Lease Reupped at Big South County Distribution Center

One of South County’s larger chunks of industrial space is staying off the market.

CPU2 LLC, a logistics and telephone services company, just renewed the lease on its 231,133-square-foot warehouse and distribution facility in Foothill Ranch.

The five-year renewal is valued at more than $10 million.

CPU2 takes up the majority of the 309,685-square-foot building, at 25892 Towne Centre Drive. The building’s owned by San Diego-based Kilroy Realty Corp.

The warehouse, which runs along the Foothill (241) Toll Road, is one of the few industrial buildings bigger than 300,000 square feet in South County. It likely would have been a hot commodity if CPU2 had opted to leave.

That’s one reason the lease renewal process wasn’t a quick one, according to officials with the Irvine office of Studley Inc. Kilroy looked to take advantage of a tight industrial market,especially for large blocks of space,while the tenant considered moving.

“At first, CPU2′s landlord was reluctant to renew,” according to Jeff Cannon, corporate managing director for Studley.

It took close to a year of negotiations before terms were reached, he said.

Along with Cannon, Studley’s Tim Schramm and Paul Jones represented CPU2. Kilroy’s Janelle Strand and Jim Axtell represented their company.

CPU2 provides fulfillment, call center and packaging services. The Foothill Ranch building is one of three large facilities it has. The other two are in North Carolina and Louisiana.

Birtcher Still Buying

Brandon Birtcher, president of Irvine-based Birtcher Development