Factory Direct 2-U

Factory 2-U Stores Inc., a retailer that provides brand name fashions at factory direct prices, signed a 12-year prelease for 600,300 square feet at the Sunroad Corporate Center at the SEC of Airway Road and Piper Ranch Rd. in Otay Mesa, CA. In a prior transaction, Lennar Partners purchased the 31.32 acres from Sunroad Enterprises for approximately $4 million, or about $127,713 per acre. Rich Kwasny and Shane Harmon of CB Richard Ellis represented the seller and Dennis Hearst of The Staubach Company represented the buyer, Lennar Partners. The built-to-suit corporate headquarters will break ground in mid-June. Factory 2-U intends on consolidating its distribution centers at 4000 Ruffin Rd. and 7130 Miramar Rd. into its new headquarters upon completion in January 2003. The return on cost transaction was valued at $30,400,000. The new facility will sit on a 31.32-acre site and will feature approximately 65,000 square feet of office space. Factory 2-U currently operates 256 stores in 13 states. Dennis Hearst of The Staubach Company represented the owner/developer, Lennar Partners and Factory 2-U.