Industrial Building on Broadway Refinanced for $5.4M
Denver-based private equity firm Trailbreak Partners has refinanced its 83,028-square-foot, multi-tenant industrial building, located at 4250 Broadway in the RiNo/Globeville neighborhood, for $5.39 million.
JLL worked on behalf of Trailbreak Partners, to secure the fixed-rate, non-recourse loan through an insurance company lender. Trailbreak Partners will use refinancing proceeds to pay off its existing bank loan. Trailbreak originally acquired the property in October 2019 and has since leased up vacant suites, with occupancy now at 100 percent, and enhanced the physical property with upgrades, including LED lighting, exterior painting, ceiling repairs and door and window replacements.
4250 Broadway was originally built in 1956 and comprises four total suites averaging 20,757 square feet that feature a total of three dock-high and 12 drive-in doors. Parking allows for up to 18 trailer spaces and there is additional outdoor storage space available.
The property is located at 4250 Broadway St.in one of Denver’s most vibrant, life-work-play neighborhoods, in the Lower North Central Industrial submarket of Denver. Adjacent to both Interstates 70 and 25, the property is strategically situated in an easily-accessible shipping and receiving logistics location.
This submarket has an average occupancy rate of 95 percent among 9.4 million square feet of total industrial space. Additionally, the property benefits from being just a couple miles from downtown Denver’s urban core, with a labor force of over 1.7 million.
The JLL Capital Markets team representing the borrower was Director Rob Bova.
“Trailbreak has successfully executed its business plan of leasing up vacant space at the property and subsequently refinancing with a non-recourse insurance company loan to fix in low rates in today’s environment,” says Bova.
In its new Multi-Use Logistics Report, JLL Research anticipates a nationwide 4.6 percent rent growth for triple-net-leased multi-use logistics between 2021 and 2024, compared to 3.8 percent for all U.S. multi-tenant industrial and 3.7 percent for the entire property sector.