Page 4AA —
COLORADO REAL ESTATE JOURNAL
— November 4-November 17, 2015
Industrial
by Jill Jamieson-Nichols
Bridgestone’s facilities on
West Mississippi Avenue and
South Fox Street in Denver
recently sold in a $4 million
transaction that led to expan-
sions by the tire company and a
design showroom.
LD Holdings LLC, a Denver
family, sold the 38,536-square-
foot building at 515 W. Mis-
sissippi Ave.
and a 9,126-
sf building at
1050 S. Fox
St. in Denver,
both of which
were leased
to
Bridge-
stone.
The
buyer,
Big
Mississippi
LLC, is affili-
ated
with
Saddleback Design, an inte-
rior design and floor-covering
showroom that is expanding
out of River North.
“They liked the location, the
frontage and the potential for
repurposing the buildings in
the next 10 to 20 years,” said
Tyler Reed of JLL. Reed said
most people believe the Gates
redevelopment will move for-
ward, which will continue to
transform that area.
Reed and JLL’s Mitch Zatz
represented the seller in the
transaction. Keith Hand of Col-
orado Commercial Brokerage
represented the buyer.
Bridgestone, meanwhile, will
grow into a 67,000-sf space in
the O’ReillyAuto Parts building
at 24210 E. 19th Ave. in Aurora.
Reed and Zatz represented the
company in a 10-year lease with
O’Reilly. Tyler Carner and Jer-
emy Ballenger of CBRE repre-
sented the landlord.
“It was pretty difficult to find
landlords that would accept tire
storage as a use, but by going up
in size and increasing the clear
height, Bridgestone is going to
be able to grow their business
significantly in the Denver mar-
ket,” said Reed.
Other News
n
Longfield Investment Co.
leased 39,960 square feet of
distribution space at 12770 E.
39th Place in Denver to
Denver
Intermodal Express.
Russell Gruber
of
Newmark
Grubb Knight Frank
and
Jim
Gruber
of
Gruber Commercial
Real Estate Services
represent-
ed the landlord in the long-term
lease transaction.
Denver Intermodal is a third-
party logistics company.
s
CoStar Group
A design showroom will occupy the property at 515 W. Mississippi Ave. and 1050 S. Fox St. in Denver.
Tyler Reed
by Jill Jamieson-Nichols
An industrial building along
the Interstate 70 corridor near
Stapleton sold to a user for $3.08
million, or $77.46 per square foot.
Knudson Denver LLC bought
the 39,764-sf building at 6700
E. Stapleton
Drive South
in
Denver
from Alca-
zar Staple-
ton Holdings
LLC. Associ-
ated Energy
S y s t e m s
will occupy
the
build-
ing, accord-
ing to Bill Thompson of CBRE,
who represented the seller with
CBRE’s Jeremy Kroner.
Constructed in 1964, the build-
ing offers highway signage,
20-foot-clear ceiling height, and
dock-high and drive-in loading.
It sits on 1.94 acres with a fenced,
paved yard.
Previously occupied by Spe-
cialty Chemicals, the building
was vacant at the time of the sale.
Other News
n
ARC Thrift Stores
leased
40,000 square feet of industrial
space at 570 W. 53rd Place in
Denver.
“The property had lots of activ-
ity and multiple offers, but in
the end the landlord felt that
ARC Thrift was a great fit for
the project and is very excited to
have them as a tenant,” said
Rus-
sell Gruber
of
Newmark Grubb
Knight Frank.
Gruber and
Steve Fletcher
of
NGKF represented the landlord,
WSDB 550 LLC. Mark Wilson
of
Commercial Property Advisors
LLC
represented the tenant.
n
Demand for industrial space
in Denver continues to outpace
supply, and overall lease rates
are nearing the all-time high of
$7.22 per sf triple net set in the
second quarter of 2004, accord-
ing to
CBRE’s
third-quarter
Denver industrial MarketView
report.
Average asking lease rates
are $7.05 per sf triple net. Ware-
house rates average $5.95 per sf
triple net, representing an annu-
alized increase of 10.5 percent
since 2013.
“Tenants facing renewals have
been seen leaving their existing
space in search of lower asking
rates, only to be surprised by
how broad based rent growth
has been across the market,”
CBRE said in the report.
The industrial market has
posted positive net absorption
for 22 consecutive quarters, with
485,714 sf absorbed in the third
quarter and 1.9 million sf of pos-
itive net absorption year to date.
According to CBRE, residen-
tial construction is driving much
of the leasing activity.
A total of 1.2 million sf in six
buildings was delivered in the
third quarter. Another 2.3 mil-
lion sf, 36.3 percent of which is
preleased, is being developed.
“Investors and develop-
ers continue to construct large
buildings over 100,000 square
feet, with eight currently under-
way. Highly demanded smaller
buildings are under construc-
tion in limited numbers, but not
enough to provide substantive
relief to market demand, the
MarketView report said.
“Demand for industrial real
estate will continue to exceed
supply in the near term. The
Denver market will remain a
sellers market in upcoming
quarters, and expect strong fun-
damentals to continue,” it said.
s
Associated Energy Systems will occupy the building at 6700 E. Stapleton
Drive South in Denver.
Bill Thompson
and elevator bank for tenants
of the available floors – Floors
6 through 9 – which will be
marketed starting in January.
The building will have 40,000-
sf floor plates.
Targeted for LEED Platinum
certification, 16 Chestnut will
make extensive use of glass,
allowing for striking views
of the city and mountains.
Gensler is the architect. Build-
Mark will provide construction
management. A general con-
tractor hasn’t been named.
East West Partners and Star-
wood Capital Group devel-
oped two other buildings in
the neighborhood: One Union
Station, which sold for a record
$602 per sf in 2014, and the
recently completed Triangle
Building, whose tenants will
include Liberty Global and
WeWork.
Only a handful of sites in the
Denver Union Station neigh-
borhood have yet to be devel-
oped. East West and Amstar
are working on plans for B
Block, while three other sites
are planned for apartments
and a hotel.
s
DaVita
