Colorado Real Estate Journal - May 6, 2015
After securing two large tenants for the biggest speculative industrial building ever built in Denver, Majestic Realty Co. will follow up with a 452,400-squarefoot sister building at Interstate 70 and Tower Road in Aurora. The decision to move forward with Majestic Commercenter’s Building 29 follows Fresca Foods’ lease for 158,000 sf lease in Building 28, a newly completed 500,000-sf spec building. Niagara Bottling preleased 132,000 sf in Building 28 earlier this year. With Denver’s constricted industrial market continuing to absorb space and a number of tenants in the 100,000- to 250,000- sf range looking for options, Majestic believes it will be in good stead when it delivers the newest building Nov. 1.
“We’ve taken a very close look at local and national market conditions, vacancy and absorption rates, product supply and the success we’ve had providing large, high-quality, high-cube industrial space that is the best in the market,” said Majestic Realty Executive Vice President and Director of Development Randy Hertel. “We’re excited about the opportunity to continue that momentum in our park and we strongly believe that now is the time to bring the space to the market in anticipation of our growth late this year and into 2016.” Hertel said there continues to be activity from tenants like Niagara Bottling and Fresca Foods that are expanding their Denver presence, as well as tenants new to the Denver market. There already has been some interest in the new building, he said. Building 29 will be one of the five largest spec buildings to be built in Denver. Designed and constructed by Commerce Construction Co., it will be located on just over 22 acres and will feature 32-foot minimum ceiling clearance, 96 dock doors with either single-side or cross-dock loading, 50-by-52-foot bay spacing, a 60,000-sf speed bay, ESFR sprinkler system, 116 trailer parking spaces and skylights. It will offer east and west loading areas; build-to-suit, glass-front offices on each corner for divisibility; and 375 car parking spaces. With the Fresca Foods and Niagara Bottling leases, Majestic’s Building 28 has 210,000 sf remaining, which is divisible to units of 118,000 and 92,000 sf. Fresca Foods, which was represented by Neil Littmann of The Colorado Group, has been a tenant at Majestic Commercenter for the last three years and needed to expand beyond its existing 80,000 sf. The new building will allow it to double its space to grow its operation and also consolidate a Louisville location when its lease there expires at the end of the year. The company is a brand accelerator for natural foods companies including Larabar, White Girl Salsa, 34 Degrees, Rocky Mountain Popcorn and Love Grown Foods. Niagara Bottling, the largest private-label bottled water supplier in the United States, has its bottling operations a few miles from its new warehouse at Majestic Commercenter. Los Angeles-based Majestic Realty is the largest privately held developer and owner of master-planned business parks in the U.S. with a portfolio of 74 million sf.