24Seven Soon to Take Occupancy in Mega-Lease

VACAVILLE, CA—24Seven Enterprises, a logistics and distribution solutions company, will soon be taking occupancy of 404,950 square feet of warehouse/distribution space at the North Bay Logistics Center. 24Seven, the parent company to VINGO LLC and recently acquired Pack n’ Ship Direct, agreed to a long-term lease for its new facility that will house the operations for the two business lines.

Officially merging last November, VINGO announced in June that the teams of Pack n’ Ship Direct and VINGO, both in the wine fulfillment space, are now fully integrated. Though the firms service different clients, they have partnered on various projects.

Pack n’ Ship Direct’s focus has been on white-glove service for wineries in California, Oregon and Washington. VINGO’s focus was with high-volume, high-growth e-commerce clients that require a more nationwide presence. 24Seven Enterprises cited being able to provide greater economies of scale and a broader portfolio of services as two main catalysts for the union.

In a prepared statement, Edmund Delaney, VINGO’s chief revenue officer, said: “We are extremely excited about the next phase of our growth. This merger was a natural next step for us and our long-time partners, Pack n’ Ship Direct. It provides us the scale to execute for our customers at a level not yet seen. We look forward to delivering elevated service and value to our customers of every size and across the country.”

Managing principal, executive managing director Brooks Pedder, John McManus and Tony Binswanger with Cushman & Wakefield represented the landlord in the transaction, with Pedder and Scott Bertrand also of Cushman & Wakefield representing the tenant.

“This was a strategic move for 24Seven to position themselves along Interstate 80 to better access outbound markets, but while keeping operations in close proximity to Napa,” Pedder says. “The Napa market is currently impacted with product scarcity. Per our tracking, this transaction ranked as the largest wine lease in all Solano County and among the largest-ever wine leases in the entire North Bay Area.”

Owned by LDK Ventures, the North Bay Logistics Center is located at 700 Crocker Dr. and features more than 843,000 square feet of contiguous warehouse in Vacaville, which ranks among the largest single-building distribution facilities in Northern California.

“Formerly the Save Mart distribution center, this second generation former grocery distribution center and extra land for development marks the beginning of the next chapter for industrial development in the East Bay,” Pedder notes.

The 843,000-square-foot North Bay Logistics Center is situated on a 124-acre property along Interstate 505 and also features an additional 600,000 square feet of planned warehouse. Serena & Lily occupies the remaining 434,000 square feet in the existing building.

“North Bay Logistics Center attracted 24Seven from the Napa submarket due to Vacaville’s labor surplus, i.e., excellent labor demographics, availability and functionality of required inventory, and value, together with a strategic location still proximate to the Napa wine region and positioned along Interstates 80 and 505 for easy access to the Bay Area, Port of Oakland, and all points north and east,” Pedder tells GlobeSt.com.

Since mid-2015, the region has acquired more skilled workers from the economic expansion period, which made the unemployment rate fall from 5.4% to the current 3.3%, somewhat lower than the national metric of 3.8%, according to a report by Cushman & Wakefield. Thanks to the growing warehousing and industrial market in the Napa Solano area, unemployment slowly decreases each year. Popular industries in the market are typically wine warehouse users and e-commerce distribution tenants rather than heavy industrial manufacturing. Currently, there are several projects under construction awaiting completion late 2019, and employment levels are predicted to expand yet again as more tenants move to the area to fill the new vacancies.