INSIDE 15 6 FEATURED 29 CONTENTS MARCH 19-APRIL 1, 2025 Office 6 Industrial 10 Multifamily 15 Retail 19 Finance 31 Law & Accounting 35 CDE News 39 Who's News 54 10 Skyline Park office Crescent Real Estate acquires 557K-sf Park Central building $231M transaction Target purchases cold storage warehouse along Interstate 25 Construction funding Trailbreak closes on financing to break ground on Kaia Residences NAIOP Awards by Avalon Jacka DENVER – A Chicagobased real estate investment trust sold its last remaining property to a Dallas-based private equity firm. In February, LSREF7 Larimer Propco LLC, an entity of Lone Star Funds, purchased 17th Street Plaza from EQC 17th Street Plaza LLC, an entity of Equity Commonwealth, according to Denver County public records. Located at 1225 17th St., the 709,402-squarefoot asset sold for a gross sale price of $132.5 million, or a net purchase price of $124.4 million after credits primarily for contractual lease costs, according to an Equity Commonwealth press release. CBRE National Office Partners’ Jenny Knowlton, Charley Will and Chad Flynn represented the seller in the transaction. The team declined to comment on the sale. Equity Commonwealth purchased the tower in 2009 for $134.25 million under the entity Hub Denver Properties LLC, according to county records. Positioned at the corner of Larimer and 17th streets in the central business district, the 32-story 17th Street Plaza is 81% leased and anchored by CBRE, KPMG, and other “strong” tenants, a sale announcement from CBRE said. Built in 1982 and designed by Skidmore, Owings & Merrill, the Class AA building’s architecture features efficient, columnless floor plates and a “striking” exterior, the website said. The building is LEED Gold certified and has earned an Energy Star rating every year since 2003, according to a leasing brochure. Amenities include panoramic views of the mountains and city, a Heidi’s Brooklyn Deli on-site, an expansive lobby, a large conference facility, a fitness center, 24-hour security, on-site property management, and covered parking with a 1:1,000-sf ratio. The graniteclad asset also features a landscaped outdoor plaza and sculpture garden facing 17th Street and an outdoor mezzanine with a manicured putting green and flower garden overLone Star pays $133M for 17th Street Plaza by Avalon Jacka GOLDEN – A 99-unit apartment community in the west suburbs sold for $47.5 million, or $479,798 per unit, or $436.20 per square foot. MIG Cos. acquired West 8th, located at 1410 Eighth St., from Confluence Communities in March, according to Apartment Insights. The development cost approximately $18.5 million, according to Confluence’s website. The property sold at a 4.83% cap rate, and the estimated one-year cap rate is 5%. “MIG is excited to acquire an exceptional property that allows residents to take advantage of the incredible lifestyle and amenities that Golden, Colorado, has to offer,” said Clark Cannon, who oversees acquisitions of multifamily properties in the Mountain Region at MIG. “We plan to improve the amenities and interiors and deliver a community that positively impacts the lives of our residents.” Walker & Dunlop’s David Potarf, Dan Woodward, Matt Barnett and Jake Young brokered the transaction on behalf of the seller. Interest was very strong due to the rarity of offerings like this coming onto the Golden market, and the team received multiple offers in the marketing process, Potarf said. “It’s great real estate,” Potarf said. “It’s rare that something comes up in Golden, let alone something new. I think there's only five properties that are 2010 or newer, and this is one of them. So, it’s a great long-term asset for the buyer.” Potarf noted that the sale “signals that people are willing to pay for quality … they're big units and great quality on the west side. It was a good price, but also great real estate. Longterm, the buyer will do great with it.” MIG Cos. acquires West 8th MF community Please see West 8th, Page 13 Please see 17th Street, Page 37 CBRE The 709,402-square-foot 17th Street Plaza was the final property in Equity Commonwealth’s portfolio. The company exited the real estate business following the asset’s sale. The 99-unit West 8th apartment complex features a mix of one-, two- and three-bedroom units averaging 1,076 square feet.
Page 2 - March 19-April 1, 2025 www.crej.com Robe Whittelsey 303 283 4581 robeȄ.whittelsey@ colliers.com Building Highlights 4643 S. Ulster St. Ste. 1000 Denver, CO 80237 303 745 5800 | colliers.com/denver This communication has been prepared by Colliers Denver for adveȄising and/or general information only. Colliers Denver makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested paȄy should undeȄake their own inquiries as to the accuracy of the information. Colliers Denver excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted propeȄy of Colliers Denver and/or its licensor(s). © 2024. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Southeast Suburban’s Premier Sublease O ering 5075 S. SYRACUSE STREET | DENVER, CO 80237 • Fully equipped conferencing center • Fitness facility with showers and lockers • 24 hour security guard • Walkable to numerous dining options • 4:1,000 RSF Covered Parking • 2007 Construction • Sublet by strong credit global corporation • Expiration: April 2028 Full Floor Plug and Play Oppounity SUITE 900 | 21,730 SF VIRTUAL TOUR BROCHURE For Rate And Leasing Information, Please Contact: Abby Pattillo 303 283 4579 abby.pattillo@ colliers.com Daniel Krulig 303 283 4570 daniel.krulig@ colliers.com
