Beaumont, Calif. – July 11, 2022– McDonald Property Group, a Southern California-based industrial real estate development firm, today announced that construction is planned to commence on a build-to-suit 1.8-million-square-foot, single story 40’ clear distribution center strategically located in the City of Beaumont in Southern California’s Inland Empire. The project is designed to meet the growing demand for United Legwear & Apparel Company, LLC (ULAC). This facility is planned to be constructed under a long-term lease transaction with USAA Real Estate, as Landlord and ULAC, which maintains its headquarters in New York City. The building is meant to accommodate ULAC’s global design/manufacturing, marketing, sales, and distribution. The company specializes in legwear, bodywear, apparel, and accessories for men, women and children, maintaining nearly a dozen highly recognized licensed brands such as Hurley, Champion, Fortnite, Van Heusen, Skechers, and a joint venture partnership with PUMA North America.
This new ULAC massive structure is positioned on 85 acres known as Phase II of the Crossroads Logistics Center, a master-planned project at the intersection of Interstate 10 and Hwy. 60, which also includes an under construction 816,000 SF build to suit facility. Wolverine Worldwide’s fulfillment center and another build to suit fulfillment facility were both recently developed as Phase I of Crossroads in 2017 and 2020 by the USAA Real Estate and McDonald team. A new Highway 60 freeway interchange overpass benefits and provides additional access for the project near the east entrance. The property is 78 miles from the Port of Los Angeles, proximate to railways and the new FedEx Ground sorting and distribution center in Palm Springs, making it accessible to various intermodal transportation routes. Construction will commence on the ULAC building in July 2022 and is expected to last approximately 18 months, with an anticipated completion date of December 2023.
“This new phase of Crossroads Logistics Center is yet another milestone in our long and successful collaboration with McDonald Property Group, consistent with our strategy of investing in partnership with best-in-class developers,” said Lange Allen, executive managing director for USAA Real Estate. “We are pleased to add United Legwear & Apparel Company to the list of prestigious companies we have been able to serve throughout our global industrial and logistics portfolio.”
The new distribution center will contain assembly, racking, and state-of-the-art material handling conveyor automation systems and includes approximately 30,000 SF of office space. Along with the nearby Skechers facility in Moreno Valley, this one-half mile long building will be distinguished as one of the largest known industrial buildings in the entire Southern California region.
“United Legwear & Apparel Company is extremely proud to partner with USAA Real Estate and McDonald Property Group in the development of our soon-to-be flagship West Coast Distribution Center in Beaumont, California,” stated Chris Volpe, chief operating and financial officer of ULAC. “The Beaumont Crossroads Logistics Park will allow us to streamline and consolidate our West Coast logistical hub and distribution point as the premier tenant in this amazing facility.” Volpe added, “We are honored to participate in such a monumental on shore infrastructure project which will support our growth plan and commitment to our valued retail customers along with allowing us to create highly compensated U.S.-based jobs.”
“I have enjoyed the opportunity to develop some sizable and unique projects in my career, but none as large from a construction perspective as this,” said Bruce McDonald, president and CEO, McDonald Property Group. “ULAC was searching for a development partner who could deliver this structure within a specific timeframe, maneuver through the discretionary jurisdiction approval process and obviate the construction supply chain problems with viable solutions. We believe that our team, along with USAA Real Estate, is the perfect combination to deliver this important project for ULAC along with the guidance and expertise it was looking for.”
ECONOMIC BOOST TO THE COMMUNITY
ULAC has selected the Crossroads Logistics Center, located at the key logistics intersection of the 10 and 60 freeways, in part to benefit from labor pools in the eastern Inland Empire and the Coachella Valley. In addition to its ongoing growth needs through strategic acquisitions and existing brands, a consolidation of ULAC’s Whittier and Rialto facilities will occur. The facility will operate 24 hours per day, six (6) days per week and will require two shifts of approximately 350 plus employees.
“The City of Beaumont eagerly looks forward to welcoming United Legwear and its landmark distribution center to our community later next year,” said Beaumont Mayor Lloyd White. “Beaumont is committed to sustainable, long-term growth and this facility alone will bring important revenue and jobs to our region.
David Consani, Jim Koenig, Darla Longo, Barbara Emmons of CBRE and Rick John of Daum represented McDonald Property Group and USAA Real Estate in the lease transaction. Luke McDaniel, Cameron Driscoll, Jeff Bellitti, and Mac Hewett of JLL represented United Legwear.
The architecture firm of record is HPA Architecture, and the general contractor is Fullmer Construction Company. Bob Fullmer, president of Fullmer Construction, noted, “We are honored to be chosen to be part of the team to execute the development of this project. Since 1946 Fullmer has built close to 200 million SF of warehouse building in Southern California, and this project will represent our largest project to be built under one roof. We are proud to have built many projects with McDonald and USAA Real Estate through the years, including the Walmart cooler/freezer distribution building in Riverside and the Wolverine fulfillment center in Beaumont.
ABOUT UNITED LEGWEAR & APPAREL COMPANY
Founded in 1998 by Isaac E. Ash, United Legwear & Apparel Co., (ULAC) is a New York based global design/manufacturing, marketing, sales and distribution company specializing in legwear, bodywear, apparel, and accessories for men, women and children. ULAC maintains nearly a dozen highly recognized licensed brands such as Hurley and Champion and is a joint venture partner to PUMA North America.
ABOUT MCDONALD PROPERTY GROUP
McDonald Property Group is an industrial development company that develops large scale industrial projects, both in joint ventures with institutional capital partners and on behalf of REITs in a non-partnership capacity. The company was formed in 2013 by Bruce McDonald, an established Southern California industrial developer who has developed over twelve million square feet of industrial space both as McDonald Property Group and previously as co-founder of Master Development Corporation from 1995-2010. McDonald is experienced in providing development services to many institutional capital partner relationships, having recently worked with USAA Real Estate, First Industrial Property Trust, Black Creek Group, State Teachers System of Ohio, and USAA. McDonald Property Group is a licensed general contractor and real estate broker and currently manages six million square feet of industrial property through its property management affiliate.
ABOUT USAA REAL ESTATE
Along with its affiliate companies, USAA Real Estate invests across the risk spectrum for a global client base, managing over $36 billion in net assets under management within a diversified portfolio across North America and Europe. USAA Real Estate provides strategic equity and debt capital, including to capitalize on the accelerating demand for technology-driven real estate assets, to meet the critical need for housing solutions, and for other market and capital structure opportunities exhibiting compelling risk-return characteristics.
