The nearly 52,000 square-foot Tijuana location will increase the tenant’s current capacity by 300% and create employment opportunities

Contact:
Arleeny Escarcega / Elisabeth Manville
The Smart Agency, Inc.
(949) 438-6262
aescarcega@thesmartagency.com

TIJUANA, Mexico, (December 13, 2021) – DAUM Commercial Real Estate Services has completed the lease of a 51,908 square-foot standalone industrial facility, Los Pinos II, situated on 1.85 acres of land in the central Baja California submarket of Tijuana, Mexico, on behalf of the lessee, Pacific Transformer.

The new tenant, an Orange County, California-based manufacturer that specializes in distribution transformers for medical, military, and automotive products, is expanding within Mexico and will increase its local operations capacity by 300% with this lease, according to Anthony Bergeman, SIOR, an Executive Vice President and Principal at DAUM Commercial.
“Based on ongoing trends related to quality control and time-to-market, compounded by recent severe supply chain disruptions, many U.S.-based firms are shifting a larger percentage of their overseas manufacturing operations to North America, especially to areas that are in close proximity to transportation routes,” explains Bergeman. “Responding to our Client’s need for a larger facility to grow their Mexico operations, we were able to identify this property in Baja California, ideally located just 40 minutes from the U.S./Mexico border near several interstate and international highways to facilitate convenient product distribution.”

According to Bergeman, the Tijuana market in particular remains highly sought-after by U.S. manufacturing and distribution businesses. In Q3, the market experienced the lowest vacancy rates seen in five years, with total available space falling well below 1%. The increased demand for available distribution centers, logistics services, and e-commerce in Tijuana proved resilient throughout the pandemic.
“Drawing upon close industry relationships, we cooperated with fellow SIOR Broker Arturo Valdes of NAI Mexico to source the opportunity for Pacific Transformer to lease this high-quality asset within a supply-constrained market,” says Bergeman. “While the building was still occupied, a termination agreement was reached and we were able to negotiate immediate occupancy for our Client once the existing tenant vacates.”
The industrial asset is further situated within a matured industrial zone near residential areas with an ample pool of skilled workers, Bergeman notes.

Justin Richardson, Chief Financial Officer at Pacific Transformer, adds: “In line with many of our customers deciding to near-shore their operations, we’ve made our operations in Mexico a strategic focus. The DAUM team brought us the opportunity to occupy a larger industrial space that is both adjacent to key transportation routes and near an area with a strong labor pool.”
Through occupying Los Pinos II, Pacific Transformer anticipates adding a few hundred jobs to the local market.
Built in 1990 and recently retrofitted, the building is ideal for a manufacturing or assembly business. The property features a ceiling height of 18 feet, four dock-high doors, and two grade-level doors, and provides convenient access to Via Rapida, a major city route.
Los Pinos II is located at Gustavo Díaz Ordaz 18803 in Tijuana, Mexico.

About DAUM Commercial
DAUM Commercial Real Estate Services is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management. Founded in 1904, DAUM focuses on longstanding client relationships and draws upon its century-long track record to deliver steadfast insights and proven results to clients across the U.S. DAUM has ten offices throughout Southern California and Arizona. More information is available at www.daumcommercial.com.

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This year has wreaked havoc on the global supply of just about every industry, leaving thousands of companies scrambling to try and stabilize their operations.

Fortunately (and unfortunately), this isn’t our first rodeo. In the past 40 years of being in business, we have been squeezed by supply chain issues and have been the unwanted recipient of production-halting complications such as custom holds, debilitating storms, and drawn-out dock strikes that have left customers’ parts stranded for weeks. Although painful at the time, the outcome of these challenges has made us more resilient as they have led us to install contingency plans to reduce these manufacturing risks, thus protecting our customers.

To strengthen our manufacturing flexibility, we invested heavily into our manufacturing infrastructure by strategically adding facilities throughout the globe (China, Thailand, Mexico and the US). This also gives us a unique advantage should a supply chain issue arise. If necessary, we can easily re-allocate production to any facility at any point in the manufacturing process. All of our facilities are capable of 3-shift (24-hour) operation and have identical manufacturing processes and capabilities to ensure complete interchangeability. In case of a shipping issue or dock strike could hamper production overseas, we can increase production of our onshore facilities in Mexico and southern California and use our own delivery vehicles to ship products between plants.

The truth is, even though these disaster plans are not needed often, when they do come up every few years, unlike most of our competitors, we have proven, battle-tested contingency plans to ensure you, our customers, will receive your products on time.

If you need a resilient, supply chain hardened manufacturer with a “whatever it takes” approach to ensure your production line stays online….look no further.

