BAKERSFIELD, CALIF. — American Tire Distributors has signed a 20-year lease for more than 1 million square feet of space at the master-planned Paramount Logistics Park in Shafter, a city about 20 miles northwest of Bakersfield. The lease is valued at $119 million.
The 1,625-acre logistics park, owned and managed by Roll Real Estate Development, is located at 5000 Capital Road. The new $65 million, built-to-suit facility will be situated on more than 45 acres and will include 10,000 square feet of office space. It will break ground this spring.
American Tire has occupied a 176,500-square-foot industrial building at Paramount Logistics Park since 2007. The company had entered into a build-to-suit lease agreement with Roll Real Estate Development this past May for a 350,000-square-foot building within the park. American Tire recently restructured that lease, however, and tripled its requested space due to a consumer demand increase in the Western U.S.
“American Tire's expansion in the Central Valley will significantly improve its capability to distribute to tire retailers quickly and more efficiently,” says Jason Gremillion, Roll Real Estate Development’s vice president of development. “Being located at the Paramount Logistics Park provides strategic access to customers throughout the western states, and they can utilize Kern County's young and motivated workforce to bolster growth in the company and community.”
Paramount Logistics Park enjoys a close proximity to Interstate 5 and Highways 99 and 58, through which tenants can access about 14 percent of the U.S. population within a 300-mile radius. The project also features an onsite rail yard with more than 9,000 feet of track that can accommodate trains and provide direct access to Burlington Northern Santa Fe (BNSF) Railway's mainline.
“We are thrilled to have a long-standing company that can enjoy the economic and logistic benefits of being located in Shafter,” says Scott Hurlbert, Shafter’s newly appointed city manager. “Our city has a vision to be the best environment for growing businesses and thriving families. We look forward to the expansion of our city and economy as Paramount Logistics Park continues to develop.”
Other notable tenants at the center include Target, Formica, The Hillman Group, Baker Hughes and Ross Dress for Less. Ross previously completed a 160-acre land acquisition at the logistics park, where it plans to develop a 1.7 million-square-foot distribution center. It is scheduled for completion in the third quarter of this year.
American Tire and Roll Real Estate Development were self-represented in this lease transaction.
American Tire Distributors is one of the largest independent tire suppliers to the replacement tire market. The Huntersville, N.C.-based company’s 800-vehicle fleet travels 40 million miles annually to deliver tires, wheels and automotive supplies to retailers across the country.
Roll Real Estate Development is a division of Roll Global. This $3 billion privately owned consumer goods company is the largest owner of agricultural land in California. Roll Real Estate Development owns, manages and is actively developing three business and industrial parks in the Central Valley that total more than 1,800 acres. The company has offices in Los Angeles and Bakersfield.
— Nellie Day