Page 34 —
COLORADO REAL ESTATE JOURNAL
— August 5-August 18, 2015
Industrial
by Jill Jamieson-Nichols
A Denver group paid $2.6 mil-
lion for an industrial investment
property in Commerce City.
SS Land Holdings LLC pur-
chased the property at 5720
Holly St. from Gannett Peak
Investments LLC. It consists of
a 53,500-square-foot building on
2.93 acres.
The property is occupied by
two tenants, Reis Environmen-
tal and Secured Archives, and
also has a vacant unit of 8,000 sf.
It offers a close-in location with
access to Interstates 70, 76 and
270.
Scott Patterson of Ringsby
Realty Corp. said there were
“quite a few” investors looking
at the property because of the
quality of the location and the
building, which had been well
maintained, and also because of
a lack of industrial investment
opportunities in the Denver mar-
ket. “Industrial investment prop-
erties don’t hit the market too
often,” he said.
The building was built in 1984.
It features 16- to 18-foot ceilings
and dock-high loading.
Patterson and Alex Ringsby of
Ringsby Realty Corp. were the
listing brokers.
Other News
n
Capital Lumber
leased a
42,100-square-foot building on
8.7 acres of land at 6540 Wash-
ington St. in Denver, next to its
existing location. The transaction
allows the company to consoli-
date its operations onto a con-
tiguous rail-served property in a
great location, said
Tyler Carner
of
CBRE.
Realterm NAT,
an Annapolis,
Maryland, investment company,
bought the property late last year.
Alex Ringsby
and
Scott Pat-
terson
of
Ringsby Realty Corp.
represented the landlord. Carner
and
Jeremy Ballenger
of CBRE
represented Capital Lumber.
s
A investment group bought the property at 5720 Holly St. in Commerce
City.
by Jill Jamieson-Nichols
A Denver pavement mainte-
nance company paid $1.53 mil-
lion for 8.89 acres of property in
Adams County.
ADG Investments LLC, which
is affiliated with A-One Chipseal,
purchased the property at 2025
E. 64th Ave. in Denver from the
Estate of Mary Balistreri and
Rosalee Jean and Douglas Solt.
It is in the process of seeking a
rezoning of the property from
agricultural to industrial use,
said Tim D’Angelo of Newmark
Grubb Knight Frank, who rep-
resented the buyer with NGKF’s
Mike Wafer.
A-One Chipseal plans to use the
property primarily for storage of
vehicles and equipment.
Tim Gilchrist and Brian Wilkes
of DTZ represented the sellers in
the transaction.
Other News
n
Acentral Denvermanufactur-
ing/warehouse building recently
sold for $1.73 million.
The building at 200 Lipan
St., built in 1952, consists of a
13,815-square-foot warehouse
and 4,130 sf of office space.
The local buyers plan extensive
renovations, including converting
53 percent of thewarehouse to
office space and adding 1,800 sf.
The renovation and expansion
will allow them to bring their
three businesses under a single
roof, according to
Jim Knowlton,
senior adviser at
Pinnacle Real
Estate Advisors,
who represent-
ed the buyers.
n
Denver’s industrial market
posted its 21st consecutive quar-
ter of positive net absorption in
the second quarter. The market
absorbed 628,434 sf, bringing year-
to-date absorption to 1.4million sf,
according to
CBRE’s
Marketview
report.
A total of 2.8 million sf of prod-
uct was under construction at the
end of the quarter, andwhile rents
increased for new construction,
they were below prerecession lev-
els, keeping developers cautious,
CBRE said.
Tenant demand continues to
outweigh supply, forcing com-
panies to make decisions more
quickly, according CBRE First Vice
President
Bill Thompson.
There
typically are multiple offers on
any functional space in the mar-
ket, he said.
Direct vacancy was 4.3 percent
at the end of the quarter. The over-
all average lease ratewas $6.83 per
sf triple net, with rates for Class
A space significantly higher than
for B and C space, according to
CBRE.
s
by Jill Jamieson-Nichols
An East Coast investment
group entered the Denver indus-
trial market with a marijuana
grow facility and intends to
acquire similar facilities in the
market over time.
TWP Group purchased a
building on the Interstate 70 cor-
ridor near Peoria Street, added
a second floor to create a total
of 55,000 square feet and has a
tenant for the entire building.
Montegra Capital Resource Ltd.,
a Denver-based private money
bridge lender, funded the initial
$2 million segment of a $3.75
million first mortgage secured
by the property.
“We were looking for the right
property and funding opportu-
nities to enter the Colorado mar-
ket, and both fell into place with
this deal,” said P.W. Thomp-
son, manager of TWP Group.
