Business & Real Estate

A quarter-mile move nets firm twice the space

Interior shot of a massive 623,000-square-foot warehouse at 3771 Channel Drive in West Sacramento.
Interior shot of a massive 623,000-square-foot warehouse at 3771 Channel Drive in West Sacramento. Jeff Aldeghi

A local e-commerce outdoor furnishings firm is moving into nearly 400,000 square feet of leased space of a massive warehouse in West Sacramento.

TK Classics signed a deal to occupy 389,000 square feet of warehouse space, with 12,000 square feet comprising office space.

The West Sacramento company is in the process of moving a quarter-mile from its existing headquarters to the 623,000-square-foot warehouse at 3771 Channel Drive. The warehouse sits on a 49-acre site.

The furnishings firm wants more space to accompany a major expansion. With the move, TK Classics will more than double its working space.

TK Classics touts its ability to design and manufacture quality outdoor furniture, securely process online orders and ship merchandise for free directly from the factory, cutting down costs associated with traditional retail operations.

The 623,000-square-foot warehouse was most recently leased by New Hampshire-based C&S Wholesale Grocers. However, C&S elected not to occupy any of the distribution space, leaving it vacant for six years.

The warehouse was built for Fleming Foods in the 1980s. The then-giant food wholesaler occupied it prior to C&S acquiring Fleming out of bankruptcy in 2002.

Upon expiration of the C&S lease in June 2016, a massive restoration effort was undertaken by Glen Allen, president of Newport Real Estate Services, the asset manager working for the property’s trust ownership.. The upgrade included extensive work on the roof, an interior overhaul and loading docks to make it ready for a new tenant.

In November 2017, upon completion of the rebranding and restoration of the facility, Colliers International and Newport hosted an open house on a property that official claim virtually no one in the commercial real estate industry had ever seen. Colliers officials called it a hidden gem.

Within eight weeks, a lease with was signed with the first prospective tenant to view it – TK Classics.

“We were not surprised by the speed with which this deal came together,” said Colliers broker Steve Cippa. “The combination of a tight industrial market and one of the best locations in the Sacramento market brought the deal to fruition.”

He said TK Classics could be fully operational at the new site by March 1.

Cippa added that the “ownership is busy scrutinizing plans to bring to market a new, state-of the-art, speculative facility in the 200,000 square foot range at the gateway of the property.”

Editor’s Note: Due to incorrect information provided to The Sacramento Bee, the company relocating was identified as Design Furnishings in online editions. The name of the company TK Classics.

Mark Glover: 916-321-1184, @markhglover