At the beginning of the year, Pacific Transformer launched its first direct-to-consumer brand in its 40-year history called Pacific Audio Magnetics. The brand focused on products for professional musicians and came out with a line of power and output transformers for some of the most iconic guitar amplifiers ever built. Our aim was simple: build the best sounding magnetic components possible. In order to achieve this goal, we partnered with renowned amplifier builder George Alessandro to help develop each part, and the response has been tremendous. We were overwhelmed by how many people loved our products at Summer NAMM and have received a ton of feedback from people who have purchased products directly on our website and on our Reverb shop.

“I have built dozens of Fender-style amplifiers over the years and have had the opportunity to try all sorts of transformers from the cheap stuff and most expensive. These are by far my favorite!” -Josh Crawford, Frontier Amplification

“I swapped the transformers in my Trainwreck clone for a set of yours, and it came alive! These things have some mojo!” -Website Customer

Up until now, we have been building each product in small quantities while we evaluated demand for each part. Due to the tremendous response we have received, we are now able to produce products at a greater scale and thus lower the cost of the majority of parts in our catalog. These are the same transformers, built in-house by hand with the same premium components only now at a more aggressive price point that will rival many other manufacturers that outsource their production to China. We hope this opens up the doors for even more builders to access our parts.

We have had the tremendous opportunity to work with some of the most advanced aerospace manufacturers on the planet. These companies are developing game-changing devices that are required to function with zero faults in the most demanding conditions electronic products will ever have to be subjected to—space.

The desire to lower the cost to space has long been a dream since the development of the Space Shuttle—the first semi-reusable spacecraft. However, with 2.5 million parts, 230 miles of wire, over 1000 plumbing valves, 1440 circuit breakers, and 27,000 thermal tiles and blankets, the sheer complexity of the shuttle kept the program from achieving its true mission. Since the shuttle’s retirement, a new era of space exploration has come to fruition led by the private sector. Private companies like SpaceX and Blue Origin have been developing ingenious technologies and breakthroughs in reusability and flexibility to achieve a goal the shuttle program ultimately fell short of—making space flight affordable.

One of our most recent projects was to help develop some of the most flexible, radiation-hardened, hermetic DC-DC converters for space applications. These space-ready converters were designed to provide customers with an off-the-shelf product that can be used in a wide range of space applications, all in the effort to continue to drive down the cost to space.

To develop a space product with unprecedented flexibility, engineers first needed to design a product that could hold up to the riggers to space. This meant the products had to handle a tremendous amount of radiation—up to 200 krad (10-200x the typical range of ordinary electronics)! They also needed to withstand an incredible range of operating temperatures and survive the beating they would take during the launch phase and all with zero failures. These requirements alone are a massive challenge for even the most seasoned engineers. However, this was just the beginning. Next, the products needed to be incredibly flexible to take advantage of mass production (the key ingredient in making more affordable parts). This meant the converters needed to have configurable under-voltage protection and filter inputs, have a wide range of input voltages from 18-120v, include multiple outputs, provide no-load protection, and can be used in an open frame or enclosed configuration (not to mention, they needed to be 100% reliable). Additionally, if the customer needed something even more configurable, the solution also needed to be easily customizable if a customer required more than what was initially designed. In other words, our customer was developing a truly remarkable line of products.

What we love most about complex projects is that we get to work alongside our customers and lend a hand towards coming up with creative solutions, and in some cases, we get the opportunity to play a small part in industry-changing innovations.

Harley-Davidson—a brand that has embodied freedom, excitement, and rebellion, for over 100 years. There is no mistaking the sound and subsequent feeling of a V-Twin Harley going down the road. Today, Harley faces one of its biggest challenges in the last century. Like most of the automotive industry, Harley Davidson is moving towards an all-electric future. Although it has sacrificed its signature rumble for its electrified destiny, it has created one of the most exciting new motorcycles to roll off an assembly line.

The first fully electric model in the brand’s lineup is called LiveWire and is the first EV motorcycle to come from any major international manufacturer. This electron-powered Harley is quite a departure from bikes of old, but where it lacks in traditional curves and noise, it makes up with its silent, rocket ship-like power, street-fighter looks, and remarkable nimbleness. It looks and feels like a bike that belongs to Tony Stark. Once you ride LiveWire, it makes everything before it seems prehistoric.

To bring the LiveWire into existence, the engineers at Harley-Davidson had to throw out the rulebook and design an electric motorcycle from the ground up—something that has never been attempted by any large-scale motorcycle manufacturer. They would be the groundbreakers and tasked with producing the most technically advanced Harley-Davidson ever made. To achieve that feat, the engineers sought new design partners, vendors, and manufacturers that were well established in the EV space to help bring the LiveWire to life. That’s when we got the call.

