September 2-September 15, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 5AA
Industrial
by Jill Jamieson-Nichols
A marijuana grower paid
$116.14 per square foot for a
Montbello industrial build-
ing, a surprise given hurdles to
obtaining a new retail marijuana
license in Denver.
“I was actually a little sur-
prised to see the buyer coming
out of the marijuana industry,”
Taylor Hazard of Cushman &
Wakefield of
Colorado Inc.
said of the
property at
10975 E. 47th
Ave. At least
until Jan. 1,
2016,
only
existing med-
ical marijua-
na companies
can apply for
retail licenses in the city and
county of Denver. Others have
to buy licenses from existing
licensees, typically at exorbitant
prices, said Hazard.
That stemmed the tide of
growers looking to buy older
industrial buildings in Den-
ver, he said, adding the vast
majority of those who toured
the 47th Avenue property were
traditional industrial users. The
buyer, Post Investment Group,
is new to the market. It paid
$1.99 million cash for the prop-
erty.
“I had the building listed for
a year, and I showed it three
times a week on average,” said
Hazard. “It’s a pretty high price
per square foot, so it took awhile
to find the right buyer,” he said.
The building totals 21,135
sf, but that includes 4,000 sf
of mezzanine space that typi-
cally isn’t considered part of
an industrial building’s foot-
print, said Hazard, who listed
the property with Cushman &
Wakefield’s Kirk Vanino. The
seller was Global Holdings LLC,
which is affiliated with the cur-
rent tenant, Global Fire & Safety.
“The building has great,
light-up monument signage
and really strong presence on
a high-traffic-count street,” said
Hazard. Given the heavy office
build-out, a total of 8,000 sf, he
said the buyer probably will put
a dispensary in the building in
the future.
Built in 1994 and renovated
in 2006, the building has been
“impeccably maintained,” Haz-
ard said. It occupies a 1.41-acre
site in Montbello, which has a
large concentration of marijuana
growing facilities.
John Wickens of Brokers
Guild represented the buyer in
the transaction.
Other News
n
Precision Homes
recent-
ly paid $1.9 million for a
21,300-square-foot industrial
building at 1900 Federal Blvd.
in Denver, which it will use as
its main office and showroom.
Dawn McCombs
of
Avison
Young
represented the seller,
Walter W. Martin Inc. Mike
Brunetti
of
David Hicks & Lam-
pert Brokerage
represented the
buyer.
n
Copper State Bolt & Nut
leased 11,200 sf of industrial
space at 2590 W. Second Ave. in
Denver.
Alec Rhodes, Tyler Smith
and
Aaron Valdez
of
DTZ
represent-
ed the landlord,
Bryant St. LLC.
Taylor Hazard
and
Kirk Vanino
of
Cushman & Wakefield of
Colorado
represented the ten-
ant.
n
Replay Electronics Inc.,
a
“free-dimensional video” com-
pany, leased 4,437 sf of show-
room/warehouse space at 3055-
AWest 74thAve. in Westminster
for its first Colorado location.
Gene Stone
of
Antonoff &
Co.
Brokerage
represented the
landlord,
West 74th Partners
LLC. Michael Andrews
of
Col-
umn Commercial Partners LLC
represented the tenant.
s
An out-of-state buyer paid $116.14 per square foot for the building at
10975 E. 47th Ave. in Denver, which will be converted to a marijuana
grow facility.
Taylor Hazard
its operations from three build-
ings in Aurora to the new state-
of-the-art building. It initially
will occupy 434,000 sf of ware-
house and 70,000 sf of office
space, growing into the addi-
tional 142,000 sf of warehouse
as needed over the next five
years. Given term left on its
existing leases, it won’t move
in until the first quarter of 2017.
United Propertiesʼ specu-
lative flex building will be
completed late in the second
quarter of 2016. It will have
24-foot-clear ceiling height and
the ability to accommodate a
higher degree of office space
than existing development at
Enterprise Business Center.
“The idea is that as we move
closer to Central Park Boule-
vard and closer to light rail,
there may be tenants that have
a desire for more office finish,”
said Kelley.
The buildings will be located
on a 45-acre site with room
for a third and final building,
which could be office, possi-
bly with some medical office
space, retail or some other
combination of uses. “It’s still
evolving,” said Kelley.
United Properties purchased
the site for $7 per sf from Forest
City Stapleton, which also sold
land for the first two phases
of Enterprise Business Center.
It developed four buildings of
approximately 701,000 sf on
the first 38.2 acres. All of that
space is leased. The company
last year acquired another 24.8
acres for a 466,540-sf distribu-
tion building that it recently
completed. Nearly 200,000 sf
of that building is leased, and
Kelley expects to sign a tenant
for another 215,000 sf in the
near future, leaving 53,000 sf.
Mike Wafer and Tim
D’Angelo of Newmark Grubb
Knight Frank handle leasing
and marketing. The Enterprise
Business Center project team
also includes Powers Brown
Architecture and general con-
tractor Murray & Stafford Inc.
Wafer represented Beverage
Distributors in its transaction.
Marotta said the company is
“thrilled to be in the position
to consolidate our operations
into this new facility,” which
will serve its business, suppli-
ers and customers for the next
20 years and beyond.
In addition to being one of
the largest leases signed in
Denver, the lease is one of the
largest that United Properties
has transacted in its portfolio.
United Properties has a large
commercial and residential real
estate presence in Minneapolis,
where it is based. Its Colorado
division develops retail, office
and industrial buildings.
s
Beverage Distributors will occupy its new building at Enterprise Business Center in Stapleton in the first quarter
of 2017.
