1. INDUSTRIAL
TENANT ADVISORY
SERVICES

2. WHO
WE ARE
Newmark Grubb Knight Frank is one of the world’s
leading commercial real estate advisory firms.
Together with London-based partner Knight Frank
and independently-owned offices, NGKF’s 12,000
professionals operate from more than 330 offices in
established and emerging property markets on six
continents.
With roots dating back to 1929, NGKF’s strong
foundation makes it one of the most trusted names in
commercial real estate. NGKF’s full-service platform
comprises BGC’s real estate services segment,
offering commercial real estate tenants, landlords,
investors and developers a wide range of services
including leasing; capital markets services, including
investment sales, debt placement, appraisal, and
valuation services; commercial mortgage brokerage
services; as well as corporate advisory services,
consulting, project and development management,
and property and corporate facilities management
services. For further information, visit www.ngkf.com.
Our collective team is comprised of industry
specialists who exclusively represent industrial users
throughout Southern California. With over 95 years of
combined subject matter experience, we offer a very
disciplined and focused advisory service whereby we
become an extension of our client’s operational team
and assist in many facets of evaluating operations
that extend well beyond any real estate transactions.
We DO NOT represent any landlords or developers
nor do we seek business from the landlords that you
ultimately negotiate with. This discipline provides
a conflict free perspective and allows our clients to
truly leverage tenancy without compromise.
NGKF is a part of BGC Partners, Inc., a leading global
brokerage company servicing the financial and real
estate markets. BGC’s common stock trades on the
NASDAQ GlobalSelect Market under the ticker symbol
(NASDAQ: BGCP). BGC also has an outstanding
bond issuance of Senior Notes due June 15, 2042,
which trade on the New York Stock Exchange under
the symbol (NYSE: BGCA). BGC Partners is led by
Chairman and Chief Executive Officer Howard W.
Lutnick. For more information, please visit http://
www.bgcpartners.com/.

3. OUR APPROACH
OUR SERVICES
Very different than that of traditional “brokers”, we are engaged with our clients well in advance
of any real estate decisions to analyze operations with specific objectives in mind; reducing
costs, increasing operational efficiencies and mitigating facility related risks. We employ our
full platform of resources and subject matter experts from the initial phase of the project to
ensure a detailed and comprehensive evaluation of your operations and potential requirement
have been fully vetted and confirmed. Most “brokers” are transactional focused meaning they
are interested in getting a deal done as quickly as possible to move onto the next assignment.
Our approach allows our clients to leverage our numerous years of expertise and provide
operational recommendations based on best in class operations. In most circumstances, the
project requirements that are ultimately developed and selected are very different than that of
what the client originally projected.
We provide a robust platform of services that include Transaction Management, Project
Management, Supply Chain, Facility Design and Master Planning, Warehouse Consultation,
Material Handling Vendors, Economic Incentives, Workplace Strategies and Operating Expense
Audit Services. While we understand not every assignment requires all facets of our service
lines, it is important for a user to understand our team is well versed and experienced in many
disciplines that impact facilities and operations. It is common for us to access the necessary
service lines based on the scope and objectives of the client. For example, clients who wish
to remain and renew would likely be introduced to the Transaction Team, Project Management
and Warehouse Consultants. For other companies evaluating a potential relocation (local,
regional or exploring the greater US), we might call upon the entire team depending upon the
complexity of the requirement.

