Colorado Real Estate Journal - April 6, 2016
Industrial users looking for Class A space in the central Denver market soon will have an option at Interstates 25 and 76. Westfield Co. will deliver 421,500 square feet of speculative space at Hub 25, a redevelopment of the long-vacant Mapleton High School property at 601 E. 64th Ave. The 23.76-acre project will consist of four buildings ranging from 43,500 to 145,000 sf. It will be capable of accommodating tenants as small as 20,000 sf. Lease rates will average around $8 to $8.25 per sf triple net, depending on the size of the tenant, according to Westfield partner Randy Schwartz. “ The Mapleton High School site has sat vacant and unavailable for 20 years and to now have the opportunity to redevelop it into Hub 25, a project that will provide high-quality space for local businesses, is very exciting for our company,” Schwartz said. Mapleton Public Schools sold the site to Westfield late last year for $7.08 million. Located just east of northbound I-25 and accessible within a mile from both the 58th Avenue and 70th Avenue exits, it offers a host of advantages for industrial users, according to Tyler Carner, senior vice president of CBRE Denver’s Industrial and Logistics Services group. “The combination of unparalleled I-25 signage opportunities, Class A development, small-bay space and an infill location in an unincorporated enterprise zone sets Hub 25 apart from any industrial project developed in Denver in the last decade,” he said. The site has I-2 and I-3 zoning, allowing flexibility for a range of industrial uses. It also has 1,800 feet of frontage along I-25, with 213,000 cars per day passing by. “Not only is the frontage greater than any other recent industrial development, but Hub 25’s location between I-70 and I-76 means users can potentially avoid much of the congestion likely to occur with the upcoming renovation of I-70 east of Denver,” said Jeremy Ballenger, vice president in Industrial & Logistics Services at CBRE. Because it’s in unincorporated Adams County, in an enterprise zone and outside any metropolitan districts, users can realize potential tax benefits of 25 to 35 percent, he said. “Hub 25 is well poised to meet the unique needs of the Denver industrial market, especially within construction supply, showroom and as a last-mile distribution solution for e-commerce users,” said Ballenger. The project can accommodate light-industrial users or large tenants while offering an infill location and Class A quality. There is potential for build-to-suits, although Westfield plans to construct the project in a single phase, delivering the first building in first-quarter 2017. Buildings will have 28-foot ceilings, 135-foot truck courts, trailer parking and storage, front-park, rear-load options, efficient column spacing and ESFR sprinklers.