April 20-May 3, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 15
Industrial
Self-Storage
by Jill Jamieson-Nichols
A 144,283-square-foot flex proj-
ect in Englewood sold to a South-
ernCalifornia family for $15.6mil-
lion, or $108.12 per sf.
Arapahoe Service Center is
located on 11.11 acres at 6555, 6665
and 6675 S. Kenton St. It was 96
percent occupied at the time of its
sale to the Kumar Family Trust,
a first-time buyer in the Denver
market.
A limited liability company
affiliated with SVN Equities sold
the property in a deal that drew
multiple offers, according toNew-
mark Grubb Knight Frank Execu-
tive Managing Director David
Lee.
Arapahoe Service Center is a
Class B flex project facing East
Arapahoe Road. It is the first flex
property along Arapahoe east of
Interstate 25, and that accessibility
was appealing to investors, said
Newmark Grubb Knight Frank
ExecutiveManaging Director Riki
Hashimoto.
It has nice architectural appeal
with a good glass line, flexible
unit sizes, dock-high and drive-in
loading doors, and a “good, solid
mix of uses,” said Lee, who was
involved in the transaction.
LeecalledArapahoeServiceCen-
ter a “best-in-class” flex property.
“Itwasboughtfarbelowreplace-
ment cost, and it’s an irreplaceable
location,” he said. “Land in that
type of locationwould command
retail-type pricing.”
National Technology Transfer,
or NTT, is a major tenant at the
property, whose 15 occupants
also include Ford Motor Co.,
Data Connect Corp. and Walk-
Med Infusion. Tenant office
build-out averages approxi-
mately 50 percent.
The U.S. Postal Service used
to be a large tenant at Arapahoe
ServiceCenter, and after it vacat-
ed, SVN Equities divided and
leased up the space. “Retenant-
ing that space was something
that took some heavy lifting on
behalf of the ownership group,”
said Hashimoto, adding those
efforts positioned the property
well for future tenants.
Hashimoto and Newmark
Grubb Knight Frank Executive
Managing Director Dan Groot-
ers handled the transaction
with leasing expertise provided
by Lee and Jason Addlesperger,
also of Newmark Grubb Knight
Frank.
Other News
n
SCSG LLC
purchased an
11,250-square-foot industrial
building at 5355 W. 59th Ave.
in Arvada for $1.5 million.
The ownership group is affili-
ated with a precision machining
company that will occupy the
space.
The property is located off
Sheridan Boulevard and West
59th Avenue, a mile from Inter-
state 76. The single-tenant build-
ing was constructed in 2011.
Heather Taylor
of
NavPoint
Real Estate Group
handled the
transaction.
R&M LLC
was the
seller.
n
Laser Galicia America LLC
leased 23,472 sf of industrial
space at 16304 E. 32nd Ave. in
Gateway Park in Aurora.
Kittie Hook
of
Newmark
Grubb Knight Frank
repre-
sented the tenant.
The Pauls
Corp.
represented the landlord,
Gateway Industrial Nineteen
LLC.
s
Arapahoe Service Center is a “best-in-class” flex property on East
Arapahoe Road in Centennial.
by Jill Jamieson-Nichols
A former airplane salvage yard
near a future Stapleton light-rail
station has sold for the second
time in less than two years.
EAT-1602 LLC purchased the
property at 8100-8300, 8101 and
8131 E. 40th Ave. in Denver from
Artemis Ventures LLC for $3.38
million. Artemis bought the prop-
erty for $3.15 million in late 2014.
The site includes two industrial
buildings totaling 18,158 square
feet on 15.5 acres with outside
storage. Only
8.43 acres is
usable, how-
ever, because
the remaining
property is in
a floodplain,
said Brad Gil-
pin of Unique
P r o p e r t i e s
L L C - T C N
Worldwide,
who represented the seller in the
transaction.
The buyer owns a recreational
vehicle rental and sales business
that will relocate to the property
fromelsewhere inDenver. It plans
to sell its existing property, which
is smaller, completing a reverse
1031 exchange, according to Brit
Banks of Dean Callan & Co. in
Boulder, who represented it in the
transaction.
“They needed something with
visibility, and this has some vis-
ibility onto I-70,” said Banks.
Located near Interstate 70 and
Central Park Boulevard, the
property is close to the Shops at
Northfield Stapleton and the new
Regional Transportation District
Central Park Station, which is
part of the new commuter rail
line fromDenver Union Station to
Denver International Airport. The
property incited a bidding war
when it sold in 2014 and gener-
ated significant activity prior to
the most recent sale as well.
“With the commuter rail open-
ing up this month, the redevelop-
ment interest kind of spiked,” said
Gilpin. However, most interest
came from users who are finding
it very difficult to find properties
to buy, especially centrally located
properties. “It’s difficult to find
anything with yard right now of
any size, and especially a site of
that size,” he said.
The property served as an air-
craft salvage yard from the 1960s
until it last July.
The larger of the two buildings
on site is 13,680 sf and features
18- to 23-foot clear height, along
with a loading door. The second
building is 4,478 sf with 14-foot-
clear warehouse space and drive-
in loading.
s
The property that sold is near the Central Park Station on RTD’s East Rail Line.
Brad Gilpin
by Jill Jamieson-Nichols
Not everyone would invest
$11.3 million in a vacant prop-
erty, but that’s what happened in
the sale of a self-storage facility
in Aurora.
Extra Space Aurora LLC, an
affiliate of real estate investment
trust Extra Space Storage Inc.,
bought a brand-new, Class A
property at 2240 S. Xapary Way
just after the certificate of occu-
pancy was issued.
“There are over 1,000 units
in the property – 1,000 vacant
units,” said Marcus & Millic-
hap’s Charles “Chico” LeClaire.
Although the first sale of its
kind in Denver, “The sale rep-
resents a trend in the industry
where developers decide to sell
the property upon completion
instead of taking on the lease-
up risk. This strategy works best
with Class A assets in excellent
locations,” he said.
“There are a lot of developers
out there that would like to sell at
the certificate of occupancy stage,
but the buyer pool is very small
and the deals can be difficult to
do.”
Located near the corner of East
Iliff Avenue and Interstate 225,
the 86,175-square-foot facility fea-
tures mostly climate-controlled
units. The seller was I-225 &
Xapary Way Self Storage LLC,
and the property was its first
self-storage development, said
LeClaire.
The four-story facility features
an institutional-quality leasing
office, advanced security sys-
tems, 24-hour video surveillance,
large freight elevators and a load-
ing zone for customer use. It is
visible to more than 150,000 cars
per day and also has visibility
from a future light-rail line. More
than 187,000 people live within a
3-mile radius.
“The visibility from 225 is
exceptional. That was one of
the reasons Extra Space was so
excited about getting it,” said
LeClaire, noting that type of vis-
ibility draws a lot of renters.
Extra Space owns a dozen
self-storage properties in the
Denver area.
“Not many people are willing
to buy a big facility that doesn’t
have any tenants,” LeClaire
said. “They have to be very, very
strong financially and have confi-
dence in their ability to fill it up.”
LeClaire and Adam Schlosser
of Marcus & Millichap’s Denver
office handled the sale.
s
A rendering of the self-storage facility near Interstate 225 and East Iliff
Avenue, which recently was completed