4. In most cases, we are either working with an existing customer, being introduced for the first time or being asked
to solve a problem. Regardless of “how” we are introduced to a client, initiating the project remains unchanged.
The first step is scheduling a consultative meeting whereby we develop our internal team based on the client’s
initial objectives. During the initial meeting, we invest a great deal of time in asking questions, understanding
the operations, exploring current or future operational challenges, evaluating current facilities, address capital
projects and determining the clients most ambitious operational objectives. Following the initial meeting, we
develop a “Project Scope” which incorporates all the information received thus far into a document that serves
as the roadmap and is distributed to the Executive Team. We then begin to develop a timeline and budget that
incorporates costs associated with the desired “Project Scope”.
Once the requirement and objectives have been fully explored, vetted and confirmed; we develop and tailor a
strategy oriented towards developing leverage and driving value through our numerous years of transaction
and subject matter experience. We understand that each individual organization has different objectives and
therefore, each strategy and ultimate execution is unique. Our discipline of Industrial Representation and keen
understanding of leveraging tactics allow our clients to benefit from conflict free negotiations while maintaining
a strategy and execution that is oriented toward reducing costs, creating operational efficiencies and mitigating
facility related risks. Furthermore, we extensively evaluate all facilities under consideration to ensure they are
conducive to support our desired operational use. This includes but is not limited to code compliance, material
handling and storage methods, office space, commodity class verification, ADA, building sprinkler systems,
deferred maintenance (roof, HVAC, dock equipment, parking lot, mechanical and electrical, etc.), power and
ingress/egress. It is common for companies to sign a lease/purchase only to identify and experience a great deal
of challenges and issues that could have been surfaced and addressed during the negotiations. The unfortunate
reality is that once a lease has been signed or a building closes escrow, the tenant or buyer faces full exposure
of these unforeseen deficiencies.
Whethertheultimatedesireistoremain/renewinanexistingfacility,relocate,consolidate,bifurcateorpurchase;
our process of developing a strategy, leverage and executing a transaction remains consisting thus providing
the highest probability of securing a facility at the lowest cost possible while eliminating any future risks.
In most cases, traditional “brokers” are long gone at this point and the client is left to deal with elements of
the operations such as construction, material handling installation, facility setup, etc. Given our assembled
team and necessary resources were developed and engaged at the initial phase of the project, we remain active
with our clients and execute all elements of the transaction based on the initial roadmap. We manage all of the
necessary vendors to ensure the project is delivered on time and under budget. Our team is also present when
you take occupancy of the space and commonly assist our clients in developing a comprehensive report of any
and all post occupancy facility issues that we address directly with the landlord. There should be no financial
exposure post lease/purchase execution.
INITIATING A PROJECT
STRATEGY AND EXECUTION
POST LEASE/PURCHASE EXECUTION
OUR PROCESS

5. WHY ENGAGE
OUR TEAM?
We believe our unique discipline of representing industrial tenants, combined level of team expertise, resources we
provide, creative thinking and leveraging tactics will provide any industrial tenant with the level of comfort knowing
they are well protected, represented and have an advocate on their side. We are not traditional “brokers” who represent
a tenant trying to negotiate a deal one day only to call that same landlord the next asking for a listing or future business.
We have consistently reduced our clients operating costs by double digits and welcome an opportunity to discuss your
goals and objectives.
WES HUNNICUTT
Senior Managing Director
O: 949.608.2093
M: 714.357.3189
whunnicutt@ngkf.com
CA RE License #01346131
MATT MOORE
Senior Managing Director
O: 949.608.2125
M: 949.510.1816
mmoore@ngkf.com
CA RE License #01365424
KURT GOTTSCHLING
Associate Director
O: 949.608.2039
M: 714.393.0308
kgottschling@ngkf.com
CA RE License #01810815
JEFF MOLITOR
Senior Managing Director,
Program/Project Management
O: 949.608.2025
M: 714.267.1600
jmolitor@ngkf.com
ROBERT HESS
Executive Managing Director,
Consulting
O: 847.254.0681
rhess@ngkf.com
ALAN NAGER
Executive Managing Director,
Global Corporate Services
O: 404.926.1085
anager@ngkf.com
Wes Hunnicutt
http://contact.kaywa.com/contact/oHP0R
http://ct.kaywa.me/oHP0R
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Matt Moore
http://contact.kaywa.com/contact/SYp2s
http://ct.kaywa.me/SYp2s
Download the Kaywa QR Code Reader (App Store &Android Market) and scan your code!
Kurt Gottschling
http://contact.kaywa.com/contact/zJkt6
http://ct.kaywa.me/zJkt6
Download the Kaywa QR Code Reader (App Store &Android Market) and scan your code!
TRANSACTION TEAM
PROJECT
MANAGEMENT
ECONOMIC
INCENTIVES
SUPPLY CHAIN/
WAREHOUSE CONSULTING

