SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
| For the fiscal year ended December 31, 2002 |
Commission file number 1-10622 |
CATELLUS DEVELOPMENT
CORPORATION
(Exact name of Registrant as specified in its charter)
| Delaware |
94-2953477 | |
| (State or other jurisdiction of |
(I.R.S. Employer | |
| incorporation or organization) |
Identification No.) |
201 Mission Street
San Francisco, California 94105
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code:
(415) 974-4500
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Name of each exchange on which registered | |
| Common Stock, $.01 par value per share |
New York and Chicago Stock Exchanges, and Pacific Exchange | |
| Preferred Share Purchase Rights |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes x No ¨
The aggregate market value of the voting stock held by non-affiliates of the Registrant was approximately $1.746 million on March 10, 2003.
As of March 10, 2003, there were 87,275,712 issued and outstanding shares of the Registrant’s Common Stock.
PART I
Item 1. Business
Catellus Development Corporation (“Catellus” or the “Company”) is a publicly traded real estate operating company with a significant portfolio of rental properties and developable land. Operations consist primarily of the management, acquisition, development, and sale of real estate. At December 31, 2002, we owned a significant portfolio of income producing properties, including approximately 37 million square feet of rental property, 32 million square feet of which is industrial space. Our rental properties provide us with a relatively consistent source of earnings. Additionally, Catellus owns a portfolio of developable land intended for future development activities. Our development activities provide cash flow through sales of land or the conversion of our developable land to property that is either added to our rental portfolio or sold to tenants, developers, or other users. We invest in new land to ensure our potential for growth.
We have four primary groups: (1) Asset Management, which provides management and leasing services for our rental portfolio; (2) Suburban Commercial, which acquires and develops suburban commercial business parks for our own rental portfolio or for sale to third parties; (3) Suburban Residential, which develops suburban residential communities and sells finished lots to homebuilders; and (4) Urban, which focuses on developing three large, urban mixed-use projects for our own rental portfolio or for sale to third parties.
Catellus was formed to conduct the non-railroad real estate activities of the Santa Fe Pacific Corporation and was spun off to stockholders effective in 1990. Our railroad heritage gave us a diverse base of developable properties located near transportation corridors in major western United States markets. This land has proven suitable for the development of a variety of product types, including industrial, retail, office, and residential. Over time, we have expanded our business by acquiring land suitable for primarily industrial development in many of the same suburban locations where we have an established presence.
Our principal office is located at 201 Mission Street, San Francisco, California 94105; our telephone number at that location is (415) 974-4500; and our website address is www.catellus.com. This annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to these reports are available free of charge through our website as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission.
Recent Developments
On March 3, 2003, we announced that our Board of Directors (“Board”) has authorized us to restructure our business operations to qualify as a real estate investment trust (“REIT”), effective January 1, 2004, subject to stockholder and Board approvals. The Company has spent the past several years profitably transforming what was one of the country’s largest land portfolios into predominantly industrial rental property and capital that has been reinvested back into our business. We are now embarking upon a transition period to restructure our operations and change our business strategy to focus increasingly on industrial development and reducing focus on other product types.
In anticipation of the REIT conversion, the Company will take steps during 2003 to better position its businesses for operation as a REIT. This will include looking for ways to operate more efficiently, consistent with a focus of new development on industrial product. We plan to continue our Urban mixed–use projects that are underway, but do not plan to seek new ones. Since the Urban Group (see Urban Group below) will no longer be pursuing new activities, and given the considerable progress made on existing projects, it is anticipated that the scope of activities will be reduced, resulting in a reduction in work force over 2003 and 2004. The Urban Group projects will be operated in a taxable REIT subsidiary (“TRS”), and the Company expects to recycle surplus capital from the Urban Group projects through continuing development with greater emphasis on third party parcel sales, land leases, and joint ventures. During 2003, the Suburban Residential Group (see Suburban Residential Group below) projects will be positioned for sale and any remaining assets will be operated in a TRS.
2
We plan to present the REIT conversion to our shareholders for approval at our annual meeting, which is expected to be held in the third quarter of 2003. If the REIT conversion is consummated, Catellus will operate as an umbrella partnership real estate investment trust, with wholly owned taxable REIT subsidiaries. As part of the REIT conversion, we will provide to shareholders a one-time distribution of pre-REIT earnings and profits, in compliance with the requirements to elect REIT status. Furthermore, subject to final Board approval, we anticipate that we will begin paying a quarterly dividend commencing with a payment of $0.30 per common share for the third quarter of 2003. A copy of the press release announcing the REIT conversion and other relevant documents are available free of charge at the SEC’s website (www.sec.gov) or can be obtained by directing a request to us at 201 Mission Street, Second Floor, San Francisco, California 94105, Attn.: Director of Investor Relations, or by telephone at (415) 974-4649, or email at InvestorRelations@catellus.com. We will soon file a preliminary proxy statement/prospectus with the Securities and Exchange Commission that will provide important information, including detailed risk factors, regarding the proposed transaction. There is no assurance that the proposed REIT conversion will be consummated or that the terms of the REIT conversion or the timing or effects thereof will not differ materially from those described in the press release and other relevant documents.
Property Portfolio
Rental Portfolio
Our income-producing portfolio is comprised of commercial rental property, ground leases and other properties, and interests in several joint ventures. We own 37 million square feet of commercial rental property of which 89.1% is industrial, 8.6% is office, and 2.3% is retail. Since the end of 1995, our portfolio has expanded by more than 22.9 million square feet (163%), primarily through our development activities. Approximately 35% of the rental property, by square footage, is located in Southern California, 19% in Northern California, 18% in Illinois, 11% in Texas, 7% in Colorado, 3% in Arizona, and 3% in Oregon, with the remaining 4% located in six other states. We also own approximately 8,000 acres of land subject to ground leases, approximately 755,000 square feet of other rent generating properties that are located at our urban development projects, the majority of which is projected to be converted to future redevelopment opportunities, and joint ventures interests in two hotels and two office buildings.
The following table provides information on our income-producing portfolio:
| Number of Buildings |
Square Feet Owned |
Net Book Value |
||||||||||||||||||||||
| December 31, |
December 31, |
December 31, |
||||||||||||||||||||||
| 2002 |
2001 |
2000 |
2002 |
2001 |
2000 |
2002 |
2001 |
2000 |
||||||||||||||||
| (In thousands) |
(In thousands) |
|||||||||||||||||||||||
| Rental Portfolio |
||||||||||||||||||||||||
| Industrial |
196 |
187 |
198 |
32,944 |
27,594 |
26,251 |
$ |
1,134,890 |
|
$ |
943,340 |
|
$ |
874,168 |
| |||||||||
| Office |
32 |
27 |
24 |
3,164 |
2,442 |
1,625 |
|
409,339 |
|
|
297,707 |
|
|
205,179 |
| |||||||||
| Retail |
22 |
19 |
21 |
868 |
864 |
880 |
|
100,882 |
|
|
96,263 |
|
|
94,085 |
| |||||||||
| Ground leases and other properties |
— |
— |
— |
— |
— |
— |
|
139,886 |
|
|
138,708 |
|
|
79,950 |
| |||||||||
| Operating joint ventures |
— |
— |
— |
— |
— |
— |
|
(10,920 |
) |
|
(13,026 |
) |
|
(16,092 |
) | |||||||||
| Subtotal |
250 |
233 |
243 |
36,976 |
30,900 |
28,756 |
|
1,774,077 |
|
|
1,462,992 |
|
|
1,237,290 |
| |||||||||
| Accumulated depreciation |
|
(366,772 |
) |
|
(325,130 |
) |
|
(287,039 |
) | |||||||||||||||
| Total |
$ |
1,407,305 |
|
$ |
1,137,862 |
|
$ |
950,251 |
| |||||||||||||||
3
Developable Land Inventory
We have developable land capable of supporting up to an estimated 38.1 million square feet of commercial development and approximately 9,300 units of residential development as of December 31, 2002. Substantially all of our commercial and residential developable land is entitled. Approximately 67% of the total commercial development potential by square footage is located in California: San Francisco, Silicon Valley, San Francisco’s East Bay area, Los Angeles County, Orange County, the Inland Empire (San Bernadino and Riverside counties), and the City of San Diego; approximately 14% in Texas; approximately 11% in Illinois; with the remaining 8% located in four other states. In terms of residential lots, approximately 59% of the residential land for potential development is located in Northern California, 18% is in Southern California, and 23% is in Colorado.