March 19-April 1, 2025 - Page 3 www.crej.com Marcus & Millichap is different by design. In a rapidly changing investment climate, it pays to work with experts who’ve helped clients succeed through all market cycles. Let us use our unique combination of expertise and access to help you maximize returns and get more out of your investments. Who you partner with matters. SELECT AVAILABLE LOCATIONS 7000 S YOSEMITE. $6,995,000 | Centennial, CO Brandon Kramer & Chadd Nelson GARRISON STATION. $5,995,000 | Lakewood, CO Brandon Kramer & Chadd Nelson 1600 SHERMAN. $5,700,000 | Denver, CO Brandon Kramer, Chadd Nelson & Erik Enstad 4200 KEARNEY ST. $4,450,000 | Denver, CO Alyssa Tomback & Thimy Moraitis CHATFIELD PLAZA. $4,150,000 | Littleton, CO Barry Higgins 25 MONTEBELLO RD. $3,000,000 | Pueblo CO Brandon Kramer, Chadd Nelson & Erik Enstad 6726 S REVERE BUILDING A. $2,399,500 | Centennial, CO Brandon Kramer, Chadd Nelson & Erik Enstad 4850 JACKSON ST. $1,450,000 | Denver, CO Alyssa Tomback & Thimy Moraitis ALLGREENS. $1,163,265 | Denver, CO Alyssa Tomback & Thimy Moraitis 77 E VASSAR. $1,100,000 | Denver, CO Brandon Kramer & Chadd Nelson OFFICE & INDUSTRIAL - DENVER INVESTMENT SPECIALISTS DIFFERENT BY DESIGN. RESULTS TO MATCH. Real Estate Investment Sales » Financing » Research » Advisory Services » MarcusMillichap.com ADAM LEWIS First Vice President / Regional Manager 303.328.2000 Adam.Lewis@MarcusMillichap.com BRANDON KRAMER First Vice President Investments 303.328.2020 Brandon.Kramer@marcusmillichap.com ALYSSA TOMBACK Senior Associate 303.328.2016 Alyssa.Tomback@marcusmillichap.com CHADD NELSON Senior Associate 303.328.2056 Chadd.Nelson@marcusmillichap.com THIMY MORAITIS Associate 303.328.2037 Thimy.Moraitis@marcusmillichap.com ERIK ENSTAD Senior Associate 303.328.2013 Erik.Enstad@marcusmillichap.com BARRY HIGGINS Senior Vice President Investments 303.328.2042 Barry.Higgins@marcusmillichap.com MAX RIST Associate 303.328.2012 Max.Rist@marcusmillichap.com 4805 N KINGSTON ST. $1,495,000 | Denver, CO Alyssa Tomback & Thimy Moraitis 18860 CLARKE RD. $6,250,000 | Parker, CO Brandon Kramer & Max Rist UNDER CONTRACT CLOSED
Page 4 - March 19-April 1, 2025 www.crej.com SM FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONS INDUSTRIAL LAND MULTIFAMILY OFFICE RETAIL PRIVATELY-OWNED AND OPERATED FOR 40 YEARS 8450 Rosemary St Commerce City, CO 80022 8,980 RSF • INDUSTRIAL WAREHOUSE Lease Rate: $15.00 /RSF NNN • Available April 2025, possibly sooner • Radiant Heat & Swamp Coolers in Warehouse • Close to I-76, Highway 85, and Highway 2 • With two drive-ins & dock well 303.512.1162 Phil Yeddis Visit our website to subscribe to our “First Look” mailing list, analytics and more! 303.321.5888 www.uniqueprop.com 5107-5135 Emerson St Denver, CO 80216 LARGE DEVELOPMENT LOT Sale Price: $4,995,000 • Located in a QCT and DDA • Adjacent to the multi-billion dollar National Western Stock Show development. • Located on the hard corner. • Could build up to 7 stories with affordable housing. 303.905.5888 Marc Lippitt & Justin Herman 1915 & 1919 E Colfax Ave Denver, CO 80206 5-STORY DEVELOPMENT LOT / POSSIBLE OWNER FINANCE Sale Price: $2,800,000 • Located within Enterprise Zone • Active Demolition Permit | Expires July 2029 • Permissive zoning | Build Up to Five Stories • Potential to add density with more affordable housing 303.905.5888 Marc Lippitt & Justin Herman 15 E Iowa Ave Denver, CO 80210 SELLER FINANCING AVAILABLE! • 2nd Єoor Shell Condition - Ready for Buildout • Lighted Hard Corner along South Broadway and East Iowa Ave • 32,000 VPD • Owner/User or Investor with Upside 303.512.1197 Sam Leger & Graham Trotter Sale Price: $2,750,000
March 19-April 1, 2025 - Page 5 www.crej.com 303.962.9555 One Broadway Suite A300 | Denver CO 80203 www.PinnacleREA.com Delivering innovative real estate solutions that are client-centric and relationship-focused COMMERCIAL REAL ESTATE - FEATURED PROPERTIES RECENTLY SOLD PROPERTIES $8,520,000 3445 S Downing Street Englewood, CO $42,000,000 1140 Cannon Street Louisville, CO $5,460,000 1123 Auraria Parkway Denver, CO $1,150,000 5500 & 5540 West 29th Avenue Wheat Ridge, CO $13,500,000 7135 Raleigh Street Westminster, CO LIST PRICE: $4,100,000 CURRENT CAP RATE: 7.01% LONE TREE TOWN CENTER LIST PRICE: $3,800,000 ($256.70/SF) PROPERTY DESCRIPTION Address: 15725 E Briarwood Circle | Aurora, CO Building Size: 6,772 SF Lot Size: 1.547 Acres YOC: 2010 Parking: 100 Spaces (Approx) PROPERTY DESCRIPTION Address: 7824 Park Meadows Dr | Lone Tree, CO Building Size: 14,803 SF Lot Size: 1.256 Acres YOC: 2003 Parking: 68 Surface Spaces INVESTMENT HIGHLIGHTS Tenant has operated at this location for over 14 years Cornerstar Shopping Center anchor tenants include: Target, Marshalls, Home Goods, Ross, Old Navy, Five Below, Nike, Urban Air, Sierra, and Ulta Rent increases in 2026 50,656 VPD on South Parker Rd & 78,263 VPD on East Arapahoe Road INVESTMENT HIGHLIGHTS Rare Value-add Multi-Tenant NNN Retail Investment High visibility near major transportation routes such as C-470 for accessibility $116K average income in 3-mile radius Surrounded by a strong residential and commercial demographic Peter Sengelmann 303.962.9552 Jeff Johnson 303.962.9556 Corey Sandberg 303.407.9784
Page 6 - March 19-April 1, 2025 www.crej.com Office COLORADO 2024 TOP PRODUCERS CONGRATULATIONS TO OUR STEVE BILLIGMEIER Vice Chairman TODD WHEELER Vice Chairman 2# 1# DREW MCMANUS Vice Chairman 3# TRAVIS ACKERMAN Executive Managing Director 4# AKI PALMER Executive Managing Director 5# 4th consecutive year as #1 by Avalon Jacka DENVER – An office complex adjacent to downtown’s Skyline Park was acquired by a local real estate investment, operating and development company in a direct deal. TR Park Central LLC, an affiliate of Principal Real Estate Investors LLC, sold the building at 1515 Arapahoe St. to 1515 Park Central Owner LLC in February, according to Denver County public records. The buyer’s listed address is associated with Crescent Real Estate LLC. “We are firm believers in Colorado and Denver,” said Ben Molk, Crescent Real Estate managing director and head of the firm’s national office investments branch. “Once we started looking at Denver, we really were focused on very specific submarkets that we find attractive, and we really like the Skyline Park submarket.” The transaction price was not listed on the sales deed. The seller acquired the property in 2014 for $212.85 million, according to county records. Known as Park Central, the 557,064-square-foot complex is comprised of three towers measuring eight, 11 and 16 floors on 2.44 acres, according to a Cushman & Wakefield leasing listing. Built in 1973, the main entrance and lobby were renovated in 1996. The complex features an outdoor courtyard on the second floor, a three-level underground parking facility, a fitness center, a conferencing facility, mountain views, security, and a deli and café on-site. The main entrance is on 16th Street Mall, offering numerous retail, dining, hotel and entertainment options for tenants and visitors. The property is proximate to RTD’s main bus terminal at Market Street and the 16th & Stout light-rail station, providing