Colorado Real Estate Journal - July 2, 2014
Denver-based Westfield Co. has acquired a 12.31-acre redevelopment site on Brighton Boulevard at what ultimately will be a gateway into downtown Denver. The sale of 4120 Brighton Blvd. is the largest transaction to occur on the Brighton Boulevard corridor since the Denargo Market property sold a decade ago – and an indication that institutional-type capital is finding its way to the corridor. The property contains 368,833 square feet of income producing manufacturing/distribution space, allowing Westfield to be patient as the Brighton Boulevard corridor evolves, said Rich Wham, Westfield managing director of investments. Westfield is working with OZ Architecture to explore redevelopment concepts, which likely will include renovation of existing buildings as well as ground-up construction to include office, light industrial, retail and, possibly, residential uses. The property is next to the first light-rail stop out of Union Station. “It is a rare luxury to own a redevelopment opportunity like 4120 that generates current income which allows strategic patience to determine the highest and best use,” said Wham. “We are very pleased to own a significant asset in one of Denver’s most transformative urban neighborhoods. Westfield has been closely watching the Brighton Boulevard submarket for several years and views this acquisition as a near-perfect entry point.” “This strategically located, significant property could represent Denver’s single most promising redevelopment opportunity, delivering considerable upside value,” Kevin McClintock, Westfield vice president of acquisitions, said in a statement. “The timing is optimal for 4120’s makeover due to the continued successes of Brighton Boulevard’s ongoing transformation and multiple new products under way, including an adjacent light-rail station and the upcoming modernization of the neighboring National Western complex,” he said. “The Brighton Boulevard corridor continues to attract tenants seeking a creative and collaborative environment. With over 12 acres of land and more than 300,000 square feet of existing space, 4120 represents a rare opportunity for a forward-thinking company to establish a significant presence immediately adjacent to the first rail stop out of Union Station,” McClintock added. The Matrix Group Inc., through JCRS II Colfax and Midtown Industrial Center LLC, sold the property for $20.25 million, according to public records. CBRE brokers Tyler Carner, Jim Bolt and Jeremy Ballenger represented the seller. Carner said the deal is a “tipping point” for Brighton Boulevard from an investment standpoint. “Where it was speculative 10 years ago, it is certain at this point,” he said. “This is certainly a strong institutional owner investing in this corridor.” The listing received very strong interest from industrial buyers, creative-office buyers, redevelopment groups and others, Carner said. Denver Mayor Michael B. Hancock’s North Denver Cornerstone Collaborative, which ties redevelopment of the Brighton Boulevard corridor and National Western complex together with reconstruction of Interstate 70 and other projects, played into Westfield’s decision to invest in Brighton Boulevard, said Wham. The collaborative is part of what the city has labeled a 23-mile “Corridor of Opportunity” from Denver Union Station to Denver International Airport. Kelly Leid, project manager for the North Denver Cornerstone Collaborative, said during a recent Executive Real Estate Roundtable meeting that the NDCC represents the last large redevelopment area of the city and potentially an “economic juggernaut” that also will serve the needs of the historic Globeville and Elyria-Swansea neighborhoods. Between interstate and light-rail accessibility, “This is the epicenter of locations,” he said.