The following table summarizes the estimated development potential of our land inventory as of December 31, 2002:
| Commercial |
Residential |
Hotel | ||||
| (Square feet) |
(Lots or units) |
(Rooms) | ||||
| Commercial |
25,907,000 |
— |
— | |||
| Residential |
— |
5,789 |
— | |||
| Urban |
12,226,000 |
3,548 |
500 | |||
| Total |
38,133,000 |
9,337 |
500 | |||
| Entitled |
36,806,000 |
9,223 |
500 | |||
| Entitlements/approvals in progress |
1,327,000 |
114 |
— |
The following table shows the net book value of our developable land inventory for the years presented:
| Net Book Value |
||||||||||||
| December 31, |
||||||||||||
| 2002 |
2001 |
2000 |
||||||||||
| (In thousands) |
||||||||||||
| Commercial |
$ |
171,924 |
|
$ |
188,527 |
|
$ |
174,329 |
| |||
| Residential |
|
52,850 |
|
|
52,108 |
|
|
64,479 |
| |||
| Residential joint ventures |
|
37,918 |
|
|
74,721 |
|
|
46,245 |
| |||
| Urban |
|
279,495 |
|
|
258,504 |
|
|
366,136 |
| |||
| Subtotal |
|
542,187 |
|
|
573,860 |
|
|
651,189 |
| |||
| Accumulated depreciation |
|
(10,699 |
) |
|
(9,888 |
) |
|
(15,819 |
) | |||
| Total |
$ |
531,488 |
|
$ |
563,972 |
|
$ |
635,370 |
| |||
Asset Management Group
The Asset Management Group manages our rental portfolio of industrial, office, retail, ground lease properties, and operating of properties for joint ventures. The group provides the following services: (1) leasing and management services; (2) acquisition of properties for, and sale of certain rental properties from, our portfolio; and (3) management and disposition services for our other land holdings. The Asset Management Group provided ground lease management services for a third party before the contract expired in 2000.
4
The following table summarizes our rental portfolio property operating income by property type:
| Property Operating Income(1) |
||||||||||||
| Year Ended December 31, |
||||||||||||
| 2002 |
2001 |
2000 |
||||||||||
| (In thousands) |
||||||||||||
| Rental Portfolio |
||||||||||||
| Industrial |
$ |
125,744 |
|
$ |
111,409 |
|
$ |
98,831 |
| |||
| Office |
|
31,650 |
|
|
24,362 |
|
|
20,228 |
| |||
| Retail |
|
10,725 |
|
|
9,778 |
|
|
10,511 |
| |||
| Ground leases |
|
21,271 |
|
|
20,237 |
|
|
14,724 |
| |||
| Other properties |
|
6,488 |
|
|
6,432 |
|
|
7,196 |
| |||
| Equity in earnings of operating joint ventures |
|
8,277 |
|
|
8,833 |
|
|
9,809 |
| |||
| Subtotal |
|
204,155 |
|
|
181,051 |
|
|
161,299 |
| |||
| Less: Discontinued operations |
|
(486 |
) |
|
(1,816 |
) |
|
(2,267 |
) | |||
| Total property operating income |
$ |
203,669 |
|
$ |
179,235 |
|
$ |
159,032 |
| |||
| (1) | Property operating income is rental revenue less property operating costs plus equity in earnings of operating joint ventures. |
Building Portfolio
The following table summarizes our building portfolio, by year built, as of December 31, 2002:
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| Industrial Property: |
|||||||||||||||||
| 1 |
Minooka |
IL |
1,034,200 |
2002 |
Kellogg’s USA, Inc. |
1,034,200 |
— |
100 |
% | ||||||||
| 2 |
Ontario |
CA |
830,000 |
2002 |
Exel, Inc. |
830,000 |
— |
100 |
% | ||||||||
| 3 |
Manteca |
CA |
608,860 |
2002 |
Ford Motor Company |
608,860 |
— |
100 |
% | ||||||||
| 4 |
Ontario |
CA |
607,320 |
2002 |
Specialty Merchandise Corporation |
607,320 |
— |
100 |
% | ||||||||
| 5 |
Rancho Cucamonga |
CA |
449,370 |
2002 |
Ford Motor Company |
449,370 |
— |
100 |
% | ||||||||
| 6 |
Romeoville |
IL |
421,361 |
2002 |
APL Logistics Warehouse Mgmt. |
421,361 |
— |
100 |
% | ||||||||
| 7 |
Grand Prairie |
TX |
398,364 |
2002 |
Lagasse Bros., Inc. |
105,918 |
292,446 |
27 |
% | ||||||||
| 8 |
Shepherdsville |
KY |
382,800 |
2002 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
193,800 |
189,000 |
51 |
% | ||||||||
| 9 |
Denver |
CO |
314,978 |
2002 |
Ford Motor Company |
200,689 |
114,289 |
64 |
% | ||||||||
| 10 |
Ft Worth |
TX |
252,000 |
2002 |
Ford Motor Company |
252,000 |
— |
100 |
% | ||||||||
| 11 |
Denver |
CO |
144,511 |
2002 |
Keebler Company |
81,487 |
63,024 |
56 |
% | ||||||||
| 12 |
Fremont |
CA |
105,700 |
2002 |
Tranax Technologies, Inc. |
41,232 |
64,468 |
39 |
% | ||||||||
| 13 |
Denver |
CO |
89,739 |
2002 |
Colorado Health Systems, Inc. |
58,050 |
31,689 |
65 |
% | ||||||||
| 14 |
Denver |
CO |
360,118 |
2001 |
Aspen Pet Products, Inc. |
360,118 |
— |
100 |
% | ||||||||
| 15 |
Denver |
CO |
350,969 |
2001 |
United Stationers Supply Co. |
350,969 |
— |
100 |
% | ||||||||
| 16 |
Woodridge |
IL |
167,529 |
2001 |
Metro Exhibit Corporation |
167,529 |
— |
100 |
% | ||||||||
| 17 |
Denver |
CO |
161,511 |
2001 |
Loving-Kayman, LLC |
161,511 |
— |
100 |
% | ||||||||
| 18 |
Rancho Cucamonga |
CA |
120,620 |
2001 |
Scripto-Tokai Corporation |
120,620 |
— |
100 |
% | ||||||||
| 19 |
Fremont |
CA |
100,528 |
2001 |
Vacant |
— |
100,528 |
0 |
% | ||||||||
| 20 |
Fremont |
CA |
65,332 |
2001 |
Vacant |
— |
65,332 |
0 |
% | ||||||||
| 21 |
Woodridge |
IL |
513,674 |
2000 |
Prairie Packaging, Inc. |
513,674 |
— |
100 |
% | ||||||||
| 22 |
Ontario |
CA |
504,530 |
2000 |
New Balance Athletic Shoe, Inc. |
504,530 |
— |
100 |
% | ||||||||
| 23 |
Grand Prairie |
TX |
450,864 |
2000 |
Quaker Sales & Distribution, Inc. |
450,864 |
— |
100 |
% | ||||||||
5
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| 24 |
Rancho Cucamonga |
CA |
443,190 |
2000 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
443,190 |
— |
100 |
% | ||||||||
| 25 |
Rancho Cucamonga |
CA |
441,970 |
2000 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
441,970 |
— |
100 |
% | ||||||||
| 26 |
Grand Prairie |
TX |
422,622 |
2000 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
422,622 |
— |
100 |
% | ||||||||
| 27 |
Ontario |
CA |
373,283 |
2000 |
The Hain Food Group |
373,283 |
— |
100 |
% | ||||||||
| 28 |
Woodridge |
IL |
367,999 |
2000 |
Central American Distribution & Transpor |
367,999 |
— |
100 |
% | ||||||||
| 29 |
Ontario |
CA |
359,996 |
2000 |
The Gillette Company |
