From the Orange County Register:
Rexford Industrial Realty has acquired the Fox Racing headquarters in Irvine for $40 million, according to Newmark.
The 82,645-square-foot building is leased to the extreme sports company, which was acquired in August 2022 by Vista Outdoor for $540 million. Vista owns 40 brands in the outdoor apparel and accessories market including Remington Ammunition, Bushnell, CamelBak, Bushnell Golf, Bell Helmets, Giro, QuietKat and Federal Ammunition.
Griffin Realty Trust, the seller, bought the building at 16752 Armstrong Ave. for $27.25 million in October 2013, Newmark said.
The facility, with a distinctive, arched red entrance and adjacent BMX track, has “themed architecture” that spans two floors of office space with conference rooms, common areas, a lobby and designated workspaces.
The campus also has a skate park, gathering space and fire pits. In the pedestrian space between the building and race track, the words “dream on” are crafted in the ground out of giant concrete letters.
“The industrial market fundamentals in Orange County remain solid with a vacancy rate of less than 2 percent,” said Paul Jones, an executive managing director at Newmark. “The ability to acquire 6.5 acres in a mature infill industrial market with strong existing yield was compelling.”
Good ROI
~4%
Amazon fulfillment center?🙄
Did you use October 13 - January 23? (111 months) …I came up with 5%
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I sure hope that Fox Racing does not suffer a future similar to ONE Industries.
The demise of that company was tragic and un necessary.
Fox is part of a huge portfolio of outdoor brands.
...so was One industries when it was acquired by Bravo Sports, an outdoor and lifestyle holding company with 32 brands.
I have a friend who had a company purchased by Vista Outdoor and so far it has been all positive, but it's been less than 2 years so who knows what the long term future holds.
Those investment firms sure know how to destroy a "core" brand- White Brothers suffered that fate.
Then again, Vans is thriving 20 years after a buyout.
I used the wrong number from the article ha. Seemed to be an underperforming asset.
Fox should be fine. Clearly it’s a profitable company, and someone was smart enough to buy them.
That's because Vans was/is a money maker.
The building that they lease was sold. Nothing to do with Fox or Vista. Now their lease payments go to a different company. That's all.
I think!
Never realized Vista owned Camelbak. Camelbak hates off-road motorcycle riding.
You’re right. This is a non story.
Yep.
Sad but true. They’ve likely made millions off us over the years too.
Thankfully USWE came along.
Fyi while this real estate trade doesn't look to have been great for the seller relative to others from similar timeframes, the irr is likely much better than indicated by solving for return based on the buy and sell prices. These types of assets typically have about a 6% yield, and are often levered around 50% with cheap debt. So say an 8 cash yield plus the appreciation on sale, it's probably a low double digit irr.
How do they hate us?
They support/donate to the Sierra club, which has had a hand in shutting down offroad riding areas all across the country. Strange how Fox racing is really going hard on promoting the MTB side of things after getting bought out by Vista 🤔
https://www.sierraclub.org
Pit Row
You are only accounting for the real estate...this also is an income producing property and it's value is based more on the income it produces than just the building and land....
Good luck staying pure. You might as well lock yourself in a closet.
I am sure a lot of people would also have issues with Vista selling ammunition.
Yeah it’s pretty funny the hypocrisy of some of the large umbrella companies.
North Face, a VF industries owned company ( Vans Family Industries, yes Van shoes family) took a hard stance against fossil fuels and climate change by refusing to print Parkas or Jackets for an Oil Company and the oil company responded to them to remind them the a very large percentage of their products were manufactured by fossil fuels and the materials used are a direct derivative of the cracking of a barrel of oil. Love it when people take a hard stance against something and have zero knowledge/foundation on. Muppets!
Exactly.
They ran a business out of that building for years and then walked with more.
ONE and Fox have the same CEO
Honestly the brand has already lost it's edge over it's competitors that it used to have in my opinion. I've been a Fox guy my whole life and been disappointed with my last few mtb purchases. Mass production, reducing quality for greater margins, designers hired based off degrees not passion & experience. I don't know... I guess it's the way of the world, but both L mtb jersey's and shorts I got from them aren't even wearable after a season. The material has shrunk so much both jerseys are like belly shirts and my shorts are all wavy/distorted and gross looking. Luckily my moto gear seems to be holding up strong aside from gloves. I've been purchasing the same fox gloves for 5+ years. One of my first pair are still white. This last pair I bought are already yellow, faded, and look like the oldest pair I have. When a company loses it's core employees and executives are making decisions they shouldn't be based off what they think is best for the company and their job (Their mindset - look owner/CEO I increased profitability, now I deserve a raise) vs what's best for the consumer and product, you end up with this. Ultimately what's best for the consumer is best for the company as great product is undeniable and attracts customers. Head honcho's don't get this concept. I worked in product design/development for a number of years and unfortunately it happened in the company I was working for too. They got bought out shortly after I left. It was painful putting out sub par product I knew we could make better, just to meet profit margins or a retail price point. In my opinion, people would rather pay a few dollars more for quality product.
That's not exactly what I meant....the building was owned by Griffin Reality Trust that leased the building to Fox, the value of the building is based on the rental income it produces (Usually a 10x cap rate) and has nothing to do with Fox. My response was the return on investment rate that was used at 4% was inaccurate because they didn't take into account the rental income it produced on an annual basis over the years they owned the building. The $40M purchase price is more than likely based on approximately $4M of annual rental income which is a 10% annual return on investment...
Fair. The leasor also made out.
It's actually VF Corp (Vanity Fair) that owns Vans and North Face. It was the parent company of Lee jeans for the longest time.
Also, true hard core corporations eventually sell their real estate and lease it back. If they own it, it's a taxable asset. 100% of the lease back cost offsets their taxable income.
and sierra club doesn't just hate offroad motorcycles. they hate bicycles. they borderline hate hikers. i wouldnt be surprised in the future if they want 'the wind' banned from touching the land.
100% correct. A true outdoorsman wouldn’t support their cause with hidden agendas of basically keeping everyone off the land. You know it’s flawed when they preach that trail runners are an issue of concern for trail erosion
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