IndustrialInvestment

Class A Warehouse Portfolio in Aurora Acquired for $72M

ASB Real Estate Investments (ASB) has acquired a three-building, Class A warehouse portfolio totaling 633,193 square feet near DIA for $72 million. The investment was made on behalf of ASB’s Allegiance Real Estate Fund, a $7.5 billion core vehicle. CBRE’s Jim Bolt, Tyler Carner and Jeremy Ballenger represented the seller, a Blackstone affiliate, Link Properties. The sale marks one of Denver’s largest industrial trades this year.

Fully leased to Subaru of America, Home Depot, and Old West Mattress Company respectively, the three buildings include 22100 E. 26th Ave (406,959 square feet), in Aurora; 9410 Heinz Way (140,630 square feet), in Commerce City; and 18300 E. 28th Ave (85,604 square feet), in Aurora.

“This portfolio presented a rare opportunity to acquire three fully occupied distribution properties delivering scale and credit tenancy in Denver’s largest and most institutionally-owned logistics corridor. The offering generated interest from institutional investors around the country; mostly all of whom have existing properties in Colorado and wanted to grow their presence in the market,” said Jim Bolt, executive vice president, CBRE.

Ranked as one of Denver’s top-tier industrial submarkets by Green Street and the largest in the metropolitan area, the Airport submarket benefits from proximity to critical transportation hubs linking one of the country’s largest international airports to a major east-west interstate, I-70, and a nearby freight rail junction.

“This extremely attractive, cash-flowing investment further expands ASB’s Class A industrial portfolio and should help further buttress our income-oriented returns over the long term. The surrounding market benefits from dramatic and dynamic residential development as well as from significant infrastructure investment in airport expansion and construction of new interstate express lanes. The prime, last-mile locations will be increasingly attractive to our high-credit tenants and other logistics users as the Denver area continues to grow,” said Aaron Duncan, ASB senior vice president and western region head.

The buildings — built between 2000 and 2007 — feature 28- to 32-foot ceiling heights, ESFR sprinkler systems, a market-standard 7 person office finish, flexible layout configurations, and ample truck court depth.Since mid-2018, ASB has acquired more than 5.1 million square feet of industrial space in major U.S. distribution markets, including Los Angeles, Northern Jersey, San Francisco, Miami, Houston and Philadelphia. These purchases total more than $565 million.Photos courtesy of ASB

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