tenants and visitors convenient access to public transportation. Park Central is currently 45% leased, according to Molk. Cushman & Wakefield’s Doug Wulf, Michael Coppola and Todd Wheeler are managing leasing efforts for the asset on behalf of Crescent Real Estate. Crescent plans to deliver spec suites and has committed capital for deferred maintenance projects, though the firm is still deciding on further details of its business plan for the building, Molk said. While Crescent Real Estate’s headquarters is in Fort Worth, Texas, the firm has an office in Denver with prominent members of the team, including Molk and Co-CEO Conrad Suszynski. “We’re local. Our CEO sits in Denver, so we're not out-of-towners that are coming in [to Denver for the short term],” Molk said. “We have a lot of people here, and, you know, I'm a native, a lot of our people are Coloradans. We obviously are a Texas company [too], but we're not just that.” The firm’s portfolio includes office, hospitality, multifamily, life science and mixed-use properties across the country. The firm acquired Riverview at 1700 Platte for $129.1 million in 2023’s largest office transaction, according to previous reporting. s Crescent Real Estate acquires Park Central office complex Cushman & Wakefield The 557,064-square-foot Park Central office complex features three towers measuring eight, 11 and 16 floors. by Avalon Jacka DENVER – A pair of tenants signed leases at a new office building in the heart of River North Art District. Langan Engineering & Environmental Services signed a lease for 5,307 square feet at Paradigm River North, codeveloped Jordon Perlmutter & Co. and Rockefeller Group. Rockefeller Group also secured a 5,969-sf space for its Rocky Mountain Region headquarters in the building, located at 3400 Walnut St. The new tenants join anchor tenant Davis Graham, which moved into its 80,000-sf space in December. “Paradigm River North was designed to offer a new and vibrant take on the office, one that aligns with both business and employee preferences today to create offices that truly feel like a home away from home,” said Sean Perlmutter, Jordon Perlmutter & Co. partner. “The addition of Langan and Rockefeller Group to the property’s growing roster of tenants underscores Paradigm River North’s appeal, caliber and ability to attract nationally focused tenants. As companies continue to expand their footprint in Denver as well as reintegrate the office, we expect interest in Paradigm River North to remain strong.” Newmark’s Jamie Gard and Jeff Castleton represented the codevelopers in the lease deals. Hadley Cox and Drew Thomas of CBRE represented Langan in its transaction, while the Rockefeller lease was a direct deal. Rockefeller Group will move Paradigm River North completes 2 office space leases Continued on, Page 8
March 19-April 1, 2025 - Page 7 www.crej.com
Page 8 - March 19-April 1, 2025 www.crej.com From the construction of tenements in the 1800s to the highrise steel and concrete luxury residential towers built today, for-rent housing has come a long way. But one constant is the use of wood to build rental housing. Over the years, architects and engineers have pushed the limits of continued demand for housing, escalating construction prices and the ability to achieve even higher densities under the recent IBC, we don’t anticipate the number ability to design a podium building based on the overall building height. Podium buildings will no longer be restricted to only one level of podium structure below the podium deck. This gives designers the ability to design a seven-story, midrise building with five levels of wood-frame out of the ground to save the cost of building subterranean, which is typical in traditional podium designs. Another option would be to leave the subterranean parking, which allows an additional level of residential units within the concrete portion of the structure, thus increasing density. Both options will change Photography © Brad Nicol The 2015 International Building Code offers wood-frame construction the ability to design a podium building based on the overall building height. Podium buildings will no longer be restricted to only one level of podium structure below the podium deck. October 2015 New wood-frame codes allow for more flexibility Nathan Sciarra, 1536 Cole Blvd., Building 4, Suite 300, Lakewood, CO 80401 | 303-623-1148 | www.crej.com Jon Stern Publisher & Founder x 101 jstern@crej.com All rights reserved. No part of this publication may be stored, reproduced, or transmitted in any form or by any means without the publisher’s prior written permission. All contributed articles published in the Colorado Real Estate Journal represent solely the individual opinions of the writers, and not those of the Colorado Real Estate Journal. REPORT AN ERROR IMMEDIATELY (ISSN 1060-4383) Vol. 34 No. 6 www.crej.com EDITORIAL CONSULTANT: Jill Jamieson-Nichols PRODUCTION/GRAPHIC DESIGN: Heather Lewis ext.108 hlewis@crej.com CREJ CONFERENCE SERIES: Jon Stern ext.101 jstern@crej.com ADVERTISING: Lori Golightly ext.102 lgolightly@crej.com CUSTOMER SERVICE: Jolene Wollett ext.103 jwollett@crej.com EDITORIAL Avalon Jacka, Reporter Sales, Lease and New Development Projects: Office, Industrial, Multifamily, Retail, Health Care, Senior Housing, Hotel, Land Finance Transactions ext.107, ajacka@crej.com Kris Stern Associate Quarterlies Publisher: Office & Industrial Properties, Retail Properties, Multifamily Properties, Property Management, Health Care, Senior & Life Sciences Editor: Construction, Design & Engineering News; Property Management News; Who’s News; and Expert Articles, including Law, Accounting and Finance Publisher: Building Dialogue ext. 109, kostern@crej.com MARKETING Lori Golightly, Director of Client Services Advertising: Print & Digital Conferences: Exhibitor/Sponsor Information ext. 102, lgolightly@crej.com into its space this spring, targeting a May 1 opening date. The firm develops, owns and operates real estate properties in a variety of asset classes around the U.S. Rockefeller Group is currently developing The Juniper, a mixed-use project in downtown Parker featuring 264 apartments and 13,900 sf of retail and restaurant space, with partner MGL Partners. The group also recently signed its first three tenants at 25 Commerce Park, a three-building industrial park in Thornton. “Denver