Pacific Transformer was brought in to design and build the magnetics needed for the bike’s complex charging system. For Harley, it was critical that the bike could use the same charging infrastructure that the majority of car companies have adopted. This meant the bike needed to have a standard J1772 & CCS combination connector for level 1, level 2, and high-voltage DC fast-charging. Unsurprisingly, our engineers were able to develop a powerful yet compact solution to meet the requirements critical to keep the barrier to entry as low as possible.

We are incredibly proud to have played a small role in bringing LiveWire into existence and hope you get a chance to check one out at your nearest Harley-Davidson dealer.

If you want to see LiveWire in action, check out the Apple TV+ original docuseries, “Long Way Up” where a film crew follows actor Ewan McGregor and his best friend Charly on a 13,000-mile through 13 countries, starting from the city of Ushuaia at the tip of South America and ending in Los Angeles all on their Harley-Davidson LiveWire electric motorcycles.

If you know anything about guitars, the name “Two-Rock” will likely conger images and sounds from some of today’s great tone aficionados. Legends such as John Mayer, Eric Johnson, Doyle Bramhall, Ariel Posen, David Ryan Harris, Joey Landreth, and Matt Schofield are just a few of the long list of customers who have made a Two-Rock amplifier the centerpiece of their sound. Much of the early Two-Rock designs were based on classics—Fender amps from the 50s and 60s and the schematics from the infamous Alexander Dumble; however, over the years, the designs have evolved into something all their own and musicians began to notice. The question is, what makes these amplifiers so good?

In a recent interview with Guitarist Magazine, owner Eli Skinner spoke about the “magic” of his amplifiers. “We really just put the best parts in there we can. We don’t even look at the price of anything, we just put the best stuff in there and then price the amp afterward.” His obsessive attention to detail is present in every stage of the schematic. “I might sit there and spend two, three, four weeks just working on one capacitor so I can find which one I want to use in a particular area of the amp we’re working on.”

Even though every component contributes to the overall sound of the amplifier, Eli attributes much of the sound to the power supply that Pacific Transformer helped design and manufacture. “The transformers are a huge deal. We actually have a proprietary transformer manufactured for us – and it does do power scaling. And we made a dual primary transformer, which, when you put it in half-power mode, doesn’t change the phase or the impedance of the amplifier. Overall, it just gives more headroom and ‘shoulder’ and bounce to the amp. It’s a very beautiful transformer that we put a lot of work into.”

When we think of the quintessential Two-Rock sound, it’s hard not to think of John Mayer’s live concert DVD, “Where the Light Is.” The three-part concert film features a masterclass in electric guitar tone. If you want to hear it, we suggest having a listen to our favorite tracks from the evening, “Slow Dancing in a Burning Room.” From the delicate touch sensitivity of the initial lick, to the searing guitar solo that closes out the song, the track tells you all you need to know about why Two-Rock has become so popular with some of the world’s best musicians.

If you want to see a video of John playing Slow Dancing in a Burning Room live featuring his signature Two-Rock amplifier. Check it out:

We are excited to announce the acquisition of famed high-end audio transformer manufacturer Transformer Design and Supply.

Founded by engineer William “Bill” Wood Sr. in 1970, Transformer Design and Supply, based in San Jacinto, CA, has built a long-standing reputation for building stellar high-end audio transformers that have attracted iconic guitar amplifier brands Matchless and Divided by 13.

“Your deliveries of transformers were like Christmas to me. I often think about Woody and how helpful, actually instrumental, he was to the success of our company.” -Rick Perrotta, Co-Founder of Matchless Amplifiers.

The acquisition will grow Pacific Transformer’s market share and signals the company’s commitment to the high-end audio market.

“What attracted us to partner with Pacific Transformer is that their vision, as well as the vision of my father who started the company more than 50 years ago, were in complete alignment,” said Bill Wood Jr., President of Transformer Design and Supply (TDS). “Pacific Transformer and TDS hold themself to an extremely high standard when it comes to quality and customer service. Although several other manufacturers approached us, we felt Pacific Transformer was the only company that would uphold the standards and principles my father put into place at TDS. We are thrilled to have reached an agreement with them and know our customers will continue receiving the same stellar support and outstanding sounding products TDS was known for.”

“Over the past year, we have invested heavily in the high-end audio market with the launch of our first direct-to-consumer brand, Pacific Audio Magnetics,” said Justin Richardson, CFO of Pacific Transformer. “Partnering with legends such as George Alessandro and our acquisition of TDS shows our level of commitment in building the best-sounding transformers on the market.”