6. JC SALES
7030 E. Slauson Ave., Commerce
Transaction Type: Lease Renewal
Size: 267,000 RSF
CUSTOM GOODS
12200 Arrow Rte., Rancho Cucamonga
Transaction Type: Relocation
Size: 240,049 RSF
QSC AUDIO
1665&1675MacArthurBlvd./1600Sunflower
Costa Mesa
Transaction Type: Lease Renewal
Size: 175,525 RSF
INLAND STAR
2132 E. Dominguez St., Carson
Transaction Type: Relocation
Size: 255,000 RSF
TEST RITE
1900 S. Burgandy Pl., Ontario
Transaction Type: Lease Renewal
Size: 397,000 RSF
INTERNATIONAL LOGISTICS
AND DISTRIBUTION
11130 Holder St., Cypress
Transaction Type: Lease Renewal
Size: 167,450 RSF
ANIMAL SUPPLY COMPANY
8550 Chetle Ave., Whittier
Transaction Type: Relocation
Size: 116,327 RSF
MANHATTAN BEACHWEAR
10700 Valley View St., Cypress
Transaction Type: Relocation
Size: 75,480 RSF
CAMBRO MANUFACTURING
21508 Ferrero Pkwy., City of Industry
Transaction Type: Lease Renewal
Size: 330,000 RSF
DSW DISTRIBUTION
8858 Rochester Ave., Rancho Cucamonga
Transaction Type: Lease Renewal
Size: 165,000 RSF
DIAMOND SPORTS
1880 E. Saint Andrew Pl., Santa Ana
Transaction Type: Relocation
Size: 82,000 RSF
LOGOMARK
1201 Bell Ave., Tustin
Transaction Type: Lease Renewal
Size: 127,000 RSF
NOBLE IRON
8314 Slauson Ave., Pico Rivera
Transaction Type: Relocation
Size: 68,000 RSF
AJ OSTER WEST
22833 La Palma Ave., Yorba Linda
Transaction Type: Lease Renewal
Size: 50,282 RSF
GP LOGISTICS
12900 Simms Ave., Hawthorne
Transaction Type: Relocation
Size: 61,360 RSF
RECENT TRANSACTIONS

7. SIEMENS
National Account
Multiple Transactions Completed
FENDER
Ontario, CA
Size: 857,000 RSF
ACT FULFILLMENT
Mira Loma, CA
Size: 606,925 RSF
NIKE
Ontario, CA
Size: 506,000 RSF
ANCHOR BLUE
Corona, CA - Size: 45,736 RSF
Ontario, CA - Size: 385,000 RSF
MISCO HOME & GARDEN
City of Industry, CA
Size: 350,000 RSF
SNAPWARE
Ontario, CA
Size: 325,000 RSF
UNITED PACIFIC DISTRIBUTORS
Vernon, CA
Size: 137,708 RSF
TEST RITE INTERNATIONAL
Ontario, CA
Size: 120,600 RSF
BABY PHAT
Pico Rivera, CA
Size: 156,000 RSF
FOAMEX
Corona, CA
Size: 127,571 RSF
WORKFLOW ONE
Ontario, CA
Size: 110,000 RSF
BIG TRAIN
Lake Forest, CA
Size: 98,672 RSF
SAGE SOFTWARE
Irvine, CA
Size: 96,800 RSF
BAKKAVOR
Carson, CA
Size: 91,640 RSF
MANHATTAN BEACHWEAR
Cypress, CA
Size: 75,480 RSF
MOON INTERNATIONAL
Corona, CA
Size: 65,571 RSF
JOHNSON HARDWOOD
City of Industry, CA
Size: 64,900 RSF
SOUTHERN CALIFORNIA MATERIAL HANDLING
Pico Rivera, CA
Size: 62,766 RSF
FIDELITONE LOGISTICS
Norwalk, CA
Size: 60,000 RSF
INTERNATIONAL LOGISTICS
AND DISTRIBUTION
La Mirada, CA
Size: 40,000 RSF
L. J. Smith Stair Systems
Corona, CA
Size: 34,100 RSF
PFX PET SUPPLY
La Mirada, CA
Size: 31,206 RSF
JR MILLER & ASSOCIATES
Brea, CA
Size: 30,516 RSF
InDUSTRIAL TENANT REPRESENTATION

