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9/29/15
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Goodwill of Orange County has leased a 154k sf warehouse building in Tustin. The two-story facility, located at 1231 Warner Ave, will serve as Goodwill’s new central distribution center, and improve retail operation efficiencies by providing much needed space for processing and storage of donations.
“The move to a larger distribution center will enable and empower our venerable, 91-year-old organization to enjoy continued, critical growth well into the future,” said Frank Talarico, Jr., President and CEO, Goodwill of Orange County. “Our successes in retail operations, with this lease a key component to that success, translates into serving more people facing barriers to employment, including adults with disabilities and veterans.”
The new distribution center will replace and more than quadruple the size of the existing 30k sf processing and dock space in Santa Ana. The addition of warehouse space will allow Goodwill to house and sort a significantly larger amount of donation inventory.
Because Goodwill has reached maximum capacity at its current distribution center, goods that are donated are processed and sent out to stores that day, regardless of season or type of merchandise. The larger space will allow for efficient staging of goods to maximize the value in what is donated by providing stores with in-season, best-selling goods as well as refined control over the amount of goods sent to each retail store. Goodwill has metrics that informs them about what goods are most popular at what store.
Communication between the 22 retail stores and the new distribution center will allow specific stores to request and receive inventory to fill gaps in fast-selling merchandise.
Goodwill anticipates revenue increases as a result of the transition to the new centralized distribution warehouse through improvement in seasonal clothing availability at its stores, balanced inventory of donated goods and decreased transportation costs with fewer trips to the retail store locations required as a result of proper staging of items.
The new distribution center also increases potential for the organization to add new store locations to its directory.
A portion of the new space will be devoted office space for Goodwill of Orange County’s programs and services that help individuals facing barriers to employment in the community, including a new physical space for its veterans program, The Goodwill Tierney Center for Veteran Services.
Senior managing directors Justin Hodgdon and Wes Hunnicutt of Newmark Grubb Knight Frank’s Newport Beach, California office represented Goodwill on the lease transaction.
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