“Working with Montegra has
been a pleasant experience from
Day One. Their market knowl-
edge, speed and flexibility have
allowed us to enter this market
where and when we wanted.”
The two-stage loan provid-
ed TWP with funds to build
the turnkey grow warehouse
with state-of-the-art equipment
and finishes. The equipment
will include some of the most
advanced growing technology
available, including grow lights
imported from the Netherlands.
Because of security issues sur-
rounding the marijuana grow-
ing industry, the address of the
building wasn’t released. TWP
said it chose the location because
of the concentration of growing
facilities in the area.
Montegra has established a
lending program specifically for
people investing in marijuana
warehouse and dispensaries.
“There’s no denying that
marijuana is a rapidly growing
industry in Colorado and that
growth in this industry has pre-
sented a number of both oppor-
tunities and challenges from
an investment perspective,”
said Bob Amter, president and
founder of Montegra Capital
Resources. “Given the feder-
al restrictions placed on most
banks, it can be challenging for
investors to find financing for
properties with marijuana ten-
ants,” he said.
In addition to the loan for
the I-70 warehouse, Montegra
has funded six other loans for a
total of more than $8 million on
marijuana-tenanted warehous-
es and dispensaries.
s
A second floor was added to increase the size of the grow building to 55,000 square feet.
Dwyer.
The sellers acquiredAmeriCen-
ter about 3½ years ago and leased
up a large amount of vacancy. “It
was time to sell,” said Ben Getzel,
who owned the office buildings
with a partner.
Located across Hampden from
Kennedy Golf Course, Ameri-
Center consists of a 40,664-sf
building and 17,390-sf buidling
that were built in 1972 and 1978.
A dental insurance company
occupies the top floor of the larg-
er building.
Charczenko owns other prop-
erties on Hampden, including
the nearby Bridge Creek Office
Park.
Other News
n
Nominal LLC
paid $2.58 mil-
lion, or $92.15 per square foot,
for a 27,945-sf Class B office/flex
building at 33 Inverness Drive
East in Englewood. The buyer
has a company that will occupy
the building.
Rick Egitto
and
Jeremy Reeves
of
Inverness Properties LLC
rep-
resented the seller,
Lake Center
Associates Colorado LLP. Roche
Fore
of
Buell & Co.
and
Matt
Ball
of
Colliers International
represented the buyer.
The building was built in
1977 by ISEC, the former ten-
ant. It is located on the east side
of Inverness Park, overlook-
ing Inverness Golf Course. The
property has convenient access
to Interstate 25, C-470 and Park
Meadows Entertainment District,
and is within walking distance
of John Derry Park, the Colora-
do Athletic Club, and Inverness
Hotel and Conference Center.
n
Oakwood Park 2,
a 7,239-sf
office building at
2 Oakwood
Park
in Castle Rock, sold for the
listed price of $1.63 million, or
$224 per sf.
Stu Lu LLC
sold the property,
which was 100 percent occupied
by four tenants, to
Champion
LLC.
Rob Edwards
and
TomEthing-
ton
of
Pinnacle Real Estate
Advisors
represented the seller.
“Investor activity in Castle
Rock is at an all-time high. The
town’s strong real estate funda-
mentals and decreasing vacancy
rates helped us sell the 100 per-
cent-occupied office building for
list price,” said Edwards. “The
buyer was originally drawn to
invest in Castle Rock because of
the high quality of life and the
high median income. This trans-
action represents our second sale
of a 100 percent-occupied office
building in Castle Rock in the last
month,” he said.
n
Creekside Two on Inverness
LLC
sold 88 Inverness Circle East,
Suites A104, A 105 and A106, in
Englewood to
Physical Dimen-
sions Integrative Health Group
for $1.06 million. The property
totals 5,336 sf.
Physical Dimensions, co-
owned by Drs. Tyler C. Fowler
and McKenzie S. Reifschneider,
will relocate its Lone Tree practice
into two of the condos. It bought
the third condo for future expan-
sion and will lease it out in the
meantime.
Carole Schumacher
and
Heather Burns
of
BRC Real
Estate
represented the seller in
the transaction.
Owen Ellis
of
Re/Max Professionals
represent-
ed the buyer.
n
Holmes Murphy & Associ-
ates
subleased 9,648 sf of office
space at 7600 E. Orchard Road in
Greenwood Village from Alfson
Energy Land Services.
Peter Knisely
of
Pinnacle Real
Estate Advisors
was the listing
broker.
Greg Titus,
also of
Pinna-
cle,
represented the sublessee.
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