is a key component of our Rocky Mountain growth strategy, and we are excited to deepen our roots and expand our presence here,” said Jay Despard, Rockefeller Group senior managing director for the region. “We have an intimate appreciation for the exceptional office experience Paradigm River North provides. Its location, thoughtful design and high-quality amenities align with our vision for growth in the region, as well as reflect the elements people today need to foster productivity and well-being at work.” Langan will move into its space this summer. Langan provides an integrated mix of geotechnical, environmental and site/civil engineering services. Its Colorado office is currently located in Lakewood. Headquartered in New Jersey, the firm has office locations in 16 additional states, as well as Athens, Greece; Calgary, Alberta, Canada; Dubai, United Arab Emirates; London; and Panama City, Panama. “Our staff is thrilled about our new home in RiNo, which reflects our business growth and commitment to Denver,” said Langan Denver office leader and Senior Project Manager Luis Berroteran. “Paradigm River North’s innovative design, emphasis on wellbeing, and best-in-class amenities support our commitment to fostering collaboration and excellence in the workplace.” Both leases are part of the building’s full-floor spec suite build-out, which was completed in January. The suites include a balance of open collaboration areas, private offices, meeting spaces and fully equipped kitchen/amenity spaces. All spec suites have direct access to Paradigm River North’s state-of-the-art conference and training center. Completed last year, Paradigm River North has garnered “significant interest and leasing velocity” since opening, with the spec suites in particular resonating strongly with current and prospective tenants, according to a statement from the codevelopers. Currently, the building has two spec suites available for lease, measuring 4,178 sf and 9,153 sf. The sustainably focused, 200,000-sf office building features biophilic design, multiple outdoor spaces, high ceilings and oversized windows for abundant natural light. Paradigm River North offers both open and customizable floor plans, providing flexibility to potential tenants to create a space that “resonates with their team and needs,” the statement from the codevelopers said. Amenities include 9,500 sf of retail and restaurant space on the ground floor, a fitness center, a bike storage room with lockers and showers, a collaboration lounge, 12-foot ceiling height, open-air balconies on every floor, downtown and mountain views, and more, according to the building’s website. The building also offers valet parking, electric vehicle charging stations, on-site security, a 1.4:1,000-sf parking ratio and an app for building access and parking. The property is proximate to the 38th and Blake light-rail station. Other News n METRO DENVER – Newmark recently facilitated three new office lease and sublease transactions. Fortis Bank subleased 22,092 square feet at One Belleview Station, located at 7001 E. Belleview Ave. in Denver. The bank also has three additional locations in downtown Denver, Centennial and Utah. Newmark’s Jamie Gard represented the subtenant. Sublandlord The Western Union Co. was represented by Brendan Fisher, Devon Kahle and Connor Monahan of Savills. Holmes Murphy leased 22,024 sf at Terrace Tower, located at 5619 DTC Parkway in Greenwood Village. Holmes Murphy is a national insurance brokerage providing a variety of insurance solutions across a multitude of industries. Newmark’s Andrew Blaustein, Brian Reaney and Josh Pons represented the tenant. Landlord Sun Life Assurance Company of Canada was represented by Lindsay Gilbert, Sergio Castaneda and Megan Strauss of CBRE. Zillow Inc. subleased 5,286 sf at 1125 17th St. in Denver. Zillow is a tech real-estate marketplace company based in Seattle. Janessa Biller and Dan McGowan of JLL represented the subtenant. Newmark’s Blaustein and Pons represented the sublandlord, Xactly Corp. s Continued from Page 6 Ian Warren Langan Engineering & Environmental Services and Rockefeller Group signed leases for spec suites at the recently completed Paradigm River North, located at 3400 Walnut St. Office
March 19-April 1, 2025 - Page 9 www.crej.com May 6, 2025 (morning) REGISTER NOW www.crej.com/events $115 per person 7:00 – 7:25 a.m. Check-In, Registration and Networking 7:25 – 7:30 a.m. Welcome and Opening Remarks Emcee: Jay Philp - Shareholder, Otten Johnson Robinson Ne + Ragonetti PC 7:30 – 8:15 a.m. How to Win an O ice Property Tax Appeal Matthew W. Poling, CPA - Principal, Property Tax, Colorado, Ryan, LLC Michael Van Donselaar - Managing Director, Property Tax, Kroll Michael Clayton - Managing Director, State and Local Tax, Moss Adams Moderator: Andrew L.W. Peters - Shareholder, Otten Johnson Robinson Ne + Ragonetti PC 8:15 – 9:00 a.m. From Doom to Boom: Bringing Back Denver’s Downtown Andrew Iltis - Vice President, Planning & Community Impact, Downtown Denver Partnership Adeeb Khan - Executive Director, Denver Economic Development and Opportunity David Gaspers - Principal City Planner, City & County of Denver Department of Community Planning and Development Moderator: Austin Kane - Partner, Wall Kane Consulting 9:00 – 9:45 a.m. Networking Break - Food & Beverage in Expo Hall 9:45 – 10:15 a.m. Debt Update and Workouts Eric Tupler - Executive Managing Director, JLL Capital Markets Ann Hambly - Founder & CEO, 1st Service Solutions Michael Muldowney - Vice President - Relationship Manager, PNC Real Estate Banking Moderator: Michael Westover - Shareholder, Otten Johnson Robinson Ne + Ragonetti PC 10:15 – 11:00 a.m. Developer and Investor Perspective: Challenges and Opportunities Barry DiRaimondo - Chief Executive O icer, Steelwave Marcel Arsenault - Chairman, CEO and Founder, Real Capital Solutions Stephanie Lawrence - Senior Managing Director, Granite Properties Chris King - President & CEO, DPC Companies Moderator: Marc Perusse - Founder & CEO, E2M Ventures 11:00 – 11:45 a.m. Mixed-Industry Perspective Listing Brokers, Tenant Reps, Investment Brokers James Roupp - Managing Director, JLL Barry Dorfman - International Director, JLL Tim Richey - Executive Vice Chairman, Newmark Charley Will - Senior Vice President, CBRE | Capital Markets Mark Katz - Senior Managing Director, JLL Capital Markets Moderator: Geo Baukol - President & Partner, Brue Baukol Capital Partners Exhibitor/sponsor registration: Reserve your exhibit space today by contacting Lori Golightly at lgolightly@crej.com Checks, Visa, MasterCard and American Express accepted. 4 hours of real estate continuing education credit have been approved. PRESENT LOCATION The Cable Center 2000 Buchtel Blvd. S. Denver, CO 80210 AND 2025
