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Capacity Commercial Group/CORFAC International Assists Ikea Contract Manufacturer Mastercraft Furniture Inc. Quadruple its Oregon Industrial Facility
Portland, OR (April 25, 2012) – Capacity Commercial Group/CORFAC International (Corporate Facility Advisors) Principal Don Ossey, SIOR today announced that his firm has represented Mastercraft Furniture Inc. in a major lease that will involve relocating the IKEA contract manufacturer from the Portland suburb of Wilsonville to Stayton, OR, which is approximately 60 miles south of Portland.
Ossey and Capacity Commercial Associate Broker Rob McEachern represented Mastercraft in an 11-year lease of a 170,000-square-foot industrial building on 15 acres located at 1620 Wilco Road in Stayton. The facility was formerly a window and door manufacturing plant and had been vacant for about three years, according to McEachern. The town of Stayton is off of Highway 22 and approximately 11 miles east of Interstate 5.
Mastercraft won a contract with the Swedish home furnishings giant IKEA in September 2010 and first started shipping couches and related fabric-covered furniture in March of 2011. The new contract work drove Mastercraft’s workforce from about 40 workers in the middle of 2011 to approximately 150 employees now – with plans to add another 100 employees once they open in Stayton.
“After landing the IKEA account, Mastercraft swiftly outgrew its Wilsonville facility and asked us to survey the market with intent to quadruple its occupancy with a stringent requirement to keep their rent as low as possible, given the nature of their business and tight margins. We immediately knew that we would have to look outside Metro Portland to secure the right plant,” said Ossey.
Mastercraft currently occupies approximately 44,500 square feet in Wilsonville. Ossey estimates that the new Stayton plant should be ready for the company’s occupancy by June 1st following upgrades to the office and production areas.
Ossey declined to disclose Mastercraft’s rental rate, but said average asking rents for industrial space in Wilsonville (its current location, which is about 17 miles south of Downtown Portland) are in the $0.35 per-square-foot, per-month range with outlying markets like Stayton offering significantly lower cost alternatives.
Mastercraft’s decision to stay and expand in Oregon was a major victory for the regional economy. The manufacturer competes with comparable companies in China where operating and employee costs are much lower.
Oregon Governor John Kitzhaber was quoted in the Statesman Journal saying “this is a perfect example of an Oregon company “insourcing” to provide Oregonians with home-grown employment for jobs formerly sent overseas.”
The Portland Business Journal reported that Mastercraft’s relocation includes a $125,000 forgivable loan from the Governor’s Strategic Reserve Fund.
About Capacity Commercial Group/CORFAC International
Portland OR-based Capacity Commercial Group/CORFAC International has a solid yet diverse client base and takes great pride in maintaining loyalty in the relationships the firm’s professionals have established over the years. Capacity specializes in office, industrial and multifamily real estate representing tenants, landlords, investors and developers. The individuals who comprise the Capacity team have raised the performance bar within its profession by delivering a service standard second to none. All seven company principals have earned The Society of Industrial and Office REALTORS® (SIOR) designation, indicating their dedication to the practice and maintenance of the highest professional and ethical standards. For more information please call 503.326.9000 or visit www.capacitycommercial.com.
About CORFAC International
CORFAC International (Corporate Facility Advisors) is distinguished by the way it manages multi-market commercial real estate assignments on behalf of corporate entities and privately owned companies. Founded in 1989, U.S.-based CORFAC is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services in North America, with coverage in South America provided by Panama-based Latin American Corporate Property Services. A Principal Member of FIABCI – the International Real Estate Federation with global affiliates in Europe and Asia, CORFAC International offers commercial real estate services with market reach in 65 countries worldwide. In recent years, CORFAC firms have averaged 10,000 completed transactions annually encompassing nearly 100 million square feet and valued at more than $6 billion. For more information on CORFAC, contact 703.532.6160 or visit www.corfac.com.