Majestic Realty to Launch Business Park in Industry
Development giant Majestic Realty Co. is preparing to launch its 400-acre Grand Crossing business park in the firm’s hometown, Industry.
The first phase of the project, near the Pomona-Orange freeway interchange, will include industrial buildings of 770,000, 100,000 and 70,000 square feet, Majestic Vice President Hank Darnell said. The $25-million phase should be ready for occupancy early next year. Comerica Bank is providing construction financing.
When all phases are completed, Grand Crossing will see as much as 6.5 million square feet of development, Darnell said. Majestic, a 53-year-old real estate firm controlled by the Roski family, has a long-term ground lease on the land, owned by Industry’s Urban-Development Agency.
Majestic doesn’t yet have commitments from tenants, and Darnell acknowledged that regional demand for industrial space has weakened.
“But we wouldn’t build if we didn’t think there’s a good market for this product,” he said.
Brokerage Colliers Seeley reports that continued demand from logistics firms and distributors as well as high-tech companies pushed the 154-million-square-foot San Gabriel Valley industrial real estate market’s vacancy rate lower during this year’s first quarter.
The rate should remain near the current level of about 5%--low by historical standards--even as Majestic and other developers add 4.8 million square feet of space over the coming year or so. Industrial space typically rents for about 43 cents per square foot monthly and sells for about $64 per square foot.
