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January 7-January 20, 2015 — COLORADO REAL ESTATE JOURNAL — Page 3AA
Industrial
by Jill Jamieson-Nichols
The Pauls Corp. is building a
347,840-square-foot speculative
industrial building near a future
light-rail station at Gateway Park
inAurora.
“The industrial market is as hot
as it’s ever been. There’s very
limited supply of space available,
demand is strong and space is
being leased. It just seems like
the perfect time to be delivering
a building to the market,” said
Chris Leino, leasing director for
The Pauls Corp.
Building 21, at 18250 E. 40th
Ave. in Aurora, is the first specu-
lative building the developer has
started at the 1,300-acre Gateway
Park since 2001. Set for delivery
in July, it is the first in a series of
three buildings totaling 980,000 sf.
“One of the things we think
is unique about this project and
is very attractive to the tenants
who are looking at the property
is the close proximity to light rail
and to the amenities – retail and
restaurants – within walking dis-
tance,” said Leino. The project
is a short walk from the 40th
Avenue and Airport Boulevard
light-rail station that will open in
2016 as part of the new FasTracks
line between downtown Denver
andDenver InternationalAirport.
Chipotle, Chick-fil-A, Wendy’s,
Starbucks, Chili’s and other res-
taurants are closeby.
Leino noted the location also
is within a mile of both the Air-
port Boulevard and Tower Road
interchanges with Interstate 70,
offering distribution companies
quick truck access to the interstate
as well as to the airport.
Building 21 will be a state-of-
the-art cross-dock building with
flexibility to accommodate front-
park, front-load or front-park,
rear-load requirements. It features
32-foot clear height, a building
depth of 420 feet, a 130-foot truck
court, 59 trailer spaces and nearly
300 parking spaces.
Designed for energy efficiency,
it has clerestory windows, sky-
lights, and vision panels in each
dock door to provide natural light
to the interior warehouse. The
building is divisible to 70,000 sf
and is being offered at $4.85 per
sf triple net.
Much of the industrial con-
struction that’s been built on the
Interstate 70 corridor this devel-
opment cycle has been preleased
prior to completion, and Leino
expects that will be the case with
Gateway Park’s new building.
Because entitlements take sev-
eral months, The Pauls Corp. has
initiated that process for a sec-
ond spec building of 450,000 to
550,000 sf.
“I believewewill have Building
21 leased by the time it’s complete
and we would hope to be roll-
ing right into Building 22,” Leino
said.
The Paul’s Corp. is developing
Building 21 in partnership with
GE Investments, which has been
its partner in Gateway Park since
the development began nearly 20
years ago. The companies intend
to continue developing buildings
in the park and retain the portfo-
lio for the long term.s
The 347,840-square-foot Building 21 at Gateway Park is being developed on a speculative basis.
by Jill Jamieson-Nichols
A 200,292-square-foot ware-
house on a full city block in
central Denver sold for $3.7
million, or $18.47 per square
foot.
Sports Authority operates its
mountain region distribution
center on the property, which
is located at 50 S. Kalamath St.,
and has a short term remaining
on its lease. The buyer is look-
ing to either renew the lease or
find a new use for the prop-
erty, which represents a unique
opportunity in central Denver.
“It’s a full city block between
Kalamath and Santa Fe (Drive),
so you have great access. It’s
difficult to find a property of
that size available in the city
and county of Denver,” said
Dave Hagan of DGH Kalamath
LLC, which bought the asset
from Rite Aid Lease Manage-
ment Co.
Sports Authority has occu-
pied the building since 1989
and has employee parking
across the street at 39 S. Kala-
math and 10 S. Lipan St. The
site comprises 5.9 acres.
“At the acquisition price,
it was a good value to either
reposition the property, work
with Sports Authority on a
renewal or potentially rede-
velop the property for another
purpose,” Hagan said.
The building, which includes
an 11,000-sf mezzanine, was
constructed in 1960.
JLL brokers Mitchell Zatz and
Carmon Hicks represented the
seller in the sale of the prop-
erty, which was under contract
for about a year. “They were
very patient with the process
given the length of time it took
to get to a closing. They were
very instrumental in helping
us with the process,” Hagan
said.s
CoStar Group
Sports Authority operates its mountain region distribution center in the building at 50 S. Kalamath St. in
Denver.
by Jill Jamieson-Nichols
There seems to be a never-end-
ing supply of industrial users
looking for freestanding build-
ings with outside storage, and
that proved out with a $3.3 mil-
lion sale.
AVEJEN LLC sold a
31,428-square-foot building on
3.62 acres at 4275 Forest St. in
Denver to SMP 4275 Forest LLC
for $105 per sf. The property
drew “quite significant activity,”
according to Jeff Kummer of Alti-
tude Commercial Realty, who
represented the seller.
The property offered a list of
sought-after features: namely,
a standalone structure, heavy
industrial zoning and a close-in
location off Smith Road, east of
Colorado Boulevard.
“We did have multiple offers,”
said Kummer, who added that
the deal provided a “rare oppor-
tunity in today’s market for buy-
ers to acquire an infill, freestand-
ing industrial building with out-
side storage capability.”
The site is fully fenced with a
paved and secured yard area.
It was occupied by Restoration
Logistics, which is relocating.
The buyer was an investment
group that has a tenant for the
property. Ty Hubbard of Star-
buck Realty Group represented it
in the transaction.
The building was constructed
in 1959 with additions in 1962,
1972 and 1984. s
The building at 4275 Forest St. in Denver generated multiple offers.
by Jill Jamieson-Nichols
A pair of small buildings
on large industrial sites in
Adams County sold before
they could be brought to
market.
GEP Investments Inc.,
which is affiliated with the
owners of Transwest truck
sales and service, sold its
properties at 7570 Brighton
Road and 5550 E. 76th Ave. to
Hutchison Inc. for $3 million,
or $162 per square foot.
The properties are located
next to one another along
76th Avenue and U.S. High-
way 85.
John Segelke of Segelke
Real Estate LLC said there
was so
m u c h
interest in
the proper-
ties that a
buyer was
s e l e c t e d
b e f o r e
he began
marketing
them. “It
was kind of a bidding war,”
he said, adding 8,000- to
12,000-sf buildings on two-
to three-acre sites are highly
sought after by users in the
Denver metro market.
“It’s just a property that’s
John Segelke