Colorado-Real-Estate-Journal_375567

Page 14 - December 6-19, 2023 www.crej.com Industrial by Avalon Jacka COLORADO SPRINGS – A speculative industrial building adjacent to the Colorado Springs Airport has reached full lease-up. Central Development has welcomed three tenants – U.S. Building Supply Inc., Redstone Technical and Vital Records Control – to 950 Vapor Trail, a 58,500-square-foot built-to-suit building at Aerotech Commerce Center. Randy Churchill Dowis and Paul Engel of NAI Highland represented Central Develop- ment in the lease deals. U.S. Building Supply, a sup- plier of building products such as siding, windows, doors and gutters, leased approximately 30,000 sf and was represented by John Propp Commercial Real Estate. Redstone Technical, a dis- tributor of silicon wafer handling products, leased approximately 15,000 sf and was represented by Re/Max. Vital Record Control, a records and information manage- ment solutions provider, leased approximately 15,000 sf and was represented by Core Commer- cial. All three tenants are cur- rently occupying their respective spaces. “The Central Development team truly delivered a unique high-cube distribution product to the Colorado Springs airport sub- market,” said Dowis. “Architec- tural features and overall design and functionality set us apart from our competition. Efficiency – coupled with quality construc- tion and design – led to us achiev- ing over 50% preleasing activity and signed leases long before the core and shell were finished.” “We filled a void in the market for medium-sized tenants sup- porting the area,” said Central Development principal and co- founder Jeremy Records. “These businesses need local resources for receiving and distributing product. They chose the location for the same reasons leaders like FedEx and Amazon have built or leased nearby facilities.” Records noted the submar- ket, which includes many metal buildings with low clear height, is underserved by new construction and is lacking in the quality that 950 Vapor Trail provides, which drove demand for space at the project. The 950 Vapor Trail project originated after Carrier West approached Records for help with securing a built-to-suit near the airport. Central Development found the 950 Vapor Trail site, but Carrier West did not need the full lot. After completing Carrier West’s tilt-up concrete building at 930 Newport Drive in 2021, Central Development began construction on the speculative building at 950 Vapor Trail in early 2022. Records said the proj- ect was one of the smoothest Cen- tral Development has ever done between entitlement, construc- tion and costs. Intergroup Architects designed both of Central Devel- opment’s tilt-up concrete build- ings, which earned Tilt-Up Achievement Awards in 2022 and 2023 from the Tilt-Up Con- crete Association. The property is within minutes of the Colorado Springs Municipal Airport, Peter- son Air Force Base and Interstate 25. Central Development currently has $75 million of industrial proj- ects in design or under construc- tion. Central Development is the developer of Encompass Business Park in Centennial, which is in various stages of development. The firm is in the process of leas- ing the 173,000-sf Encompass 173 building to numerous large ten- ants, while the 123,000-sf Encom- pass 123 building is currently in the entitlement process and the 53,000-sf build-to-suit Encompass 53 building is ready to begin con- struction. The developer’s next project is Rock Commerce Center, a 14-acre large-scale retail showroom adja- cent to Interstate 25 with high vis- ibility, approximately 30 minutes north of Colorado Springs. The project is expected to attract home furnishing, building supply/ser- vice, HVAC, and motor or indoor sports businesses. s Central Development leases up 950 Vapor Trail spec building by Avalon Jacka COMMERCE CITY – A Penn- sylvania-based building and construction supply company continued its expansion into the Colorado market. The Western division of 84 Lumber opened its new, 85,000-square-foot door shop at 11002 E. 108th Ave. in April. Park 76 Owner LLC leased 84 Lumber the space in the 2021-built facility. The company will have the capa- bility to produce 3,500-5,000 door units per week in the new facility. In north Denver, 84 Lumber also recently opened a 6-acre, full- service lumberyard at 5170 Kala- math St. with plans to expand the 19,431-sf facility. Greeley will be home to 84 Lumber’s next location, another full-service lum- beryard with 7 rail-served acres, scheduled to open in third-quar- ter 2024. The company also has plans for a full-service truss yard in Fort Lupton, which is currently in the permitting stage. The yard is anticipated to open in fourth- quarter 2024. The company also plans to expand into Colorado Springs and potentially open a second truss yard in Fort Collins in the future. Grand Junction is home to 84 Lumber’s first Colo- rado location, a full-service lum- beryard. “We are looking forward to not only serving the builder popula- tion in Colorado, but also look forward to being a good com- munity partner in the future by helping with charitable com- munity events and needs,” said Pete Cantu, area manager for 84 Lumber. The company currently has 310 facilities in operation, including 234 stores, 14 component manu- facturing plants, 28 engineered wood products centers and 34 door shops. Other News n AURORA – Marcus & Mil- lichap arranged the sale of a Stor- Quest managed facility at 7505 S. Addison Court. Morningstar purchased the 79,605-square-foot facility from Resolute for an undisclosed price. Adam