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AMS leases 13th building

Posted: March 28, 2012 1:55 a.m.
Updated: March 28, 2012 1:55 a.m.

AMS Fulfillment, an order-fulfillment company, will be expanding to its 13th building, which is in Valencia.

 

AMS Fulfillment is expanding again. Leasing its 13th building, the order-fulfillment company will soon begin the process of installing the storage racks at its newest warehouse and distribution building, which is in the Valencia Industrial Center.

The value of the lease transaction is $3,635,413.56, said a spokesperson with NAI Capital. The commercial real-estate brokerage firm negotiated the deal for the 121,409-square-foot industrial property on behalf of the landlord, First Industrial Realty trust.

“We never realized it would grow this big this fast,” said Jay Catlin, president and managing partner of AMS. “We wish we weren’t in 13 buildings, but it just the nature of things in Santa Clarita.”

CEO Ken Wiseman, managing partner of AMS, said a segment of the business needs to be in a large space.

The company is at 120-percent capacity and needs more space, he said. But the owners were unable to find a property with 300,000 to 450,000 square feet of space locally. AMS handles the storage, inventory management and order fulfillment for some 30 retailers.

“The property was leased within a couple of weeks of being on the market and received multiple offers. Because of the low vacancy in larger buildings, the lessor was able to achieve a higher lease rate,” said Chris Jackson, senior vice president with NAI Capital.

Expected to be operational sometime in April, the corner property with loading docks is located at 27801 Ave. Scott. Rents at other AMS properties increased considerably, Wiseman said. In order to stay in the company’s existing locations, AMS had to take agree to higher rates for a longer term. As for the company’s newest location, higher rates applied, as well, due to the very low industrial-space vacancy rates in the Santa Clarita Valley.

“We had to competitively bid for the buildings,” Wiseman said. “For the newest building, we had to lock in for five years and bid against others for the building.”

AMS celebrates its 10th anniversary in September.

jadkins@the-signal.com

661-287-5599

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