Colorado Real Estate Journal - February 4, 2015
An International company recently signed a 72,199-squarefoot lease for industrial space at Stapleton Business Center North, continuing a preleasing trend in Denver’s tight industrial market. Brighton-Best International will be a tenant in the new building at 9700 E. 56th Ave. in Denver. The company is a supplier of nuts, bolts, socket screws and other fasteners. Developer Prologis initiated the 400,000-sf building on a speculative basis, and Czarnowski Display Service preleased 258,000 sf. Czarnowski already has expanded into another 72,199 sf, and the Brighton-Best deal brings it to full occupancy, according to Bill Thompson of CBRE, who represented Prologis with CBRE’s Jim Bolt and Mike Camp. Prologis is completing a 392,425-sf building next door at 10000 E. 56th Ave., but it looks as though that building, too, will be fully leased. HD Supply took 261,000 sf, and another tenant reportedly is under letter of intent for the remaining 131,000 sf. Now out of inventory, Prologis reportedly plans to break ground soon on a 250,000-sf building at Stapleton Business Center North to help satisfy demand for large blocks of new industrial space in Denver. Across Interstate 70 at Enterprise Business Center, United Properties had similar preleasing success with new buildings completed last year.
Vista Park I J LLC sold a 56,014-square-foot industrial building at 4905 York St. in Denver to 49 York Partners LLC for $4.2 million. The net-leased building previously was achieving belowmarket rents, making the acquisition a good value-added play as existing leases expire, according to Unique Properties LLC-TCN Worldwide. Unique’s Marc Lippitt, Scott Shwayder and John Sheflin handled the transaction. Situated on 4.94 acres, the building was constructed in 1961. Lipan Properties LLC bought a 42,110-sf industrial property at 3333 E. 52nd Ave.in Denver from 52nd & Cook LLLP for $3.1 million. Trevor Brown of DTZ represented the seller. Dawn McCombs of JLL represented the buyer. TJTM Castle Rock LLC purchased a 15,683-sf single-tenant office/industrial building in the Citadel Station development in Castle Rock for $1.98 million, or $126 per sf. Located at 1050 Topeka Way, the building is just off Plum Creek Parkway, three blocks from Interstate 25. It was constructed in 2002 and is fully occupied by Max Fire A Apparatus. RHI LLC was the seller. Matt Call of NavPoint Real Estate Group handled the transaction. Spitzer Electrical Co. purchased a 20,800-sf multitenant industrial building at 3768 Norwood Drive in Littleton from Norwood Drive Partners LLC for $1.48 million, or $71 per sf. The property is 100 percent leased to six office/flex and office tenants. Platinum Automotive occupies about 40 percent of the space. Spitzer purchased the property as part of a 1031 exchange. Jeff Kummer of Altitude Commercial Realty, who represented Spitzer Electrical, said the property provided a rare opportunity for a 1031 buyer to purchase an industrial investment property in the southwest metro market, where the vacancy rate is only 3 percent. Nick Schill of Pinnacle Real Estate Advisors was the listing broker. “This was a true 8 percent cap rate, so the buyer reacted quickly,” he said. Viaduct 37 LLC paid $1.35 million for a 0.36-acre site at 3642 Jason St. in Denver. The seller was 1101 W. 36th LLC. The site was a storage yard for Ground Service Co. for many years, but recent demand for redevelopment opportunities in the area made it very attractive to residential-type developers, said Russell Gruber of Newmark Grubb Knight Frank. The buyer is a builder who has completed residential development in the area. “Activity was very steady on the property through its listing period,” said Gruber, who represented the seller with Steve Fletcher, also of NGKF. TechnoAlpin USA, which makes snow-making equipment, signed a long-term lease for 17,160 sf of Class A industrial space at 8465 Concord Center Drive in Englewood. Bill Thompson and Mike Camp of CBRE were the listing brokers. Todd Witty of CBRE and Mark Dwyer of Lincoln Property Co. represented the tenant. Thompson also recently handled three lease renewals in the Denver market. McKesson Medical signed a long-term lease renewal for 105,432 sf of space a 5301 Peoria St. in Denver. Thompson represented the tenant, and CBRE brokers Mike Camp and Jim Bolt represented the landlord, IndCor. At Peoria Business Center in Denver, Thompson and Bolt represented the landlord in a long-term lease renewal with UPS Supply Chain Solutions for 49,275 sf at 12360 E. 46th Ave. John Reynolds of DTZ represented the tenant. In addition, Servall Co. renewed its lease for 17,700 sf at Centerpark, 4900 Osage St. in Denver. Thompson, Bolt and Camp represented the landlord, DCT Industrial. A 14,225-sf office/warehouse property at the intersection of North Federal Boulevard and West 67th Court, four blocks from the northwest RTD FastTracks depot, sold for $825,000, or $60 per sf. The property was built in 1958 and 1980. Nick Schill and Brandon Gouker of Pinnacle Real Estate Advisors represented the seller, MJM Harris Inc., in the transaction. The property was an assemblage of three different parcels totaling more than 57,000 sf of land with frontage on Federal Boulevard, said Schill. The office and warehouse will be used for storage of hotel furniture and dry goods.