The Big O Tires subsidiary of Memphis-based TBC Corp. inked a 10-year lease for 107,640 sf of the 275,000-sf warehouse. The building is the inaugural project on the land Opus owns in the park. Big O is expected to take occupancy by mid-May.
Local brokers familiar with the lease deal tell GlobeSt.com it has a triple-net value of about $3.8 million. Randy Atkin, the CB Richard Ellis broker who represented Opus in the transaction, would not confirm the estimated deal value but did say Opus has about 18 acres in the technology park still available for build-to-suit development.
The California Avenue submarket is the main corridor for big box space. It contains about 110 million sf of space that is currently 8.62% vacant, says Atkin. "We like it better when it's 5%," he says, "but less than 10% is good."
In addition to the Big O deal, Barney Investments Inc. recently acquired 2.2 acres of Opus' land for about $300,000, according to local brokers. According to Atkin, Barney plans to develop a new facility its operation; Advance Manufacturing Technology. Initial plans call for Barney to build an expandable 11,000-sf building.
Kevin Harvey of CB Richard Ellis's Ontario office represented Big O in its deal. Jim Berry of CB Richard Ellis represented Barney. Atkin was assisted in his representation of Opus by partner Craig Kaminski.
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