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by Jill Jamieson-Nichols

An industrial develop-

ment that made headlines

when it was announced 1½

years ago made big news

again with its $46.35 million


The 553,757-square-foot

United Natural Foods Inc.

distribution center at Gate-

way Park in Aurora sold

to an affiliate of Industrial

Income Trust in the larg-

est single-tenant, net-leased

industrial deal ever record-

ed in the Rocky Mountain

region. In fact, there hasn’t

been a sale that has even

come close.

ITT Denver DC LLC, an affil-

iate of Industrial Income Trust,

bought the asset from a group

created by Gateway Park

developer The Pauls Corp.

The building was a build-

to-suit for UNFI, which

moved into it on a 15-year

lease in July. It is located

just east of Peña Boulevard

and north of 40th Avenue at

17901 E. 40th Ave.

Those familiar with the

building, which was built

to LEED Gold certification

standards, say it is an excep-

tional state-of-the art indus-

trial building. Randall Paul-

son was the architect, and

ARCO Design/Build Inc.

constructed it.

The property was market-

ed as a presale opportunity

and was sought after nation-

ally, according to listing bro-

ker Jim Bolt of CBRE. It also

drew international interest.

“It was unique in its size

and long lease term, the

quality of



estate and

l oc a t i on ,

and the

quality of

the tenant.




that you

never see

in Denver,” said Bolt.

ITT, a nontraded real

estate investment trust that

buys industrial properties

leased to credit tenants, con-

tracted to buy the building

once it was completed.

“We were very, very happy

with the way the building

came out. It’s a flagship

development for Gateway

Park,” said Charlie Alexan-

der, a principal with The

UNFI building sale one for the books

The Pauls Corp. developed United Natural Foods’ building at Gateway Park.

Jim Bolt

by John Rebchook

Darrell Schmidt, principal

of Greenwood Village-based

Allante Capital Partners,

recently began construction

of the 68-unit, Class A apart-

ment building at West 38th

Avenue and Julian Street in

the trendy West Highland


One thing that sets the

development apart from

other infill developments

is the innovative financing

approach Schmidt explored

to raise equity for the devel-

opment, scheduled to open

next September.

Allante looked to raise $4

million in equity through

what is known as a Regula-

tion A offering under Securi-

ties and Exchange Commis-

sion regulations.

“I like to deal with private

investors and a good way to

find them is by advertising,”

Schmidt said.

Banks, he noted, only will

lend 70 percent to 80 per-

cent of the amount needed to

build a project.

“That means you either

have to write a check your-

self for the other 20 percent

or 30 percent, or you have to

find investors,” he said.

“The Regulation A offering

allowed advertising, so we

decided to test the waters,”

he said.

He said a lot of venture

capitalists and entrepreneurs

in the early stage of form-

ing a company raise money

through what is known as

a Regulation D filing under

SEC rules.

“I don’t know of any other

real estate developer who

looked at using Reg A to

raise money,” Schmidt said.

“This was kind of out-of-

the-box thinking.”

Regulation A allows pub-

lic offerings not to exceed

$5 million in any 12-month

period, although the SEC is

looking to raise the limit to

$50 million.

Financial statements are

simpler for Regulation A

than the more common Reg-

ulation D, and Regulation A

issuers do not incur either

Exchange Act reporting obli-

gations or Sarbanes-Oxley

Act obligations.

Earlier in the year, Allante

bought advertising in local pub-

lications regarding the potential

method of raising equity.

Schmidt explores advertising for investors

A rendering of Highland Place, which was designed by Kephart.

Please see UNFI, Page 8 Please see Schmidt, Page 22


Greater Denver 4 Boulder County 12 Larimer & Weld Counties 14 Colorado Springs 16 Finance 18 Law &Accounting 24 Property Management 26 CDE 31 Office 2AA Health Care 3AA Industrial 4AA Multifamily 6AA Retail 8AA Who’s News 11AA


Appetite for design

An architectural firm carves out a

niche for designing restaurants

Millenium sale

LaSalle Investment Management

buys the Millenium Financial Center

in Lower Downtown Denver

Building a collection

A Utah company pays

$61.25 million for its latest multifamily

acquisition in the Denver area


The phones ring off

the hook when an Inverness

call center hits the market

6 8 1AA 2AA

See Section B