Monthly Archives: December 2005

Kelly Corporate Center IV Office Building Under Construction

SAN DIEGO (December 20, 2005) – The Allen Group, a major developer of industrial and office properties in California and across the Western United States, announced the start of construction for the 75,215 square foot Kelly Corporate Center IV office building in Carlsbad, Calif.

Kelly Corporate Center IV, the third phase of the Kelly Corporate Center complex, is strategically located east of I-5 at the signalized intersection of Palomar Airport Road and Aviara Parkway/College Blvd.

This three-story Class A office building, with exterior granite accents and extensive landscaping, will feature a flexible design plan that can accommodate tenants from 5,052 to 75,215 square feet. The complex will have abundant parking, an elegant lobby entry that opens into a spacious two-story atrium, elevator and stair access, an energy efficient water loop heat pump system, a shower and locker facility, and secure key-card access.

Kelly Corporate Center is near the Four Seasons resort at Aviara, a variety of restaurants, banking services and across the street from the City of Carlsbad’s future golf course, which is now under construction.

This joint-venture development with the Kelly family is a four-phase, 21-acre master-planned corporate office park. At its completion, the project will total approximately 250,000 square feet. Kelly Corporate Center I, completed in 2001, is a two-story, 72,000 square foot multi-tenant office building. Kelly Corporate Center II, completed in 2002 is a two-story 50,000 square foot office building developed for the U.S. Department of Fish and Wildlife.

The Allen Group is a San Diego based commercial development firm that specializes in rail-served industrial parks and build-to-suit facilities, including Class A office buildings. The company has developed over a half a billion dollars of commercial property in California and across the West, including two master-planned logistics parks: the MidState 99 Distribution Center (www.midstate99.com), south of Fresno, Calif., and the International Trade and Transportation Center (www.ittc.com) near Bakersfield, Calif.

With offices in San Diego, Visalia and Bakersfield, Calif., The Allen Group is trusted by Fortune 500 companies such as VF Corporation, Cox Communications, FedEx, International Paper Company, Intuit, Kraft Foods and Wal-Mart Stores. The company has major industrial and office projects under development in San Diego, Bakersfield, Shafter, Sacramento and Visalia, Calif., as well as a major intermodal logistics hub in Dallas, Tex.

For more information about The Allen Group, please visit www.allengroup.com.

The Allen Group Announces Joint Venture with CA Farm Bureau Federation

SACRAMENTO, California (December 16, 2005) The Allen Group, a major developer of industrial and office properties across the Western United States, announced a formation of a joint venture office development with the California Farm Bureau Federation (CFBF) in Sacramento.

The project, still in the planning stages, will feature a campus-style setting of 150,000 square feet of “for sale” Class A office space on 11 acres adjacent to the California Farm Bureau building in Sacramento.

“We are very excited that the California Farm Bureau has selected The Allen Group to develop a high-quality office development in a unique location within the South Natomas market,” said Richard Allen, CEO of The Allen Group. “Over the past five years we’ve co-ventured several successful real estate projects in the Sacramento market with the Farm Bureau.”

The project’s construction start and completion dates, as well as other plan details, have not yet been finalized. Real estate brokers Betty Diepenbrock and Greg Levi of CB Richard Ellis Inc. will represent the project as marketing agents.

California Farm Bureau

The California Farm Bureau is California’s largest farm organization with nearly 88,000 member-families in 53 county Farm Bureaus. It is a voluntary, nongovernmental, nonpartisan organization of farm and ranch families seeking solutions to the problems that affect their lives, both socially and economically.

For more information about the California Farm Bureau Federation, please visitwww.cfbf.com.

The Allen Group

The San Diego based commercial development firm specializes in rail-served industrial parks and build-to-suit facilities, including Class A office buildings. The Company has developed over a half a billion dollars of commercial property in California and across the West, including two master-planned logistics parks in California’s Central Valley: the MidState 99 Distribution Center (www.midstate99.com) south of Fresno and the International Trade and Transportation Center (www.ittc.com) just outside of Bakersfield.

With offices in San Diego, Visalia, Bakersfield, Calif. and Dallas, Texas, The Allen Group is trusted by Fortune 500 companies such as VF Corporation, Cox Communications, FedEx, International Paper Company, Intuit, Kraft Foods and Wal-Mart Stores. The Company has major industrial and office projects under development in San Diego, Bakersfield, Shafter, Sacramento and Visalia, Calif., as well as a major intermodal logistics hub in Dallas, Texas.

For more information about The Allen Group, please visit www.allengroup.com.

The Allen Group Announces Groundbreaking for New Rail Project

BNSF Railway to provide rail service to the International Trade and Transportation Center

SHAFTER, Calif. (December 14, 2005) — The Allen Group, a major developer of industrial and office properties in California, along with the City of Shafter, held a groundbreaking ceremony today for new rail service for the International Trade and Transportation Center (ITTC) in Shafter.

