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Vacaville’s Pacific Cycle Warehouse Wins Top Solano Industrial Project Award

December 21, 2015

A new $35 million mega-warehouse on 32.38 acres has been built by business park developer and general contractor Buzz Oates Group of Companies at the Vacaville Business Park south of the intersection of Cessna Drive and Beechcraft Road at 2070 Cessna Dr.

Pacific Cycle, Inc., a designer, marketer and distributor of bicycles and accessories, became the sole tenant in July 2015 under terms of a 12-year lease, signed before the project started. Construction started in mid-September 2014 and was completed in July 2015.

Since Pacific Cycle moved to Vacaville from Napa Valley more than a decade ago, its demand for warehouse space has grown ten-fold to include space in five different warehouses.

Today the company is using this new warehouse with 597,816 square feet of space, and an existing warehouse nearby at 2041 Cessna Drive totaling 337,896 square feet, for its consolidated West Coast distribution operations. In total, Pacific Cycle occupies over 935,000 square feet in the Vacaville Business Park. The bike maker’s latest lease was the largest Solano County industrial transaction in 2014.

The company conducted a search lasting more than a year to find a warehouse large enough located within a relatively short driving radius from the Port of Oakland, where bicycles are offloaded from ships arriving from plants in Asia. Pacific Cycle receives more than 7,000 containers a year from the Port of Oakland, which they distribute to the big box retailers across the United States.

 “It came down to employee retention, economics and the proximity to the Port of Oakland,” said Matt Bracco, who with fellow Cushman & Wakefield agent Glen Dowling represented Pacific Cycle in the search and lease negotiations. “Several sites along the I-80 corridor were seriously considered. However, the closer you get to San Francisco, the more expensive it is to develop high-cube warehouse/distribution space.”

Phil Garrett, executive managing director and Jon Quick, senior vice president with Colliers International, represented Buzz Oates in this prelease transaction and is the listing broker for the company in Vacaville and Fairfield.

Pacific Cycle sells bicycles and accessories from 10 of the industry’s top-selling brands, including Schwinn, Mongoose, Iron Horse, Roadmaster, InStep, Kid Trax, Playsafe, Pacific, Dyno and Powerlite. Pacific Cycle employees more than 70 employees in the Vacaville warehouses.

The company’s other products include jogging strollers, bike trailers and children’s bikes and tricycles. The company is part of the Recreational and Leisure Segment of Montreal-based Dorel Industries, a publicly traded producer of kids products and home furnishings. Dorel acquired Pacific Cycle in January 2004.

Buzz Oates Group is a privately held commercial real estate firm based in Sacramento, California. Founded in 1951, BOGC owns and manages a 24 million square foot portfolio of office and distribution warehouse facilities valued in excess of $1.5 billion. The company is active in most of the Central Valley markets of Northern California, Salt Lake City, Utah and El Paso, Texas. Annually, Buzz Oates develops one-to-two-million square feet of projects valued at approximately $100–$150 million.

The general contractor for this Vacaville Business Park project was Buzz Oates Construction, Inc. The architect was Leo McGlade & Associates, Inc., and civil engineering work was provided by Carlton Engineering, Inc.

BY GARY QUACKENBUSH
SPECIAL TO THE BUSINESS JOURNAL

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