8. TRANSACTION TYPE:
Lease Renewal
SIZE:
267,500 RSF
SERVICES PROVIDED:
Tenant Representation
PROVEN RESULTS
7030 East Slauson Avenue
Commerce, CA
CHALLENGE
JC Sales, a leading dollar store merchandiser for 99 Cent Only,
Dollar Plus & Dollar Tree, occupies multiple facilities in Southern
California totaling over 800,000 square feet. One of the buildings
occupied byJCSalesisa 267,500 square-footwarehouse located in
Commerce, CA, which servesasthe main receiving and distribution
facility and supports the company’s overall Southern California
operations. The facility provides 24-foot warehouse clearance,
10,000 square feet of office space, 20 dock-high loading positions
and a secure drive-around yard.
JC Sales originally occupied a portion of the Commerce facility
and quickly grew into the entire building. After years of occupying
the facility, JC Sales was experiencing deferred maintenance
issues that were causing unexpected operational issues and
costs. Newmark Grubb Knight Frank was introduced to JC Sales
to initially help evaluate the operations, while analyzing a stay
versus relocation scenario. With the lease expiring in 12 months
from our initial meeting, our team conducted a full building
evaluation and worked with our in-house Project Manager to
develop a “building deficiency” list. This list addressed all of JC
Sales’ current operational issues, future cost exposures, building
deferred maintenance concerns and upgrades that JC Sales ideally
would like made should they remain in the facility post lease
expiration.
ACTION
Over the course of four months, Newmark Grubb Knight Frank
created leverage that pressured the existing landlord to
immediately address JC Sales’ tenancy while also exploring
alternatives within the market. We negotiated on multiple
options, including the existing building, and provided the current
landlord with documentation that supported a well above capital
allowance and a very aggressive rental package.
RESULTS
The end result was an aggressive economic package that out
performed recent transactions within the market. By virtue of our
process, JC Sales received an early lease commencement valued
at $80,000 with a landlord funded tenant improvement allowance
of $342,000, achieved four months of rental abatement equal to
$449,000, reduced the net charges by $0.015 valued at $190,000
and the landlord assumed responsibility for any capital repairs/
replacements necessary to the building including the $350,000
cost for a new roof. The overall economics and landlord funded
capital allowance will allow JC Sales to operate from this location
without future cost exposures and below what they had previously
been paying.

9. TRANSACTION TYPE:
Lease Restructure
SIZE:
330,000 RSF
SERVICES PROVIDED:
Tenant Representation
PROVEN RESULTS
21558 Ferrero Parkway
City of Industry, CA
CHALLENGE
Cambro Manufacturing, a world-wide manufacturer and distributor
of plastic trays to the food and health care industries, occupied
a 330,000 square foot, state-of-the-art, distribution facility since
2007.The building, which is owned by a large institutional pension
fund, was used by Cambro as their west coast distribution center.
In order to better serve their clientele and maximize efficiency
within the building Cambro had begun the installation of a
self-funded, four-phase automation project that would cost
approximately $7.0 million dollars. At the time our team was
hired, Cambro had slightly over two years remaining on their lease
obligation and had implemented phase-one of the automation
project at a cost of approximately $1.4 million dollars. Maintaining
a strict timeline was required in order for Cambro to implement the
full automation process.
Cambro was paying above market rents in a building that is one of
the most desirable facilities in the east City of Industry submarket.
ACTION
Our team evaluated Cambro’s facility and long-term facility
objectives. We understood Cambro would be a captive tenant
if they invested $7.0 million into a facility that had two years
remaining on the lease. Our team requested Cambro halt any
further implementation of the automation system to give the
impression to the landlord that the facility may no longer be
suitable for Cambro.
Our team and Cambro entered the market for additional space
to create leverage with the existing landlord. Cambro’s landlord
immediately contacted us to discuss the possibility of a lease
restructure in order to retain Cambro’s tenancy.
RESULTS:
Our team was able to negotiate and secure favorable terms in a
short period of time that dramatically reduced Cambro’s 20 month
remaining obligation. Just as important, the negotiations did not
delay the implementation of the automation process. Our team
also negotiated a liberal use of the Tenant Improvement Allowance
which allowed Cambro to utilize all of the allowance to off-set the
cost of the automation project. Cambro extended their lease for 7
years and was able to save $1.4 million dollars over the remaining
20 month lease obligation.

