Colorado Real Estate Journal - February 19, 2014
A 906,845-square-foot portfolio of Denver industrial properties has changed hands in a $36.9 million transaction, according to public records. Boston-based TA Associates Realty, one of the country’s largest real estate advisers, bought the portfolio, on behalf of investors in The Realty Associates Fund X LP, from TRM-Montbello Corp. The seller was a pension fund managed by Invesco Real Estate in Dallas. The price per sf was $40.69. Large by Denver standards, the portfolio consists of 18 buildings ranging from 7,240 to 98,784 sf in Montbello Industrial Park. The buildings are 90 percent leased to 34 tenants. Located along Interstate 70 between Havana and Peoria streets, Montbello Industrial Park is part of Denver’s dominant industrial submarket. Colliers International brokers T.J. Smith, Brad Calbert and Tom Stahl handled the sale. Smith, citing a confidentiality agreement, said he couldn’t discuss specifics of the transaction. But at a recent industrial conference in Englewood, he said the portfolio drew 16 offers from buyers driven by the portfolio’s discount to replacement cost. The buildings were built predominantly in the 1970s and 1980s. “It shows the depth of the buyer pool for industrial in Denver,” said Smith. Net rents were $3 to $4 per sf triple net, he said. The portfolio was developed by Chicago-based Bennett & Kahnweiler, according to Jim Bolt, an industrial property expert at CBRE in Denver. “It was well occupied with good upside in rental rates and potential of spinning off and selling buildings to users,” Bolt said, noting there is strong demand from users for buildings to acquire. He was not involved in the transaction. The properties included: • 5075-5081 Kingston St., 61,111 sf; • 4909 Kingston St., 42,310 sf; • 4901-4907 Nome St., 54,920 sf; • 4705 Nome St., 41,200 sf; • 4825 Nome St., 50,832 sf; • 4905 Lima St., 34,623 sf; • 11909 E. 51st Ave., 39,382 sf; • 11925-11945 E. 49th Ave., 51,216 sf; • 4900 Lima St., 98,784 sf; • 4850 Lima St., 45,458 sf; • 11809-11839 E. 51st Ave., 7,240 sf; • 5035 Oakland St., 18,552 sf; • 5095 Paris St., 21,407 sf; • 4959 Kingston St., 49,164 sf; • 4985 Lima St., 49,164 sf; • 4700 Havana St., 35,657 sf; • 850-4870 Nome St., 62,482 sf; and • 4900 Moline St., 63,569 sf.