K2 Inc., a California company that's quickly consolidating small companies in the sporting goods industry, will launch a distribution center at Stead in October.
When the distribution center is fully operational next spring, it will employ about 50, said Brian Anderson, director of business development for the company based at Carlsbad, Calif.
He said distribution of three apparel brands owned by K2 - Ex-Officio, Marmot and Marker - will be handled from the 202,000 square feet leased by the company.
The distribution center at 12995 Echo Court is under development by Panattoni Development. It totals 405,000 square feet. Paul Perkins, formerly of Colliers International and with Alliance Commercial Real Estate, represented K2 and Panattoni in the deal.
K2 Inc., which has broadened from the skis that carry its name to become a company that sells about 35 brands in the sporting goods industry, began reviewing its distribution operations about a year ago.
"We've been acquiring companies lately, and it made sense to synergize our distribution operations and get a lot of them under one roof," Anderson said.
Even while a consultant was reviewing K2's distribution needs, the company purchased four more sporting goods outfits. The consultant came back with three potential locations for a distribution operation - Sacramento, the Inland Empire east of Los Angeles and Reno.
Perkins noted that the company's requirements grew even while it was negotiating the lease. Initially, K2 hoped to lease 157,000 square feet but upped its lease to 202,000 square feet.