Majestic Realty Co. expands investment in Tejon Ranch with 4th joint venture partnership in past 5 years
June 30, 2021 | ,
TEJON RANCH, CA – With groundbreaking of its third new building and its fourth joint-venture partnership agreement with Tejon Ranch Co. (NYSE: TRC) over the past five years set for this week, Majestic Realty Co., the nation’s largest privately-held developer, continues its bullish view of the massive, state-of-the-art Tejon Ranch Commerce Center (TRCC) development located at the junction of Interstate 5 and Highway 99 just an hour north of the San Fernando Valley/L.A. basin.
The 629,274-square-foot Class A speculative industrial building, designed for single- or multi-tenant use, is being constructed on a little less than 39 acres fronting Interstate 5 and giving distributors immediate access to the west coast’s principal north-south goods movement corridor, and an easy connection to both I-15 and I-40 east-west corridors via State Highway 58. Scheduled for occupancy by mid-2022, the building will deliver 36-foot clear height, a minimum 7-inch floor slab, 136 dock-high doors, 185-foot cross-dock truck courts and ESFR sprinkler system. JLL Managing Director Mike McCrary represents the developers.
“Beginning with our initial partnership agreement in 2016, we’ve remained incredibly bullish about Tejon Ranch and we’re excited to be breaking ground on our third new building with a partner that sees and is committed to implementing a development vision through the same long-term lens,” said Majestic Realty Co. Vice President Tom Simmons.
With record absorption and limited inventory throughout the Inland Empire, Tejon Ranch continues to draw strong interest from prospective new tenants as new assets are being built.
Thanks to a wide range of factors beginning with location, Class-A product and proactive economic incentives in Kern County, TRCC provides a significantly lower cost option to properties in the L.A. basin where uncertainty surrounding newer air emissions regulations, as well as higher living, labor and rental costs for tenants magnify the challenges for companies of all sizes.
In addition, multi-national companies continue to demonstrate interest in “safety stock” for product in North America to help mitigate consequences experienced when the supply chain demonstrated its vulnerability due to the pandemic. Tejon Ranch Commerce Center has already proven its ability to attract world-class tenants that can serve approximately 40 million consumers with one-day service, and up to 70 million in two days. It is also an ideal location for these companies to safety stock and expand their footprint to cover as much as 11 western states.
“We’re very pleased to once again be working with Majestic Realty Co. as we continue to expand our industrial offerings at the Tejon Ranch Commerce Center,” said Joseph N. Rentfro, Tejon Ranch Co.’s Executive Vice President of Real Estate. “The fact that this is our fourth partnership, and the third building we’ve built together, speaks volumes about the quality of the partnership and the quality of the opportunities available at Tejon Ranch. Given the historical success we’ve enjoyed with our previous speculative building developments, the lack of vacant space within the Tejon Ranch Commerce Center, and the level of demand inquiries we’re fielding for light manufacturing, warehouse and distribution space out of Southern California and elsewhere, we wanted to move as quickly as possible to bring another new building online.”
“Everything we’ve built here has leased up quickly and we begin this next chapter in our partnership with a well- established foundation, tremendous momentum and strong market fundamentals,” added Simmons. “This is an opportunity to expand our footprint directly on Interstate 5 and continue to extend the market with the delivery of another cost-effective, world-class product that will attract world-class tenants.”
Following an initial partnership to purchase, own and manage an existing, fully leased, 651,909- square-foot building in 2016, Majestic and Tejon Ranch Co. added two additional new build partnerships for speculative buildings encompassing 480,480 and 579,040 square feet, respectively in the past few years. Each of those buildings were met with strong pre-lease activity and remain fully leased in an extremely competitive market that lacks Class A inventory.
“Our 87-million square foot Majestic portfolio is built with product and master-planned parks that demonstrate our team’s ability to see and execute complex real estate and business solutions,” said Simmons. “Similar to what we’ve been able to do in other markets around the country over the past seven decades, when we see an opportunity to create success, to open up a market with the best facilities and to strengthen communities, we’re emboldened to take that step. Tejon Ranch Commerce Center is clearly an opportunity that we’ve been excited about for several years and the optimism is evident in our decision to expand our partnership once again.”
The Tejon Ranch Commerce Center is Tejon Ranch Co.’s 1,450-acre master planned commercial/industrial development located at the junction of Interstate 5 and Highway 99 in Kern County, about an hour north of the Los Angeles basin. TRCC is just two hours from the ports of L.A. and Long Beach, and four hours to the Port of Oakland. Industrial sites within TRCC, totaling nearly 1,100 acres, are included in TRCC’s Foreign Trade Zone #276, one of the largest FTZs in the state of California, that is locally administered by the County of Kern. It’s entitled for more than 20 million square feet of commercial and industrial space, with about 14 million square feet still available. TRCC is home to L’Oréal USA, IKEA, Famous Footwear, Dollar General (NYSE: DG), and Caterpillar Inc. (NYSE: CAT).
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About Tejon Ranch Company (NYSE: TRC)
Tejon Ranch Company is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield. For more information on the company, visit www.tejonranch.com. For more information on the Tejon Ranch Commerce Center, visit https://tejoncommerce.com/
About Majestic Realty Co.
Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. With approximately 87-million-square-feet in its portfolio, Majestic provides real estate solutions for tenants large and small, creating jobs, tax revenue and community benefits across the country. Headquartered in southern California, Majestic has regional offices in Atlanta; Bethlehem, PA; Dallas, Fort Worth and Laredo, Texas; Denver/Aurora, CO; Las Vegas; Phoenix; and Portland, OR. For more information: https://www.majesticrealty.com/