Page 10 - March 19-April 1, 2025 www.crej.com Industrial 2025 O ice and Industrial Sales Activity Senior Managing Director +1 303 515 8093 mark.katz@jll.com Mark Katz Senior Managing Director Denver Office Co-Head +1 303 515 8026 peter.merrion@jll.com Peter Merrion Senior Director +1 303 515 8037 hilary.barnett@jll.com Hilary Barnett Director +1 303 515 8048 robert.key@jll.com Rob Key Managing Director +1 303 515 8032 larry.thiel@jll.com Larry Thiel Senior Director +1 303 515 8036 sean.whitney@jll.com Sean Whitney OFFICE INVESTMENT SALES INDUSTRIAL INVESTMENT SALES Vista25 Greenwood Village, CO 197,991 SF | Property Sale OFFICE CLOSED Palmer Center Colorado Springs, CO 459,500 SF | Property Sale MARKETING OFFICE Trinity Place Denver, CO 195,753 SF | Property Sale OFFICE COMING SOON 1880 55th Boulder, CO 18,300 SF | Property Sale INDUSTRIAL UNDER CONTRACT Low Coverage Industrial Development Commerce City, CO 480,000 SF | JV Equity INDUSTRIAL MARKETING To get in touch with one of our professionals SCAN HERE by Avalon Jacka THORNTON – A national retailer acquired a new cold storage warehouse and logistics property in Adams County in the largest commercial acquisition in Colorado this year to date. Target Corp. purchased the property at 15450 Washington St. from Denver North Logistics Development LLC for $231 million in February after leasing the property from the developer, according to Adams County public records. Constructed in 2024, the building totals 529,836 square feet, county records said. The seller acquired the 120-acre site, where it developed 5280 Logistics Park, for $11.91 million in 2022, according to county records. Texas-based Hillwood developed the logistics park in partnership with CMB Regional Centers, according to a project brochure. Stream Realty provided marketing and leasing services, the brochure said. Target signed a lease agreement for the property with the seller in December 2022, according to county records, which CMB Regional Center’s website labeled a 240-month lease-topurchase agreement. Construction began in third-quarter 2023, the website said. Target’s build-to-suit freezer/ cooler distribution facility was built on 96 acres of land, according to CMB Regional Center’s website. The project includes 25,500 sf of interior office space, approximately 99 loading docks, 586 parking spaces, 32-foot minimum clear height, and a state-of-the-art sprinkler system, the website said. Hillwood completed the shell and interior construction and the tenant-specific build-out, as well as a guardhouse, a trailer maintenance facility, a fuel pump house, exterior landscaping, and groundwater and retainage systems. a The asset is positioned southeast of the Interstate 25-E-470 interchange, offering connectivity to the greater Denver metro area and Northern Colorado. Representatives for Target and Hillwood did not return requests for comment on the sale. In March, Target announced its plans to increase sales by $15 billion by 2030, including offering on-trend products; reinforcing the retailer as a destination for physical, digital and social commerce; and increasing ease, reliability and speed in fulfilling orders for consumers, according to a press release from the company. Based in Minneapolis, Target serves customers online and at nearly 2,000 stores. Building 2 of 5280 Logistics Park, situated on 9 acres at 15210 Washington St., is expected to be completed next year, according to a LoopNet listing. The 121,640-sf building will feature spec office space, a rear-load configuration, a 130-foot truck court, LED exterior lighting, 220 parking spaces and an ESFR sprinkler system, the leasing brochure said. Stream Realty’s Tyler Reed, Peter Beugg and Dominic DiOrio are managing leasing and sales for Building 2, the brochure said. The Stream Realty team declined to comment on the Target purchase. CBRE Executive Vice President Jeremy Ballenger, who focuses on industrial and logistics, including capital markets and leasing, provided market context for the transaction and the asset’s location. “What is especially interesting about this transaction is we have seen massive demand from all sorts of users, including e-commerce users, on I-70 towards the airport,” said Ballenger. “There have been some recent sales to users like this on I-70, but this is a good example of that same demand on I-25, which is really based on the population growth that is moving up I-25 but also is based on trucking routes in Denver.” Ballenger noted trucking routes in the Denver area are very heavy on Interstate 70 within the Denver metro area, but most follow Interstate 25 north to Interstate 80 to avoid crossing the mountains. “That location being right at the intersection of C-470 and I-25 provides access to the entire metro area, as well as both that great trucking route and the population,” Ballenger added. Other News n GOLDEN – A 22,935-squarefoot industrial building north of state Highway 58 traded hands for $3.2 million in an off-market transaction. Morton Properties LLC II acquired the property at 15097 W. 44th Ave. from Richard Dechant and Sandra Gontar in March, according to Jefferson County public records. The sellers had owned the property for more than 30 years. Tanner Digby of Digby Commercial Advisors facilitated the sale on behalf of the seller. Built in 1971 on 0.93 acres, the asset offers nine drivein doors, heavy power, clear height ranging between 10 and 22 feet, a gated yard for storage, and unincorporated Jefferson County industrial zoning. The property is currently occupied by KC’s Auto Body. The property is positioned off the McIntyre Street exit from state Highway 58, offering connectivity to the Front Range and the Denver metro area via Interstate 70 and state Highway 93. s Target buys 530,000-square-foot cold storage warehouse Tanner Digby Morton Properties LLC II acquired the 22,935-square-foot industrial building at 15097 W. 44th Ave. for $3.2 million in March.
