Colorado Real Estate Journal -
An industrial development that made headlines when it was announced 1½ years ago made big news again with its $46.35 million sale. The 553,757-square-foot United Natural Foods Inc. distribution center at Gateway Park in Aurora sold to an affiliate of Industrial Income Trust in the largest single-tenant, net-leased industrial deal ever recorded in the Rocky Mountain region. In fact, there hasn’t been a sale that has even come close. ITT Denver DC LLC, an affiliate of Industrial Income Trust, bought the asset from a group created by Gateway Park developer The Pauls Corp. The building was a buildto-suit for UNFI, which moved into it on a 15-year lease in July. It is located just east of Peña Boulevard and north of 40th Avenue at 17901 E. 40th Ave. Those familiar with the building, which was built to LEED Gold certification standards, say it is an exceptional state-of-the art industrial building. Randall Paulson was the architect, and ARCO Design/Build Inc. constructed it. The property was marketed as a presale opportunity and was sought after nationally, according to listing broker Jim Bolt of CBRE. It also drew international interest. “It was unique in its size and long lease term, the quality of the real estate and location, and the quality of the tenant. It’s just something that you never see in Denver,” said Bolt. ITT, a nontraded real estate investment trust that buys industrial properties leased to credit tenants, contracted to buy the building once it was completed. “We were very, very happy with the way the building came out. It’s a flagship development for Gateway Park,” said Charlie Alexander, a principal with ThePauls Corp. UNFI is a leading distributor of natural, organic and specialty foods to supermarket chains, food service firms, independent retail operators and natural products superstores, including Whole Foods Market. It is a longtime tenant in Gateway Park, which offers quick access to Interstate 70 and Denver International Airport, as well as amenities that include restaurants and hotels. United Natural Foods contracted with The Pauls Corp. to develop the building because it needed to grow and its space previously was split between different facilities. Its new building, which has 32-foot clear height, an ESFR sprinkler system and parking for 84 truck trailers, is located on 38.9 acres, allowing for future expansion up to an additional 169,700 sf. UNFI’s building is the largest industrial building to be constructed in Denver since 2007, when Prologis developed a 625,000-sf warehouse/distribution center for Furniture Row.