10. PROVEN RESULTS
CHALLENGE
InlandStarDistributionCentersisthenation’slargestwarehousing
company, specializing in storing and distributing chemical
and hazardous material products. Inland Star had occupied
180,000 sf located in Rancho Dominguez for over 10 years and
was experiencing tremendous growth. The existing facility was
a specialized operations facility and included H-2 rooms, cold
storage areas and racking throughout the building that was
designed to support their clients’ storage needs.
Inland Star was experiencing significant interest from other
chemical and hazardous material companies which required
Inland Star to expand the existing H-2 rooms to accommodate
their growing clientele. They also needed additional space as
their food and beverage – along with their consumer packaged
goods business – was also expanding. The existing building
had limitations due to the physical features of the building which
included inadequate sprinklers, ceiling height, dock doors, yard
and a lack of rail service.
ACTION
We were engaged by the client over a year before their scheduled
lease expiration to analyze the currentfacilityand surface potential
options that could accommodate their operational objectives.
Given the market had a 3.8% vacancy; we canvassed the market
and identified 2-3 potential alternatives and implemented a
strategy that leveraged our client’s tenancy. Due to our Project
Management Services, we were able to identify which building
had the best infrastructure for our specific use and quantified our
entry costs into each of the alternatives. By implementing credible
leverage and having a specific cost forecast for build out of each
option, we were able to negotiate with the landlords to capitalize
costs that would provide the necessary infrastructure to operate
a specialized facility that supported Inland Star’s clients. Given
the unique nature of storing chemicals and hazardous materials,
we worked with the local municipalities and agencies to garner
approval before making a final selection.
RESULT
Our team was able to secure a 254,411 square foot facility located
in Carson. The economics we achieved, due to our leverage
creation process, were 20% below that of other comps and
alternatives for like kind properties in the area. The terms of
the new deal included 7.5 months of rent abatement, $550,000
in landlord funded Tenant Improvements that could be used to
construct H-4 rooms, $650,000 for an ESFR sprinkler system
upgrade, $200,000 to activate the rail service and the landlord
provided a warranty on all building and operating systems. The
new facility not only reduced our clients operating costs but also
significantly increased capacity in the specialized/H-4 storage
areas. Upon completion of the above improvements, this facility
will serve as the benchmark for other chemical and hazardous
storage companies due to its physical features that were designed
to new safety standards.
TRANSACTION TYPE:
Relocation
SIZE:
254,411 RSF
SERVICES PROVIDED:
Tenant Representation
2132 E. Dominguez Street
Carson, CA

11. PROVEN RESULTS
TRANSACTION TYPE:
Expansion
SIZE:
397,000 RSF
SERVICES PROVIDED:
Tenant Representation
1900 South Burgundy
Ontario, CA
CHALLENGE
Test Rite International (Test Rite), an international distributor of
household products and third-party logistics provider, occupied
a corporate headquarters building for over 17 years. Test Rite, who
previously owned the building, had sold the facility over seven
years past and leased-back the facility. The building was now
owned by a risk-adverse pension fund. Test Rite had secured a
new large account that required significant out-of-pocket capital
to modify their facility to accommodate their new client’s storage
and security requirements.
With over three years remaining on the lease, Test Rite considered
themselves a captive tenant. Test Rite’s original objective was
to access the market for additional space to accommodate the
new client. Test Rite was paying significantly above market rent
and was subject to a $2.7 million dollar letter of credit when they
signed the original lease.
ACTION
Our team invested many hours in assessing the Ontario facility
and product flow to identify opportunities to enhance the layout
and increase operational efficiencies.
We accessed the market for a potential expansion/relocation
scenario which gave our team the opportunity to engage Test
Rite’s current landlord in the process.
Our team informed the landlord that Test Rite was considering
expansion into a portion of a single, large facility, which would
allow them to accommodate their immediate expansion needs
and consolidate into the remaining portion of the building upon
natural lease expiration.
RESULTS
Over a six month period, our team was able to develop leverage
which resulted in the landlord providing concessions to
dramatically off-set the capital investment required by Test Rite. In
addition, our team was able to negotiate renewal economics that
commenced three years prior to the lease expiration as well as the
removal of the $2.7 million dollar letter of credit. Test Rite was able
to secure savings of over $1.5 million dollars when compared to
the economics of their previous lease, which does not include the
value of the removal of the letter of credit nor does it include the
tenant improvement capital provided by the landlord.

