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Page 4AA — COLORADO REAL ESTATE JOURNAL — February 18-March 3, 2015
Industrial
by Jill Jamieson-Nichols
A local buyer jumped
at the chance to purchase a
112,563-square-foot industrial
building – without knowing
whether the tenant will renew
its lease.
That’s because the building
at 500 W. 53rd Place in Den-
ver represented sound real
estate at a good price – $46
per sf – in an extraordinarily
tight market, said Greg Streech
of Streech Properties, who
acquired the building through
an entity called CAGSPI 500
LLC, a partnership with Con-
nexion Asset Group.
The buyers are negotiating
with the tenant to renew its
lease, but Streech said, “We’re
not too concerned about leas-
ing up the building because it’s
a good-quality building in a
great location.”
“It was a very fast deal,”
said Tyler Smith of DTZ, who
represented the buyer with
DTZ’s Alec Rhodes and Aaron
Valdez. The
buyers put
the property
under con-
tract for the
sales price
of $5.18 mil-
lion two
days before
Thanksg i v-
ing and com-
pleted due
diligence within 21 days. “The
market has moved so quick-
ly from Thanksgiving to now
that Streech Properties’ timing
couldn’t be better,” said Smith.
Streech Properties is fond of
assets that are close to the city
core – “The closer in, the bet-
ter,” said Streech. Along Inter-
state 25 between Interstates 70
and 76, the West 53rd building
sits on 6.43 acres in an indus-
trial submarket whose vacancy
rate is around 1.8 percent.
“Really, what we’re focused
on are properties that kind of
market themselves from a loca-
tion standpoint,” said Streech.
Constructed in 1971, the
building has 18-foot-clear ceil-
ing height, yard area, 22 dock
doors, 140 parking spaces
and 15,000 sf of office space.
“I think it’s a versatile build-
ing given its central location,”
Smith said.
Metech Recycling, an elec-
tronics recycler, occupies the
property. Jeff LaForte and Bob
Pipkin of Fuller Real Estate
represented the seller, 500 W.
53rd Place LLC.
The acquisition was the sec-
ond that Streech Properties has
made with partner Connexion
Asset Group. The two own a
building at 5555 E. 58th Ave.
in Commerce City that they
leased to Swift Transportation.
Other News
n A 5,216-square-foot indus-
trial building in Denver’s cen-
tral submarket sold for $599,000,
or $114.84 per sf.
An investment group called
4350 N. Broadway LLC pur-
chased the property at 4350
Broadway from 4350 Broad-
way LLC.
Russell Gruber and Steve
Fletcher of Newmark Grubb
Knight Frank represented the
buyer and have the property list-
ed for sale or lease. Tyler Smith
of DTZ represented the seller.
n Gruber and Fletcher also
handled the sale of a 2,240-sf
building with a fenced yard at
5145 Clarkson St. in Denver.
There were multiple offers for
the property, which was listed at
$310,000 and sold for $312,000.
Blackwater LLC, a user, pur-
chased the property from Mike
Gerbich. Spencer Diner of NAI
Shames Makovsky represented
the buyer.s
CoStar Group
A single tenant occupies the building at 500 W. 53rd Place in Denver.
Tyler Smith
by Jill Jamieson-Nichols
An owner got more than it
bargained for in the sale of a
single-tenant industrial build-
ing in central Denver.
The 58,654-square-foot build-
ing at 5901 Broadway sold for
$4.58 million, or $78 per sf,
which was higher than the ask-
ing price of $4.38 million.
“The property received tre-
m e n d o u s
interest,” said
CBRE Senior
Vice Presi-
dent Tyler
Carner, who
represented
the seller in
a deal that
drew 10
offers. HVAC
Supply, a
leading wholesale distributor
of heating and air conditioning
units, has been in the building
for more than a decade and
continues to occupy it on a
long-term lease.
Rosenben HS LLC, a 1031
exchange buyer from Califor-
nia, purchased the property
from Dual Enterprises, a group
affiliated with the tenant.