March 19-April 1, 2025 - Page 11 www.crej.com LOCAL EXPERTS. INDUSTRIAL STRENGTH. ScoƩ PaƩerson scoƩ@ringsbyrealty.com (303) 892-0121 INDUSTRIAL BUILDINGS FOR SALE AND LEASE LOCAL EXPERTS. INDUSTRIAL STRENGTH. Alex Ringsby alex@ringsbyrealty.com (303) 892-0120 5555 E 58th Ave., Commerce City OFFICE / SHOP / WAREHOUSE FOR LEASE FEATURES: Total Project: 21,646 SF Terminal: 13,831 SF Oĸce: 2,939 SF Maintenance Bldg: 7,876 SF Site Size: 8.41 AC Zoning: I-1 Dock-high Doors: 43 Drive-in Doors: 1 Clearance: 14’-15’ Expenses: $5.24/SF Lease Rate: $20.00/SF NNN - Block heaters in yard - Lighting throughout yard area - Great access to I-70 & I-270 - Extra trailer parking - Fenced and improved lot Building: 11,600 SF Clear Height: 12’-18’ Loading: 1 dock-high door Zoning: I-A Sale Price: $1,975,000 Lease Rate: TBD 1055 S Fox St., Denver INDUSTRIAL BUILDING FOR SALE OR LEASE FEATURES: - Turn-key grow facility - Heavy power 2000 amps - $3 million in renovations (2019) - Newer roof E 58th Ave. - Zoned I-1 - 43 dock-high doors - 60’ wide dock - Oil/water separator
Page 12 - March 19-April 1, 2025 www.crej.com Industrial SIORs report billions of dollars in sales and leases each year. For more than 80 years, SIOR has been the most trusted designation in commercial real estate, synonymous with the world’s most elite industrial and office professionals. COLORADO CHAPTER PRESENTING A FEW OF OUR BROKER MEMBERS IN THE COLORADO CHAPTER A NETWORK OF COLORADO DEAL CLOSERS 2024/2025 SIOR COLORADO CHAPTER LEADERSHIP TEAM Dominic Diorio, SIOR President dominic.diorio@streamrealty.com 303.957.5321 Tyler Smith, SIOR, CCIM Treasurer t.smith@cushwake.com 303.312.4296 Alec Rhodes, SIOR Vice President alec.rhodes@cushwake.com 303.523.1827 To Ƕnd out more information about the SIOR Colorado Chapter, please contact the Chapter President, Dominic Diorio | dominic.diorio@streamrealty.com | +1 303.957.5321 Chris Ball, SIOR, CCIM Peter E. Beugg, SIOR Mark Bradley, SIOR CCIM Tyler Carner, SIOR Steven Conrad, SIOR Gary Feffer, SIOR Jared Goodman, SIOR Mark Goodman, SIOR Michael Helwege, SIOR Carmon Hicks, SIOR Keith Kanemoto, SIOR Peter Kast, SIOR CCIM Richard Kelly, SIOR Pete Kelly, SIOR Bruce Keyes, SIOR, RPA Paul B. Kluck, SIOR, RPA Jeremy Kroner, SIOR Brandon Langiewicz, SIOR Joseph Larkin, SIOR, CCIM, MCR, SLCR Drew McManus, SIOR Craig Myles, SIOR, CPM R.C. Myles, SIOR, CCIM Chris Nordling, SIOR Michael Palmer, SIOR Brad Pech, SIOR Tyler Reed, SIOR Nick Rice, SIOR Alex Ringsby, SIOR John Rodgers, SIOR, CCIM Tyler Ryon, SIOR Paul Schneider, SIOR T. J. Smith, SIOR Jim Spittler, SIOR Tom Stahl, SIOR Mike Statter, SIOR, CCIM Nick Steitz, SIOR Bill Thompson, SIOR Matt Trone, SIOR Aaron Valdez, SIOR Mike Viehmann, SIOR Doug Viseur, SIOR Mike Wafer, Sr., SIOR Mike Wafer, Jr., SIOR Ron Webert, SIOR Todd Witty, SIOR Daniel Close, SIOR Secretary daniel.close@cbre.com 720.528.6342 by Avalon Jacka AURORA – Construction has started on the last available industrial site in the airport submarket. Evergreen Devco Inc. broke ground on Superblock, a twobuilding industrial development encompassing 279,374 square feet at 4439 N. Telluride St. and 17688 E. 45th Ave. The project is the only speculative industrial development currently under construction, offering supply for the growing demand for modern industrial space. “Superblock represents a rare and strategic opportunity in Denver’s industrial market,” said Brian Dietz, Evergreen Devco Inc. vice president of industrial development. “With its location within Denver city limits, cost advantages and best-in-class amenities, this development is poised to be a premier industrial destination.” The project is expected to be completed in first-quarter 2026. Intergroup Architects is serving as project architect, and Murray & Stafford is serving as the general contractor. Preleasing has started, with CBRE’s Keifer Garton, Tyler Carner and Jeremy Ballenger leading marketing for Evergreen Devco. “Superblock is uniquely positioned to meet the sophisticated requirements of modern industrial users,” Garton said. “This site’s location within the city and county of Denver offers significant tax advantages, reliable water access and adaptable suite configurations, making it an ideal choice for tenants with specialized needs.” Superblock features two stateof-the-art industrial buildings measuring 154,702 and 124,672 sf situated on 16.5 acres. The project is designed for flexibility to accommodate a variety of tenants and uses. Superblock will feature 39 trailer parking stalls, 172 total car parking spaces, about 3,000 sf of office space, and a 79.2 mill levy, making the taxes $2-$4 per sf below market. The buildings will be serviced by Denver Water, which could offer tenants up to $4 per sf in annual savings compared to competing properties, as well as potential tax benefits, according to a statement from Evergreen Devco. Superblock provides proximity to Denver International Airport and connectivity to the greater Denver metro area via Interstate 70, E-470 and Peña Boulevard. Founded in 1974, Arizonabased Evergreen Devco Inc. specializes on the development of retail, multifamily industrial and mixed-use properties, as well as tenant rollouts, redevelopment and asset management. The firm currently has more than 70 retail, industrial and apartment projects in development and has completed more than 650 projects. Evergreen Devco is nearing completion of its first industrial project in Colorado, located at 8705 Rosemary St. in Commerce City, according to previous reporting.s Evergreen Devco begins construction of 280K-sf Superblock by Avalon Jacka CENTENNIAL – An industrial park in the southeast Denver metro area has signed a new tenant. American Power Systems, a national provider of direct current power solutions, leased 40,000 square feet at Encompass 150, located at 6951 S. Blackhawk St. in the Encompass Business Park. The company moved into Phase 1 of its space in January. Completed in 2018, the 150,000-sf building is owned by park developer Central Development. Intergroup Architects served as architect for the building, and Elkhorn Construction served as the general contractor. A statement from American Power Systems called the new space “a perfect fit,” highlighting American Power Systems leases portion of Encompass 150 The two-building Superblock project will encompass nearly 280,000 square feet on 16.5 acres at the last available industrial site in the airport submarket. Please see Encompass, Page 13 American Power Systems American Power Systems leased 40,000 square feet in Encompass 150, located at 6951 S. Blackhawk St. in Encompass Business Park.
