COMPANY ALSO ANNOUNCES FOUR LEASE DEALS TOTALING 622,000 SQUARE FEET IN OTHER COMMERCENTER BUILDINGS
AURORA, Colo. – With pre-lease agreements taking up a majority of what was the largest speculative industrial project ever to be built in the metro-area, Majestic Realty Co. announced plans to beat its own record and build the state’s largest individual speculative building at its Majestic Commercenter park in Aurora.
Set to break ground in June, the 701,500-square-foot Building #15 is anticipated for completion in the first quarter of 2018. The building will be constructed on 36 acres of the 1000-acre Majestic Commercenter, located at the intersection of I-70 and Tower Road, and will feature 36-foot ceiling clearance, 146 dock doors, 198 trailer parking spaces and 426 car spaces. The building will be divisible for multiple tenants down to 150,000 square feet.
Majestic’s latest announcement breaks the company’s streak of speculative development records dating back to 2013 when it constructed Building #28 to become what was then the state’s largest at 500,000 square feet. Last year, Majestic set another record when it broke ground on a speculative, three-building phase totaling 834,000 square feet representing the metro-area’s largest speculative project ever to be built.
Upon completion of Building #15, Majestic will have developed six buildings totaling 2.5 million square feet in the past four years, matching the square footage developed during its first 15 years and bringing the park to a total of 18 buildings covering 5 million square feet.
“With 450 acres of undeveloped land still available in our park, and another 500 acres available directly adjacent in our next phase that will accommodate multiple 1-million-square-foot buildings, our focus will continue to be on delivering quality product in a timely fashion to meet the needs of a diverse range of users looking for the space needed to service the Rocky Mountain region and beyond,” said Majestic Realty Co. Executive Vice President, Randy Hertel. “Our decision to break ground and deliver yet another record-breaking spec warehouse distribution facility is based on our decades of experience, belief in this market, as well as our in-depth understanding of the needs of national retailers and service providers.”
The decision to move forward with the 700,000-square-foot plus building was sealed when Majestic secured four new lease agreements including three pre-lease agreements totaling 537,000 square feet of the soon-to-be available 834,000 square feet. The lease agreements total approximately 64 percent of the current speculative space in the three-building development set for completion in the early fall.
The four lease agreements include:
- 215,000-square-foot lease with Keystone Automotive Group, an LKQ company in Majestic Commercenter Building 1 (Vic Overholser, SDS Realty, Inc. represented Keystone);
- 167,000-square-foot lease for an expansion of operations with Electrolux, also in Building 1 (Mike Camp, CBRE, Inc. represented Electrolux);
- all 155,000 square feet of Building 4 to Quality Custom Distribution Services (QCD), a subsidiary of Golden State Foods, for a distribution facility with significant cooler/freezer improvements (Steve Hager, Cushman & Wakefield represented QCD); and
- 85,000 square feet to Shamrock Foods (Jim Bolt, CBRE represented Shamrock Foods).
“We’re extremely happy to both welcome and grow with these companies at Majestic Commercenter,” said Majestic’s Hertel. “These lease agreements include both new tenant relationships, as well as some expanding, long-term relationships and demonstrate that our calculations for the market’s needs were spot on.”
Based on strong demand and historically low industrial vacancy rates throughout the market over the past several years, Majestic completed a 450,000-square-foot pre-lease with Amazon in early 2016 representing the company’s first commitment to Colorado. The combination of market factors and leasing activity led Majestic to pull the trigger last fall on the three-building speculative industrial warehouse and distribution project totaling more than 830,000 square feet.
Scheduled for completion in October, the remaining space available includes a 140,000-square-foot unit in Building 1, with 36-foot clear ceilings and up to 49 trailer parking spaces, as well as all 159,000 square feet of Building 5, featuring 32-foot-clear ceilings and build-to-suit office space. Building 5 is divisible, from 20,000 to 90,000 square feet, for multiple users.
Majestic Realty Co.
Founded in 1948, Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. Majestic’s nearly 83-million square-foot portfolio 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, Dallas, Denver, Fort Worth and Laredo, Texas, Las Vegas and Bethlehem, Penn.