Cosmetics company Arbonne International LLC has renewed the lease for its Irvine headquarters in one of the largest leases reported in the county so far this year.
The privately held company, which sells a line of makeup, skin lotions, and other products, signed a five-year deal for its headquarters at 9400 Jeronimo Road, a 146,482-square-foot building in the Irvine Spectrum.
The property is part of the four-building Alton/Jeronimo Business Park owned by Newport Beach-based Irvine Company.
Financial terms of the lease, which
begins in November, were not disclosed. Arbonne has been at the property since 2004.
The two-story building at Alton Parkway and Jeronimo Road has about 70,000 square feet of office space, with the remainder being high-bay warehouse space.
Alternatives
Buildings of that design are rare in Orange County, making it a challenge to find local alternatives during Arbonne’s search for potential headquarters locations, according to Michael Props, corporate managing director for the Irvine office of tenant brokerage Studley Inc.
The company explored alternatives outside of OC before deciding to stay put in Irvine, said Props, who represented Arbonne in the lease with colleagues Royce Sharf and Jeff Cannon.
The Irvine Co. was represented in-house by Sue Lyle.
It agreed to do some major upgrades to the building’s common areas and heating and air conditioning systems as part of the lease renewal. It also will add an elevator to the property, among other changes. The first phase of the retrofitting project is scheduled to start soon.
“The overall terms of the transaction reduced Arbonne’s occupancy costs and improved the efficiency of their facility, which will satisfy Arbonne’s space needs for many years,” Props said.
Arbonne has about 240 people in its Irvine office and nearly 600 people companywide.
Some of the work being done to the building should allow it to expand its headcount, he said.
2010 Restructuring
Arbonne is a direct seller of organic and botanical-based products, such as Mandarin Cashmere Body Whip, Pampermint for feet, aromatherapies, anti-aging creams, and weight-loss chews and shakes.
Rivals include other direct-sales companies, including Avon Products Inc. and Mary Kay Inc., and a slew of high-end names found in department stores.
It reported $377 million in revenue in 2012 and ranked as OC’s 38th largest private company by sales last year.
Arbonne has seen its financial ups and downs since the recession.
The company’s formerly private equity-backed parent, Natural Products Inc. of Florida, entered bankruptcy in January 2010 under heavy debt and a sales slowdown. The bankruptcy reorganization wiped away 80% of its $800 million debt, giving it a fresh start.
“Their business is stronger than ever,” Props said.
A mix of banks, private equity firms and others—including GE Co.’s GE Capital, TCW/Crescent Mezzanine and EOS Private Equity—now own Arbonne, sister company Levlad LLC in Chatsworth, and parent Natural Products.
Arbonne also has offices in Australia, Canada and the U.K.
