Salton, Inc.
California
Distribution Center
Riverside, CA

46.6 Acres
30 Months

OVERVIEW

Salton, Inc. is the one of the world’s largest manufacturers of house wares. They own a multitude of other companies such as Block China, Stiffel Lamps and Farberware. They are best known for the George Foreman Grill. Patrick O’Healy formerly represented Salton, Inc. for the acquisition of their 343,000 square foot Carson warehouse, and their 217,000 square foot Mira Loma Warehouse. This New York Stock Exchange traded company is expanding very rapidly. Their products are predominantly manufactured in China and arrive in containers through the Port of Long Beach. Some of their major customers are Walmart, Target, Sears, Kmart, Penney’s, Bloomingdale’s and a multitude of other department stores.

Patrick O’Healy was originally retained to select a site for a “build to suit” for approximately 1,000,000 square feet of warehouse. After many years of evaluation and negotiation, Salton elected to purchase this 46.6-acre site in Riverside, and immediately sold it to a developer as part of a built to suit transaction. The gross consideration of the land sale was approximately $6,500,000, and the gross consideration of the warehouse lease for the project to be built is in excess of $40,000,000.

An important part of our evaluation was to perform site location analysis to evaluate the tradeoff between drayage costs and rent for various parcels and submarkets. We assisted Salton to develop their building plan and to optimize their product layout, site plan, traffic flow, and parking, etc.

APPROACH

Assisted the client to develop a prototypical warehouse plan
• Gave input regarding the site location, traffic flow, trailer storage, parking areas and warehouse dimensions
• Performed location analysis for various sites to assist the client to optimize their costs
• Created competition among a group of high quality developers to minimize the cost of this project

RESULTS

Salton, Inc. has moved into their new build to suit facility, which is the finest warehouse in their distribution network. It is anticipated that this warehouse, in conjunction with the other California facilities will satisfy Salton’s space needs for the next five to ten years.

Salton, Inc. has a variety of warehouses in this market, which are ideally suited to various client groups. Salton has locked in economy of scale and long term leases that minimize their occupancy costs.

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