Lee & Associates-LA North/Ventura Transacts 111,703 SF Industrial Sale and Leases Property
Lease to Easton Baseball/Softball retains building as manufacturing facility and brings added jobs
THOUSAND OAKS, CA –Aug. 21, 2015 – The Lee & Associates-LA North/Ventura team of Mike Tingus and Grant Fulkerson transacted the sale of a 111,703-square-foot industrial property for $10.4 million. Following this transaction, the Lee team leased the office facility on behalf of the new buyer to Easton Baseball/Softball, a Performance Sports Group Ltd. (NYSE: PSG) (TSX: PSG) company.
Tingus and Fulkerson represented the buyer, Martin Properties, Inc., and the seller, PEGH Investments LLC, in the sale transaction, and they represented Martin Properties in the lease transaction at 3500 Willow Lane in Thousand Oaks, CA.
Easton, a leading manufacturer of baseball and softball equipment and apparel, will be relocating and expanding by 40 percent from its current facility in Van Nuys, CA, according to Bart Reinhard, managing director at JLL who represented Easton in the lease transaction.
Although the lease to Easton came about very quickly after the close of the sale, Martin Properties initially had very different plans for the building. The company entered escrow in mid-2014 with plans to convert the industrial building to a mini-storage facility. A longer escrow period was arranged to accommodate the seller’s 1031 Exchange timetable.
Meanwhile, Easton’s search for a new facility was well underway, and among the buildings it toured was a Calabasas property that Tingus and Fulkerson also represented. That property did not work out for Easton, but Tingus realized he might have an alternative to offer in the Willow Lane building that, by then, was just closing escrow. Tingus contacted Reinhard, a longtime friend and colleague, to see whether Easton might be interested in the Willow Lane facility, and learning that the building might be a potential fit, contacted Martin Properties.
“Rob (Martin, the buyer) and I have worked together for years, and he is a very savvy investor,” Tingus said. “He knew the process of leasing up a mini-storage would be a long one whereas a lease deal with Easton would provide a fully-leased investment almost immediately, and, unlike a mini-storage, it would bring good jobs to the area. You might say that matching up this tenant with this investor was a proverbial home run!”
“As a longtime resident of Thousand Oaks and a member of the business community here, I could not be more proud that Easton Baseball/Softball chose our building for its headquarters,” Martin added. “This is a premier company that will bring great jobs and be a valuable addition to our community.”
Originally constructed for Teradyne, a supplier of automation solutions for test and industrial applications, and built out for its sophisticated needs, 3500 Willow Lane proved an ideal solution to Easton Baseball/Softball’s state-of-the-art requirements. A letter of intent came just two weeks after Easton toured the building.
“Because it was a highly improved manufacturing facility, this building had an infrastructure that was better than anything we had seen previously,” Reinhard said. “With more improvements in place than we needed, adapting the facility to Easton’s needs will be far more cost effective than building out a less improved facility. In addition, it has a great location with freeway frontage and a superior parking ratio that was well suited to Easton’s business.”
Easton, which was acquired by Performance Sports Group in 2014, will build out an R&D lab to include state-of-the-art research, fabrication and testing equipment, showrooms, a fitness center and a 15,000-square-foot EASTON Experience Center, an indoor testing and training facility that will host top athletes and teams for product fittings and trial. The completed 90,000-square-foot facility will accommodate more than 100 employees including the executive management team, sales, marketing and R&D departments. The company is expected to take occupancy in the first quarter of 2016.