This new rail service, provided by the BNSF Railway and owned by the City of Shafter, will serve the ITTC as well as the southern end of the San Joaquin Valley. The ITTC is a development of The Allen Group.

“As a result of the changing dynamics in the way goods are transported, the ITTC and other rail-served parks are becoming economic engines for the communities in which they are located,” said Luke Allen, Corporate Development Coordinator for The Allen Group. “This will drive growth in the economy of the Central Valley for years to come by increasing trade, distribution and, most importantly, jobs.”

The International Trade and Transportation Center is a 700-acre master-planned industrial park. The ITTC is home to Target Stores’ 1.7 million square foot regional distribution center and a 288,000 square foot spec building currently under construction. Thirty-five million consumers are within a four-hour drive of the property, which will feature rail service to and from the Ports of Los Angeles and Long Beach, for shippers and distributors serving the western United States.

Constructing the new rail line is Marta Track Constructors of Ethel, Wash.

ITTC Rail Service Groundbreaking Ceremony

The Allen Group Relocates Corporate Headquarters in San Diego

SAN DIEGO, California (December 12, 2005) Moving to the company’s newest “Class A+” office development, Diamante Del Mar

The Allen Group, a major developer of industrial and office properties in the Western United States, announced the relocation of its corporate headquarters to the Del Mar, Calif. area, taking residency today at the new Diamante Del Mar office building in North County, San Diego.

Diamante Del Mar, located on the southeast corner of El Camino Real and Valley Centre Drive, is the newest Class A+ office development completed by The Allen Group. The 35,450 square foot structure is detailed with craftsman-like qualities unique in the Del Mar Heights submarket. The two-story stone veneer exterior with a subterranean garage includes vaulted second-floor ceilings, hand-crafted interior wood trim, office balconies, and a shower and locker facility. Diamante Del Mar is also within walking distance of hotels and restaurants with immediate access to I-5 and Highway 56.

The company’s new contact information is as follows:

The Allen Group
11943 El Camino Real, Suite 200
San Diego, CA 92130
Phone: (858) 764-6800
Fax: (858) 764-6809
www.allengroup.com

The San Diego based commercial development firm specializes in rail-served industrial parks and build-to-suit facilities, including Class A office buildings. The company has developed over a half a billion dollars of commercial property in California and across the West, including two master-planned logistics parks: the MidState 99 Distribution Center (www.midstate99.com) and the International Trade and Transportation Center (www.ittc.com) near Bakersfield, Calif.

The Allen Group, with offices in San Diego, Visalia and Bakersfield, Calif., is trusted by Fortune 500 companies such as VF Corporation, Cox Communications, FedEx, International Paper Company, Intuit, Kraft Foods and Wal-Mart Stores. The company has major industrial and office projects under development in San Diego, Bakersfield, Shafter, Sacramento and Visalia, Calif., as well as a major intermodal logistics hub in Dallas, Tex.

For more information about The Allen Group, please visit www.allengroup.com.

Pact links Dallas, Panama Canal

The Dallas Morning News

Pact links Dallas, Panama Canal – Group hopes to channel more trade through southern part of county

December 9, 2005

The Dallas NAFTA Trade Corridor Coalition plans to sign an agreement today with the Panama Canal Authority in an effort to boost trade to southern Dallas County.

The deal calls for joint marketing efforts and the exchange of data and ideas between the coalition and the Panama Canal Authority, which operates the 50-mile canal in Central America.

The coalition, consisting of the city of Dallas, Dallas County and the city of Balch Springs, seeks to transform the southern sector into a trade hub, bringing jobs and development.

The agreement aims to capitalize on many shippers’ growing interest in using the Panama Canal to bypass congested ports in Southern California when moving goods to the Midwest or East Coast from Asia.

Some of the cargo from the canal is unloaded at Houston’s port, then transported by truck to distribution centers in North Texas for delivery to the rest of the country. The coalition wants to increase this traffic.

“We’re seeing shifts in trade patterns, which is why we’re doing this,” said Leslie Jutzi, manager of the city of Dallas’ intergovernmental services and project manager of the Dallas NAFTA Trade Corridor.

No money is exchanging hands with the deal.

Although North Texas isn’t alone in vying for a role as an inland port, southern Dallas County already has several efforts under way to become more of an import destination.

In August, the Union Pacific railroad opened a $100 million international intermodal terminal in Wilmer, joining a new Federal Express distribution center nearby.

And the Allen Group, a California real estate company, recently announced plans to open an industrial park surrounding the Union Pacific terminal.

The coalition’s agreement with the Panama Canal Authority follows the recent signing of a similar pact with the Port of Topolobampo in northwest Mexico.

Additional agreements are also expected with the Ports of Lazaro Cardenas and Manzanillo in Mexico, Ms. Jutzi said.

The Allen Group Announces Promotions within its Central Valley Operation

SAN DIEGO (December 6, 2005) — The Allen Group, a major developer of industrial and office properties in the Western United States, announced promotions of two members of its “Central Valley” (California) commercial development team.

