1.3 MSF Fully Leased Denver Industrial Portfolio Changes Hands
Stockbridge, a San Fransisco-based real estate investment management firm, has acquired Denver Infill Portfolio, a collection of eight industrial buildings totaling over 1.3 million sq. ft. in metro Denver for over $198 million, according to Denver property records.The sale is Colorado’s third-largest industrial disposition on record by sales price and fourth-largest by total square feet.
Jim Bolt, Tyler Carner, Jeremy Ballenger and Jessica Ostermick with CBRE’s Denver office represented the seller.
The portfolio includes the following eight properties:
- Table Mountain Commerce Center, located at 16163 W. 45th Dr.
- West 53rd Place, located at 445 W. 53rd Pl.
- Leyden I, located at 4735-4795 Leyden St.
- Leyden II, located at 4725 Leyden St.
- Denver Business Center 5, located at 11175 E. 55th Ave.
- Denver Business Center, located at 11605 E. 55th Ave.
- Moline Distribution Center, located at 4865 Moline St.
- Moncrieff Distribution Center, located at 14303 E. Moncrieff Pl.
The buildings were constructed between 1971 and 2009 with clear heights ranging from 22 ft. to 32 ft. They are located in Denver’s Airport, North Central and West submarkets. The portfolio is fully leased to 25 tenants representing a range of industries, including electrical supplies, warehouse and distribution, manufacturing, construction and building materials, technology, and consumer goods, among others.
“This portfolio attracted investor interest due to the institutional quality of the buildings, the diverse mix of tenants, and the locations in Denver’s most-desirable industrial areas, flanking Interstate 70,” said Mr. Bolt, vice chairman, CBRE.
Denver’s industrial market is on a historic run, hitting its 48th consecutive quarter of positive net absorption in the first quarter of 2022, according to CBRE research. Strong leasing activity continued with more than 2.6 million sq. ft. transacted in the period January to March 2022.
“Tenants are leasing industrial space at a blistering pace to hold more inventory and mitigate transportation costs that are growing at a much faster pace than lease rates,” added Mr. Bolt.