Colorado Real Estate Journal - May 20, 2015
There was healthy investor appetite for a warehouse/distribution building leased to the University of Colorado Hospital Authority. The 100,691-square-foot building at 13050 E. Smith Road in Aurora, built for the authority in 2005, sold for $8.83 million, or $87.64 per sf. It is three miles north of CU’s Anschutz Medical Campus. “We had extremely strong activity on the disposition side,” said Riki Hashimoto of Newmark Grubb Knight Frank, who said the asset drew private and institutional capital investors from inside and outside of Colorado. “The ultimate purchaser owned the building next door, so it was logical that they owned this building as well,” said Hashimoto, who represented the sellers, PF/MAF Falcon LLC and Frishman Falcon LLC, with NGKF’s Dan Grooters. Records show the buyer was an affiliate of Irvine, Californiabased LBA Realty, which has a regional office in Denver. Although the University of Colorado Hospital Authority has only a few years left on its lease term, it does have renewal options for the building, which it uses for medical equipment and supplies, and document storage. “Given the proximity to the UCH campus off Colfax, it made a lot of sense for why the tenant wants to be there,” said Hashimoto. “I think the investment market saw it as a fairly well-located asset in relation to the tenancy.” The price relative to replacement cost, as well as Denver’s very healthy industrial market, also assured investors. “I think the marketplace saw the fundamentals of the real estate were fairly sound based upon what’s happening in the industrial segment right now,” Hashimoto said. “It really shows the strength and health of the market for these types of warehouse facilities. We were very encouraged by the level of activity we had on this offering.”
-Denver-based Central Development closed on the acquisition of an 11.6-acre industrial park at 8000 Steele St. in Adams County for $1.26 million. CBRE’s Eric Roth and Martin Roth represented the seller, Riverside Investment Holdings LLC. The park is zoned I-2, which allows for uses including outside storage. Central Development will build a 70,000-squarefoot build-to-suit for Samuel, Son & Co. Inc. on a portion of the land. Samuel, Son & Co. is a metals distribution company. The building is slated for completion in December. Central Development plans to sell the excess land to other users or potentially develop additional industrial product on the site, according to company spokesman Brad Cushard. “With the lack of heavy industrial land in the market, this site started to receive attention after a few years of dormancy,” said Eric Roth. “The buyer had many moving parts to navigate and was able to successfully close on the site with a credit tenant in tow.”