Larry Montgomery has been promoted to Director of Development for Central California. Montgomery formerly served as Director of Commercial Construction for the company and is now responsible for the overall commercial development of the Central California market.

For more than 20 years, he has been involved in commercial and industrial site planning, construction, leasing and property development in Central California. Montgomery’s expertise also includes guiding projects from the entitlement phase through the final stages of construction and leasing.

The Allen Group also announced the promotion of David Hernandez to serve as Director of Construction Services for Central California, operating out of the Visalia (California) office. Hernandez will have primary responsibility for all physical construction activities in the Visalia market and at the International Trade and Transportation Center (ITTC) in Shafter, Calif. The ITTC is a master-planned logistics park developed by The Allen Group.

“Both Larry and David have a proven track record of delivering build-to-suit projects on time and on budget,” said Richard Allen, CEO of The Allen Group. “Their ability to take a project from the initial program development, through consultancy interface, to ultimate design and construction has consistently resulted in satisfied clients.”

Visalia Gets New ‘Biggest’ – VF Outdoor Center

Fresno Bee

Visalia Gets New ‘Biggest’ – VF Outdoor Center Includes 800,000 Square Feet.

December 4, 2005

Visalia is flat like Kansas and tamed into settlement by pavement, irrigation and housing subdivisions, but it will soon be a stopping point for expedition gear devised for backcountry adventure.

VF Outdoor Inc.’s distribution center, now under construction at the southwest corner of Plaza Drive and Riggin Avenue, will be the launching pad for The North Face brand products – now distributed from the Midwest — and Reef, a surf-inspired brand of footwear and clothing.

The 800,000-square-foot building is about 50% complete, according to Scott Burke, director of distribution for VF Outdoor Inc., a subsidiary of VF Corp.

“We look for it to be under roof by the end of February [and] operational by June 1,” he said. As it stands in early December, the distribution center is still blank walls of concrete, the last structure on Plaza Drive before the northern city limits and acres of farmland between Visalia and the northern Tulare County city of Dinuba.

But when it is completed next year, VF’s building will be the city’s largest building by far: Jo-Ann’s Stores Inc.’s distribution center, which stands at about 600,000 square feet just south on Plaza Drive in the city’s industrial park, will fall to second place.

The VF building’s footprint alone could swallow 14 football fields or about 267 fast-food restaurants. Its 64-acre site could hold more than three White Houses, including the grounds. But counting the mezzanine system and upper layers, the building is planned to have a million square feet of working space, according to city officials.

“It’s certainly VF’s largest distribution center and will be our most automated distribution center and it does allow us to ship multiple brands through multiple channels of distribution,” Burke said.

VF Corp., VF Outdoor’s parent company, said during the summer that Visalia will be its largest distribution center by 300,000 square feet, a difference that could hold a Wal-Mart supercenter with room to spare.

Burke this week declined to comment on the building’s cost. Larry Montgomery, construction director of the Allen Group, had estimated earlier this year that the building could cost about $40 million, not including the internal structures such as extensive racking and conveyor systems that VF would add.

When VF announced that Visalia would be the site of its largest distribution center, beating out competition in Nevada, city officials applauded. But it also triggered the question, said Glenn Morris, executive director of the Visalia Economic Development Corp.: What if the next large company comes along?

As a result, the city is considering a square mile, or about 640 acres, north of Riggin Avenue for annexation into the industrial park.

Plaza Drive intersects the land that is owned by two property owners, Russell Doe and David Vargas, according to city planner Brandon Smith.

Doe has submitted an application for his 160 acres to be annexed into the city, Smith said. An application for Vargas’ land is expected in the near future, he added. Morris said companies looking for sites are often seeking their quickest option. Having land developed and ready to go can be a big plus for a city’s competitive position, he said.

For instance, VF wanted to move so fast that it is renting out a 118,000-square-foot temporary facility for its Reef brand, before the larger distribution center is finished next summer. Both brands, Reef and The North Face, are “growth engines” for the company. Third quarter earnings showed that sales rose 14% in the quarter, with Reef contributing $18 million of the $64 million increase. The North Face brand sales increased 23% in the quarter.

Burke said that for “fast-track” projects like the Visalia distribution center, available land does influence companies in choosing a city. “It gives you a better incentive to go to that location,” he said. “It takes all the questions out.” Burke said if land hasn’t made it through the permitting process, the company considers that a risk.

“What if they were doing an inspection and they found anything that would delay your project?” The need for land may become more important as Visalia makes its name as a distribution hub. The city has received more interest from companies since VF Corp., known as the world’s largest clothing company, picked Visalia.

Just this week, two consultants interested in distribution centers larger than 500,000 square feet visited the city, Morris said. In the past, the typical company would be looking for something smaller — 100,000 to 200,000 square feet, he said. “We’re still getting some of those, but we seem to getting a lot more of the bigger projects,” he said.