JLL Capital Markets has arranged a $101.3 million loan to refinance and complete the construction of 25 North, a 936,775-square-foot industrial complex with three newly constructed and six to-be-built buildings in the Denver-area community of Thornton.
JLL worked on behalf of the borrower, a joint venture between two experienced industrial developers, Denver-based EverWest Real Estate Investors, LLC, and Invesco Real Estate, a global real estate investment manager, to place the 36-month, floating-rate, non-recourse loan with a multi-national bank.
The 25 North project is being constructed in two phases with state-of-the-art, modern specifications, including clear heights ranging from 28 to 32 feet, more than 200 dock-high doors, 34 drive-in doors, deep truck courts, abundant natural light via skylights and large windows, ample parking and ESFR fire protection. Fully leased, the Phase I warehouse and distribution buildings totaling 340,200 square feet were delivered between 2020 and 2021. Phase II will consist of six speculative warehouse and distribution buildings housing 596,575 square feet and is anticipated to deliver in 2022 and 2023.
Located within the North Denver Industrial submarket, 25 North is situated on 66.39 acres at 14821, 14902 and 14802 Washington Street and 14903, 14803, 14827, 14929, 14927 and 14915 Grant Street in Thornton, an amenity-rich community in the northern part of the Denver MSA. The property’s position just east of Interstate 25 and north of 144th Avenue provides tenants unmatched connectivity to the major thoroughfares in Denver, with just a two-minute drive to both E-470 and I-25. Tenants can reach downtown Denver and Boulder and Denver International Airport all within 24 minutes, and Fort Collins is only 35 minutes away.
JLL Research details how the U.S. industrial inventory is aging rapidly in its recent report on The Race for Industrial Space, and how, over the last five years, a competitive leasing environment has accelerated U.S. industrial rent growth by 37 percent. This had led to industrial owners having a greater ability to command a premium for rents. Additionally, JLL anticipates the imbalance of supply and demand will continue through 2023 and further exacerbate competition for industrial space.
The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Managing Directors Eric Tupler and John Rose and Associate Kevin Barron.