OVERVIEW

Salton, Inc. is 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. 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 has represented Salton on a multitude of projects going back over a decade. This facility was originally 343,000 square feet, and was expanded to 413,000 through extension of the original lease, and the sublease of an additional warehouse.

APPROACH

Assisted the client to develop a prototypical warehouse plan
• Gave input regarding the site location, traffic flow, trailer storage, and parking areas
• Created competition among a group of high quality property owners to minimize the cost of this project
• Developed a down-sizing plan to plan for the possibility of retraction if the market retracted

RESULTS

Salton originally signed the lease on this facility over ten years ago. Five years into the lease, they exercised their option to extend the lease, and have renewed it twice prior to moving into their new build to suit facility in Redlands. Toward the end of their occupancy they subleased an adjacent property to increase their capacity in this location. During this time period, Salton has enjoyed rents that were more than 30% below market. The building had far more loading than they originally believed they needed, but its functionality has allowed them to expand their business in a manner that they never contemplated. They have been able to optimize the function of this facility in a very cost effective manner.