359,996 |
— |
100 |
% | ||||||||
| 30 |
Woodridge |
IL |
263,007 |
2000 |
Corporate Express Office Products, Inc. |
211,949 |
51,058 |
81 |
% | ||||||||
| 31 |
Oakland |
CA |
147,500 |
2000 |
United States Postal Service |
147,500 |
— |
100 |
% | ||||||||
| 32 |
Rancho Cucamonga |
CA |
56,490 |
2000 |
Carpenter Technology Corporation |
56,490 |
— |
100 |
% | ||||||||
| 33 |
Romeoville |
IL |
532,560 |
1999 |
The Gillette Co. |
532,560 |
— |
100 |
% | ||||||||
| 34 |
Grand Prairie |
TX |
423,700 |
1999 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
423,700 |
— |
100 |
% | ||||||||
| 35 |
Romeoville |
IL |
402,266 |
1999 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
402,266 |
— |
100 |
% | ||||||||
| 36 |
Woodridge |
IL |
396,489 |
1999 |
Central American Warehouse Co. |
396,489 |
— |
100 |
% | ||||||||
| 37 |
Woodridge |
IL |
351,799 |
1999 |
United States Intermodal Services, LLC |
351,799 |
— |
100 |
% | ||||||||
| 38 |
Grand Prairie |
TX |
343,200 |
1999 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
343,200 |
— |
100 |
% | ||||||||
| 39 |
Fremont |
CA |
187,168 |
1999 |
Peripheral Computer Support |
187,168 |
— |
100 |
% | ||||||||
| 40 |
Portland |
OR |
180,000 |
1999 |
Spicers, Inc. |
180,000 |
— |
100 |
% | ||||||||
| 41 |
Louisville |
KY |
166,600 |
1999 |
Clark Material Handling Company |
166,600 |
— |
100 |
% | ||||||||
| 42 |
Woodridge |
IL |
165,173 |
1999 |
Samuel Manu-Tech, Inc. |
165,173 |
— |
100 |
% | ||||||||
| 43 |
Portland |
OR |
165,000 |
1999 |
Synetics Solutions, Inc. |
165,000 |
— |
100 |
% | ||||||||
| 44 |
Denver |
CO |
156,139 |
1999 |
Marriott Distribution Services |
156,139 |
— |
100 |
% | ||||||||
| 45 |
Woodridge |
IL |
114,591 |
1999 |
Packaging Consultants, Inc. |
114,591 |
— |
100 |
% | ||||||||
| 46 |
Portland |
OR |
103,500 |
1999 |
Kinco International, Inc. |
103,500 |
— |
100 |
% | ||||||||
| 47 |
Richmond |
CA |
88,845 |
1999 |
Kaiser Foundation Health Plan, Inc. |
88,845 |
— |
100 |
% | ||||||||
| 48 |
Fremont |
CA |
60,000 |
1999 |
Fiberstars, Inc. |
60,000 |
— |
100 |
% | ||||||||
| 49 |
Fremont |
CA |
53,395 |
1999 |
Sonic Manufacturing Technologies, Inc. |
53,395 |
— |
100 |
% | ||||||||
| 50 |
Richmond |
CA |
42,500 |
1999 |
Kaiser Foundation Health Plan, Inc. |
42,500 |
— |
100 |
% | ||||||||
| 51 |
Ontario |
CA |
526,408 |
1998 |
Sweetheart Holdings, Inc. |
526,408 |
— |
100 |
% | ||||||||
| 52 |
Stockton |
CA |
500,199 |
1998 |
Kellogg’s USA Inc. |
500,199 |
— |
100 |
% | ||||||||
| 53 |
Denver |
CO |
325,999 |
1998 |
Quantum Logistics, Inc. |
325,999 |
— |
100 |
% | ||||||||
| 54 |
Woodridge |
IL |
240,280 |
1998 |
APL Logistics Warehouse Mgmt. Svcs., Inc |
240,280 |
— |
100 |
% | ||||||||
| 55 |
Industry |
CA |
183,855 |
1998 |
Liberty Glove, Inc. |
183,855 |
— |
100 |
% | ||||||||
| 56 |
Oakland |
CA |
176,826 |
1998 |
Public Storage Pick-Up & Delivery, Inc. |
176,826 |
— |
100 |
% | ||||||||
| 57 |
Woodridge |
IL |
158,871 |
1998 |
Rock-Tenn Converting Company |
124,742 |
34,129 |
79 |
% | ||||||||
| 58 |
Industry |
CA |
140,380 |
1998 |
Graybar Electric Company, Inc. |
140,380 |
— |
100 |
% | ||||||||
| 59 |
Industry |
CA |
138,124 |
1998 |
Unipac Shipping Co./Continental Agency |
138,124 |
— |
100 |
% | ||||||||
| 60 |
Denver |
CO |
129,442 |
1998 |
Callisto Corporation |
129,442 |
— |
100 |
% | ||||||||
| 61 |
Industry |
CA |
109,448 |
1998 |
Playhut, Inc. |
109,448 |
— |
100 |
% | ||||||||
| 62 |
Fremont |
CA |
102,626 |
1998 |
Mouse Systems |
102,626 |
— |
100 |
% | ||||||||
| 63 |
Fremont |
CA |
476,177 |
1997 |
Office Depot, Inc. |
476,177 |
— |
100 |
% | ||||||||
| 64 |
Aberdeen |
MD |
470,707 |
1997 |
Saks & Company |
470,707 |
— |
100 |
% | ||||||||
| 65 |
Industry |
CA |
298,050 |
1997 |
Viewsonic Corporation |
298,050 |
— |
100 |
% | ||||||||
| 66 |
Union City |
CA |
234,588 |
1997 |
Spicers Paper, Inc. |
234,588 |
— |
100 |
% | ||||||||
| 67 |
Garland |
TX |
227,023 |
1997 |
Interceramic, Inc. |
227,023 |
— |
100 |
% | ||||||||
| 68 |
Garland |
TX |
226,906 |
1997 |
Ascendant Solutions |
226,906 |
— |
100 |
% | ||||||||
| 69 |
Ontario |
CA |
180,608 |
1997 |
Tyco Healthcare Group, LLP |
180,608 |
— |
100 |
% | ||||||||
| 70 |
Fremont |
CA |
174,460 |
1997 |
Galgon Industries, Inc. |
126,400 |
48,060 |
72 |
% | ||||||||
| 71 |
Anaheim |
CA |
130,466 |
1997 |
Anixter Inc. |
130,466 |
— |
100 |
% | ||||||||
| 72 |
Fremont |
CA |
127,452 |
1997 |
Victron, Inc. |
127,452 |
— |
100 |
% | ||||||||
| 73 |
Ontario |
CA |
37,000 |
1997 |
Los Angeles Times Communications, LLC |
37,000 |
— |
100 |
% |
6
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| 74 |
Industry |
CA |
230,992 |
1996 |
Owens & Minor West, Inc. |
230,992 |
— |
100 |
% | ||||||||
| 75 |
Ontario |
CA |
201,454 |
1996 |
McLane Company, Inc. |
201,454 |
— |
100 |
% | ||||||||
| 76 |
Fremont |
CA |
158,400 |
1996 |
Home Depot USA, Inc. |
158,400 |
— |
100 |
% | ||||||||
| 77 |
Oklahoma City |
OK |
124,905 |
1996 |
Pollock Investments Inc. |
60,000 |
64,905 |
48 |
% | ||||||||
| 78 |
Fremont |
CA |
114,948 |
1996 |
Menlo Logistics, Inc. |
114,948 |
— |
100 |
% | ||||||||
| 79 |
Fremont |
CA |
94,080 |
1996 |
Galgon Industries, Inc. |
58,368 |
35,712 |
62 |
% | ||||||||
| 80 |
Vernon |
CA |
41,712 |
1996 |
Lucky Brand Dungarees, Inc. |
41,712 |
— |
100 |
% | ||||||||
| 81 |
Vernon |
CA |
27,798 |
1996 |
Vacant |
— |
27,798 |
0 |
% | ||||||||
| 82 |
Ontario |
CA |
300,136 |
1995 |
Dunlop Tire Corp. |
300,136 |
— |
100 |
% | ||||||||
| 83 |
Santa Fe Springs |
CA |
100,000 |
1995 |
Spicers Paper, Inc. |
100,000 |
— |
100 |
% | ||||||||
| Subtotal 1995-2002 |
21,954,180 |
(83 buildings) |
20,771,742 |
1,182,438 |
95 |
% | |||||||||||
| 1 |
Grove City |
OH |
300,211 |
1994 |
Vista Packaging, Inc. |
300,211 |
— |
100 |
% | ||||||||
| 2 |
Garland |
TX |
262,000 |
1994 |
Interceramic, Inc |
262,000 |
— |
100 |
% | ||||||||
| 3 |
Fullerton |
CA |
100,000 |
1994 |
Adams Rite Aerospace, Inc. |
100,000 |
— |
100 |
% | ||||||||
| 4 |
Anaheim |
