Overview

Established in 1969, Imperial Toy is a world leader in toy sales and manufacturing. In addition to proprietary products like Miracle Bubbles, Fuzzbies, and Googly, they also hold licenses for major entertainment brands like Marvel, Nickelodeon, Thomas the Tank Engine, and Paw Patrol.

Our experts on this project

The Challenges

1

Rapid and sudden growth, which triggered the need for additional warehouse and distribution centers

2

Ensuring that the disruption would not impact seasonal surges in business

3

Need for expanded space as they were outgrowing their Otay Mesa facilities as well

Imperial Toy was experiencing rapid and sudden growth, triggering the need for additional warehouse and distribution centers in California and Mexico. They required expanded short- term storage in Tijuana that was close to their manufacturing plant, and they also needed expanded space as they were outgrowing their Otay Mesa, CA, facilities as well.

Though moving was an option, they needed to ensure that the disruption would not impact seasonal surges in business. We explored opportunities in the Inland Empire and compared them to what was possible at or near their current location in the effort to find them the best possible situation.

The solution

Brian Klepacki of IPG led the effort to navigate the markets in California and Mexico. Brian applied deep expertise and understanding of these regions to negotiate three-month temporary rental terms, to be followed by a month-to-month agreement. The client was able to secure this deal for well below market value, giving them significant cost benefits as well as the flexibility to expand.

The Success

1

Securing remarkable cost savings for Imperial Toy

2

Granting a $300,000 improvement allowance

3

15 months rent-free as they phased their growth into the new space

Brian secured remarkable cost savings for Imperial Toy. Their new lease gave them the ability to expand and the right to occupy 258,000 square feet while only paying for 200,000 square feet for the first year. The company was also granted a $300,000 improvement allowance and 15 months rent-free as they phased their growth into the new space.

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