12. PROVEN RESULTS
CHALLENGE
Manhattan Beachwear Inc. had been operating out of three
facilities for many years. Initially, they were in one building located
in Cypress until they acquired another company in Los Angeles
which had two additional facilities. Manhattan Beachwear had
been using the three facilities for general office functions, design
and product development, sewing, finance, customer support,
storage of materials and distribution of finished goods.
Due to Manhattan Beachwear’s rapid growth and the recent capital
infusion by a Private Equity partner, Manhattan Beachwear needed
to evaluate the operations in an effort to either consolidate all or
two of the primary buildings. Their objective was to implement an
automated warehouse system while significantly improving and
enhancing the current traditional office environment.
ACTION
Newmark Grubb Knight Frank’s Industrial Advisory Team was
brought in to help Manhattan Beachwear explore a variety of
scenarios that could enhance the business functions, create
efficiencies and reduce costs associated with operating out of
three facilities. The NGKF team, which included Jeff Molitor as
Project Manager, worked with Manhattan Beachwear’s third
party warehouse consultant to develop the project scope and the
execution of a strategy oriented towards a consolidation of the
three facilities. The process also involved interviewing and hiring
an architect to help assist with quantifying space standards for the
high number of employees and functions of different departments
within the business. Since Manhattan Beachwear had acquired
a company and had three separate facilities, this process also
allowed for the integration of the companies culture and new
branding into the new space that better supported the company’s
long term vision.
RESULT
The completion of the facility and scenario evaluation/study
resulted in Manhattan Beachwear deciding to secure a 75,000sf
office building and a separate 190,000 rsf distribution facility.
The NGKF team was able to identify and negotiate a high image
creative office space in Cypress which was less than a mile from
Manhattan Beachwear’s existing Cypress location and only 3
miles from the newly selected distribution facility. Not only did
the image and design of the office facility exceed Manhattan
Beachwear’s expectation but the overall economics that were
negotiated were 20-30% below that of other alternatives that were
less desirable. Manhattan Beachwear also received the benefit of
working with Jeff Molitor who acted as Project Manager on their
behalf. His involvement reduced the total TI cost by 23% and
allowed the project to be delivered on time and under budget. The
new office location will provide the necessary “flagship” location/
image Manhattan Beachwear desired and will allow employees
and visitors to experience the true culture of the company.
TRANSACTION TYPE:
Relocation
SIZE:
75,000 RSF Office
190,000 RSF Warehouse
SERVICES PROVIDED:
Tenant Representation
10700 Valley View Avenue
Cypress, CA
6300 Valley View Avenue
Cypress, CA
OFFICE WAREHOUSE

13. PROVEN RESULTS
CHALLENGE
International Logistics and Distribution (ILAD) is a well known
3PL for the apparel industry. They had been located in the same
building for over four years and with a growing business had
reached maximum capacity. Our team was introduced to ILAD
through a material handling vendor who had been working with
ILAD on an expansion facility of approximately 60,000 square feet.
ILAD could not relocate to a larger facility due to their remaining
two year lease obligation. Over a period of three months and
numerous meetings, our team and a racking vendor developed a
plan that would create a higher density warehouse environment
without the need to expand. In order to achieve these efficiencies,
ILAD would be required to invest capital in additional racking and
new lift trucks to service the Very Narrow Aisle (VNA) plan.
ACTION
Our team developed a strategy that would create leverage
with ILAD’s existing landlord which included the concept of
consolidating the operations prior to the lease expiration.
In addition to negotiating on multiple opportunities, the team
negotiated directly with ILAD’s existing landlord and provided
documentation that illustrated the racking plan and overall capital
cost for ILAD to remain in the building.
Our team evaluated the real estate and capital cost of three
different scenarios: to consolidate and expand, renew the existing
facility with an expansion into an additional 60,000 and renewing
early at the existing facility with no expansion.
RESULTS
Our team structured a lease renewal package that commenced
18 months early, provided an immediate reduction of the rent,
a favorable tenant improvement allowance and the removal of a
burdening letter of credit. The savings that were achieved over
the 18 month remaining obligation were sufficient to pay for the
capital injection by ILAD in the amount of $625,000. ILAD was also
able to avoid leasing an additional 60,000 square feet and has
since reconfigured its operations, which now accommodates the
same pallet position counts if an expansion had taken place.
TRANSACTION TYPE:
Renewal and Expansion
SIZE:
167,450 RSF
SERVICES PROVIDED:
Tenant Representation
11130 Holder
Cypress, CA