CA |
17,575 |
1994 |
Los Angeles Times Communications LLC |
17,575 |
— |
100 |
% | ||||||||
| 5 |
Grove City |
OH |
360,412 |
1993 |
McKesson Medical-Surgical Minnesota Inc. |
331,052 |
29,360 |
92 |
% | ||||||||
| 6 |
Grove City |
OH |
305,268 |
1993 |
McGraw Hill |
305,268 |
— |
100 |
% | ||||||||
| 7 |
Woodridge |
IL |
261,400 |
1993 |
Dollar Tree Stores, Inc. |
261,400 |
— |
100 |
% | ||||||||
| 8 |
Ontario |
CA |
149,406 |
1992 |
THMX Holdings, LLC |
149,406 |
— |
100 |
% | ||||||||
| 9 |
Livermore |
CA |
148,440 |
1992 |
Owens & Minor West |
148,440 |
— |
100 |
% | ||||||||
| 10 |
Woodridge |
IL |
148,416 |
1992 |
Multifoods Distribution Group, Inc. |
148,416 |
— |
100 |
% | ||||||||
| 11 |
Anaheim |
CA |
130,595 |
1992 |
Micro Technology, Inc. |
130,595 |
— |
100 |
% | ||||||||
| 12 |
Anaheim |
CA |
79,846 |
1992 |
Partition Installations, Inc. |
79,846 |
— |
100 |
% | ||||||||
| 13 |
Vernon |
CA |
47,000 |
1992 |
John S. Dull & Associates, Inc. |
47,000 |
— |
100 |
% | ||||||||
| 14 |
Anaheim |
CA |
36,800 |
1992 |
SCP Superior Acquisition Company, LLC. |
36,800 |
— |
100 |
% | ||||||||
| 15 |
Anaheim |
CA |
26,200 |
1992 |
S-B Power Tool Company |
26,200 |
— |
100 |
% | ||||||||
| 16 |
Industry |
CA |
449,049 |
1991 |
Circuit City Stores, Inc. |
449,049 |
— |
100 |
% | ||||||||
| 17 |
Woodridge |
IL |
265,057 |
1991 |
Sportmart, Inc. |
265,057 |
— |
100 |
% | ||||||||
| 18 |
Woodridge |
IL |
116,544 |
1991 |
Argo Turboserve Corporation |
116,544 |
— |
100 |
% | ||||||||
| 19 |
Union City |
CA |
105,408 |
1991 |
Anixter Bros, Inc. |
46,848 |
58,560 |
44 |
% | ||||||||
| 20 |
Vernon |
CA |
49,250 |
1991 |
Brambles Info. Mgmt., Inc. |
49,250 |
— |
100 |
% | ||||||||
| 21 |
Santa Fe Springs |
CA |
42,890 |
1991 |
Highlight Graphics |
35,990 |
6,900 |
84 |
% | ||||||||
| 22 |
Santa Fe Springs |
CA |
37,268 |
1991 |
Hotchkis Performance |
37,268 |
— |
100 |
% | ||||||||
| 23 |
Santa Fe Springs |
CA |
31,638 |
1991 |
Polestar, Inc. |
31,638 |
— |
100 |
% | ||||||||
| 24 |
Vernon |
CA |
30,840 |
1991 |
Monami Textile, Inc. |
30,840 |
— |
100 |
% | ||||||||
| 25 |
Vernon |
CA |
30,840 |
1991 |
Alto Products |
30,840 |
— |
100 |
% | ||||||||
| 26 |
Santa Fe Springs |
CA |
11,929 |
1991 |
Marinco Electric Inc. |
7,994 |
3,935 |
67 |
% | ||||||||
| 27 |
Santa Fe Springs |
CA |
11,045 |
1991 |
Dover Resources Inc |
9,750 |
1,295 |
88 |
% | ||||||||
| 28 |
Ontario |
CA |
412,944 |
1990 |
Cott Beverages USA, Inc. |
412,944 |
— |
100 |
% | ||||||||
| 29 |
Santa Fe Springs |
CA |
237,814 |
1990 |
La Salle Paper Company, Inc. |
237,814 |
— |
100 |
% | ||||||||
| 30 |
Garland |
TX |
200,000 |
1990 |
Sears Logistics Services, Inc. |
200,000 |
— |
100 |
% | ||||||||
| 31 |
Tempe |
AZ |
165,646 |
1990 |
Vacant |
— |
165,646 |
0 |
% | ||||||||
| 32 |
Ontario |
CA |
141,150 |
1990 |
H. Tedmori, Inc. |
141,150 |
— |
100 |
% | ||||||||
| 33 |
Livermore |
CA |
131,128 |
1990 |
Nature Kist |
131,128 |
— |
100 |
% | ||||||||
| 34 |
Union City |
CA |
116,993 |
1990 |
Tyco Printed Circuit Group LLP |
116,993 |
— |
100 |
% | ||||||||
| 35 |
Vernon |
CA |
48,187 |
1990 |
Mister S |
48,187 |
— |
100 |
% | ||||||||
| 36 |
Vernon |
CA |
26,923 |
1990 |
Barth and Dreyfuss Of California |
26,923 |
— |
100 |
% | ||||||||
| 37 |
Vernon |
CA |
26,653 |
1990 |
Maruhana U.S.A., Corp. |
26,653 |
— |
100 |
% | ||||||||
| Subtotal 1990-1994 |
5,062,765 |
(37 buildings) |
4,797,069 |
265,696 |
95 |
% | |||||||||||
| 1 |
Stockton |
CA |
435,609 |
1989 |
Ralphs Grocery Co. |
435,609 |
— |
100 |
% | ||||||||
| 2 |
Ontario |
CA |
405,864 |
1989 |
Exel Inc. |
405,864 |
— |
100 |
% | ||||||||
| 3 |
Anaheim |
CA |
39,285 |
1989 |
V & M Restoration |
39,285 |
— |
100 |
% | ||||||||
| 4 |
Anaheim |
CA |
28,185 |
1989 |
Shaxon Industries |
28,185 |
— |
100 |
% | ||||||||
| 5 |
Santa Ana |
CA |
24,968 |
1989 |
Severn Trent Laboratories, Inc. |
24,968 |
— |
100 |
% | ||||||||
| 6 |
Anaheim |
CA |
24,955 |
1989 |
Specification Seals Co. |
24,955 |
— |
100 |
% |
7
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| 7 |
Anaheim |
CA |
20,705 |
1989 |
Automation Products |
20,705 |
— |
100 |
% | ||||||||
| 8 |
Phoenix |
AZ |
206,263 |
1988 |
Freeport Logistics Inc. |
206,263 |
— |
100 |
% | ||||||||
| 9 |
Vernon |
CA |
137,307 |
1988 |
Pepboys Of California |
137,307 |
— |
100 |
% | ||||||||
| 10 |
Tempe |
AZ |
133,291 |
1988 |
Eagle Global Logistics |
133,291 |
— |
100 |
% | ||||||||
| 11 |
Carson |
CA |
133,240 |
1988 |
F.R.T. International, Inc. |
133,240 |
— |
100 |
% | ||||||||
| 12 |
Carson |
CA |
118,545 |
1988 |
Expeditors International |
118,545 |
— |
100 |
% | ||||||||
| 13 |
Union City |
CA |
115,200 |
1988 |
California Equipment Distributors, Inc. |
115,200 |
— |
100 |
% | ||||||||
| 14 |
Livermore |
CA |
92,022 |
1988 |
Trans Western Polymers, Inc. |
92,022 |
— |
100 |
% | ||||||||
| 15 |
Vernon |
CA |
85,349 |
1988 |
Rayem Investments, Inc. |
85,205 |
144 |
100 |
% | ||||||||
| 16 |
Union City |
CA |
82,944 |
1988 |
Orthopedic Systems, Inc. |
82,944 |
— |
100 |
% | ||||||||
| 17 |
Union City |
CA |
77,760 |
1988 |
National Retail Transportation, Inc. |
77,760 |
— |
100 |
% | ||||||||
| 18 |
Livermore |
CA |
76,800 |
1988 |
Trans Western Polymers, Inc. |
76,800 |
— |
100 |
% | ||||||||
| 19 |
Tustin |
CA |
69,763 |
1988 |
Terumo Medical Corporation |
69,763 |
— |
100 |
% | ||||||||
| 20 |
Tustin |
CA |
59,505 |
1988 |
GE Medical Systems Info Technologies, Inc |
59,505 |
— |
100 |
% | ||||||||
| 21 |
Orange |
CA |
54,177 |
1988 |
Freedom Communications Inc. |
54,177 |
— |
100 |
% | ||||||||
| 22 |
Santa Ana |
CA |
36,225 |
1988 |
Applied Industrial Technology, Inc. |
36,225 |
— |
100 |
% | ||||||||
| 23 |
Los Angeles |
CA |
31,311 |
1988 |
Tanimura Distributing |
31,311 |
— |
100 |
% | ||||||||
| 24 |
Rancho Cucamonga |
CA |
419,064 |
1987 |
Weingart Foundation |
419,064 |
— |
100 |
% | ||||||||
| 25 |
Stockton |
CA |
314,392 |
1987 |
Ralphs Grocery Co. |
314,392 |
— |
100 |
% | ||||||||
| 26 |
Phoenix |
