The building is owned by the Los Angeles County Employees Retirement Association under the name Gateway Brookside Inc. The leasing assignment is held by Peter Stiven of CB Richard Ellis.
Until two years ago, it was a single-tenant building master leased by A&M Warehouse for 10 years. A&M had subleased the building to multiple users including 800.com, which leased 200,000 sf in the building. When 800.com began having financial problems, so, too did A&M Warehouse, which filed for Ch. 11 bankruptcy.
Stiven tells GlobeSt.com that Ford Motor Co. helped fill holes and convert the building for multi-tenant use by essentially backfilling 800.com with a 10-year commitment and separating their space from the rest of the facility. In addition, the bankruptcy judge allowed NYK Logistics to assume the remainder of A&M's lease, which ran through May of this year.
NYK had shared the space with Seattle-based Expeditors International, with which NYK had a service/licensing agreement. With its assumed commitment coming due, NYK and Expeditors International decided to negotiate separate agreements, with NYK having just signed a three-year lease for 112,000 sf and Expeditors deep in negotiations for about 100,000 sf.
NYK was represented in the transaction by Tom Talbot of Grubb & Ellis. The triple-net lease rate for the space is believed to be around $0.33 per sf per month. A&M Warehouse's lease rate was about 10% higher, according to local brokers. Chicago-based R.R. Donnelley is also a tenant in the building. There now is only about 20,000 sf of space not leased in the building, into which NYK eventually hopes to expand.
"(The owner) had a long-term tenant paying good rent over 10 years and it came unraveled," says Stiven. "We went from a single tenant to a multi-tenant building and had to face not only the Ch. 11 filing of A&M but also the financial dilemma of 800.com; despite that, it still turned out well."
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