Colorado Real Estate Journal - March 18, 2015
A construction-supply company has leased 107,000 square feet at the former Sears Outlet property at West Sixth Avenue and Interstate 25, a key first step in the property’s redevelopment. White Cap, a division of HD Supply, will consolidate two existing locations in Denver and Englewood with its move to the new Denver Urban Business Center. “This building worked well because it provides really good identity and access. It provides some of the best identity in the city,” said Alec Rhodes of DTZ, who represented the tenant with DTZ’s Tyler Smith. “White Cap seized a great opportunity to be the lead tenant at a property that offers functional space with unmatched highway access and visibility,” added JLL’s Mitch Zatz. “We are very excited to have them as a partner while we continue to attract other businesses that can benefit from the location and function of the property.” Zatz and JLL’s Peter Beugg and Tyler Reed represented Denver Urban Business Center in the transaction. White Cap will open a warehouse and will-call center to service its large contractor base. It will be operational in the building at 701 Osage St. this summer. DUBC is located on the northeast corner of Sixth and I-25. The Sears Logistics and Sears Outlet facility was located there for the past 60 years. Owner Arc Capital Partners of Los Angeles and developer Triumph Real Estate Corp. of Denver now are transforming the property into a multitenant distribution center. Denver Urban Business Center is located in the central Denver industrial submarket, where the vacancy rate is at an alltime low, hovering around 2 percent. DUBC is the only available property in central Denver that offers trailer parking, flexible unit sizes and unfettered access to Sixth Avenue, I-25 and downtown Denver. “My hat is off to the professionals at JLL and DTZ for their expertise and the expertise they brought to bear in putting this complex transaction together,” said Paul Ruff of Triumph Real Estate. “We are proud to welcome White Cap as an anchor tenant to Denver Urban Business Center and are excited for the significant momentum the transaction adds to the market and the project.” The central Denver submarket has seen tremendous momentum in the latest recovery with businesses requiring close proximity to downtown Denver to serve the rapidly expanding millennial population and construction boom. Next-day delivery and diminishing lead times for product delivery make location of leased facilities more critical than ever. “We could not be more excited since this lease validates both the strength of the Denver economy as well as the missioncritical location of our property. Thanks to the efforts of Triumph and JLL, we have seen leasing activity accelerate faster than expected,” said Neville Rhone of Arc Capital Partners.