Colorado Real Estate Journal - June 1, 2016
Etkin Johnson Real Estate Partners got creative in leasing up a large office/flex property in Littleton. Southpark Business Center, which was vacant when Etkin Johnson purchased it in 2013, now is fully occupied – by a credit tenant, a self-storage facility and an auto consulting group. Located at 8000 Southpark Way, the property consists of two single-story buildings of 112,279 and 33,238 square feet, and a large, fenced lot. Etkin Johnson bought the business center from Lockheed Martin Corp. for $31.50 per sf. It transformed the larger building into a state-of-the-art self-storage facility managed by Extra Space Storage. The property consists of 772 climate-controlled units that provide customers with first-floor access. There also is a loading dock for easy loading and unloading. “The self-storage conversion at Southpark Business Center is a great use for the property,” said Etkin Johnson President David Johnson. “The location is convenient not only for Littleton residents and businesses but also for the broader Denver area, with quick access from U.S. 85 and highway 470. We look forward to meeting the storage needs of the surrounding community with this state-of-the-art facility.” Lockheed Martin, which used to occupy Southpark Business Center, signed a lease for the smaller building. Major tenant improvements are underway, and the company is scheduled to move in in July. “We are thrilled to have Lockheed Martin back at Southpark Business Center,” said Ryan Good, Etkin Johnson executive vice president and partner. “The company’s familiarity with the property gave all parties the assurance that the building, in terms of size, location and infrastructure, would certainly be a great fit for them.” Lockheed Martin’s Autonomous Systems division will use the building for research and development. Good negotiated the lease with Duncan Heitman of JLL, who represented Lockheed Martin. The final piece of the puzzle was leasing a portion of Southpark Business Center’s large upper parking lot to JFR & Associates Inc., which helps people buy new and used cars. The company will have 350 parking spaces in the fenced lot. “We were excited to put the deal together with JFR & Associates,” said Good. “It was the last piece of the puzzle that has turned Southpark Business Center into an income-producing asset.” Good said all three users will capitalize on what attracted Etkin Johnson to the asset in the first place: convenient access to major thoroughfares, flexible floor plates suitable for a variety of uses and ample parking. “Those features proved to create a tremendous amount of value and ultimately led to a successful repositioning of the asset,” said Good. Other News Denver jetCenter Inc. paid $3 million for an industrial property at 8551 S. Aviator Lane in Englewood. Centennial AP LLC was the seller. Tyler Smith, Sam Slaton and Matt Trone of Cushman & Wakefield represented the seller. Cabletech Sling & Supply purchased a 16,032-square-foot warehouse along the Interstate 70 East corridor in Denver. Located at 5085 Oakland St., the property sold for $1.75 million. The seller was 5085 Oakland LLC. Cabletech Sling & Supply is a family owned and operated business that provides wire rope for construction and towing purposes. The property will house its front office, light-fabrication and distribution operations, allowing the company to remain close to its customer base. Jason White of JLL represented the buyer. Taylor Hazard and Aaron Valdez of Cushman & Wakefield represented the seller. The building was constructed in 1978 and sits on 1.08 acres. Previously home to MJ Systems, it will undergo substantial renovations, including removal of walls and lab space to create an open warehouse. “Cabletech enlisted JLL to help them find a property that would allow them to purchase and own their own real estate,” said White. “This particular property struck the right balance of quality, price and proximity to the audiences Cabletech services. Additionally, inventory of user-owner buildings in the Denver metro area is still low, so identifying a building for sale that fit their requirement was very exciting.” In a separate deal, Hazard, along with Cushman & Wakefield’s Kirk Vanino, sold a 4,960-sf industrial/flex building at 5120 Havana St. in Denver to 5120 Havana LLC for $725,000. The property sold within 23 days of being listed. “In our estimation, both of these transactions are a sign that the market for user sales remains robust as both were highly competitive listings involving multiple offers,” said Hazard. BeavEx Inc. signed a long-term lease expansion and extension at 12435 E. 42nd Ave. in Denver. The company now has 43,200 sf in the building. Bill Thompson and Jim Bolt of CBRE Inc. represented the landlord, Invesco Real Estate. Tyler Smith of Cushman & Wakefield represented the tenant. Thompson also recently handled several long-term lease extensions: • McKesson Corp., 110,400 sf at 3400 Fraser St. in Aurora. Thompson represented the tenant. First Industrial Realty Trust is the landlord. • Insulfoam Inc., 83,748 sf at 12601 E. 33rd Ave. in Aurora. Thompson, along with Mike Camp and Jim Bolt of CBRE, represented the landlord, Lightning Propco I LLC. • Southern Wine & Spirits, 57,490 sf at 5330 Pecos St. in Denver. Thompson represented the tenant. Tyler Carner, also of CBRE Inc., represented the landlord, DCT Industrial. • Worm’s Way Inc., 45,400 sf at 11605 E. 55th Ave. in Denver. Thompson represented the tenant, and Camp and Bolt represented the landlord, Colony Light Industrial. Caliber Body Works leased 16,604 sf of industrial space at 15558 E. Hinsdale Circle, Unit A, in Centennial. Matt Call, Matt Kulbe and Anthony Damico of NavPoint Real Estate Group represented the landlord. KD Service Group LLC leased 14,022 sf of industrial space at 3820 Revere St. in Denver. Tyler Smith, Alec Rhodes and Aaron Valdez of Cushman & Wakefield represented the tenant. Fall River Investments is the landlord. Nippon Express subleased 8,517 sf of industrial space at 4250 Carson St. in Denver from Iron Mountain. Bill Thompson and Jim Bolt of CBRE represented the subtenant. Carmon Hicks and Mitch Zatz of JLL represented the sublessor. Awning Company of America Inc. bought a 7,680-sf office/warehouse building in Englewood with plans to up the square footage. The company paid $925,000 for the building, which is located on 0.91 acres at 1860 W. Hamilton Place. The property has a large, fenced yard. “We were under contractor before I was even able to bring it to market,” said Dawn McCombs of Avison Young, who represented the seller, MMD Properties LLC. McCombs said she was aware of the buyer’s requirement and presented it with the opportunity. Awning Company of America liked the property because of its visibility to West Hampden Avenue and proximity to Interstate 25, she said. “It’s a great little building with a nice yard,” said McCombs. “I’m certain that had it come to the market, we would have had a ton of interest and multiple offers because there is just so little in that size range with yard.”