March 19-April 1, 2025 - Page 13 www.crej.com the “strategic location, modern amenities and flexibility we need to grow and collaborate.” The company has already expanded in the building, and Phase 2 is expected to be completed in May, Central Development principal Jeremy Records said. American Power Systems was represented by Riggs Winz at Colliers. Marketing the park on behalf of Central Development, Colliers’ T.J. Smith, Cody Sheesley and Nick Rice represented the landlord in the lease transaction. “Encompass Business Park continues its run as the preeminent industrial development of Centennial and southeast Denver,” Rice said. “Due to its immediate proximity to amenities and flexible site plan, tenant demand has remained at a high pace since its first groundbreaking. Since that time, the project has catered to a diverse array of users in unique and vital aspects of the community and economy.” The 62-acre mixed-use Encompass Business Park has attracted premier tenants since its establishment in 2017. The leasing team is currently in discussions with an undisclosed tenant for the remaining 40,000 sf at Encompass 150, according to Records. Encompass 173 is currently available with 173,000 sf of speculative office space, with a number of users showing interest in a portion of the entire building, Rice said. Records noted one tenant is considering leasing the entire building because of the potential to expand into Encompass 123, the final building planned for the park. Additionally, Central Development recently announced that Encompass 53, the fifth of sixth planned buildings within the park, is fully tilted. The building is anticipated to be delivered in July. Multiple potential tenants have expressed interest in the 53,000-sf building, which Rice said could be sold or leased. Encompass Business Park offers accommodating zoning, easy access to Interstate 25 and E-470, neighborhood amenities, and proximity to Centennial Airport, according to the park’s website. The site was recently annexed and zoned in Centennial and features reimbursement of construction use tax incentives, the website said. “One of the fundamental differences we have against our competition is the amenities on Arapahoe Road,” Records said. “If you are doing manufacturing, and you need 20 guys to be there to run your system, and one guy goes to lunch and comes back late, your whole system is down. Being on Arapahoe, people can go grab lunch, they can go work out, they can have child care. So, it’s just a totally different experience. If you’re just storing diapers, go out to Aurora. Store your diapers out there because it doesn’t matter. But if you have people in manufacturing and engineers, you want to be by where they live and have the amenities so that they enjoy their work environment.” Focused on Colorado development, Central Development has completed approximately 4.25 million sf of development worth $495 million. Other News n LAKEWOOD – An industrial property in northwest Lakewood is fully leased following a recent lease deal with a sign fabricator. Mueller Signs LLC leased 9,816 square feet at 1250 Simms St. from landlord 1250 Simms LLC. Zach Propst of Crosbie Real Estate Group LLC represented the tenant, and Jake Malman of Malman Real Estate represented the landlord. The 54,416-sf building is situated on 2.34 acres a few blocks south of West Colfax Avenue, according to previous reporting. The property is near several retail and hotel options along Simms Street and Colfax Avenue. Nearby West Sixth Avenue provides connectivity to the greater Denver metro area. n CENTENNIAL – An electrical contractor is the first tenant at a new industrial park following a prelease deal. Hi Power Electric signed a lease for 9,621 sf of shallow-bay industrial space at Creekside Centennial Tech Center, located at 6403 S. Uvalda St. “This facility provides an ideal space for our continued growth and allows us to better serve our clients across the Colorado market and beyond,” said Hi Power Electric Chief Financial Officer Ryan Fitzgerald. “Its central location enhances our operational efficiency, and the high-quality environment supports our team’s success. Investing in our people remains a top priority, and this move reflects our commitment to providing them with the resources they need to thrive.” Logan Schenk of The Zall Co. represented the tenant. Peter Beugg, Dominic DiOrio, Buzz Miller and Tyler Reed of Stream Realty represented the landlords. The project is owned by developer LaPour Partners in collaboration with Mar-Gulf Management Inc. and MDI Capital LLC. “The market has been very receptive to this product, specifically grade-level and dockhigh loading in smaller spaces,” Miller said. “These are features normally found in larger institutional projects. We hope to announce additional preleasing soon based on the current level of activity we are experiencing.” The 63,271-sf Creekside Centennial Tech Center features 24-foot clear height, eight dock doors, eight drive-in doors, 2,500 amps of power, and a 3:1,000-sf parking ratio. The asset is surrounded by a variety of restaurants, lifestyle amenities, retail outlets and walkable trails. The property’s location offers immediate access to East Arapahoe Road and quick access to Interstate 25, E-470 and South Parker Road. As industrial project sizes increase and focus on larger footprints for divisibility, Creekside Centennial Tech Center is the first and only speculative, single-building industrial project in south Denver providing tenants with space divisible to under 10,000 sf, according to a statement from LaPour. The Class A property offers flexible unit sizing