Developers Break Ground On Landmark at Otay
Majestic Realty Co.
by Marty Schechter on 01-28-2021
845,830-square-foot, four-building spec industrial center comes on the heels of preleases and strong demand at Majestic Sunroad Center
SAN DIEGO – Jan. 28, 2021 – With preleases and strong tenant demand quickly absorbing Majestic Sunroad Center, the recently completed 227,268-square-foot, three-building speculative development is nearing full occupancy. As a result, the Majestic Sunroad partnership has broken ground on its next major Otay Mesa industrial development project, Landmark at Otay.
A 50-acre industrial center at the intersection of SR-905 and SR-125, Landmark at Otay will deliver 845,830 square feet of Class-A development spread across four buildings ranging in size from 153,630 to 240,975 square feet.
Similar to the well the very received Majestic Sunroad Center, Landmark at Otay will also offer leading-edge function and design features including 32-foot clearance in Building 1 (216,140 SF) and Building 2 (153,630 SF), and 36-foot clearance in Building 3 (240,975 SF) and Building 4 (235,085 SF). All will provide ample dock high and ground level doors, trailer and car parking, 50-foot by 52-foot bay spacing, ESFR fire protection systems, LED lighting and build-to-suit offices. The four spec buildings, scheduled for completion in late 2021, will deliver highly sought-after warehouse and distribution buildings with adaptability to accommodate and deliver solutions for a wide range of users, according to the development team. The project is being marketed and leased through the Colliers International San Diego team of Mark Lewkowitz, Chris Holder and Will Holder.
The spec development announcement comes on the heels of two full building preleases and strong interest in the remaining building of the three-building Majestic Sunroad Center. Preleases for that development include the 31,360-square-foot Building 1 to Vidal Corporation, a cross-border logistics company. Lewkowitz and the Holders represented Vidal and the Majestic Sunroad Partnership. In addition, RL Jones Customhouse Brokers, Inc., a well-established cross-border customs broker with locations throughout the southwest, has signed a long-term lease to occupy the 41,600-square-foot Building 2. RL Jones was represented by Regan Tully of Cushman & Wakefield. The remaining 154,308 SF building at the 16-acre project at the southwest corner of Otay Mesa Road and Otay Mesa Center Road is also nearing a full prelease, with a Lease out on half of the building and offers on the balance of the building.
“Working hand-in-hand with our partners at Sunroad, and leveraging our respective industry knowledge, market history and strengths, Majestic Sunroad Center has clearly been the right product at the right time for Otay Mesa,” said Majestic Realty Co. Vice President Tom Simmons. “We pride ourselves on delivering best in class industrial buildings, and as a result, we’ve seen leasing activity for our product come fast. We’re eager to continue our momentum as the strong and diverse tenant demand, low vacancy rates and need for additional industrial inventory make this the ideal time to bring Landmark at Otay to market and open up opportunities for additional companies to expand or put their flag in the ground in this important geographic market.”
Further enhancing the Otay Mesa attributes, in early December 2020, the California Transportation Commission approved $42.5 million for the Otay II Port of Entry for right of way acquisition and design of a state-of-the-art land port of entry that will provide fast and predictable crossings connected to a four-lane toll road. In addition, the Commission approved another $22.7 million of final funding for the La Media Road Expansion Project, a critical corridor for California exports.
“These two CALTRANS supported projects will help magnify the strength and depth of resources available to businesses looking to leverage sound export and cross-border strategies and make us that much more bullish about the future of this market,” said Dan Feldman, president of Sunroad Asset Management. “Coupled with our new development, these amenities and resources will become the crown jewel of industrial development in Otay Mesa with direct freeway visibility and park access through convenient on/off ramps. When complete, we will have over 1 million square feet of industrial buildings in Otay with Majestic. Otay has proven to be a strong market for tenants looking to grow, solidify their business, and leverage the infrastructure and location benefits that Otay can offer.”
About Sunroad Enterprises
Founded in San Diego in 1977, Sunroad Enterprises is a diversified holding company consisting of two distinct divisions: real estate and automotive. The company has built over 3,000,000 square feet of Class A office space. In addition to the office developments, Sunroad developed and owns the 600 slip Sunroad Resort Marina, adjacent Coasterra and Island Prime in partnership with the Cohn Restaurant Group, 4,000 multifamily units in 4 states, and Maderas Golf Club, ranked by Golf Digest for 4years in a row as a top 100 Golf Course. Sunroad Enterprises has been involved in projects in California, Arizona, Nevada, Washington, Colorado, and Mexico, and has earned numerous quality commendations from local, regional, and national organizations. On the auto side, Sunroad currently owns and manages 22 car dealerships in Mexico and the US, with annual vehicle sales in excess of 25,000 cars sold, and over 200,000 customers choosing Sunroad for service. Sunroad is proud to have won, amongst others, the Ford Triple Crown Award, Honda Presidents Award, Subaru Stellar Performer, and BMW Center of Excellence Award.
About Colliers International Group
Colliers International (NASDAQ, TSX: CIGI) is a leading global real estate services and investment management company. With operations in 68 countries, our 14,000 enterprising people work collaboratively to provide expert advice and services to maximize the value of property for real estate occupiers, owners and investors. For more than 20 years, our experienced leadership team, owning more than 40% of our equity, have delivered industry-leading investment returns for shareholders. In 2018, corporate revenues were $2.8 billion ($3.3 billion including affiliates), with more than $26 billion of assets under management. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers or LinkedIn.
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 further information, please contact:
Marty Schechter for Majestic Realty Co.