Following last month’s purchase of Lipan Street Industrial Park site for $21 million, New York-based IG Logistics has made its second acquisition in Denver, acquiring a last-mile warehouse facility at 5105 Cook Street. The site was purchased for $3.2 million in an off-market deal.
The nearly 29,800-square-foot facility spans three acres and features a yard and 8,000 square feet of coolers. Corporate neighbors include Amazon, UPS and Tesla. The property is currently leased to Lipman Family Farms. This lease term will be ending next year and IG Logistics is working with Matt Trone and Joey Trinkle of Cushman and Wakefield on pre-leasing efforts.
The facility takes advantage of several tailwinds in the industrial asset class that IG Logistics is invested in, including outside storage space, as well as temperature-controlled and cold storage space, which is another asset class that they have been laser-focused on. This is especially true in Colorado, where much of the cold storage inventory has been cannibalized by the rapidly growing marijuana industry which also requires temperature-controlled warehousing.
IG Logistics is the industrial platform for Imperium Capital, Glaser and Schneider’s real estate investment and development company founded over a decade ago. The new platform focuses on acquiring properties with a large outdoor storage or transportation element in high barrier to entry, urban growth markets where demand for logistics real estate is driven by e-commerce. IG Logistics’ strategy focuses on last-mile facilities that are critical to the supply chain. In just one year, the company has purchased $65M of industrial sites and has north of $100M under contract.
“We are excited to be expanding our portfolio in Denver,” said Daniel Glaser, managing partner and co-founder of Imperial Capital. “This low coverage warehouse with yard fits perfectly into IG Logistic’s portfolio, and we have already seen a tremendous response from potential tenants in our pre-leasing phase because of the lack of available inventory in the market. Due to our ability to be nimble and keep our ear to the ground in Denver’s booming industrial market, we were able to add this site to our growing portfolio – and