674,000 square feet of commercial development, including the Outlets at Tejon. Additionally, Tejon Ranch Company's first residential project, Terra Vista at Tejon, is set to open its first phase of 228 units in Spring 2025.

Positive

• Joint venture with Dedeaux Properties to develop a 510,500-square-foot industrial warehouse
• 100% occupancy of existing industrial space at TRCC
• Strategic location serving 90% of California consumers within a single day truck turn
• 8.2 million square feet of industrial development already realized at TRCC
• 11.1 million square feet of entitled property remaining for future development
• Outlets at Tejon celebrating 10th anniversary with over 90% occupancy
• First phase of residential project Terra Vista at Tejon set to open in Spring 2025

Negative

• None.

Insights

Real Estate Analyst

This joint venture between Tejon Ranch Company and Dedeaux Properties to develop a 510,500-square-foot industrial warehouse is a significant move in the logistics real estate sector. The project's location at the Tejon Ranch Commerce Center (TRCC) is strategically important, offering access to major highways and the ability to serve 90% of California consumers within a single day.

The development highlights the strong demand for industrial space in this area, with TRCC currently at 100% occupancy for industrial properties. This new facility will help meet the growing needs of third-party logistics companies and major retailers looking for efficient distribution hubs.

For investors, this project represents potential for long-term revenue growth and asset appreciation. The Class-A specifications of the warehouse, including its divisible cross-dock design and 36' clear height, position it as a premium offering in the market. The partnership with Dedeaux Properties, an experienced developer in Southern California, adds credibility to the project and may help attract high-quality tenants.

While the immediate financial impact on Tejon Ranch Company may be , this development reinforces the company's strategy of monetizing its land assets and expanding its industrial portfolio. The success of this project could lead to further developments and partnerships, potentially driving future growth for TRC shareholders.

Market Research Analyst

The announcement of this joint venture reflects broader trends in the industrial real estate market. The continued growth of e-commerce and the need for efficient supply chain logistics are driving demand for strategically located distribution centers. TRCC's position at the intersection of major highways makes it an attractive location for companies looking to optimize their distribution networks.

The 100% occupancy rate of existing industrial space at TRCC indicates strong market fundamentals in the region. This new development is likely to be well-received by potential tenants, given the scarcity of available space and the strategic advantages of the location.

The inclusion of divisible space in the warehouse design is a smart move, offering flexibility to accommodate multiple tenants or allow for future expansion. This adaptability could enhance the property's long-term value and occupancy rates.

For Tejon Ranch Company, this project represents a continuation of its successful development strategy at TRCC. With 8.2 million square feet already developed and 11.1 million square feet of entitled property remaining, TRC has significant potential for future growth in its industrial portfolio. The diversification into residential development with the upcoming Terra Vista at Tejon project further strengthens the company's position in the real estate market.

TEJON RANCH, Calif., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Tejon Ranch Company (NYSE: TRC) announced today that it has signed a joint venture agreement with Dedeaux Properties to develop and lease an approximately 510,500-square-foot, state-of-the-art industrial warehouse at the Tejon Ranch Commerce Center (TRCC). Located at the intersection of Interstate 5 and Highway 99, TRCC is a mixed-use master planned community that operates as an important logistics hub serving all of California and the western United States, driving economic growth for Kern County.

As the master developer of TRCC, Tejon has realized 8.2 million square feet in industrial development with an additional 11.1 million square feet of entitled property remaining. TRCC also has 674,000 square feet of existing commercial development, including the Outlets at Tejon that just celebrated its 10^th anniversary with over 90% occupancy. Tejon Ranch Company’s first residential offering, the 228-unit first phase of Terra Vista at Tejon, an apartment home community that will feature up to 495 units, will open in Spring 2025.

“Our new partnership with Dedeaux Properties reinforces our commitment to growing Tejon Ranch Company’s portfolio of Class-A industrial assets at TRCC,” stated Derek C. Abbott, Executive Vice President of Real Estate at Tejon Ranch Company. “We currently enjoy 100% occupancy of industrial space at TRCC, and this project brings new supply to serve tenants actively seeking the advantages that our strategic location, strong labor pool and operational efficiencies can provide.”

This new industrial warehouse will be located on a 25-acre parcel just east of Interstate 5, giving it near immediate access to California’s primary north/south highway and the ability to serve 90% of California consumers within a single day truck turn. The partners have designed the new warehouse as a Class-A divisible cross-dock facility with 185’ truck courts and 36’ clear height.       

Dedeaux completed its first development of a site in TRCC earlier this year on land acquired from Tejon Ranch Company. One of the most active developers of logistics-oriented facilities in Southern California, Dedeaux delivered a 250,000-square-foot warehouse building at TRCC which was sold at completion to a national clothing and textile distributor.

“We learned from our first development that both third-party logistics companies and major retailers are finding that TRCC has become an efficient distribution hub for shipping goods throughout California and the West,” said Brett Dedeaux, Chief Executive & Manager of Dedeaux Properties. “This is a terrific opportunity to team with Tejon Ranch Company to bring additional top-tier industrial space to meet the tremendous demand we are finding here.”

JLL’s Mac Hewett, Mike McCrary, and Brent Weirick will serve as the listing agents for this new industrial facility.

About Tejon Ranch Company
Tejon Ranch Company (NYSE: TRC) is a diversified real estate development and agribusiness company whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. For more information on the company, please visit www.tejonranch.com.

About Tejon Ranch Commerce Center
Tejon Ranch Commerce Center (TRCC) is a premier mixed-use development, strategically positioned at the crossroads of Interstate 5 and Highway 99, just 40 minutes north of Santa Clarita. Covering 1,450 acres, TRCC features a strategic mix of commercial, industrial, and residential opportunities. This dynamic center has attracted a wide array of businesses, including several Fortune 500 companies, and a large employment base of 5,000 employees. Committed to sustainable growth, TRCC continuously enhances its offerings through value-driven projects, including Terra Vista at Tejon, a multi-family development slated to open in spring 2025.

About Dedeaux Properties
Los Angeles-based Dedeaux Properties, LLC focuses on the investment and development of logistics-oriented properties and is affiliated with family-controlled DART Warehouse Corporation, a national full-service logistics provider founded in 1936. In addition to a portfolio of 13.5 million square feet of industrial space, Dedeaux Properties has an active pipeline of more than two million square feet of industrial properties, including warehouse/distribution, truck terminals, trailer yards, and cold storage facilities.

MEDIA CONTACT
Nick Ortiz
SVP, Corporate Communications & Public Affairs
661-663-4212
nortiz@tejonranch.com

Dedeaux: Bruce Beck DB&R
bruce@dbrpr.com
(818) 540-8077

FAQ

What is the size of the new industrial warehouse being developed by Tejon Ranch Company and Dedeaux Properties?

The new industrial warehouse being developed by Tejon Ranch Company (NYSE: TRC) and Dedeaux Properties will be approximately 510,500 square feet in size.

Where is the Tejon Ranch Commerce Center (TRCC) located?

The Tejon Ranch Commerce Center (TRCC) is located at the intersection of Interstate 5 and Highway 99 in California.

How much industrial space has Tejon Ranch Company (TRC) already developed at TRCC?

Tejon Ranch Company has already developed 8.2 million square feet of industrial space at the Tejon Ranch Commerce Center (TRCC).

When is the first phase of Tejon Ranch Company's (TRC) residential project, Terra Vista at Tejon, expected to open?

The first phase of Terra Vista at Tejon, consisting of 228 apartment units, is expected to open in Spring 2025.