Schlosser and Charles “Chico” LeClaire of Marcus & Millichap’s Denver office had the exclusive listing to market the property on behalf of the undisclosed seller, a local pri- vate equity group. Schlosser and LeClaire also procured the undis- closed buyer, an out-of-state firm that is new to the storage market. The StorQuest facility includes one multistory climate-controlled building and 11 single-story buildings comprised of 261 cli- mate-controlled units and 353 non-climate-controlled units. The property provides amenities such as 24-hour video surveillance, premium interior and exterior lighting, secure digital keypad ingress and egress, a large leasing office with a conference room, prominent signage and wide drive aisles. The facility has visi- bility tomore than 45,000 vehicles per day from the southeast loop of E-470. n WINDSOR – A 7.5-acre land parcel with city-approved plans for a storage facility in the North- ern Front Range corridor has traded hands. McShane purchased the prop- erty at 340 Crossroads Blvd. from New Liberty Storage LLC for an undisclosed price. The light industrial-zoned parcel has been fully entitled by the city of Wind- sor for a 78,550-sf enclosed sin- gle-story self-storage facility. The population in Windsor has dou- bled between 2011 and 2021 with an average 7.11% yearly growth rate. The area has an average household income of $125,000. Thomas Parsons and Adam Schlosser of Marcus & Millichap marketed the property on behalf of the undisclosed seller, a local land developer. The Marcus & Millichap team also procured the buyer, a local investment group with a history of successful self- storage developments around the Front Range. “Buyers have been increasingly willing to buy entitled storage development sites because other- wise they’re starting from scratch, which can take two-plus years, cost hundreds of thousands of dollars, and eventual approval is far from certain,” said Parsons. “Challenges to this deal were high development costs, includ- ing both construction loan inter- est rates and construction materi- als, as well as high property taxes for this parcel due to a local metro district.” n DENVER – NAI Shames Makovsky facilitated two indus- trial property sales in Denver. Albrook Partners LLC pur- chased a 34,782-sf building at 6270 E. 50th Ave. from CCE Real Estate LLC for $3.78 million. The property is situated between Interstates 70 and 270. Bill Thompson and Mike Camp of CBRE represented the seller. Paul Cattin and Adam Hubschman of NAI Shames Makovsky repre- sented the buyer. The buyer plans to lease the property immediately or flip the property for sale with some improvements in 2024, Cat- tin said. TN Telephone Facility LLC purchased a 3,948-sf property at 1465 S. Cherokee St. from Dou- ble Trouble Investments LLC for $1.16 million. The property is located off South Santa Fe Drive and West Florida Avenue. The buyer was represented by NAI Shames Makovsky’s Craig Myles and Thrive Commercial Group’s R.C. Myles. Stephen Chipman and Michael Bright of BRC Real Estate represented the seller. n DENVER – Gruber Com- mercial Real Estate facilitated the sale of a crane-served indus- trial asset for $4.15 million. The 27,279-sf property, located at 4300-4350 Race St., features a 10,250-sf, two-story office build- ing constructed in 1970 and a 17,029-sf clear-span warehouse built in 2007, as well as a fenced and paved yard. The warehouse includes three oversized grade- level doors and 25-foot clear height. The property is zoned I-A for light industrial use. Russell Gruber represented the sellers, Race & York RLLP, while Steve Fletcher represented the buyers, CGCP Properties LLC. Both brokers are from Gruber Commercial Real Estate. CGCP Properties fabricates and assembles air compressors and accessories for factories. The 5-ton crane on the property will help facilitate CGCP’s process, Fletch- er said. n GOLDEN – A 5.32-acre industrial site south of South Table Mountain sold for $5.15 million at the end of August. The property at 17805 S. Gold- en Road features three buildings totaling 24,900 sf. The property was formerly a service facility for seller Public Service Company of Colorado, doing business as Xcel Energy. The buyer, Flywheel Capi- tal, was represented by Patrick McGettigan of JLL. Brendan Fisher and Rick Schuham of Sav- ills represented the seller. n DENVER – A flex property situated across the street from Empower Field has traded hands for $2.5 million. Jake Klimas and Brandon Kramer of Marcus & Millichap had the exclusive listing to mar- ket the 11,600-sf property at 1919 Federal Blvd. for the seller, an undisclosed private investor. The transaction utilized a seller carry to facilitate the deal. The undis- closed buyer is in the transporta- tion industry. Situated on a 0.4-acre lot, the property offers ample clear height and a spacious interior. n DENVER – A landscaping company has leased a 5,258-sf office/warehouse property off Interstate 70. Dalia Landscaping LLC leased the property at 4701 Jackson St. for three years from landlord Canetti Properties. The land- scaping company was attracted to the property because of its central location, great highway access and its fenced yard for out- door storage. Eric Shaw of Pinnacle Real Estate Advisors represented the landlord. Zach Propst of Crosbie Real Estate Group represented the tenant. s Pennsylvania building supply company expands in Colorado The developer of the speculative industrial project at 950 Vapor Trail signed U.S. Building Supply, Redstone Technical and Vital Records Control, fully leasing the project.