Majestic Realty, in a joint project with Sunroad Enterprises, is completing a 240,975-square-foot warehouse in Otay Mesa that is already leased, with construction continuing on a second building in the same industrial park and the promise of more to come.
Vice President
Majestic Realty Co.
“The market continues to have a lot of tenant demand and momentum,” said Tom Simmons, vice president of Majestic Realty.
“It appears that tenants are continuing to target certain markets, cross border markets certainly being one of them,” Simmons said. “Markets like Otay are continuing to strengthen.”
The 240,975-square-foot building that Majestic and Sunroad are finishing at 1610 Landmark Road is the largest industrial building lease in San Diego County in the past five years outside of two built for Amazon, according to Colliers International.
With completion of the building shell expected in May, the building is already leased to R.L. Jones Customhouse Brokers, which will move its corporate headquarters into the new building from a smaller one the company is leasing in Otay Mesa.
Near-shoring
Edwardo Acosta, vice president of R.L. Jones Group, said they leased the new building from Majestic and Sunroad so the company would have room to grow in anticipation of an increase in goods crossing the border.
Vice President
R.L. Jones Group
“Everybody is looking at this region,” Acosta said. “We know our industry is growing.”
Simmons said that Majestic and Sunroad built their projects on speculation but have had no trouble filling them, signing leases before the buildings were finished.
In addition to the building that R.L Jones leased, Majestic and Sunroad are finishing construction of an adjacent 235,085-square-foot industrial building with two more to come – one of 113,743 square feet and a second of 143,048 square feet.
The building that R.L. Jones leased is part of Landmark at Otay, an industrial park that was initially four buildings on a 50-acre site but has been expanded with the addition of 17 acres of adjoining property.
When everything is finished, the industrial park will have more than 1.1 million square feet of industrial space.
Mark Lewkowitz, Chris Holder and Will Holder of Colliers are handling leasing.
Simmons and Acosta said that industrial property in Otay Mesa is benefitting by a near-shoring trend among manufacturers to bring their production closer to the U.S. in Mexico.
“A lot of life science, health care, electronics – those types of industries are the more common that are manufacturing in Mexico,” Simmons said. “We’re just seeing more and more folks as the cost of transportation goes up, the cost of labor goes up saying ‘why weren’t we here sooner.”
Unlike some other developer who build warehouses to sell, Simmons said that Majestic and Sunroad “have a long-term philosophy.”
“We’re going to hold this for our kids,” Simmons said.
Strong Fundamentals
Senior Associate
Cushman & Wakefield’s Capital Markets San Diego
Although it’s not in Otay Mesa, another sign of the strength of the industrial real estate market in San Diego County generally, Wimatex, Inc. bought an 85,165-square-foot industrial building at 2271 Cosmos Court in Carlsbad for $21.05 million.
The freestanding building was fully leased at the time of the sale to a global medical device and technology company.
“North San Diego County maintains strong industrial market fundamentals,” said Drew Dobbs, a senior associate with Cushman & Wakefield’s Capital Markets in San Diego.
Majestic Realty Co.
Founded: 1948
President and Board Chair: Ed Roski Jr.
Headquarters: City of Industry
Business: Commercial real estate developer
Employees: 300
Website: www.majesticrealty.com
Contact: 562-692-9581
Notable: Majestic Realty Co. is the largest, privately-held developer and owner of master-planned business parks in the United States. Majestic has an 87-million square-foot portfolio that includes industrial, office, and retail space, as well as sports, entertainment and hospitality projects.
