Tejon Ranch Co. and Majestic Realty Co. form a new Joint Venture to build up to 495 apartments next to the Outlets at Tejon

(Tejon Ranch, CA) – Tejon Ranch Co. (NYSE: TRC) announced today it has formed a new joint venture partnership with Majestic Realty Co., the nation’s largest privately-held developer of industrial properties with a growing portfolio of commercial and multi-family residential projects as well, to develop up to 495 apartment units on the east side of the Tejon Ranch Commerce Center (TRCC) immediately adjacent to the Outlets at Tejon.  The project will complement the Outlets and is expected to generate additional activity at both the Outlets and throughout the entire Tejon Ranch Commerce Center.

The new multi-family residential apartment community consists of up to 495 units and associated amenities located on approximately 22 acres just to the north of the Outlets. The apartments will bring a new energy to TRCC as it transforms the already-successful employment center, with more than six million square feet developed to-date, into a mixed-use community where people can live, work and play.  The new multi-family residential community is the latest example of Tejon Ranch Co.’s growth as a fully integrated real estate development and operating company.

“We are excited to develop this much-needed housing community for the large and growing workforce at TRCC, providing an opportunity for employees of the various businesses at TRCC to enjoy a quality living environment near their work, reduce their transportation costs, commute times and vehicle miles traveled, all while enhancing their work-life balance,” said Hugh F. McMahon, Tejon Ranch Co.’s Executive VP of Real Estate. “We are very pleased to again partner with Majestic Realty Co. and expand upon our outstanding record of success together.”

“Our shared vision and confidence in working with our partners at Tejon Ranch has and continues to be demonstrated as we take these next steps in creating the full scope and function of this development,” said Majestic Realty Vice President Tom Simmons. “The housing component has always been a part of the long-term vision for TRCC, given the need and opportunity to provide quality housing access to a diverse range of employees who work there. Employers, and the jobs they provide, are fundamental, but we know that both need housing options that are local and accessible to truly fuel the economy and help this community thrive in the decades ahead.”

The project will utilize existing infrastructure serving TRCC and addresses the immediate need for quality housing for the people employed within TRCC, as well as neighboring areas, and provides a great location immediately adjacent to the Outlets. The development will also serve to create new opportunities for development of other lands within TRCC.

The project itself will consist of up to 495 studio, 1-bedroom and 2-bedroom apartments to be developed in multiple phases, and features placemaking amenities, including a mixed-use town square joined with a Main Street feature, a clubhouse, fitness facilities and pool area, and paseos that will provide walkable connectivity throughout. The product mix will be sized, amenitized, and priced accordingly for the target market.  Construction is targeted to begin in late 2022, with the delivery of the first units to occur approximately 12 months later at the end of 2023.

Indianapolis-based Scannell Properties acquires 17.1 acres in the Tejon Ranch Commerce Center to build a state-of-the-art, sustainable automated manufacturing facility for Plant Prefab, an award-winning custom builder of high-quality multifamily and single-family housing

(Tejon Ranch, CA) – Tejon Ranch Co. (NYSE: TRC) announced today it has closed on the sale of 17.1 acres of land on the east side of the Tejon Ranch Commerce Center to Scannell Properties, a privately-held real estate development and investment company that focuses on build-to-suit and speculative development of industrial, office and multifamily facilities throughout the U.S., Canada and Europe. There, Scannell will build an approximately 270,000-square-foot manufacturing facility for Rialto, CA-based Plant Prefab.

This new factory – Plant Prefab’s third – will serve as the company’s first automated facility and regional production hub, and will be purpose-built to efficiently manufacture custom-prefabricated panelized and modular building components. The hub facility will allow for the full industrialization of Plant Prefab’s patented Plant Building System™️, which combines advanced engineering with specialized Plant Panels™️ and Plant Modules™️ to build custom housing 20 to 50 percent faster than traditional building methods with up to 30 percent less waste at a 10 to 25 percent cost savings in labor-constrained markets.

“The Tejon Ranch Commerce Center is an outstanding location –with its efficient access to the interstate and strategic location between Los Angeles and the Bay Area, combined with the efficiencies that will be driven by the state-of-the-art facility, Plant Prefab will be able to expand its reach to the entire Western U.S.,” said Jacob Holdeman with Scannell Properties.  “They are establishing their flagship facility in a location that represents a strong value proposition when compared to the Inland Empire and joining an area that is expected to continue growing for decades.”

