Mark IV Capital has already completed nearly 2 million square feet of new Class A distribution space at the massive industrial park it purchased in July 2019. Mark IV broke ground last week on its next phase of industrial development at Victory Logistics District in Fernley. Courtesy Mark IV Capital
At a time when new industrial development has slowed to a snail’s pace across Northern Nevada, Mark IV Capital is breaking ground on the next phase of industrial development at Victory Logistics District in Fernley.
Mark IV last week held a groundbreaking ceremony at Victory Logistics District to officially kick off development of an additional 600 acres of land at the 4,300-acre industrial park. Mark IV Capital has already completed nearly 2 million square feet of new Class A distribution space at the massive industrial park it purchased in July 2019.
Clearing the land and laying utilities and roadways paves the way for potential clients to take land at Victory Logistics District, said Rick Nelson, senior director of Nevada operations for Mark IV Capital of Newport Beach, Calif.
“By enabling this development now, we believe that multiple parcels within the park will be consumed by vendors who are looking for space,” Nelson said. “It really becomes the chicken and the egg: I can show them raw land with nothing to it – there’s a lot of that. But if I show them land that has benefits, it becomes highly attractive and they will go after it.
“This property is in a great location, and the utility benefit really advances people’s decision making processes,” Nelson added.
Nearly 3 million cubic yards of dirt will be moved to create flat ground for eventual pad-ready sites for the next round of vertical construction, Nelson said. Mark IV is clearing 600 acres of land, but the true benefit of the mass grading is that it opens up a wider swath of land at Victory Logistics District, Nelson noted.
“By adding this 600 acres, we will be able to access over 1,000 acres of industrial land that we can bring to market within the next year,” Nelson told NNBW.
Mark IV Capital is spending $120 million to bring the land into a development-ready state. In addition to the mass grading work, Mark IV will be laying all underground utilities — including more than six miles of storm drainage and five miles of new water lines — and bringing in four miles of paved roadway. Nevada Pacific Parkway will be extended from Interstate 80 to Highway 50, with a bridge crossing the Union Pacific rail lines. The extension will simplify access to Interstate 80 for residents of Hazen, Fallon and East Fernley, Nelson said.
Mark IV also will be connecting fiber network lines currently running from Highway 50 and Interstate 80 into the park to create network redundancy, a critical requirement for any potential data center clients interested in taking down land at the industrial park. Nelson said the company also is working with NV Energy to upgrade the Eagle substation north of Interstate 80 to deliver greater power requirements to Victory Logistics District in order to serve potential hyperscale data center campuses like those that have cropped up to the west of Fernley.
“We are working on a number of infrastructure improvements that will make Victory extremely attractive and marketable,” Nelson said. “It’s a good investment. We recognize the risk, but we also recognize the gains and have a very strategic outlook. It’s the right decision at the right time to advance this area.”
Premier Design + Build Group is the general contractor for the project, while Q&D Construction is handling the grading work. Initial prep work involves digging a water well and constructing a million-gallon water pool that will be used to stabilize the soil, Nelson said. After erosion control measures are in place, grading is expected to begin around the first of May. Between 50 and 100 pieces of heavy equipment could be onsite at any given time, Nelson added.
“It’s a very large site,” he said.
Work is expected to be completed by early 2027.
Mark IV has already completed a substantial amount of new industrial space since beginning vertical construction on its first building in 2021. Redwood Materials in 2022 wholly leased the 815,215-square-foot building. Mark IV’s next phase of vertical construction consisted of three buildings totaling nearly 1 million square feet of Class A distribution space. Multiple tenants are actively looking at those buildings, Nelson told NNBW.
“With the level of activity right now, we have multiple options for every building, and we are working with brokers to bring those deals to fruition,” he said.
The industrial team of Brett Edwards and Greg Shutt at the Reno office CBRE are the brokers of record for Victory Logistics District. When those buildings do lease up, Nelson said, Mark IV Capital will begin the permitting process for a 492,000 square-foot building that already has a pad graded and ready to go. The company has multiple options for two additional pad-ready sites of 1.7 million and 900,000 square feet.