Majestic Realty’s Magic Locations
For Edward P. Roski, Jr., real estate is a passion. His company, Majestic Realty, develops retail in growing markets — often as a piece of a larger development. Roski not only has a commitment to real estate, but also to philanthropy and culture, that help set him and his company apart.
Randall Shearin

Getting ready to celebrate its 60th anniversary, Majestic Realty Co. is a developer that finds opportunity in a lot of places. The company is famous for looking into the future and finding areas that are on the cusp, buying up land and banking it, and later creating projects when the time is right. Started as an industrial developer, Majestic has spread its wings to develop retail and office projects as well. The company is an opportunistic developer, finding great locations first and then maximizing the land that it purchases to accommodate a number of uses. As one of the nation’s largest private developers — with more than 70 million square feet of holdings — and one of the most ambitious development pipelines, Majestic Realty is a company to know.

Edward P. Roski, Jr., chairman and CEO of Majestic Realty Co.

Shopping Center Business recently met with Edward P. Roski, Jr., chairman and CEO of Majestic Realty, in his office at Majestic’s headquarters in City of Industry, California. Roski is recognized in Southern California, where he is also known for his role as co-owner of the Los Angeles Lakers NBA franchise, Los Angeles Kings NHL franchise and Staples Center in downtown Los Angeles. In addition, Roski, Jr. owns the Pacific Palms Resort in City of Industry, California, and the Silverton Casino Lodge in Las Vegas. What most people don’t know about Roski, though, is his commitment to philanthropy and culture. A world traveler, Roski sits on the board of the National Geographic Society, as well as the boards of several prominent Los Angeles-area museums.  A graduate of the University of Southern California, he is active with the university on many levels including his role on the board of trustees.  He is an avid collector of African and Aboriginal art from all over the world. Many pieces from his collection hang in his office.  Through all of his diverse interests, his life’s work is real estate.

Majestic was started by Roski’s father, Edward P. Roski, Sr., after World War II. Roski, Sr., was in on the California real estate business when the state was booming after World War II. The company started as a brokerage company, but soon became involved in the development of industrial properties throughout Southern California.  Since its beginnings, Majestic Realty has evolved into a national, large-scale full service developer of premier, master-planned industrial and retail projects. Privately held, Majestic Realty Co. is fully-integrated. Every aspect of Majestic’s operations is in house. From the architects who design the projects, to the contractor who builds the projects to the team that manages the property; Majestic controls every aspect.

Citrus Plaza, San Bernardino, California.

After creating a strong presence in Southern California, the company began to expand beyond its Golden State borders. In the 1990s, Majestic opened offices in Atlanta, Denver and Las Vegas. In 2000, the company opened an office in Dallas. It covers regional territories from each office. For instance, its Atlanta office develops and manages projects from the Carolinas to Florida. Majestic’s tenants include about 500 of the major companies in the U.S., and the company often looks to these clients to tell it where to expand.

“We have the ability to talk to our tenants, find out how their business is, where they’re headed, and we look to locate where they want to be,” says Roski.

Majestic also does its own research to find markets where expansion will be necessary. For instance, with Los Angeles-area ports near capacity, shippers from Asia are now shipping goods through the Panama Canal and to the East Coast ports. As that happens, the East Coast ports are expanding. Markets like Savannah, Georgia, and Jacksonville, Florida, are looking to expand their ports. With that expansion comes the need to store or transload the goods for distribution. Majestic is already in these markets developing projects.

Once Majestic decides to enter a market, it begins to buy land to create and support the master-planned projects. Majestic builds projects that are for specific clients, as well as spec buildings. It was the first developer in the Atlanta area to build spec industrial space.  In the future, the company plans to expand to the Northeast, particularly Pennsylvania and New Jersey. The company already owns some individual properties in the northeast, but it would like to be more involved with the development of industrial parks.

“Because we are a private company, we can take time to research an area and decide where it is right for us to go,” says Roski.

Majestic’s industrial and business parks, like Fairway Business Center in City of Industry, California, have led it to retail development.

Majestic enters markets in different ways. It either develops an industrial park, builds a few buildings on a parcel of land, builds an individual building within an established industrial park, or a combination of any of these. In markets like Dallas, the company purchased hundreds of acres to create its own industrial park. In Denver, the company is currently developing a 1,000-acre industrial park 5 miles south of Denver International Airport. In Las Vegas, the company is developing a series of industrial buildings as part of the 80-acre Sunset Park. In Ontario, California, Majestic is developing a 235-acre industrial park with three separate projects.

