Home » Best of Both Worlds: A Focus on Warehousing at Los Angeles International Airport Encon Commercial Real Estate Services Case Study

Best of Both Worlds: A Focus on Warehousing at Los Angeles International Airport Encon Commercial Real Estate Services Case Study

December 2nd, 2017

Best of Both Worlds: A Focus on Warehousing at Los Angeles International Airport
Encon Commercial Real Estate Services Case Study
Saturday, December 2, 2017

Encon Commercial, Inc., based in Los Angeles, California, provides commercial real estate services to its clients throughout Southern California. Encon Commercial was founded in 2002 by Owner and Managing Director, John Scatoloni. Mr. Scatoloni, utilizing his experience with the office of California Trade and Commerce and Foreign Direct Investment, chose to begin his own real estate advisory company, with an objective to spearhead site selection services focused on the fastest growing local businesses in Southern California. In many cases, Encon Commercial has assisted its clients in securing hard to find logistical warehouse and distribution space in critical micro markets, such as the LAX submarket, which is arguably the most expensive and most limited distribution space market in Greater Los Angeles.

Case in point, Encon Commercial assisted two of its long-term clients, Morrow Meadows, an electrical contractor for the airport headquartered in City of Industry, as well as Apollo Freight, a cold storage air freight subsidiary of Mercury Air Group headquartered in Los Angeles, with their LAX distribution space needs. In each scenario, Encon Commercial analyzed both the market availability and critical features of logistical operations for each client, including: properties with superior logistical flow and long-term storage needs, premier office space, private yard usage, security controls, below-market pricing, available investment dollars from the landlord, as well as locations with proximity to their customer base at the Los Angeles airfield. Encon Commercial’s advisory group dedicated themselves to deliver facilities suited for long-term growth, and stability to both Morrow Meadows and Apollo Freight, two of the fastest growing companies headquartered in Los Angeles County. As it happens in a tight real estate market, both Morrow Meadows and Apollo Freight had to make some tough decisions in order to accomplish all of their objectives within one facility. With Encon Commercial’s help, both companies were able to locate their new facilities, coincidentally within the same building – a 73,074 square foot, dual-tenant facility located minutes from the airport, and owned by the one of the nation’s largest, most sophisticated, and preferred landlords in the nation, Prologis. These aspects of a transaction are not easily accomplished, nor are they common in the current marketplace, however, Encon Commercial accomplished all of the above at more than 10% below market rents. As a result, Encon Commercial created economic stability in an uncertain market for both Morrow Meadows and Apollo Freight in a facility designed for company growth with like minded neighbors, and a landlord that invests tremendously in order to assist their tenants. Mr. Scatoloni described the scenario precisely:

“These transactions are a perfect example of the best of both worlds: we have phenomenal tenants with 50+ year history and strong credit partnering with an exceptional landlord at a superior building.”

In conclusion, both of these valued clients were grateful and relieved to have the real estate advisory team at Encon Commercial help them establish a preferred lease structure and long-term tenancy with one of the best landlords a tenant could have on their side. In today’s unpredictable commercial real estate market, this is truly a significant “win, win, win” for both of tenants and the landlord – as well as an honor for the Encon Commercial team to be a part of their economic success.

In turn, our team at Encon Commercial looks forward to sharing our experience, knowledge and determination with your company on your next warehouse investment.



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