Majestic Realty, Sunroad Enterprises Expand Industrial Park

Landmark at Otay. Image courtesy of Majestic Realty Co. and Sunroad Enterprises

Following the full prelease of two speculative warehouse and distribution buildings at its Landmark at Otay development in San Diego’s Otay Mesa submarket, Majestic Realty Co. and Sunroad Enterprises have begun construction on two additional buildings. The developers have also acquired 17 new acres and are planning two more buildings for a 67-acre industrial park with more than 1.1 million square feet of Class A speculative assets.

The buildings under construction in Phase II are a 240,975-square-foot facility at 1610 Landmark Road and a 235,085-square-foot facility at 1910 Landmark Road. Both will feature 36-foot ceiling clearance and 185-foot, secure truck courtyards with individual trailer storage. Each building will also have 51 trailer parking stalls, 40 dock-high doors, two ground-level doors with ramps, ESFR fire systems, Superflat warehouse floors and building-wide Clerestory windows. Located the intersection of SR-905 and SR-125, the buildings will have freeway frontage.

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Phase II is slated for completion in February 2023. The second phase is being marketed and leased through the Colliers International San Diego team of Mark Lewkowitz, Chris Holder and Will Holder.

The development team expects to break ground this summer on Phase III, which will feature a 150,000-square-foot building and a 115,000-square-foot building.

Majestic Realty Vice President Tom Simmons said in a prepared statement the buildings all provide adaptability to accommodate and deliver solutions for a wide range of users who are flooding the market searching for product to meet their growing needs. In particular, he said, users are seeking slightly larger warehouse and distribution buildings with Class A amenities.

Phase I leasing

Construction of Phase II properties and acquisition of more land for expansion comes after the complete prelease of the park’s first two buildings. Last fall, RL Customhouse Brokers signed a lease for the 153,630-square-foot building at 1701 Landmark Road. Since that time, the 216,140-square-foot building at 1601 Landmark Road was fully leased to four tenants. They are: Suite 101 – Global Logistics & Fulfillment, 67,528 square feet; Suite 201 – Exportalia, 40,435 square feet; Suite 301 – Avanza Loop, 54,168 square feet; and Suite 401 – Terry Town, 54,009 square feet.

Simmons said the fast lease-up on the spec buildings showed there is strong demand and plenty of opportunity to maintain the momentum in the market.

Other projects

In November, Majestic Realty expanded its 5.5 million-square-foot Majestic Commercenter in the Denver market by breaking ground on three speculative buildings with 806,630 square feet of new construction at the Aurora, Colo., site. 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.

In July, Majestic Realty broke ground on a 629,274-square-foot Class A speculative industrial building at the Tejon Ranch Commerce Center in Tejon Ranch, Calif. The project was its third new building and the fourth joint-venture partnership with Tejon Ranch Co. in the last five years.