“Once we are interested in an area, it may pique other developers’ interest in that area,” says Roski. “Of course, if we find a competitor is interested in an area, we may also look at it.”

Industrial development has changed in the 60 years since Majestic first entered the business. Today, spec buildings are built state of the art. Industrial tenants want buildings large enough to accommodate inter-modal shipping containers. About 10 years ago, industrial buildings went through their most radical change to date. Tenants wanted higher ceiling heights to accommodate more inventory. Sprinkler systems also were modernized to accommodate this change. Companies also need a place to store shipping containers after they are unloaded.

“Over the years, the process of developing has become more complicated,” says Roski. “Some of that is because there are more people involved. In the old days, if you found a piece of property you built on it. Today, available land is shrinking and there are challenges to take into consideration. There are more participants in our deals than before, for instance. Each participant has its own interests which need to be listened to and addressed.”

Citrus Plaza, at full build out, is expected to be 1.85 million square feet.

Its activity in the industrial area led Majestic to become active in retail development. It found that its industrial parks required land close to major highways, but that they be set back somewhat from the road. This meant that there was generally a parcel of land close to the freeway that was left undeveloped. Majestic began developing big box power centers on those leftover parcels of land. As Majestic became more comfortable as a retail developer, it began to acquire land just for retail. The company formed a subsidiary, Majestic Realty Retail, which develops its retail projects and is solely focused on looking for land for retail development.

“We have been able to open our vision to new property types that, in the past, we had passed on,” says Roski. “Over the last 15 years, retail has been an evolving sector for us.”

Majestic Realty’s Citrus Plaza in San Bernardino, California, is located at the heart of the Inland Empire.

In Chino, California, for example, the company bought a large parcel of land to develop an industrial park. Retailers wanted to locate stores in the area, and the land became in demand as a retail location. Majestic developed a large power center with a main location at the intersection. In Redlands, California, the company also purchased a property for retail development where it developed Citrus Plaza, a 520,000-square-foot power center anchored by Target and Kohl’s and includes retailers such as Sport Chalet, Bed Bath & Beyond, Cost Plus, Pier 1 Imports, DSW Shoe, Petco, Barnes & Noble and others. Adjacent to that center, Majestic is currently developing a 630,000-square-foot retail project called Mountain Grove at Citrus Plaza. Similarly, in Cherokee County, Georgia, northwest of Atlanta, the company is planning a retail center, Cherokee Crossings, located adjacent to land it acquired for industrial uses.

The first phase of Citrus Plaza, at 450,000 square feet, is anchored by Barnes & Noble, Target, Bed Bath & Beyond, Kohl’s, Michaels, Cost Plus and others.

“When possible, we try to combine uses if it makes sense for the property,” says Roski. “The nice thing about retail is that it is constantly evolving. There is a certain amount of creativity involved in retail. The amenities involved provide a real service for the community. With restaurants, theaters and shopping, they become the downtown areas for some of the markets we are in. 

“We are better buyers than sellers,” says Roski. “Everyone sets their goals and parameters, and ours are buy, build and hold. Real estate is a very rewarding business, because you are creating something. To see a physical structure created, to see it providing jobs and creating income is very rewarding. Having the opportunity to do real estate development has been one of the greatest rewards for me.”

Giving Back Is Key To Majestic’s Success The Majestic Realty Foundation was launched in 2002 and has five areas which it concentrates its efforts: youth, family, education, health and violence prevention. The foundation donates money to worthwhile causes, like this summer camp. Edward P. Roski, Jr., has traveled all over the world and believes that donating time and money to worthwhile causes is an endeavor that Americans value. “The culture of giving back to the community for companies and individuals is unique to America,” he says. “Everywhere else in the world, everyone thinks that the government will take care of things. The tremendous amount of time and effort that is put forth toward charities and funds to medicine, science and mankind in the United States is incredible, and it is powerful.” Roski has always made it a focus to give back to the community. To that end, the company established the Majestic Realty Foundation in 2002. The foundation has five areas which it concentrates its efforts: youth, family, education, health and violence prevention. The foundation donates money and time to support non-profit organizations in the markets where it is active: Atlanta, Dallas, Denver, Las Vegas and Southern California. Majestic encourages its employees to contribute time and money to worthwhile causes through the foundation, as Roski firmly believes that the time they spend is rewarded by the sense of accomplishment and pride that they get from helping others.              “It is really great when you can envision a goal and see it come to fruition and know that you have done something worthwhile for so many  people,” says Roski. — Randall Shearin

©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.