Lease with R.L. Jones pushes start of Phase III development at 1.1- million-square-foot Landmark at Otay
SAN DIEGO – Feb. 6, 2023 – Majestic Realty Co. and Sunroad Enterprises, developers of the largest industrial project in San Diego County, announced today that they have signed a full- building, prelease agreement with R.L. Jones Customhouse Brokers for a 240,975-square-foot spec construction building at Landmark at Otay located at the intersection of SR-905 and SR-125.
Targeted for shell completion in May 2023, R.L. Jones will be relocating its corporate headquarters to 1610 Landmark Road at Landmark at Otay as it expands its operations in the park to nearly 400,000 square feet across two of the newest, Class-A industrial structures in the market. R.L. Jones signed its first lease, totaling over150,000 square feet,within the same park in 2021. The new agreement represents the largest non-Amazon industrial lease in Otay Mesa in the past decade, and the largest in San Diego County in the past five years, according to the Colliers San Diego team of Mark Lewkowitz, Chris Holder and Will Holder responsible for marketing and leasing the development.
“With Near-Shoring, the boom in E-commerce, and organic growth amongst our clients, we are very excited that this expansion will allow us to grow with our industry while continuing to provide quality services to our clients.” said RL Jones Vice President Eduardo Acosta.
Originally a four-building development on 50 acres, the developers secured 17-acres of adjacent land in 2021 to expand the industrial center in Phase III to a six-building park that will encompass more than 1.1 million square feet of Class-A, modern bulk warehousing and distribution facilities upon build out in early 2024. The first three spec construction buildings were fully leased to a total of six tenants prior to the completion of construction.
Preleases and continued strong interest from users have the development team set to break ground in late January on Phase III, a two-building component at Landmark at Otay that will include a 150,000 square foot and 115,000-square-foot building.
“Together with our partners at Sunroad, we committed to bringing best-in-class industrial product to this market with a plan that addresses the needs of users looking to expand or establish their position in this very important geographic location,” said Majestic Realty Co. Vice President Tom Simmons. “The response from the tenants to this product and this location has been fast and clear, as evidenced by the complete prelease success we’ve experienced across our Majestic Sunroad Center and now Landmark at Otay sites.”
Finishing out Phase II is the 235,085-square-foot spec construction Building #4 at 1910 Landmark Road. The building features 36-foot ceiling clearance, a secure 185-foot truck courtyard with trailer storage, 51 trailer parking stalls, 40 dock-high doors, two ground-level doors with ramps and ESFR fire system. In addition, the building offers Superflat warehouse floors, building-wide Clerestory windows and a prime Otay location with freeway frontage. It is scheduled for shell completion with spec office improvements in June 2023 and is getting significant interest from a wide range of users, according to the development team.
“The growing interest in Building #4, as well as the opportunities we will have available later this year with the addition of two more buildings will keep the momentum going and offer product that fits the needs of a wide range of users,” said Dan Feldman, president of Sunroad Asset Management.
“We are excited for the continued strong industrial market and interest in our best-in-class project. Otay Mesa is off to a good start in 2023, after leading the County in 2022 with net absorption of 1,680,000 square feet” added Chris Holder, Executive Vice President at Colliers.
About RL Jones:
RL Jones was founded in 1938 in the Imperial Valley of California and is one of the largest privately held 3PL companies along the Southern Border with Mexico. The RL Jones network includes 10 total offices with 9 of them along the southern border providing Customs Brokerage, Warehousing, Distribution and Global Logistics services. The RL Jones San Diego location was opened in 1993 and is one of the industry leaders in the San Diego / Tijuana region. This new expansion into the Landmark at Otay commercial park will continue to allow RL Jones to serve the local cross border community now and into the future.
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 million square feet of Class A office space. In addition to the office developments, Sunroad developed the 600 slip Sunroad Resort Marina, adjacent Coasterra and Island Prime in partnership with the Cohn Restaurant Group, own and manage 9,000 multifamily units in nine states, as well as Maderas Golf Club, ranked by Golf Digest for 4 years in a row as a top 100 Golf Course. Sunroad Enterprises has been involved in projects in California, Arizona, Nevada, Washington, Colorado, Georgia, Tennessee, South Carolina, North Carolina, and Mexico, and has earned numerous quality commendations from local, regional, and national organizations.
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.6 billion and $92 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors and our people. Learn more 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 including industrial, office and retail space, as well as sports, entertainment and hospitality projects, 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; Dallas/Ft. Worth and Laredo, Texas; Denver/Aurora, CO; Las Vegas; Phoenix; Portland; and Bethlehem, PA.
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Marty Schechter Leanne Daly
PR & Communications PR & Communications/Southwest Region
for Majestic Realty Co. Colliers