Denver CRE Leaders Trade Record-Breaking Central Connection Industrial Project
Denver-based EverWest Real Estate Investors has acquired Central Connection in Denver’s popular North Central infill submarket from a joint venture of Comunale Properties and institutional investors advised by J.P. Morgan Asset Management. EverWest paid $39.6 million for the property, according to public records.
The two-building, 194,710-square-foot Class A industrial asset is fully leased to six diverse tenants in an area known for significant demand and high barriers to entry. The property is located on 14.12 acres at 1550 and 1210 E. 73rd Ave at the intersection of I-25, I-76 and I-270, minutes from I-36 and I-70, and less than 30 minutes from Denver International Airport.
“Denver’s North Central industrial market is one of the most desirable and connected in the state, with some of the region’s highest rents and lowest vacancy rates, despite a predominantly older inventory of competitive product,” said Brett Birkeland, EverWest’s managing director of acquisitions, Central U.S. “Within this environment, Central Connection is main-and-main real estate, standing out for its modern construction, clear height and ease of divisibility.”
“Central Connection represents our first joint venture with J.P. Morgan,” said Comunale Properties President John Comunale. “Its extensive entitlement and development process honored both the area’s agricultural past and this submarket’s future as a major economic driver. We couldn’t ask for a better buyer than EverWest and look forward to their continued stewardship of this asset.”
At the time of its delivery in 2020, Central Connection broke records for the fastest-ever lease-up of a speculative industrial project in the Central Denver submarket, securing pre-lease commitments for 76 percent of its buildings and 100 percent lease-up within one month of completion.
Building 1 totals 153,264 square feet with 32’ clear height. It is fully leased to Peloton, Epicurean, Outpost, Alpha and Carlisle. Building 2 totals 41,446 square feet with 24’ clear height. It is fully leased to Newcomb Spring Corp.
Bays at Central Connection range from 16,334 square feet to 50,649 square feet. They are equipped with drive-in and dock-high loading doors and feature ESFR fire protection, gated loading access and a market-leading parking ratio of 2.07/1,000.
Comunale Properties and J.P. Morgan were represented by Jeremy Ballenger, Jim Bolt, Tyler Carner and Jessica Ostermick of CBRE.
According to CBRE, only 2 percent of industrial buildings in Central Denver have a clear height greater than 32’ and only 12% have a clear height greater than 24’. Modern, Class A shallow bay product like that offered at Central Connection also has a local vacancy rate of just 2.3 percent and accounted for 80 percent of the market’s executed leases over the last 12 months.
“This is a versatile project that checks all of the boxes,” said Birkeland. “It can adapt with an evolving market and offers advantages as an infill play benefiting from Central Denver’s high barriers to entry.”
For distribution-centric tenants, Central Connection is 29 minutes from downtown Boulder and 12 minutes from downtown Denver, with 2.1 million people located within a 15-mile radius.
EverWest currently has $5.2 billion in assets under management, invested through separately managed accounts and commingled funds. It provides investment management services including acquisitions, asset management, development and property management for assets throughout the U.S.