Colorado Real Estate Journal - April 20, 2016
A 144,283-square-foot flex project in Englewood sold to a Southern California family for $15.6 million, or $108.12 per sf. Arapahoe Service Center is located on 11.11 acres at 6555, 6665 and 6675 S. Kenton St. It was 96 percent occupied at the time of its sale to the Kumar Family Trust, a first-time buyer in the Denver market. A limited liability company affiliated with SVN Equities sold the property in a deal that drew multiple offers, according to Newmark Grubb Knight Frank Executive Managing Director David Lee. Arapahoe Service Center is a Class B flex project facing East Arapahoe Road. It is the first flex property along Arapahoe east of Interstate 25, and that accessibility was appealing to investors, said Newmark Grubb Knight Frank Executive Managing Director Riki Hashimoto. It has nice architectural appeal with a good glass line, flexible unit sizes, dock-high and drive-in loading doors, and a “good, solid mix of uses,” said Lee, who was involved in the transaction. Lee called Arapahoe Service Center a “best-in-class” flex property. “It was bought far below replacement cost, and it’s an irreplaceable location,” he said. “Land in that type of location would command retail-type pricing.” National Technology Transfer, or NTT, is a major tenant at the property, whose 15 occupants also include Ford Motor Co., Data Connect Corp. and WalkMed Infusion. Tenant office build-out averages approximately 50 percent. The U.S. Postal Service used to be a large tenant at Arapahoe Service Center, and after it vacated, SVN Equities divided and leased up the space. “Retenanting that space was something that took some heavy lifting on behalf of the ownership group,” said Hashimoto, adding those efforts positioned the property well for future tenants. Hashimoto and Newmark Grubb Knight Frank Executive Managing Director Dan Grooters handled the transaction with leasing expertise provided by Lee and Jason Addlesperger, also of Newmark Grubb Knight Frank. Other News SCSG LLC purchased an 11,250-square-foot industrial building at 5355 W. 59th Ave. in Arvada for $1.5 million. The ownership group is affiliated with a precision machining company that will occupy the space. The property is located off Sheridan Boulevard and West 59th Avenue, a mile from Interstate 76. The single-tenant building was constructed in 2011. Heather Taylor of NavPoint Real Estate Group handled the transaction. R&M LLC was the seller. Laser Galicia America LLC leased 23,472 sf of industrial space at 16304 E. 32nd Ave. in Gateway Park in Aurora. Kittie Hook of Newmark Grubb Knight Frank represented the tenant. The Pauls Corp.represented the landlord, Gateway Industrial Nineteen LLC.