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March 4-March 17, 2015 — COLORADO REAL ESTATE JOURNAL — Page 31
Industrial
by Jill Jamieson-Nichols
Majestic Realty has signed
its first long-term lease in the
biggest speculative industrial
building ever built in Denver.
Niagara Bottling leased
132,000 square feet in the new
500,000-sf building at 3700
N. Windsor Drive in Majestic
Commercenter. The tenant will
take occupancy April 1.
Niagara Bottling, which has
a 319,000-sf bottling plant at
Interstate 70 and E-470, will
use the space for overflow
warehouse for production of
bottled water, according to
Randy Hertel, Majestic Real-
ty senior vice president and
director of development. Her-
tel represented Majestic in the
transaction.
Tom Stahl of Colliers Inter-
national in Denver and Paul
Earnhart of Lee & Associates in
Ontario, California, represent-
ed the tenant in the transaction.
Majestic said the building,
which was completed in April
2014, is receiving good activ-
ity from other tenants in the
market.
Majestic Commercenter is
a 1,000-acre master-planned
business park at Interstate 70
and Tower Road in Aurora. s The building at 3700 N. Windsor Drive is the largest speculative building ever constructed in Denver.
by Jill Jamieson-Nichols
Confluent Development
kicked off a new business park
in Arapahoe County with a
70,000-square-foot build-to-
suit and will deliver a second
building there by the end of
the year.
The build-to-suit for Mikron
Automation represents more
than $8 million in investment
at Potomac Technology Cen-
ter, a 25-acre development at
the northeast corner of South
Potomac Street and East Otero
Avenue, just west of South
Chambers Road. Mikron will
purchase the building, which
will include office and light-
assembly space, after comple-
tion in September.
The building will increase
Mikron’s capability by 30 per-
cent with additional land for
future growth. The company
currently occupies 55,000 sf in
Aurora.
“The new building will allow
us to further strengthen our
presence as a strategic partner
to our current and future U.S.
customers,” said Mike Gun-
ner, general manager of Mikron
Corporation Denver. A divi-
sion of Mikron Group, Mik-
ron Automation is one of the
world’s largest manufacturers
of customized automation solu-
tions for high-precision assem-
bly and testing of products.
Jim McGrath and Tom Pap-
pas of Savills Studley represent-
ed Mikron in the transaction.
McGrath said Mikron decided
on the build-to-suit because it
couldn’t find an existing build-
ing to acquire at a reasonable
price that met its requirements.
In conjunction with the Mik-
ron building, Confluent Devel-
opment started site work for the
second phase of Potomac Tech
Center: a 75,000-sf, 160-foot-
deep light-industrial building
with 24-foot ceiling clearance.
The front-park, rear-load build-
ing will accommodate users
that need anywhere from 10
to 100 percent office build-out,
said Confluent’s Marshall Bur-
ton. Parking, depending on the
user, could range from 2:1,000
to 4:1,000.
Burton said similar product
d e v e l o p e d
in the south-
east metro
area over the
last couple
of years has
been very
successful.
“It’s a very
tight mar-
ket. We feel
like there’s a
track record and demand for
this type of product, and we’re
going to continue to build it.”
At build-out, Potomac Tech-
nology Center will be approxi-
mately 350,000 sf, with spaces
from 20,000 to 150,000 sf.
The Phase 2 building could
house up to four tenants.
“However what we are see-
ing is users that range between
35,000 and 75,000 square feet,
so it could very well be a single-
tenant building,” said Burton.
Burton characterized the
types of tenants in the mar-
ket as “innovators that have an
assembly or warehouse need
but also have a pretty signifi-
cant workforce and they’re
looking for employees that are
highly skilled and educated,
which southeast Denver offers
them as employers.”
Potomac Technology Center
sits on an elevated site, offering
“very good views” that single-
story buildings typically don’t
have, said Burton, adding the
location also offers good access
from C-470 to the south via
Peoria and Chambers, as well
as access via Peoria from Arap-
ahoe Road to the north.
“We like the proximity that
Potomac Technology Center
offers from an access perspec-
tive from both the south and
north,” Burton said.
Confluent’s project team
includes Open Studio Archi-
tecture, Alcorn Construction,
Dimension Group, DAB Engi-
neering and Root Partnership.
Jason Addlesperger and David
Lee of Newmark Grubb Knight
Frank are the listing brokers.s
Mikron Automation’s build-to-suit will be the first building to deliver at Potomac Technology Center.
Marshall Burton
by Jill Jamieson-Nichols
One company’s loss was
another’s gain when it came to
a 23,673-square-foot industrial
building on 3.57 acres in Lake-
wood.
A tenant that leased the
building at 1729-1731 S. Wad-
sworth Blvd. just six months ago
defaulted, opening the door for
MGBG LLC to step in and buy
the property for $1.8 million in
an owner-carry deal.
“It was really a deal of perfect
timing,” said CBRE’s Nick Steitz.
MGBG LLC had been in the
market for quite some time, he
said, adding, “It’s just a perfect
user building
for them.”
The build-
ing will house
U.S. Recogni-
tion Awards
& Apparel,
which sells
awards, tro-
phies and
custom cloth-
ing, such as
baseball jerseys and T-shirts for
special events. The company
will relocate from just over 5,100
sf on the Wadsworth corridor
and bring in Image West Appar-
el, which it recently purchased.
Image West has about 16,000 sf
in Denver.
According to Kirk Vanino of
Cushman & Wakefield of Col-
orado Inc., seller MAD-LAN
Investments LLC had owned the
building for many years. “These
owner-user buildings are just
harder and harder to come by.
They’re not being reproduced
anymore because they’re too
expensive to build. They’re in
high demand.”
Built in 1965, the building has
6,000 sf of office space, plus two
large training rooms, 16-foot-
clear warehouse space with
dock-high and drive-in doors,
and a fenced, gated yard.
Steitz represented the buyer
with CBRE’s Bill Thompson.
Vanino and Taylor Hazard of
Cushman & Wakefield repre-
sented the seller.s
A company that sells trophies and specialty apparel will occupy the
property at 1729-1731 S. Wadsworth Blvd. in Lakewood.
Nick Steitz