Enterprise Business Center Building Six, a 647,483-square-foot, warehouse distribution building located at 3980 Central
Park Boulevard in Denver, has sold for $85.7 million. The transaction is one of the largest single-building industrial sales in the Denver metro, according to CBRE.
Tyler Carner, Jeremy Ballenger, Jim Bolt, Mike Winn and Jessica Ostermick with CBRE’s Denver office represented the seller, the Denver office of United Properties. An investor advised by Zurich Alternative Asset Management, LLC (ZAAM) of New York purchased the property in a sale that closed May 21, marking ZAAM’s second industrial acquisition in Denver in less than seven months.
“Enterprise Business Center Building Six offered a true infill distribution property of scale with state-of-the-art amenities and a long-term tenant in a recession-proof industry. Getting this deal across the finish line despite a global pandemic affirms the strong appetite among institutional capital for Denver industrial product,” stated Tyler Carner, executive vice president, CBRE.
Building Six is fully occupied by Beverage Distributors Co. LLC, whose parent company is Breakthru Beverage Group, North America’s largest wholesaler and distributor of premier wine, spirit and beer brands. Mike Wafer, executive managing director with Newmark Knight Frank, originally represented Breakthru in the lease.
“This checked all the boxes for capital as an ideal trophy distribution asset with a long-term lease in a premier industrial park within walking distance to light rail,” added Jeremy Ballenger, Executive Vice President, CBRE.
According to CBRE’s 2020 Americas Investor Intentions Survey, which was conducted pre- COVID-19, industrial and logistics once again ranked as the most preferred property type by investors, tied with multifamily. Denver cemented its place among the most attractive geographic areas, tying with Seattle as the seventh-best market for investment in the Americas. The purchase of Building Six comes on the heels of ZAAM’s first Denver industrial buy, which was the acquisition of Moncrieff Business Center from Berkeley Partners in November 2019.
ZAAM was represented by Thomas Buffa, executive director, and by Sean Bannon, managing director and head of U.S. Real Estate.
“We recently set out to grow our real estate holdings in Denver and are pleased to add EBC6 to our national portfolio, having now added such a quality position – our second Denver industrial acquisition since November 2019,” said Mr. Buffa, who spearheaded the deal for ZAAM.
“This is the second closing into our programs during COVID, and the only one that was initiated and closed during this period. It’s physical and locational merits are obvious. What we found equally compelling was the recession-resiliency of the tenant. We anticipate holding this asset for the long term,” added Mr. Bannon.
Built in 2017, Enterprise Business Center Building Six spans the length of four football fields and can accommodate 1.0 million cases of product. In addition to warehouse space, the building includes nearly 84,000 sq. ft. of two-story office and showroom space plus ±70,000 sq. ft. of climate-controlled cooler space. It also has a west-facing roof deck with unobstructed mountain
views and an Alchemy Room for tastings. Other building amenities include energy-efficient construction, 32-ft. minimum clear heights, ESFR fire protection, electronically secured fencing, 71 trailer parking stalls, a magnetized floor guide for forklifts, interior roof drains, a structural warehouse mezzanine and a movable office wall system.
“When we built Building Six, we were extremely proud of the high quality product we had created, and you certainly can’t beat the location. Breakthru Beverage is a first class tenant and has been a great partner for us, so we couldn’t be happier to pass this asset on to a reputable group like Zurich. CBRE did a terrific job of identifying a buyer who could perform in the middle of this crazy pandemic, and Mike Wafer of Newmark, who originally represented Breakthru, has been a great partner throughout this process as well,” said Jamie Pollock, senior vice president, United Properties.
Enterprise Business Center Building Six is located just off I-70 at Central Park Boulevard with two direct and fully signalized access points to I-70 at either end of the business park: Central Park Boulevard or Havana Street. The property is part of the larger Enterprise Business Center, a two-time winner of the NAIOP Colorado Industrial Development of the Year award (2014, 2015). The 38-acre, 1.97-million-square-foot Class A industrial park consists of seven industrial buildings and 21,100 square feet of retail amenities—all of which are fully leased.
According to a May 14 CBRE report, as the U.S. economy restarts, adjustments to business supply chains will increase the demand for warehouse space. CBRE estimates a 5 percent increase in business inventories would trigger the need for an additional 400 million to 500 million sq. ft. of warehouse space across the U.S.
