Majestic Realty to Expand Massive Business Park

Phase II of Majestic Commercenter. Image courtesy of Majestic Realty

Citing 99.5 percent occupancy at its 5.5 million-square-foot Majestic Commercenter and continuing strong demand in the Denver industrial market, Majestic Realty is expanding the business park. The developer plans to break ground on a speculative three-building, 806,630-square-foot development at the Aurora, Colo., site by the end of the year.

Since the beginning of 2021, Majestic Realty completed seven new leases totaling 455,000 square feet and another eight renewals totaling more than 1.1 million square feet. Majestic and its Commerce Construction subsidiary recently delivered or nearly completed several build-to-suit projects, including a 1.1 million-square-foot distribution center that features the region’s first 74-foot-high walls and houses a 650,000-square-foot freezer/cooler system. It is the largest system of its kind in a five-state region.

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Majestic Realty also noted a 550,000-square-foot build-to-suit for Subaru is nearing completion at the site. Subaru is relocating from a smaller location less than 2 miles away. The new building, which will be delivered by year-end, will allow Subaru to expand into a new regional office, parts distribution and technical training center for its retail service technicians.

Current tenants at Majestic Commercenter include Amazon, FedEx, GE, Whirlpool, Anheuser Busch, Andersen Windows, Airbus, Iron Mountain, Sherwin Williams, Crate & Barrel, Ethan Allen, Medline and Shamrock Foods.

Majestic Realty Executive Vice President Randy Hertel said in a prepared statement that the size and flexibility of the three new buildings, combined with the continued availability of build-to-suit and speculative development, will help ensure available product for a wide range of users once the project is completed.

Expanding Majestic Commercenter

Upon completion of the three buildings, Majestic Commercenter will have a value nearing $1 billion and be home to 50 companies and more than 4,000 employees spread across approximately 9.5 million square feet. The business park, which has more than 1,600 acres, is located at the northeast quadrant of Interstate 70 and Tower Road, continuing east to E-470. The Phase II project will be located in the heart of the master-planned business park, 5 miles south of Denver International Airport and will have I-70 and E-470 frontage.

The new buildings will range from about 100,000 square feet to more than 460,000 square feet. The largest will be Building 12, a 461,580-square-foot building at 20600 35th Drive. The property will be divisible to 200,000 square feet. It will feature 36-foot clear heights, have 97 loading dock doors and a total of 117 trailer parking spaces and 380 car parking spaces.

Building 11 will encompass 244,920 square feet and be located at 20310 E. 35th Drive. It will be divisible to 100,000 square feet and feature 36-foot clear heights, 49 dock high doors, 54 trailer parking spaces and 242 car parking spaces.

The smallest new structure will be Building 10 at 3100 N. Himalaya Road, with 100,130 square feet. It will be divisible to 20,000 square feet and have 28-foot clear heights and 39 dock high doors. There will be 204 car parking spaces.

In late January 2020, Allianz Real Estate provided affiliates of Majestic Realty Co. financing for nine industrial buildings at Majestic Commercenter. The financing for the group of nine buildings—seven of which are 100 percent leased—came in the form of nine non-crossed collateralized loans. Prior to the new financing deal, Allianz had already originated eight loans for Majestic. Including the latest lending transaction, Allianz’s debt exposure to Majestic totals $270 million.