San Diego-based AleSmith Brewing Co. is quintupling its San Diego brewing operations with an 11-year, $9.7 million lease for a 105,600-square-foot Westcore Properties-owned building at 9990 Empire St. in Miramar.
AleSmith plans extensive building renovations for the building, which is scheduled to open in January 2015.
“Westcore Properties is pleased to support AleSmith with a facility that can accommodate its unique brewing requirements and anticipated growth in San Diego’s popular craft beer industry,” said Hack Adams, Westcore’s senior vice president of acquisitions and leasing.
“Westcore has grown its commercial real estate portfolio through a keen focus on providing tenants with functional, well-managed space that supports their business objectives. AleSmith has been an exciting company to watch and we’re very pleased to welcome them to the Westcore family.”
AleSmith is now in a 20,000-square-foot property at 9368 Cabot Drive, a short distance from the new facility. Improvements planned for the new AleSmith building include a state-of-the-art brew house, cellar and bottling line from Krone’s, a leading German packaging and bottling manufacturer. AleSmith expects to increase capacity from 15,000 barrels projected in 2014 to 25,000 barrels in 2015.
“After many years of hard work, I am very excited to guide AleSmith into the future with a facility that will allow our beer to reach more people and maintain our status as one of the world’s great breweries,” said Peter Zien, AleSmith owner in a statement.
Westcore was represented by Mickey Morera, James Duncan and Jeff Brown of Cushman & Wakefield. Glenn Arnold with Cassidy Turley represented the brewer.
“This expansion by AleSmith reflects the growing energy of the craft beer industry in San Diego,” Arnold said. “This location will accommodate AleSmith’s plans for increased production and distribution while enhancing the customer experience through renovations that include a new brewing facility, tasting room and gift shop.”
AleSmith plans to add up to 25 new positions in production, retail, sales and management in 2015.
"We are focused on steady growth with careful scaling and a continued commitment to quality that will allow us to achieve a capacity of 150,000 barrels annually in the next few years,” Zien said. “We are very enthusiastic about adding up to five new distribution areas in 2015 to bring AleSmith to even more states throughout the country.”
AleSmith’s construction team includes project manager William Camacho of Urban Contracting; architect Mark Bankert of MarcaTects; Chris Slowey, also from Urban Contracting; Joe Mucher of Pacific Rim Mechanical; and Jeff Anderson of Empire Electric.
Working with Ryan Crisp, AleSmith's head brewer and operations manager, the team facilitated production growth at AleSmith’s current facility and will be doing the same at the new location.
Westcore and its affiliates have acquired and managed more than $3.9 billion in industrial and office assets composed of more than 550 buildings with 26 million square feet. In addition to its U.S. headquarters in San Diego, Westcore has regional offices in San Francisco, Sacramento, Irvine and Denver. The firm's European offices are in Geneva and London.
AleSmith Brewing was founded in August 1995 in San Diego. Zien bought the brewery in 2002; the company employs 27 people.