between 6,900 and 32,700 sf. Vacancy for this asset type is currently 2.8% in the southeast submarket, the statement said. Creekside Centennial Tech Center is expected to be completed by the end of the month, with spec suites available for immediate occupancy upon delivery. Hi Power Electric will move into its space upon project completion. n DENVER – A utility and excavating contractor leased 9,048 sf of industrial space in the Berkeley neighborhood. Kinetic Energy Services LLC leased the building, situated on 1 acre at 2892 W. 64th Ave., from the owner, which is listed as 2892 W 64th Ave LLC on Adams County public records. Kinetic Energy Services moved into the new location in March. Kirk Vanino and Matt Nora of Lee & Associates represented the tenant, while Maxwell Marcum of Marcum Commercial Advisors represented the landlord. Positioned southeast of the North Federal Boulevard-West 64th Avenue intersection, the property affords connectivity to major traffic arteries of the Denver metro area via Interstate 76 and U.S. Highway 36. The property is zoned I-1 and features roll-up doors and a fully fenced storage lot outside. The building’s size and outside storage attracted Kinetic Energy Services to the property, Vanino said. “IOS is just very competitive these days,” said Vanino. “So, when tenants are out there, there’s not a lot of options, but we’ve been able to successfully find options for some of our tenants due to our vast knowledge of IOS.” Kinetic Energy Services offers mobile car cleaning, hydrovac services, utility locating, and caisson excavation. The company has additional locations in Aurora, Colorado Springs, Grand Junction, Lucerne and Windsor, as well as Fort Worth, Texas; Manassas, Virginia; and Douglas, Wyoming. n DENVER – A local commercial and residential roofing contractor leased a 4,200-sf facility to complement its office space. Sol Vista signed a lease for the space in Denver Center, located at 5855 E. 45th Ave., Unit A-132. The industrial property is about 3 ½ miles from Sol Vista’s office at 2373 Central Park Blvd. The new facility provides additional space for administrative tasks, sales operations and project management as the company experiences rapid growth and evolves its service offerings. The space will be home to administrative and roofing staff. The lease will commence in April. Jesse Woods of VIP Commercial Real Estate represented the tenant in the transaction. JLL’s Carmon Hicks represented the landlord, First Industrial. Sol Vista owner Kyle Shirley said the decision to expand was driven by the increasing demand for roofing services in the Denver metro area. The company has had to expand its in-house repair team as its proactive roof maintenance programs have gained popularity. Sol Vista expects to see continued growth momentum. The new space is designed to streamline internal processes and improve efficiency, a statement from Sol Vista said. The property’s proximity to Interstate 70 allows the company to easily reach its suppliers and its clients across the Denver metro area and the mountains. Sol Vista specializes in traditional shingle, clay tile, slate tile, cedar shake, and metal roofing systems. The company has multiple service areas along the Front Range from Fort Collins to Colorado Springs, as well as in Edwards. s Encompass Continued from Page 12 Jake Malman Kirk Vanino Matt Nora Completed in 2014, West 8th is “one of the most desirable communities on the city’s west side,” featuring modern luxury designs, “high-quality” construction, “ideal” unit mixes and a “carefully crafted collection” of unit and community amenities, a statement from Walker & Dunlop said. The transaction included a loan assumption of a $28 million life company note with a 4.83% fixed rate set to mature in 2038. The 106,502-sf asset features a mix of one-, two- and threebedroom units ranging from 768 to 1,546 sf, averaging 1,076 sf. West 8th includes two rental buildings on 4.47 acres, according to Apartment Insights. The property is 97% occupied. The LEED-certified community features a park, an outdoor courtyard space with a fire pit, and a residential common area with a cyber café, a chef-inspired exhibition kitchen and fitness center. Positioned in central Golden several blocks from downtown, West 8th is adjacent to the Golden Community Center, Lions and Clear Creek White Water parks, and The Eddy Taproom and Hotel, offering multiple options for entertainment, recreation and dining. The property is also situated near Windy Saddle, Mount Galbraith and North Table Mountain parks, offering further outdoor recreation options. The property offers connectivity to the Denver metro area and Boulder via nearby access to state Highways 58 and 93. “It’s such a great asset, such a great location,” said Confluence Communities partner and CEO Tony DiSimone. “It’s difficult to get projects completed in Golden, to find sites and to build new things. But this is one of our early projects we developed back in 2013, and it’s been a really great asset and great community for us. We're really excited about the future in the Front Range of Colorado.” Confluence Communities has approximately $1 billion of new development planned for Colorado, so the West 8th sale “gives us an opportunity to free up some of the trapped equity we had in the project and move it into the future,” DiSimone said. The company has multiple projects in various stages of development, including the Brickyard mixeduse project in Castle Rock, five sites on Parker’s Mainstreet in collaboration with the city, and the 264-unit Emerson multifamily development in Englewood. Newport Beach, Californiabased MIG Cos. is a real estate investment and development firm focusing on multifamily, hotel, retail and industrial/flex properties in the Western U.S. and Sunbelt states. The company owns and operates more than 3.5 million sf of retail, office, and industrial/flex uses, more than 1,000 hotel keys and more than 6,500 multifamily units, according to its website. The firm also has offices in Denver and Phoenix. s West 8th Continued from Page 1
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