AZ |
221,116 |
1987 |
Huhtamaki Plastics, Inc. |
221,116 |
— |
100 |
% | ||||||||
| 27 |
Santa Fe Springs |
CA |
98,882 |
1987 |
Galleher Hardwood Company |
98,882 |
— |
100 |
% | ||||||||
| 28 |
Union City |
CA |
88,704 |
1987 |
Am-Pac Tire Distribution, Inc. |
88,704 |
— |
100 |
% | ||||||||
| 29 |
Union City |
CA |
86,496 |
1987 |
Logitech, Inc. |
86,496 |
— |
100 |
% | ||||||||
| 30 |
Santa Fe Springs |
CA |
70,756 |
1987 |
Atlantic, Inc. |
70,756 |
— |
100 |
% | ||||||||
| 21 |
Anaheim |
CA |
52,965 |
1987 |
Mintek Digital, Inc. |
52,965 |
— |
100 |
% | ||||||||
| 32 |
Anaheim |
CA |
51,153 |
1987 |
Meiho Technology, Inc. |
51,153 |
— |
100 |
% | ||||||||
| 33 |
Union City |
CA |
44,909 |
1987 |
Exp Pharmaceutical Waste Management, Inc |
44,909 |
— |
100 |
% | ||||||||
| 34 |
Anaheim |
CA |
43,428 |
1987 |
United Media Services, Inc. |
43,428 |
— |
100 |
% | ||||||||
| 35 |
Anaheim |
CA |
32,074 |
1987 |
Saint-Gobain Industrial Ceramics, Inc. |
32,074 |
— |
100 |
% | ||||||||
| 36 |
Los Angeles |
CA |
30,104 |
1987 |
Tanimura Distributing |
30,104 |
— |
100 |
% | ||||||||
| 37 |
La Mirada |
CA |
220,000 |
1986 |
Mohawk Industries, Inc. |
220,000 |
— |
100 |
% | ||||||||
| 38 |
Union City |
CA |
126,144 |
1986 |
Runco International, Inc. |
47,852 |
78,292 |
38 |
% | ||||||||
| 39 |
Orange |
CA |
108,222 |
1986 |
Data Aire, Inc. |
108,222 |
— |
100 |
% | ||||||||
| 40 |
Tempe |
AZ |
101,601 |
1986 |
Triumph / Stolper |
101,601 |
— |
100 |
% | ||||||||
| 41 |
Tempe |
AZ |
93,366 |
1986 |
Southern Wine and Spirits |
93,366 |
— |
100 |
% | ||||||||
| 42 |
Vernon |
CA |
77,184 |
1986 |
Jade Apparel, Inc. |
77,184 |
— |
100 |
% | ||||||||
| 43 |
Tustin |
CA |
75,226 |
1986 |
Scan-Tron Corporation |
75,226 |
— |
100 |
% | ||||||||
| 44 |
Orange |
CA |
42,918 |
1986 |
Mailing and Marketing, Inc. |
42,918 |
— |
100 |
% | ||||||||
| 45 |
Orange |
CA |
35,000 |
1986 |
Cano Container Corporation |
35,000 |
— |
100 |
% | ||||||||
| 46 |
Vernon |
CA |
28,875 |
1986 |
Master Knits USA, Inc. |
28,875 |
— |
100 |
% | ||||||||
| 47 |
Fullerton |
CA |
50,000 |
1985 |
Sonic Air Systems, Inc. |
50,000 |
— |
100 |
% | ||||||||
| 48 |
Anaheim |
CA |
20,769 |
1985 |
Fremont Investment & Loan |
20,769 |
— |
100 |
% | ||||||||
| Subtotal 1985-1989 |
5,022,621 |
(48 buildings) |
4,944,185 |
78,436 |
98 |
% | |||||||||||
| 1 |
Sacramento |
CA |
46,500 |
1983 |
Competition Parts Warehouse |
46,500 |
— |
100 |
% | ||||||||
| 2 |
Sacramento |
CA |
21,976 |
1983 |
Competition Parts Warehouse |
21,976 |
— |
100 |
% | ||||||||
| 3 |
Sacramento |
CA |
21,000 |
1983 |
American River Flood Control |
21,000 |
— |
100 |
% | ||||||||
| 4 |
Sacramento |
CA |
21,000 |
1983 |
American River Flood Control |
21,000 |
— |
100 |
% | ||||||||
| 5 |
Fullerton |
CA |
97,056 |
1980 |
Modular Systems Services, Inc. |
97,056 |
— |
100 |
% | ||||||||
| 6 |
Vernon |
CA |
10,600 |
1980 |
U.S. Filter Distribution Group |
10,600 |
— |
100 |
% | ||||||||
| 7 |
Phoenix |
AZ |
78,327 |
1976 |
Willey Brothers, Inc. |
50,913 |
27,414 |
65 |
% | ||||||||
| 8 |
Tustin |
CA |
65,910 |
1975 |
ADC Telecommunications, Inc. |
65,910 |
— |
100 |
% | ||||||||
| 9 |
Houston |
TX |
57,058 |
1975 |
Insituform Technologies, Inc. |
57,058 |
— |
100 |
% | ||||||||
| 10 |
San Diego |
CA |
32,905 |
1971 |
Michael Culleton |
32,905 |
— |
100 |
% |
8
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| 11 |
San Diego |
CA |
21,507 |
1971 |
Refrigeration Supplies Dist. |
21,507 |
— |
100 |
% | ||||||||
| 12 |
San Diego |
CA |
18,001 |
1971 |
Ljungquist Enterprises, Inc. |
18,001 |
— |
100 |
% | ||||||||
| 13 |
San Diego |
CA |
14,401 |
1971 |
Oceanus Press |
14,401 |
— |
100 |
% | ||||||||
| 14 |
San Diego |
CA |
14,000 |
1971 |
California Board Sports |
14,000 |
— |
100 |
% | ||||||||
| 15 |
San Diego |
CA |
12,822 |
1971 |
Transwestern Publishing |
12,822 |
— |
100 |
% | ||||||||
| 16 |
San Diego |
CA |
12,801 |
1971 |
Aquatic Design System |
12,801 |
— |
100 |
% | ||||||||
| 17 |
San Diego |
CA |
12,599 |
1971 |
Nico & Associates, Inc. |
12,599 |
— |
100 |
% | ||||||||
| 18 |
San Diego |
CA |
11,200 |
1971 |
Insight Systems LLC |
11,200 |
— |
100 |
% | ||||||||
| 19 |
San Diego |
CA |
9,928 |
1971 |
Vacant |
— |
9,928 |
0 |
% | ||||||||
| 20 |
San Diego |
CA |
9,600 |
1971 |
Smalley & Company |
9,600 |
— |
100 |
% | ||||||||
| 21 |
San Diego |
CA |
9,599 |
1971 |
Environmental Spray, Inc. |
9,599 |
— |
100 |
% | ||||||||
| 22 |
San Diego |
CA |
8,400 |
1971 |
Taiwanese—American Foundation |
8,400 |
— |
100 |
% | ||||||||
| 23 |
Tustin |
CA |
39,600 |
1966 |
Action Wholesale Products, Inc. |
39,600 |
— |
100 |
% | ||||||||
| 24 |
Phoenix |
AZ |
83,317 |
1950 |
Reliant Building Products, Inc |
83,317 |
— |
100 |
% | ||||||||
| 25 |
Phoenix |
AZ |
40,495 |
1950 |
Reliant Building Products, Inc |
40,495 |
— |
100 |
% | ||||||||
| 26 |
Vernon |
CA |
15,288 |
1940 |
A. Rudin, Inc. |
15,288 |
— |
100 |
% | ||||||||
| 27 |
Vernon |
CA |
48,315 |
1937 |
Griffith Micro Science, Inc. |
48,315 |
— |
100 |
% | ||||||||
| 28 |
Topeka |
KS |
70,266 |
1931 |
Capital Label, LLC |
26,896 |
43,370 |
38 |
% | ||||||||
| Subtotal Pre-1985 |
904,471 |
(28 buildings) |
823,759 |
80,712 |
91 |
% | |||||||||||
| Total Industrial |
32,944,037 |
(196 buildings-Average Age 6.5 Years) |
31,336,755 |
1607,282 |
95 |
% | |||||||||||
| Office Property: |
|||||||||||||||||
| 1 |
San Francisco |
CA |
282,773 |
2002 |
The Gap, Inc. |
282,773 |
— |
100 |
% | ||||||||
| 2 |
Westminster |
CO |
151,040 |
2002 |
CSG Systems, Inc. |
87,468 |
63,572 |
58 |
% | ||||||||
| 3 |
Glenview |
IL |
116,015 |
2002 |
AC Neilson Company |
18,499 |
97,516 |
16 |
% | ||||||||
| 4 |
Coppell |
TX |
101,844 |
2002 |
Washington Mutual Bank |
101,844 |
— |
100 |
% | ||||||||
| 5 |
Westminster |
CO |
121,461 |
2001 |
American Skandia Life Assurance |
121,461 |
— |
100 |
% | ||||||||
| 6 |
Woodridge |
IL |
97,964 |
1991 |
Argonne National Laboratory |
97,964 |
— |
100 |
% | ||||||||
| 7 |
Anaheim |
CA |
