KYLE, Texas – (Realty News Report) – Majestic Realty Co. of Los Angeles has acquired a tract between Austin and San Antonio for a rare spec industrial project.
Spec projects of this size are a rarity in the Austin-San Antonio corridor, says Marshall Davidson of Avison Young San Antonio. Davidson and Tate Hinkelman represented the seller of the 46-acre tract, Plum Creek Development Partners.
Majestic, represented by Joe Birdwell of American Southwest, will build a 500,000-SF industrial building, just west of Interstate 35.
Speculative distribution projects of this size are a rarity in this area, says Davidson of Avison Young.
The development, called Majestic Plum Creek Business Park, will cost $39.7 million, according to the Kyle Economic Development Department.
“The City of Kyle is thrilled to partner with Majestic Realty on their new industrial park. The facility will help attract new jobs and will stimulate the economy of our growing city,” said Travis Mitchell, Mayor of Kyle. “For years, Kyle has been pursuing these types of projects. The revenue generated from large-scale industrial developments helps to offset the tax burden traditionally placed on our homeowners.”
The City of Kyle entered into a Chapter 380 agreement June 19th and Hays County Commissioners Court voted to approve a Chapter 381 agreement Tuesday, June 26th. The City and County agreements are performance-based rebates of new property taxes generated once the building is completed payable over 5 years. The maximum amount of rebate is estimated at $662,507 from Kyle and $435,564 from Hays County over the life of the agreement. However, the agreements would expire as tenants are secured, which means the incentive could be signi cantly less should the property lease quickly.
Majestic Realty Co. is one of the largest developers of business parks in the United States. With more than 84 milliion SF in its portfolio, Majestic has regional offices in Atlanta, Bethlehem, Dallas, Denver, Fort Worth and Laredo, Las Vegas, Portland, and Phoenix.