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Pacific Transformer Industrial Space

Sep 20, 2022, 11:12 AM

Subtitle : Baja California, mexico

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SIOR members close big deals in a big way. Select transaction case studies are featured in the SIOR Report so readers can learn both about and from the expertise of our members.

TRANSACTION TYPE & DETAILS

Date: March 1, 2022

Transaction Type: Lease

Property Type: Industrial

Size: 52,000 sq. ft.

Sale Price: $2,500,000 USD

Drawing upon close industry and SIOR relationships, the team at DAUM cooperated with Arturo Valdes, SIOR, of NAI Mexico to source the opportunity for Pacific Transformer to lease this high-quality asset within a supply-constrained market.

"In line with many of our customers deciding to near-shore their operations, we’ve made our operations in Mexico a strategic focus. The DAUM team brought us the opportunity to occupy a larger industrial space that is both adjacent to key transportation routes and near an area with a strong labor pool."

Justin Richardson

CFO, Pacific Transformer

Client Objective

Based on ongoing trends related to quality control and time-to-market, compounded by recent severe supply chain disruptions, many U.S.-based firms are shifting a larger percentage of their overseas manufacturing operations to North America, especially to areas that are in close proximity to transportation routes.
Our clients needed a larger facility to grow their Mexico operations. We were able to identify this property in Baja California, ideally located just 40 minutes from the U.S.-Mexico border near several interstate and international highways to facilitate convenient product distribution.
The new tenant—an Orange County, Calif.-based manufacturer that specializes in distribution transformers for medical, military, and automotive products—is expanding within Mexico and will increase its local operations capacity by 300% with this lease.

Transaction Profile

The industrial asset is further situated within a matured industrial zone near residential areas with an ample pool of skilled workers.
Built in 1990 and recently retrofitted, the building is ideal for a manufacturing or assembly business.
The property features a ceiling height of 18’, four dock-high doors, two grade-level doors, and provides convenient access to Via Rapida, a major city route.
Los Pinos II is located at Gustavo Díaz Ordaz 18803 in Tijuana, Mexico.

Solution

While the building was still occupied, a termination agreement was reached, and we were able to negotiate immediate occupancy on a long term basis for our client once the existing tenant vacates.
We were able to provide a well established and credit worthy U.S.-based tenant for the landlord with zero building vacancy/down time.
Through occupying Los Pinos II, Pacific Transformer anticipates adding a few hundred jobs to the local market.

PARTICIPANTS & INFORMATION PROVIDED BY

Anthony Bergeman, SIOR

Arturo Valdes, SIOR

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