Majestic Realty completes largest single lease transaction in Laredo since 1999
by Majestic Realty Co. on 02-26-2021
500K SF Mattel building set to become new home to JAMCO Group
LAREDO, Texas – In what amounts to the largest single lease transaction in south Texas since 1999, Majestic Realty Co. announced that it has signed a long-term lease with The JAMCO Group to occupy all 500,000 square feet of a building that Majestic originally completed as a build-to-suit for Mattel, Inc. who has occupied it since that time. It was the largest building ever constructed in Laredo and it remains the largest building in the Valley from McAllen to the south and up through San Antonio to the north.
“This major lease agreement further validates our belief and vision for this market over the past two decades,” said Kyle Valley, senior vice president with Majestic Realty Co. which has significantly expanded its position in Laredo including the 2015 acquisition of the 2,000-acre former Mercedes-Benz test site and development of Port Grande. Majestic Realty Co. has also developed and owns the next five largest building in Laredo.
“This is more evidence of the ever-growing need for large warehousing distribution space in Laredo that will lay the path for the city to outcompete other larger metro areas for this type of long-term economic growth, job creation and tax base and more,” added Valley. “With Class-A product and amenities not available anywhere else in the region, we have the opportunity to help companies like JAMCO thrive in this market and in their respective industries.”
The JAMCO Group, a Laredo-based premier provider of international trade and logistics services will occupy the building beginning June 1 in a move that catapults its local footprint to and spotlights its growth in the U.S. customs industry.
“We have seen exciting growth in the last few years, and this move allows us to take on the quality space we need to manage finished goods distribution for one of our key customers,” said JAMCO Group Chief Operating Officer Rahul Oltikar. “Our total footprint in the region will be 750,000 square feet, and we anticipate adding onto that towards the end of 2021. This growing business will be good for the city of Laredo, as it will create and keep jobs in the local market, and hopefully pave the way for additional U.S. corporations to see Laredo as a strategic distribution hub for their U.S. infrastructure.”
“It has been a privilege and an honor to work with JAMCO’s ownership and directors on this assignment that takes their footprint to well over 700,000 SF in the Laredo market, placing them in the top 5 group for most space occupied in the market”, said Carlo Molano, Managing Principal with Forum CRE, who represented JAMCO in the agreement.
Constructed at the forefront of NAFTA, the 500,000-square-foot building was considered a behemoth in a market that consisted of just a few million square feet of much smaller industrial space. Mattel took that opportunity in Laredo, a story that is well played out and mature, and has expanded its positions across the country including a 1 million square foot Majestic Realty facility in Ft. Worth.
Although it remains the largest industrial building in the region, the Laredo market has grown to over 40 million square feet of highly sought-after square footage. The lease agreement takes down what would have been a 30-40% increase in the market’s available square footage and puts a higher premium on the limited available industrial space in the market.
The largest owner of industrial property in Laredo, Majestic Realty Co. recently completed Phase I of its 2000-acre Port Grande development. The developer is working on a public private partnership with the City of Laredo and Webb County that will allow Phase II through VI of Port Grande, totaling more than 14 million square feet, to become a reality.
“We will continue to move ahead with our long-term vision in Laredo and capitalize on the growing demand for modern, bulk distribution space that is being consumed as quickly as it comes to market,” said Valley. “It’s safe to say that you can look for our Phase II production and development at Port Grande to be next in line for delivery of that product if we can reach an agreement with the City and County in our Public Private Partnership.”
About The JAMCO Group
Based in Laredo, Texas and celebrating its 25th Anniversary in 2021, The JAMCO Group is a Customs and Logistics Service Provider specializing in Cross Border and US/Mexico Customs Operations. JAMCO Group also operates from branches in McAllen and El Paso, Texas, as well as Calexico and San Diego, CA.
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/Ft. Worth; Denver/Aurora; Las Vegas; Phoenix; Portland, OR; and Laredo, Texas.
for Majestic Realty Co.