Colorado Real Estate Journal - February 18, 2015
A local buyer jumped at the chance to purchase a 112,563-square-foot industrial building – without knowing whether the tenant will renew its lease. That’s because the building at 500 W. 53rd Place in Denver represented sound real estate at a good price – $46 per sf – in an extraordinarily tight market, said Greg Streech of Streech Properties, who acquired the building through an entity called CAGSPI 500 LLC, a partnership with Connexion Asset Group. The buyers are negotiating with the tenant to renew its lease, but Streech said, “We’re not too concerned about leasing up the building because it’s a good-quality building in a great location.” “It was a very fast deal,” said Tyler Smith of DTZ, who represented the buyer with DTZ’s Alec Rhodes and Aaron Valdez. The buyers put the property under contract for the sales price of $5.18 million two days before Thanksgiv ing and completed due diligence within 21 days. “The market has moved so quickly from Thanksgiving to now that Streech Properties’ timing couldn’t be better,” said Smith. Streech Properties is fond of assets that are close to the city core – “The closer in, the better,” said Streech. Along Interstate 25 between Interstates 70 and 76, the West 53rd building sits on 6.43 acres in an industrial submarket whose vacancy rate is around 1.8 percent. “Really, what we’re focused on are properties that kind of market themselves from a location standpoint,” said Streech. Constructed in 1971, the building has 18-foot-clear ceiling height, yard area, 22 dock doors, 140 parking spaces and 15,000 sf of office space. “I think it’s a versatile building given its central location,” Smith said. Metech Recycling, an electronics recycler, occupies the property. Jeff LaForte and Bob Pipkin of Fuller Real Estate represented the seller, 500 W. 53rd Place LLC. The acquisition was the second that Streech Properties has made with partner Connexion Asset Group. The two own a building at 5555 E. 58th Ave. in Commerce City that they leased to Swift Transportation.