TRC: New TRCC Agreement Underscores Attractive Location of Real Estate Assets

·2 min read

By M. Marin

NYSE:TRC

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Real Estate Conveniently Located for Commercial & industrial Use …

Tejon Ranch Company (NYSE:TRC) announced recently that privately-held Scannell Properties has purchased 17.1 acres in TRC’s TRCC to construct a manufacturing facility for its prefabricated multifamily and single-family housing units, Plant Prefab. The new facility, which is expected to begin production in January 2023, will serve as Scannell's regional production hub. Scannell cited the attractive location of the TRCC as a factor behind the site selection of TRCC.

Proximity to nearby cities (about 1+ hour to both LA and Santa Clarita) makes the TRCC well-situated. TRC has already developed almost six million square feet of industrial, commercial and retail space in the TRCC, and holds the leases for a number of distribution facilities for companies such as IKEA, Caterpillar Inc., Dollar General and others.

Other recently announced projects at TRCC include an industrial building at the TRCC that is under development and planned to be roughly 630,000-square-feet. The company is developing this building with JV partner Majestic Realty, one of the country’s largest privately-held industrial developers. We view it as a positive that this project represents an expansion of an existing relationship between TRC and Majestic.

… And Residential Projects

The location also makes the company's real estate attractive for development of residential properties. TRC’s master planned mixed-use residential communities and other real estate projects in its pipeline are in various stages of development. Management believes that its development plans address California’s need for more housing and jobs and responsible development. Recent court rulings have been favorable for TRC's development plans.

With Development Planned in a Responsible & Sustainable Way

Recently, TRC and LA-based Climate Resolve announced an agreement regarding the Centennial master planned community. Centennial has committed to include 3,480 affordable housing units and will become a greater net zero project, with the goal of exceeding California requirements to combat climate change. TRC also intends to install charging stations and incentives to support the adoption of election vehicles (EVs). Overall, TRC is committed to minimizing its carbon footprint and to proactively capture and store carbon.

TRC is a member of B3K Prosperity, which is collaboration between the public and private sectors to support regional economic growth and expects its development efforts will create both much needed permanent and development-related jobs. Centennial, for instance, is expected to create more than 23,000 permanent jobs on site and nearly 25,000 construction jobs in a region generally characterized by higher than national average unemployment rates.

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