With the overwhelming response at this year’s Summer North American Music Merchants (NAMM) tradeshow and the acquisition of TDS, Pacific Transformer looks forward to continuing to grow and build new long-term relationships in the high-end audio space.

This year, Pacific Transformer launched its first direct-to-consumer product line aimed at the high-end guitar amplifier market and marks the first B2C product in its rich 40-year history called Pacific Audio Magnetics. In partnership with renowned amplifier builder George Alessandro, we have created a unique line of magnetic components with a tonal quality second to none. We will officially launch the brand at the upcoming Summer National Association of Music Merchants (NAMM) show July 15-17th in Nashville, Tennessee, where we will reveal a special one-off amplifier built by George to showcase the power and fidelity of Pacific Audio’s iron. We hope you get a chance to visit us at our booth and hear it for yourself. In addition, we have some exciting videos by some of the best demo artists’ in the business in the works and are scheduled to release on our new site just after NAMM. For more information on Pacific Audio Magnetics, check out our webstie: pacificaudiomagnetics.com.

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Last month, a project equipped with Pacific Transformer magnetics yet again made history. “Ingenuity,” the appropriately named Mars Helicopter lifted off the Martian surface making it the first powered controlled flight capable of taking off, hovering, and landing outside of earth.

To commemorate the historic flight, the 4-pound craft carried a small piece of fabric from the renowned plane that took a man to the sky for the first time in 1903. Like that of the Wright brother’s first flight, Ingenuity’s initial flight too only lasted for a few seconds but it was enough to make history 118 years later.

The martian vehicle had a number of uncommon challenges. For instance, a typical helicopter on earth has a blade rotational speed of 450-500 revolutions per minute (RPMs) but has the luxury of an atmospheric density 100 times greater than that of Mars to push against. To overcome this, Ingenuity needed to be extremely lightweight and the rotors needed to rotate at a whopping 2,500 RPMs in order to achieve flight.

The program is also a departure from the typical multi-year projects that NASA is known for. For this mission, they took an approach right out of SpaceX’s playbook—a smaller, low-cost, high-risk undertaking where failure was an acceptable outcome. The goal of the lower-cost experiment was to determine the viability of a larger, more expansive, and capable machine in the future.

To date, the martian helicopter has only conducted 5 flights but has exceeded performance expectations and is scheduled to conduct additional flights every 2-3 weeks until August when the experiment officially concludes, however, for all intents and purposes, the mission has already been deemed a success.

Ingenuity joins a growing list of Pacific-powered spacecraft exploring beyond our world and yet another example of the trust our customers have in us to produce mission-critical magnetic components.

In 1981, lifelong friends Jim Richardson, Randy Neverka, and their softball teammate, Pat Thomas were doing what any young 20-somethings would do after a long week at the office: hanging out and knocking back a few cold ones. A few beers in, Randy, a chemical engineer by trade who was working for a company that built power transformers, revealed that the company had been purchased by a larger conglomerate. The new owners intended to use the shop for a different purpose, thus discontinuing transformer production and letting the current customers go. Pat, being the enterprising one he was (and still is) saw this as an opportunity and pushed the other two to start their own business.

The three all quit their jobs and pooled together $1300 each (a portion borrowed from their parents) and rented a 2000 square foot shop. Pacific Transformer was born. On the first day of business, they showed up to the reality they had nothing to do. The first days became filled with endless phone calls to the recently dropped customers from Randy’s former employer seeking an opportunity. To get a foothold, they looked for something nobody else offered, and since they had nothing but time on their hands, they offered to make parts in as little as three days. Other companies had set lead times averaging six weeks. This tactic would become a staple over the years and would eventually land them their first customer. The only problem is that only Randy knew how to actually build the transformers. The first day of their already impossible production schedule was dedicated to Randy teaching Pat and Jim how to make the parts. Upon delivery, the customer was so impressed that they continued to provide the trio with a steady stream of orders. In fact, that first customer is still a customer to this day. Slowly but surely, the orders started to increase. All night winding sessions between endless pong tournaments, loud music, and beers became the norm through those first scrappy years.

As the orders grew, the team needed to grow their workforce (some of which still work at Pacific today). Jim would eventually handle administration, Randy took charge of engineering, and Pat led the sales and manufacturing teams. They all learned on the go.

Forty years later, Pacific Transformer grew to become the largest manufacturer of custom transformers on the west coast. Our transformers are roaming on Mars, floating on satellites in space, in nuclear submarines, medical devices, and battery chargers. But none of this could have been possible without our incredibly dedicated, hard-working staff and you, our loyal customers. Jim, Randy, and Pat instilled a culture of overachieving from that very first order, and it is our promise to you that we will keep that mission alive for the next 40 years and beyond.