Colorado Real Estate Journal - February 5, 2020
A real estate investment management firm bought the newly completed Parc Santa Fe industrial development in Highlands Ranch. Developers Jackson-Shaw and LaPour Partners sold the three-building, 345,126-square-foot project to Chicago-based LaSalle Investment Management. The price wasn’t released, but public records show it was $58 million, or $168.05 per sf. Located south of C-470 and South Santa Fe Drive, Parc Santa Fe is the first new industrial development in the area since 1997. Tyler Reed, Peter Beugg and Dominic DiOrio of Stream Realty Partners in Denver, along with Bo Mills of JLL’s Los Angeles office, handled the sale of the property, which was 62% leased to tenants including QED and Sport Court. “Parc Santa Fe has been more than 12 years in the making and responds to the pent-up demand we have seen from tenants in this area for newly built, state-of-the-art industrial facilities,” said Jackson-Shaw President and Chief Operating Officer Michele Wheeler. “The vision for the project has exceeded our expectations due to the great partnership between Jackson-Shaw, LaPour Partners and Stream.” The three buildings at 3393, 3525 and 3535 Carder Court range from 85,903 to 169,590 sf and include both cross-dock and front-park, rear-load options. The development has frontage on Santa Fe, 24- to 28-foot ceiling clearance, gated outside storage, numerous dock doors and abundant power. Reed, Beugg and DiOrio, who have marketed Parc Santa Fe since it inception, will continue to lead leasing efforts. Tom Bahn, Stream Realty managing director-property management, will head up property management. According to Beugg, Parc Santa Fe elicited very strong demand from local and national investors. “There was an extremely large level of interest from the institutional buyers eagerly looking to deploy capital in the Denver industrial market. In today’s market, the development process is exceedingly challenging, expensive and time-consuming; therefore, these large institutions will pay a premium to acquire well-located and fully developed industrial assets,” he said. “We formerly believed that delivering new construction, Class A product in a submarket that hadn’t seen development in over 20 years would result in a release of pent-up demand from credit tenants. Fortunately, our theory resonated with the market, and LaSalle Investment Management agreed as well,” added Reed. “This sale represents continued strong interest from institutional capital to acquire Class A industrial projects in metro Denver,” commented LaPour Partners President Jeff LaPour. “LaSalle Investment Management was a pleasure to work with throughout the sale. They are experts at dissecting markets and understood the nuances that made this sale such a great opportunity.”