94,086 |
1990 |
Fremont Investment & Loan |
86,479 |
7,607 |
92 |
% | ||||||||
| 8 |
Corona |
CA |
61,724 |
1990 |
Centex Real Estate Corp |
60,013 |
1,711 |
97 |
% | ||||||||
| 9 |
Santa Ana |
CA |
66,106 |
1989 |
County Of Orange |
66,106 |
— |
100 |
% | ||||||||
| 10 |
Northridge |
CA |
56,964 |
1988 |
101 Communications LLC |
56,964 |
— |
100 |
% | ||||||||
| 11 |
Northridge |
CA |
53,292 |
1988 |
Washington Mutual |
53,292 |
— |
100 |
% | ||||||||
| 12 |
Northridge |
CA |
43,117 |
1988 |
Synergistic Systems Inc. |
43,117 |
— |
100 |
% | ||||||||
| 13 |
San Jose |
CA |
70,903 |
1986 |
Aon Service Corporation |
59,003 |
11,900 |
83 |
% | ||||||||
| 14 |
San Jose |
CA |
69,956 |
1986 |
Puma Technology Inc. |
69,956 |
— |
100 |
% | ||||||||
| 15 |
Northridge |
CA |
60,175 |
1986 |
Washington Mutual Bank |
59,971 |
204 |
100 |
% | ||||||||
| 16 |
Orange |
CA |
40,000 |
1986 |
Control Air Corporation |
40,000 |
— |
100 |
% | ||||||||
| 17 |
San Jose |
CA |
77,092 |
1985 |
MCI Worldcom Communications, Inc. |
70,924 |
6,168 |
92 |
% | ||||||||
| 18 |
San Jose |
CA |
71,514 |
1985 |
Parametric Technology Corporation |
63,261 |
8,253 |
88 |
% | ||||||||
| 19 |
San Jose |
CA |
69,952 |
1985 |
Porter Novelli Inc. |
65,924 |
4,028 |
94 |
% | ||||||||
| 20 |
San Jose |
CA |
67,317 |
1985 |
MCI Worldcom Communications, Inc. |
44,447 |
22,870 |
66 |
% | ||||||||
| Subtotal 1985-2002 |
1,773,295 |
(20 buildings) |
1,549,466 |
223,829 |
87 |
% | |||||||||||
| 1 |
Santa Ana |
CA |
52,133 |
1983 |
Nations Direct Lender & Ins. |
45,938 |
6,195 |
88 |
% | ||||||||
| 2 |
Portland |
OR |
56,934 |
1979 |
Anesthesiologists Assoc. Inc. |
49,437 |
7,497 |
87 |
% | ||||||||
| 3 |
Irving |
TX |
69,049 |
1978 |
General Motors Corporation |
67,310 |
1,739 |
97 |
% | ||||||||
| 4 |
Dallas |
TX |
473,090 |
1975 |
J. C. Penney Company, Inc. |
434,582 |
38,508 |
92 |
% | ||||||||
| 5 |
Dallas |
TX |
224,211 |
1975 |
J. C. Penney Company, Inc. |
224,211 |
— |
100 |
% | ||||||||
| 6 |
Sacramento |
CA |
24,671 |
1975 |
Community Health Charities |
9,931 |
14,740 |
40 |
% | ||||||||
| 7 |
Sacramento |
CA |
11,542 |
1975 |
Cal Assoc. For Local Econ Dev. |
11,542 |
— |
100 |
% | ||||||||
| 8 |
Sacramento |
CA |
7,987 |
1975 |
Law Offices Of W. Scott De Bie |
5,946 |
2,041 |
74 |
% | ||||||||
| 9 |
Sacramento |
CA |
53,696 |
1974 |
Volunteers Of America |
41,173 |
12,523 |
77 |
% | ||||||||
| 10 |
Newport Beach |
CA |
24,018 |
1972 |
Express Capital Lending |
21,815 |
2,204 |
91 |
% | ||||||||
| 11 |
Newport Beach |
CA |
22,727 |
1972 |
United Auto Credit Corporation |
20,524 |
2,204 |
90 |
% | ||||||||
| 12 |
Chicago |
IL |
370,263 |
1903 |
Skidmore, Owings & Merrill LLP |
325,357 |
44,906 |
88 |
% | ||||||||
| Subtotal Pre-1985 |
1,390,321 |
(12 buildings) |
1,257,765 |
132,556 |
90 |
% | |||||||||||
| Total Office |
3,163,616 |
(32 buildings) |
2,807,231 |
356,385 |
89 |
% | |||||||||||
9
| City |
State |
Rentable Square Feet |
Year Built |
Major Tenant |
RSF Occupied |
YR End Vacancy |
Year-End Building Occupancy % |
||||||||||
| Retail Property: |
|||||||||||||||||
| 1 |
Tucson |
AZ |
51,242 |
2002 |
Fleming Companies, Inc. |
51,242 |
— |
100 |
% | ||||||||
| 2 |
Tucson |
AZ |
12,414 |
2002 |
Curves for Women |
3,505 |
8,909 |
28 |
% | ||||||||
| 3 |
Tucson |
AZ |
5,840 |
2002 |
Ole Mexican Grille |
3,450 |
2,390 |
59 |
% | ||||||||
| 4 |
Tucson |
AZ |
4,950 |
2002 |
Top 10 Nails |
1,950 |
3,000 |
39 |
% | ||||||||
| 5 |
Emeryville |
CA |
23,923 |
2001 |
Michaels Stores, Inc. |
23,923 |
— |
100 |
% | ||||||||
| 6 |
Emeryville |
CA |
117,000 |
1994 |
Home Depot USA, Inc. |
117,000 |
— |
100 |
% | ||||||||
| 7 |
Emeryville |
CA |
102,501 |
1994 |
Home Depot USA, Inc. |
102,501 |
— |
100 |
% | ||||||||
| 8 |
Emeryville |
CA |
96,954 |
1994 |
Sportmart, Inc. |
96,954 |
— |
100 |
% | ||||||||
| 9 |
Emeryville |
CA |
59,195 |
1994 |
Pak ‘N Save |
59,195 |
— |
100 |
% | ||||||||
| 10 |
Emeryville |
CA |
4,897 |
1994 |
Mattress Discounters Corporation |
4,897 |
— |
100 |
% | ||||||||
| 11 |
Emeryville |
CA |
3,561 |
1994 |
Designs CMAL Store Inc. |
3,561 |
— |
100 |
% | ||||||||
| 12 |
Emeryville |
CA |
3,537 |
1994 |
Walker, Robin M. and Swarm, Ezel N. |
3,537 |
— |
100 |
% | ||||||||
| 13 |
Anaheim |
CA |
12,307 |
1985 |
Auto Insurance Spclsts-L.B Inc |
7,039 |
5,268 |
57 |
% | ||||||||
| 14 |
Anaheim |
CA |
10,668 |
1985 |
Koosharem Corp |
5,002 |
5,666 |
47 |
% | ||||||||
| Subtotal 1985-2002 |
508,989 |
(14 buildings) |
483,756 |
25,233 |
95 |
% | |||||||||||
| 1 |
Woodland Hills |
CA |
72,765 |
1973 |
Toys R Us Inc. |
72,765 |
— |
100 |
% | ||||||||
| 2 |
Woodland Hills |
CA |
11,317 |
1973 |
Shelley’S Stereo |
11,317 |
— |
100 |
% | ||||||||
| 3 |
Denver |
CO |
99,627 |
1971 |
King Soopers Inc. |
91,672 |
7,955 |
92 |
% | ||||||||
| 4 |
Livermore |
CA |
69,224 |
1970 |
Lucky Stores, Inc |
59,412 |
9,812 |
86 |
% | ||||||||
| 5 |
Tustin |
CA |
39,600 |
1968 |
Micro Center |
39,600 |
— |
100 |
% | ||||||||
| 6 |
Portland |
OR |
25,284 |
1968 |
Bank Of The West |
15,186 |
10,098 |
60 |
% | ||||||||
| 7 |
Portland |
OR |
11,998 |
1968 |
Hollywood Video |
10,610 |
1,388 |
88 |
% | ||||||||
| 8 |
Woodland Hills |
CA |
29,071 |
1965 |
Strouds The Linen Experts |
28,927 |
144 |
100 |
% | ||||||||
| Subtotal Pre-1985 |
358,886 |
(8 buildings) |
329,489 |
29,397 |
92 |
% | |||||||||||
| Total Retail |
867,875 |
(22 buildings) |
813,245 |
54,630 |
94 |
% | |||||||||||
| Grand Total |
36,975,528 |
(250 buildings) |
34,957,231 |
2,018,297 |
95 |
% | |||||||||||
Building Occupancy
The rental buildings were 94.5% leased as of December 31, 2002. Sixty-two percent of the total square footage of the rental buildings in our portfolio was constructed between 1995 and 2002, 15% between 1990 and 1994, 16% between 1985 and 1989, and the remaining 7% prior to 1985. Our goal is to continually upgrade the quality of our portfolio; correspondingly, certain older buildings and other properties are likely to be sold over time.