14. PROVEN RESULTS
TRANSACTION TYPE:
Lease Restructure
SIZE:
223,000 RSF
SERVICES PROVIDED:
Tenant Representation
1201 Bell Avenue
Tustin CA
CHALLENGE
Logomark, Inc. is the premier supplier of personalized gifts,
accessories, pens, tools and timepieces in the United States.
Logomark has occupied a 127,000 sf facility located in Tustin for
over 9 years and during that time experienced substantial growth
requiring them to acquire an additional 50,000 sf of warehouse
at a separate location. The existing facilities provide functions
for Creative Office, Specialized Production, Packaging, Storage
and Distribution. The distance between the two facilities were
causing significant inefficiencies and was decreasing output of
production.
Due to the growth Logomark was experiencing and the need to
expand their production and storage capacity, Logomark was
forced to address their operations in advance of the scheduled
lease expiration. This led to evaluating a complete relocation of
the operations, bifurcating and expanding the existing building
or acquiring a third facility to meet the demands of their clients
growing production needs. It was also necessary for Logomark
to acquire a facility that had high clear warehouse and an ESFR
sprinkler system.
ACTION
We were engaged by the client 22 months prior to their scheduled
lease expiration to analyze the current facility and surface single
building and multi-building scenarios that could accommodate
their operational objectives. Given the market constraints and
lack of availabilities for industrial facilities greater than 100k sf
in the greater Orange County market and a vacancy of less than
5%, we canvassed an expanded geography to identify suitable
alternatives while at the same time creating leverage with
Logomark’s existing Landlord on a lease renewal/restructure.
We were able to uncover several alternatives, on market and
off market, that were viable options and met the requirements
of our client’s operational objectives. Before engaging in any
discussions with each respective landlord/owner, our team
quantified and evaluated the capital entry contributions required
to retrofit each independent facility. Due to our process and
market knowledge, we were able to identify an ideal solution that
our allowed our client to continue to operate from the existing
127,000 sf facility while expanding into two adjacent warehouse
facilities. One of the expansion facilities was not on the market,
however, we were able to relocate the existing Tenant which
allowed our client to secure an off market and adjacent expansion
creating an operational campus for our client. This process also
included renewal negotiations with the existing landlord and
negotiating a significant capital allowance for the expansion
buildings to be upgraded to ESFR sprinklers to meet our client’s
material handling layout and requirements.
RESULT
Our team was able to successfully leverage Logomark’s tenancy
with their existing landlord which resulted in a lease restructure
10 months in advance of their scheduled lease expiration.
Logomark had originally negotiated a fixed rental rate in the event
they renewed the lease. The economics our team secured on the
lease restructure represented an 18% decrease when compared
to the economics of the fixed renewal option. The terms of the
new deal on the 127,000 sf facility included rent reduction 9
months prior to their lease expiration, multiple months of rent
abatement, $200,000 in landlord funded Tenant Improvements
and the Landlord assuming financial responsibility to replace and
provide ongoing maintenance to the roof and parking lot. The
value of the roof replacement was over a $250,000 dollar savings
to Logomark. We were also able to receive multiple months of
free rent on the 96,000 sf worth of warehouse expansions,
negotiated the landlord to assume the cost for ADA upgrades and
installation of an ESFR sprinkler system. The capital contribution
on the 96,000 sf warehouse expansions exceeded $6.00 psf.

16. www.ngkf.com
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