Carner, who co-listed the
property with CBRE Vice Presi-
dent Jeremy Ballenger, said pro-
spective buyers were attracted
to the asset by its functionality
and central location. The build-
ing offers 24-foot-clear ceiling
height, along with 11 south-fac-
ing loading doors and a drive-
in door.
“The strong fundamentals
of the central market coupled
with the long-term nature of the
lease made it a very attractive
asset to investors,” Carner said.
HVAC Supply has operated
in Denver since 1986.
Other News
n TOD Properties purchased
a redevelopment site six blocks
from Coors Field in downtown
Denver’s Ballpark neighbor-
hood from A.R. Wilfley & Sons.
The property at 2840 Blake St. is
comprised of an approximately
13,000-square-foot industrial
building on a half-city block, or
50,000 sf of land.
Ron Webert and John Bitzer
of Lee & Associates represent-
ed A.R. Wilfley, which is mov-
ing its manufacturing opera-
tions from the site it has occu-
pied for almost 90 years.
“With all the development
occurring downtown, the inter-
est level for the site was very
high. TOD Properties made an
early offer and was very per-
sistent in getting the property
under contract,” said Webert.
“As far as land/redevelopment
deals go, this one went very
smooth. TOD was a pleasure
to work with throughout the
entire process.”
TOD Properties is a local
development and investment
firm specializing in properties
located in close proximity to
light-rail stations and transpor-
tation nodes. “I am very bullish
on the River North and Ball-
park areas due to their prox-
imity to LoDo and the 38th
and Blake station on the East
line. I am always looking for
properties in high-quality loca-
tions, so when this property
became available, I jumped at
the chance,” said Scott Watkins,
principal of TOD Properties. “I
expect the area to continue to
be very dynamic in the years
ahead. Lee & Associates and
the folks at A.R. Wilfley & Sons
were great to work with and
made the quick closing that
much easier.”
The sales price wasn’t
released, but public records
show it was $3.52 million.
n A28,598-sf industrial build-
ing on 1.2 acres along Interstate
70 just east of the Colorado
Boulevard exit sold for $1.93
million, or $67 per sf.
The building at 4611 E. 46th
Ave. in Denver has been home
to Castlegate Garage Door Ser-
vice Inc. for the past 10 years.
Mark and Carole Burns sold
the property to DDMC LLC, a
local investment company. The
buyer has a tenant in the mari-
juana industry that will occupy
the space.
“The property was on the
market two years ago and a
deal was almost struck to sell
to a local manufacturing com-
pany. The Burns(es) decided to
pull it off the market and wait
to see what effect the mari-
juana industry would have on
values. Their patience certainly
paid off with almost a 40 per-
cent increase in value in the
short time period,” said Ron
Webert of Lee & Associates,
who represented the sellers in
the transaction.
“With an IB zoning and free-
way visibility, this property was
on the radar screen of many
operators in the industry. Like
most industrial deals in today’s
market, we had a few starts
and stops before getting to the
closing table with DDMC,” he
continued.
“The property didn’t have
heavy power or a sprinkler sys-
tem, and it had some deferred
maintenance, all of which
knocked the price per foot down
a little. The new owners will be
putting in some significant capi-
tal improvements to the build-
ing immediately,” Webert said.
n Bellino Electric Services
leased 11,092 sf of warehouse
space at 17130-17140 and 1700-
17110 E. Ohio Drive in Aurora.
Tim Shay of Colliers Interna-
tional represented the landlord.
Eric Gold of API Sheldon-Gold
Realty Inc. represented the
tenant.s
HVAC Supply will continue to occupy the building at 5901 Broadway on a long-term lease.
Tyler Carner
by Jill Jamieson-Nichols
A longtime tenant in Gate-
way Park has acquired 19.7
acres of land there for con-
struction of a new industrial
building.
Communications Test
Design Inc., a global engi-
neering, repair and logis-
tics company, will build a
204,000-square-foot technical
service and logistics/distri-
bution facility on the prop-
erty. The company paid $3.83
million, or $4.46 per sf, for
the site, according to public
records.
“We are fortunate that CTDI
Aurora is thriving and out-