Leasing. The following table summarizes our leasing statistics for our rental portfolio:
| As of December 31, |
|||||||||
| 2002 |
2001 |
2000 |
|||||||
| (Square feet in thousands) |
|||||||||
| Industrial Buildings |
|||||||||
| Square feet owned |
32,944 |
|
27,594 |
|
26,251 |
| |||
| Square feet leased |
31,337 |
|
26,103 |
|
25,143 |
| |||
| Percent leased |
95.1 |
% |
94.6 |
% |
95.8 |
% | |||
| Office Buildings |
|||||||||
| Square feet owned |
3,164 |
|
2,442 |
|
1,625 |
| |||
| Square feet leased |
2,807 |
|
2,260 |
|
1,513 |
| |||
| Percent leased |
88.7 |
% |
92.5 |
% |
93.1 |
% | |||
| Retail Buildings |
|||||||||
| Square feet owned |
868 |
|
864 |
|
880 |
| |||
| Square feet leased |
813 |
|
820 |
|
856 |
| |||
| Percent leased |
93.7 |
% |
94.9 |
% |
97.3 |
% | |||
| Total |
|||||||||
| Square feet owned |
36,976 |
|
30,900 |
|
28,756 |
| |||
| Square feet leased |
34,957 |
|
29,183 |
|
27,512 |
| |||
| Percent leased |
94.5 |
% |
94.4 |
% |
95.7 |
% | |||
10
Lease Expirations. The following table summarizes our lease expirations in our rental portfolio as of December 31, 2002:
| 2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Thereafter |
|||||||||||||||||||||
| Percent |
12.2 |
% |
10.5 |
% |
15.0 |
% |
9.0 |
% |
9.9 |
% |
2.5 |
% |
7.0 |
% |
6.5 |
% |
4.6 |
% |
22.8 |
% | ||||||||||
| Square feet (in thousands) |
4,252 |
|
3,673 |
|
5,249 |
|
3,156 |
|
3,461 |
|
874 |
|
2,430 |
|
2,270 |
|
1,602 |
|
7,990 |
|
Approximately 127,000 square feet of month-to-month leases are shown as expiring in 2003.
Rental Portfolio
Following is a discussion of our rental portfolio by property type:
Industrial Buildings
The following table summarizes the industrial buildings in our rental portfolio as of, or for, the year ended December 31, 2002:
| Number of Buildings |
Square Feet |
Revenues |
Property Operating Costs |
Property Operating Income | |||||||||
| (In thousands, except for number of buildings) | |||||||||||||
| Southern California |
99 |
12,200 |
$ |
62,952 |
$ |
11,484 |
$ |
51,468 | |||||
| Northern California |
39 |
5,773 |
|
35,550 |
|
7,915 |
|
27,635 | |||||
| Illinois |
18 |
5,921 |
|
25,799 |
|
6,873 |
|
18,926 | |||||
| Texas |
11 |
3,264 |
|
11,995 |
|
2,872 |
|
9,123 | |||||
| Colorado |
9 |
2,033 |
|
10,095 |
|
2,590 |
|
7,505 | |||||
| Arizona |
9 |
1,123 |
|
4,042 |
|
1,901 |
|
2,141 | |||||
| Maryland |
1 |
471 |
|
3,402 |
|
296 |
|
3,106 | |||||
| Ohio |
3 |
966 |
|
2,960 |
|
567 |
|
2,393 | |||||
| Oregon |
3 |
449 |
|
2,898 |
|
529 |
|
2,369 | |||||
| Kentucky |
2 |
549 |
|
1,141 |
|
169 |
|
972 | |||||
| Other |
2 |
195 |
|
302 |
|
196 |
|
106 | |||||
| Total |
196 |
32,944 |
$ |
161,136 |
$ |
35,392 |
$ |
125,744 | |||||
The following table summarizes the lease expirations for our industrial buildings as of December 31, 2002:
| 2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Thereafter |
|||||||||||||||||||||
| Percent |
12.2 |
% |
10.4 |
% |
14.6 |
% |
9.4 |
% |
9.4 |
% |
2.1 |
% |
7.0 |
% |
7.1 |
% |
4.6 |
% |
23.2 |
% | ||||||||||
| Square feet (in thousands) |
3,838 |
|
3,258 |
|
4,560 |
|
2,961 |
|
2,935 |
|
645 |
|
2,184 |
|
2,239 |
|
1,450 |
|
7,267 |
|
Of the 3.8 million square feet of leased industrial space that is scheduled to expire in 2003, 46% is located in Southern California, 16% in Northern California, 16% in Ohio, 13% in Illinois, and the remaining 9% in three other states. Approximately 116,000 square feet of month-to-month leases are shown as expiring in 2003.
In 2002, we completed, and added to our rental portfolio 5.6 million square feet of industrial buildings. In addition, during the year, we purchased 0.4 million square feet and sold 0.7 million square feet of industrial buildings.
11
Office Buildings
The following table summarizes the office buildings in our rental portfolio as of, or for, the year ended December 31, 2002:
| Number of Buildings |
Square Feet |
Revenues |
Property Operating Costs |
Property Operating Income | |||||||||
| (In thousands, except for number of buildings) | |||||||||||||
| Northern California |
11 |
808 |
$ |
15,851 |
$ |
4,550 |
$ |
11,301 | |||||
| Southern California |
11 |
574 |
|
9,250 |
|
4,273 |
|
4,977 | |||||
| Texas |
4 |
868 |
|
11,153 |
|
5,337 |
|
5,816 | |||||
| Illinois |
3 |
584 |
|
13,109 |
|
6,599 |
|
6,510 | |||||
| Colorado |
2 |
273 |
|
4,486 |
|
1,860 |
|
2,626 | |||||
| Oregon |
1 |
57 |
|
981 |
|
561 |
|
420 | |||||
| Totals |
32 |
3,164 |
$ |
54,830 |
$ |
23,180 |
$ |
31,650 | |||||
The following table summarizes the lease expirations for our office buildings as of December 31, 2002:
| 2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Thereafter |
|||||||||||||||||||||
| Percent |
12.8 |
% |
10.8 |
% |
23.0 |
% |
4.6 |
% |
18.1 |
% |
6.4 |
% |
4.7 |
% |
0.0 |
% |
4.6 |
% |
15.0 |
% | ||||||||||
| Square feet (in thousands) |
359 |
|
304 |
|
644 |
|
130 |
|
508 |
|
181 |
|
132 |
|
1 |
|
128 |
|
420 |
|
Of the 359,000 square feet of leased office space scheduled to expire in 2003, 42% is located in Illinois, 32% in Northern California, and 18% in Southern California. Approximately 11,000 square feet of month-to-month leases are shown as expiring in 2003.
In 2002, we completed the development of and added to our rental portfolio four office buildings totaling 650,000 square feet and purchased one office building totaling 69,000 square feet.
Retail Buildings
The following table summarizes the retail buildings in our rental portfolio as of, or for, the year ended December 31, 2002:
| Number of Buildings |
Square Feet |
Revenues |
Property Operating Costs |
Property Operating Income | |||||||||
| (In thousands, except for number of buildings) | |||||||||||||
| Northern California |
9 |
481 |
$ |
8,981 |
$ |
2,783 |
$ |
6,198 | |||||
| Southern California |
6 |
176 |
|
3,816 |
|
965 |
|
2,851 | |||||
| Arizona |
4 |
74 |
|
446 |
|
84 |
|
362 | |||||
| Oregon |
2 |
37 |
|
565 |
|
247 |
|
318 | |||||
| Colorado |
1 |
100 |
|
1,480 |
|
484 |
|
996 | |||||
| Totals |
22 |
868 |
$ |
15,288 |
$ |
4,563 |
$ |
10,725 | |||||
The following table summarizes the lease expirations for our retail buildings as of December 31, 2002:
| 2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Thereafter |
|||||||||||||||||||||
| Percent |
6.8 |
% |
13.6 |
% |
5.5 |
% |
8.0 |
% |
2.2 |
% |
5.9 |
% |
14.0 |
% |
3.7 |
% |
3.0 |
% |
37.3 |
% | ||||||||||
| Square feet (in thousands) |
55 |
|
111 |
|
45 |
|
65 |
|
18 |
|
48 |
|
114 |
|
30 |
|
24 |
|
303 |
|
Of the 55,000 square feet of leased retail space scheduled to expire in 2003, 85% is located in Southern California and 15% is in Colorado. In 2002, we completed and added to our portfolio 72,000 square feet of retail buildings and sold an older 70,000 square foot retail building.
