STRAYTON, OR-Mastercraft Furniture Inc. has signed a major lease that will involve relocating the IKEA contract manufacturer from the Portland suburb of Wilsonville to Stayton, OR, which is approximately 60 miles south of Portland. Mastercraft’s 11-year lease of a 170,000-square-foot industrial building, owned by Philips Products Inc. dba Stayton Real Estate Holdings LLC, is on 15 acres located at 1620 Wilco Rd in Stayton.
According to a prepared statement, the facility was formerly a window and door manufacturing plant and had been vacant for about three years. The town of Stayton is off of Highway 22 and approximately 11 miles east of Interstate 5.
Capacity Commercial Group/CORFAC International principal Don Ossey has represented and Capacity Commercial associate broker Rob McEachern represented Mastercraft. Mastercraft won a contract with the Swedish home furnishings giant IKEA in September 2010 and first started shipping couches and related fabric-covered furniture in March of 2011, according to a prepared statement. The new contract work drove Mastercraft’s workforce from about 40 workers in the middle of 2011 to approximately 150 employees now—with plans to add another 100 employees once they open in Stayton.
“After landing the IKEA account, Mastercraft swiftly outgrew its Wilsonville facility and asked us to survey the market with intent to quadruple its occupancy with a stringent requirement to keep their rent as low as possible, given the nature of their business and tight margins,” says Ossey. “We immediately knew that we would have to look outside Metro Portland to secure the right plant.”
Mastercraft’s decision to stay and expand in Oregon was a major victory for the regional economy. The manufacturer competes with comparable companies in China where operating and employee costs are much lower, says Ossey.
Mastercraft currently occupies approximately 44,500 square feet in Wilsonville. That building at 10075 SW Commerce Circle is owned by DSR Holdings LLC, an entity managed by the former owner of Mastercraft Furniture Inc. Ossey estimates that the new Stayton plant should be ready for the company’s occupancy by June 1st following upgrades to the office and production areas.
Ossey declined to disclose Mastercraft’s rental rate, but explains that the average asking rents for industrial space in Wilsonville, which is about 17 miles south of Downtown Portland, are in the $0.35 per-square-foot, per-month range with outlying markets like Stayton offering significantly lower cost alternatives.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
