Developers of San Diego County’s largest industrial project sign one of region’s largest lease agreements in past decade
Lease with R.L. Jones pushes start of Phase III development
at 1.1- million-square-foot Landmark at Otay
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 more than 150,000 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 breaking ground 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.
