Majestic Realty Co. ramps up activity with single-tenant lease-up of record-setting “Big Bomber” and additional deals totaling more than 2M square feet of development
Majestic Realty Co.
by Press Release on 06-25-2020
AURORA, CO. – A series of record-setting transactions totaling what will ultimately be more than 2 million square feet of industrial warehouse and distribution facilities is currently underway at the Majestic Commercenter in Aurora. The 1,600-acre master-planned park is located at the northeast quadrant of the intersection at I-70 and Tower Road, continuing east to E-470.
Shamrock Foods 1.3 million square foot, five-building complex:
Following the completion of a 116-acre land sale in 2019 to Shamrock Foods, an existing park tenant, construction has begun on a new 1.3 million-square-foot complex that will include Shamrock Foods’ regional headquarters, distribution center and ancillary buildings. With a 900,000 square-foot footprint, the distribution center will have an additional 200,000 square-foot mezzanine level bringing the one building to 1.1 million total square feet. In addition, the distribution center features the region’s first 70-foot-high walls, housing a 700,000-square-foot freezer/cooler system, the largest such system in a five-state region. The distribution center building is set for completion in 2021 with the remaining 200,000 square feet of the complex, split among four ancillary buildings, to be developed in the coming years.
The Shamrock Foods complex is being constructed on the eastern side of the Majestic Commercenter, bordering E-470, on a 538-acre land parcel that Majestic Realty acquired in 2015 to help prepare for the projected growth of and need for large-scale distribution and e-commerce facilities in the region.
“Our 2015 land acquisition helped us to expand our overall footprint to nearly 1600 total acres and gave us the opportunity to deliver a larger-scale product to a wide range of e-commerce users,” said Majestic Realty Co. Vice President Michael Kapoor. “E-commerce is continuing to drive the commercial real estate industry with larger and larger buildings. We’re seeing greater demand in the 1 million and up square foot range and, as evidenced by our agreement with Shamrock, land requirements and tenant improvements slightly differ from the traditional warehouse and distribution building. With this additional flexibility in our overall park structure, we’re well positioned to accommodate the increasing activity and wide range of user needs, from build-to-suit, to land sales and speculative development.”
Following completion of the Shamrock Foods site, the expanded “e-Commercenter” development still has land available to accommodate up to 5 more buildings ranging in size from 750,000 square feet to 1.5 million square feet each.
Commerce Construction, a subsidiary of southern-California based Majestic Realty Co. won the competitive bid to build the Shamrock Foods facilities.
Amazon continues growth at Majestic Commercenter:
In March, Majestic completed a long-term lease agreement with Amazon, to occupy the entire 702,000-square-foot Building #15, nicknamed the “Big Bomber.” The Big Bomber was, and remains, the state’s largest speculative industrial building ever constructed. Built on 36 acres, the property features 36-foot ceiling clearance, 146 dock doors, 198 trailer parking spaces and 426 car spaces. Tenant improvements are being completed by Commerce Construction and Amazon Logistics will begin operations from the new location for its last mile delivery operations beginning in early July. Amazon also operates a more than 450,000-square-foot sortation center at the Majestic Commercenter, another speculative building that Amazon preleased in 2016.
In addition to the land sale, development and new lease agreement, four recent lease renewals totaling 200,000 square feet continue to push occupancy at the Majestic Commercenter to its limits. Agreements completed over the past few months include:
- Expeditors, 65,000 square feet in Building #22
- PODS, 60,000 square feet in Building #24
- CeDUR, 45,000 square feet in Building #6
- Mohawk Industries, 30,000 square feet in Building #25
An additional 250,000 square feet of tenant renewals are also in final stages of completion, according to Kapoor.
Eclipsing the 5-million-square-foot development mark for its Majestic Commercenter park, all but 280,000 square feet (a build-to-suit for L’Oreal in 1998) has been developed speculatively by Majestic. With the completion of the “Big Bomber” building in 2018, Majestic has developed six buildings totaling 2.5 million square feet in the past six years alone and a total of 22 buildings since 1996 totaling more than 5 million square feet.
Majestic has been the City of Aurora’s largest industrial developer over the past two decades and has nearly doubled its closest competitor in total square footage during that time. The Majestic Commercenter is home to 50 companies and more than 4,000 employees. Since purchasing the park in 1995, Majestic Realty has invested more than a quarter of a billion dollars in the Aurora market through its buildings and land acquisitions.
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 84-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; Denver/Aurora; Las Vegas; Phoenix; Portland, OR; Fort Worth and Laredo, Texas.