Majestic Realty JV Inks 240 KSF Prelease at San Diego Development

Majestic Realty Co., together with Sunroad Enterprises, have signed a 240,975-square-foot preleasing agreement with R.L. Jones Customhouse Brokers at Landmark at Otay, a 1.1 million-square-foot industrial development in San Diego. Colliers negotiated on behalf of the landlord.

R.L. Jones’ current commitment represents an expansion to nearly 400,000 square feet; the tenant had initially leased 150,000 square feet at Landmark at Otay in 2021. The company intends to relocate its corporate headquarters at 1610 Landmark Road, targeted for shell completion in May 2023. 

The arrangement represents the largest leasing deal in San Diego County in the past five years and also the biggest non-Amazon industrial deal in the Otay Mesa submarket in the past decade, according to the brokerage team. Colliers Executive Vice Presidents Mark Lewkowitz and Chris Holder, together with Associate Vice President Will Holder, negotiated on behalf of the developer and are in charge of marketing the property for lease.

An expanding industrial campus

Originally, Landmark at Otay was a 50-acre, four-building industrial project. However, the partnership purchased a 17-acre additional lot in 2021, and now the development’s plans consist of a six-building campus that will encompass more than 1.1 million square feet of Class A industrial space. The joint venture received construction financing from Comerica Bank, according to CommercialEdge data.

Landmark’s Phase II consists of two industrial facilities taking shape at 1610 and 1910 Landmark Road. R.L. Jones’ future home features 36-foot clear heights, ESFR sprinklers, LED lightning, 40 dock-high doors, two ground-level doors, 277 parking spots for vehicles and 51 parking spots for trailers.

The second building of Phase II, a 235,085-square-foot facility with 36-foot clear heights, 51 parking spots for trailers and an office component, is slated for completion in June 2023. The team also broke ground on the project’s Phase III, that will include two warehouses totaling 265,000 square feet.

Betting on expansion

In September 2022, Majestic Realty moved forward with another project in the West: Having preleased the Majestic Reno Commercenter I in Reno, Nev., the company started construction on two additional phases which will bring nearly 1.5 million square feet of space to the area.

Earlier, in 2021, Majestic Realty expanded Majestic Commercenter, its 5.5 million-square-foot industrial campus in metro Denver. The company broke ground on a speculative, three-building component, adding 806,630 square feet of space in Aurora, Colo.