12
Ground Leases and Other Properties
Ground Leases
We own approximately 8,000 acres of ground leases, of which approximately 1,200 acres are being marketed for sale.
The following table summarizes our ground leases for the year ended December 31, 2002:
| Revenues |
Property Operating Costs |
Property Operating Income | |||||||
| (In thousands) | |||||||||
| Southern California |
$ |
11,184 |
$ |
1,279 |
$ |
9,905 | |||
| Northern California |
|
8,121 |
|
633 |
|
7,488 | |||
| Other states |
|
5,800 |
|
1,922 |
|
3,878 | |||
| Totals |
$ |
25,105 |
$ |
3,834 |
$ |
21,271 | |||
Other Properties
In addition to 37 million square feet of buildings in our rental portfolio, we also own other income generating properties at our Urban Group projects that we intend to convert to land development. As of December 31, 2002, our other property portfolio included 15 buildings aggregating approximately 755,000 square feet, that were 84.8% leased, and several parking lots. We expect that the level of income generated from this category will decline as development occurs over the next several years.
The following table summarizes our other property portfolio as of, or for, the year ended December 31, 2002:
| Number of Buildings |
Square Feet (1) |
Revenues |
Property Operating Costs |
Property Operating Income | |||||||||
| (In thousands, except for number of buildings) | |||||||||||||
| Northern California |
10 |
628 |
$ |
5,409 |
$ |
1,164 |
$ |
4,245 | |||||
| Southern California |
5 |
127 |
|
6,039 |
|
3,796 |
|
2,243 | |||||
| Totals |
15 |
755 |
$ |
11,448 |
$ |
4,960 |
$ |
6,488 | |||||
| (1) | Other properties are not included in the total square feet of rental portfolio. |
Operating Joint Venture Portfolio
The Asset Management Group had direct or indirect equity interests in four joint ventures that owned rental properties during the year. The joint ventures provided us with cash distributions of $6.1 million and earnings of $8.3 million for the year ended December 31, 2002.
We owned joint venture interests in the following operating properties for the years presented.
| No. of Ventures |
Size |
Ownership Interest |
Equity in Earnings |
||||||||||||||
| Year Ended December 31, |
|||||||||||||||||
| 2002 |
2001 |
2000 |
|||||||||||||||
| (In thousands) |
|||||||||||||||||
| Hotel(1) |
3 |
1,937 rooms |
25-50 |
% |
$ |
8,213 |
$ |
8,570 |
$ |
9,835 |
| ||||||
| Office |
1 |
202,000 sq. ft. |
67 |
% |
|
64 |
|
263 |
|
(26 |
) | ||||||
| Total |
4 |
$ |
8,277 |
$ |
8,833 |
$ |
9,809 |
| |||||||||
| (1) | Includes a hotel parking lot joint venture. |
13
Sales
During 2002, we sold property from our rental portfolio. Of the sales revenue in 2002, approximately $11.7 million came from the sale to tenants of older buildings totaling 227,000 square feet; approximately $22.5 million from the sale to investors of buildings totaling 542,000 square feet that were built in the 1970s and 1980s; and approximately $9 million from the sale of approximately 1,100 acres of land subject to ground leases.
The following table summarizes the sales of our rental properties, before the adjustments for discontinued operations for the years presented:
| Year Ended December 31, |
||||||||||||
| 2002 |
2001 |
2000 |
||||||||||
| (In thousands) |
||||||||||||
| Total sales: |
||||||||||||
| Sales revenue |
$ |
43,184 |
|
$ |
71,818 |
|
$ |
89,323 |
| |||
| Cost of sales |
|
(14,256 |
) |
|
(30,744 |
) |
|
(46,410 |
) | |||
| Gain on property sales |
$ |
28,928 |
|
$ |
41,074 |
|
$ |
42,913 |
| |||
See Management’s Discussion and Analysis of Financial Condition and Results of Operations of this Form 10-K for more information regarding our sales activity.
Other Land Holdings
As of December 31, 2002, we own approximately 256,000 acres of land in the Southern California desert. The ownership of these desert properties is the result of historical land grants to our railroad predecessors. Because of its location, lack of contiguity among parcels, and other factors, much of this land is not currently suitable for traditional development activities. We have assessed the desert portfolio to explore the potential for agricultural, mineral, water, telecommunications, energy, and waste management uses for these properties and concluded that the land, although valuable, does not fit within our overall corporate strategy.
Since December 31, 1998, our portfolio of desert holdings has declined from approximately 784,000 to 256,000 acres, primarily as a result of sales activity. In 2000, we sold approximately 437,000 acres of desert holdings and 20,000 acres of severed mineral rights to the federal government, through an agreement with The Wildlands Conservancy (“TWC”), for $45.1 million. In late 2001, we amended our agreement with TWC to provide for additional, future sales of up to approximately 170,000 acres of desert land for approximately $13.6 million. We closed on the sale of approximately 94,000 acres of these lands to the federal government in 2002 at a price of $7.5 million. We anticipate closing on approximately 62,000 acres at a price of $5.0 million in March 2003 and on approximately 8,000 acres at a price of $0.7 million in June 2003. The closing of these sales would conclude our current agreement with TWC.
Upon completion of TWC related sales, we will own approximately 186,000 acres of desert land. We are currently in negotiations with the federal government regarding an option agreement that would cover the sale of up to 100,000 acres as mitigation for impacts on threatened and endangered species of the proposed expansion of a Department of Defense installation in the California desert. An additional 30,000 acres are contemplated for disposition through an exchange with the federal government. The remaining 56,000 acres are being marketed for sale to private parties on a portfolio and individual property basis.
We will continue to pursue sale, lease, and exchange opportunities involving public and private buyers, as well as other arrangements to maximize the value of this land. These transactions are often complicated and, therefore, may take a significant amount of time to complete. No binding agreements have been entered on any of the major dispositions of the remaining 186,000 acres and no assurance can be made that the dispositions will occur as outlined.
14
See Management’s Discussion and Analysis of Financial Condition and Results of Operations—Gain on Non-Strategic Asset Sales of this Form 10-K for information regarding the aggregate total of non-strategic asset sales.
Sales
The following table summarizes our sales of other land holdings for the periods presented:
| Year Ended December 31, |
||||||||||||
| 2002 |
2001 |
2000 |
||||||||||
| (In thousands) |
||||||||||||
| Sales |
$ |
8,373 |
|
$ |
4,161 |
|
$ |
50,759 |
| |||
| Cost of sales |
|
(1,109 |
) |
|
(252 |
) |
|
(4,480 |
) | |||
| Gain |
$ |
7,264 |
|
$ |
3,909 |
|
$ |
46,279 |
| |||
Suburban Commercial Group
The Suburban Commercial Group develops suburban commercial business parks comprised of predominantly industrial buildings on land we have acquired or that is included in our historic portfolio. Our suburban commercial development activities include: (1) the acquisition and entitlement of commercial land sites; (2) the construction of predominantly industrial pre-leased buildings and non pre-leased buildings to be added to our rental portfolio, some of which may be subject to tenant purchase options; (3) the construction of predominantly industrial buildings on land we own, for sale to users; (4) the construction of predominantly industrial buildings for sale to investors; and (5) the sale of land to third parties for their own development. In certain instances, we have generated development and management fees from design-build services and construction management services.
In 2002, the Suburban Commercial Group commenced construction on 3.3 million square feet of commercial development. It completed approximately 6.1 million square feet of construction, all of which were added to our rental portfolio. As of December 31, 2002, the group had approximately 3.3 million square feet under construction, 1.9 million square feet of which are scheduled to be added to our rental portfolio upon completion, although certain of these properties may be sold.
Sales
During 2002, we sold improved land capable of supporting 3.8 million square feet of commercial development.
The following table summarizes sales of our commercial development properties in the periods presented:
| Year Ended December 31, |
||||||||||||
| 2002 |
2001 |
2000 |
||||||||||
| (In thousands) |
||||||||||||
| Sales |
$ |
52,966 |
|
$ |
75,686 |
|
$ |
68,951 |
| |||
| Cost of sales |
|
(42,689 |
) |
|
(50,896 |
) |
|
(52,415 |
) | |||
| Gain on property sales |
|
10,277 |
|
|
24,790 |
|
|
16,536 |
| |||
| Equity in earnings of development joint ventures |
||||||||||||