NAPA -- The developer of a 107,000-square-foot warehouse near Napa County Airport finished last year and leased to wine-related tenants is back with a like-sized project in the same industrial area.
[caption id="attachment_67529" align="alignright" width="385"] The goal is to build a 103,400-square-foot multitenant warehouse, shown in this artist rendering, in south Napa by year-end. (image credit: RMW Architecture & Interiors)[/caption]
E&P Properties, Inc., led by Dennis Paulley, owner of Benicia-based Metropolitan Van & Storage, is seeking county of Napa approval to build a 103,400-square-foot multitenant warehouse on 5.8 acres of vacant land on Technology Way at Airpark Road in Napa Valley Gateway Business Park. The developer purchased the land from Michael Marino of California Wine Tours on Dec. 3.
Designed by RMW Architecture & Interiors, the same firm as on the first project, the forthcoming warehouse is envisioned to have suites of 14,000, 16,000, 33,000 and 40, 000 square feet, 29-foot clear height for warehouse racking and one truck dock door per 10,000 square feet.
Development consultant George Condon of Sponsor Properties (530-757-6350) has submitted applications to the for entitlements, and a project application is expected to be filed later this month. Based on the five-month timeframe to get the county green light on the first project, located at 1560 Airport Blvd., the goal is to be able to break ground by June and have the new building done by year-end, according to Mr. Condon.
"We think the timing is very good because by the time this building is done, we should be fully leased at 1560 Airport," he said.
E&P Properties built 1560 Airport to accommodate growth of Metropolitan Van & Storage. Finished in spring of last year, half the space was leased in the second half of 2012 to two local wine-related companies.
DFV Wines, run by the Indelicato family, leased 33,500 square feet at 1560 Airport for a bottling plant. Though sized to handle 1 million cases of wine annually at full production, the plant immediately would be focused on North Coast brands Black Stallion and Irony as well as a handful private labels made from local fruit. [See "DFV Wines plans south Napa Valley bottling plant," Aug. 20.]
In mid-November, Eagle Rock Fulfillment leased 16,200 square feet at 1560 Airport to consolidate by March from its current 10,000-square-foot fulfillment facility at in the same business park plus a leased 17,000-square-foot warehouse nearby. Plans for tenant improvements are expected to be submitted to the county later this month to accommodate a move by early May. [See the item on the Eagle Rock expansion in the Dec. 10 wine column.]
A lease is in final negotiations for 12,000 square feet at 1560 Airport, and talks are progressing for another seeking 15,000 to 20,000 square feet. Metropolitan Van & Storage has pared back its storage use there as tenant activity picked up.
"We all recognize we're in a recovery environment, and the vacancy rate is very low in Napa and American Canyon," Mr. Condon said.
Keegan & Coppin/ONCOR International estimated the vacancy rate for industrial space outside the former Napa Pipe facility was 10.9 percent of 13.3 million square feet in the fourth quarter of 2012. Cushman & Wakefield estimates that the vacancy rate for spaces over 50,000 square feet was 5.5 percent at year-end, thanks to 400,000 square feet of large leases last month. [See "Commercial space market to see pockets of tightening in 2013," Jan. 7.]
Steve Crocker and Bill Kampton of Colliers International represented Mr. Marino in the property sale. Mr. Kampton represented E&P Properties.
The southern Napa Valley market for large warehouse space is extremely tight, according to Mr. Kampton. He notes only one space larger than 100,000 square feet available for lease on Hanna Court and 50,000 square feet available in a Lowenberg Corp. building off Green Island Road, both in American Canyon.
Correction, Jan. 16, 2013: Mr. Kampton represented E&P Properties in the property purchase. Incorrect information was in the original story.