Steve Glenn, Founder and CEO of Plant Prefab, stated, “Opening the hub facility will be a critical milestone that will move Plant Prefab into the next phase of our evolution, enabling us to construct architectural, sustainable housing more time and cost efficiently, and at higher volumes than we could previously. It will also allow us to expand into larger dwelling formats including large-scale student, affordable and market-rate housing to serve a wider universe of clients including real estate, hospitality, and corporate developers. This represents a significant step toward our ultimate goal of helping to address critical housing issues in supply- and labor-constrained markets.”

Plant Prefab’s design and estimating teams are now engaging projects for the new facility, which expects to begin production in January 2023. The launch of the hub will be well timed to help Plant Prefab accommodate rising demand from a growing list of clients, as production contracts have grown by more than 175 percent in the past year alone. Looking ahead, Plant Prefab expects to replicate its hub-and-spoke production model, allowing it to scale efficiently to meet demand across urban infill markets in other regions across the country – including the East Coast – that are similarly well located and primed to serve large populations.

Joseph N. Rentfro, Tejon Ranch Co.’s Executive Vice President of Real Estate, added, “Along with the County of Kern, which awarded Plant Prefab an incentive under the Advance Kern Initiative, we look forward to welcoming this innovative company to Tejon Ranch, as we share their commitment to helping address California’s housing crisis in an efficient, sustainable way. This investment by Scannell Properties, which can – and does – invest all over the world, is further evidence of the strength and appeal of our location. All of our existing industrial space is 100% leased and 100% occupied, and we’re making good progress on a +/- 630,000-square-foot speculative industrial facility we’re building in partnership with Majestic Realty Co., as we look to meet the demand we’re seeing out of Southern California and elsewhere for warehouse, distribution, and now,  advanced manufacturing facilities, with Plant Prefab’s new manufacturing hub serving as an example of the type of business identified as a targeted sector for business development in Kern County by the B3K endeavor.”

Tejon Ranch Co. is a participant in B3K Prosperity, a collaboration among business, government and civic stakeholders in Bakersfield and Kern County, whose purpose is to create and deliver a joint strategy and investment plan for regional economic growth and opportunity.

Centennial to be both net-zero energy and net-zero GHG emissions community

Tejon Ranch Co. (NYSE: TRC) and Climate Resolve, a Los Angeles-based nonprofit organization, today announced an unprecedented agreement regarding the Centennial at Tejon Ranch master planned community. The planned development of more than 19,300 homes and 10.1 million square feet of commercial and industrial space, which has received approvals from Los Angeles County, may now proceed to the next steps in the California development process.

Centennial, which has committed to include 3,480 affordable housing units as a part of its Los Angeles County approvals, will now also become a greater net zero project, meeting and exceeding all the state’s goals and requirements to combat climate change.

The enhanced climate and wildfire resilience measures contained in the agreement set a new standard for development in California and represent the largest climate investment by a housing development in the state, a milestone achieved through the cooperation of both Tejon Ranch and Climate Resolve.

As part of the agreement, Climate Resolve has agreed to dismiss with prejudice its claim that the County of Los Angeles violated the California Environmental Quality Act (CEQA) when it approved Centennial in May of 2019.

With the dismissal of the lawsuit, Tejon Ranch Co. retains the legislative approval needed to continue the process that will lead to the development of a well-planned and critically needed community that will bring thousands of homes and jobs to Los Angeles County. 

The agreement includes the following measures and features.

 “We are pleased to reach this agreement with Climate Resolve that will enable us to address California’s housing crisis in the most sustainable manner possible,” said Gregory S. Bielli, President and CEO of Tejon Ranch Company.  “Tejon Ranch has a legacy of environmental stewardship, as well as using its land to meet major needs in California.  More than ever, the state desperately needs the 19,333 housing units Centennial will provide, including the nearly 3,500 affordable units.  At the same time, California needs to achieve its climate goals.  This agreement outlines a way to create this unique climate-friendly, fire-safe, affordable mixed use master planned community that helps California address its housing needs consistent with the state’s policy goals.”

“Working with Tejon Ranch, we’ve been able to secure the largest climate commitment by a housing development in the state’s history,” said Jonathan Parfrey, Executive Director of Climate Resolve.  “We’re setting a new climate standard that surpasses anything previously done in the state. Our agreement builds upon the 2008 Tejon Ranch Conservation and Land Use Agreement and takes the added steps of further protecting the land from the threat of wildfire and zeroing-out greenhouse gas emissions at the Centennial project.”

Both Tejon Ranch Company and Climate Resolve look forward to working together to implement an agreement that sets a new precedent for the development of fire safe, sustainable communities that will meet the needs of California today, and in the future.