Demonstrating the increasing demand for Industrial Service Facilities (ISF) in Colorado, Chicago-based Industrial Outdoor Ventures (IOV) recently completed the disposition of its 11.88-acre ISF in Commerce City, Colo. that also features a newly completed, 52,500-square-foot ground-up development. The property, at 8780 E. 93rd Place, which was acquired by an end user, represented IOV’s second ground-up development in Colorado in 12 months.
IOV originally acquired the 93rd Place property in December 2019. Less than two years later, after spearheading all aspects of the design and municipal approval phases, IOV launched the construction of the 52,500-square-foot, Class A maintenance and repair facility. That building was completed in September 2022.
“We acquired this property with a long-term investment thesis that included the new ground-up development and the ongoing management and operation of the asset,” said Eric Johnson, sr. vice president of development and acquisitions, Industrial Outdoor Ventures. “Yet the interest in the property following the completion of the new construction created the opportunity to achieve our investment objectives on an accelerated basis.”
The new building, designed with flexibility to accommodate a single user or multiple tenants, features 4,200 square feet of office space. The shop area features two wash bays and 18 drive-through service bays as well as sealed concrete floors and trench drains. The property also includes a fully fenced and secured yard for parking and storage. The property is equipped with LED lighting and features extensive landscaping.
IOV was represented in the sale by Mike Wafer, executive managing director; Mike Wafer, Jr., managing director; and Mike Viehmann, managing director, all with Newmark. James McGill and Chris Schultz, both with JLL, represented the buyer.
Previously, in 2021, IOV completed an approximately 40,000-square-foot ground-up development project on a 21.32-acre ISF at 10600 Havana Street, also in Commerce City. The newly constructed improvement totals approximately 40,000 square feet of canopy-like structures. The asset subsequently was leased to Border States Industries, Inc., a provider of innovative product and supply chain solutions. It is being used primarily for outdoor storage of equipment and material.
The success of these assets underscores that there is demand for and a scarcity of heavy industrial-zoned sites that allow for large outside storage yards. This is a characteristic that is being seen in the Denver area as well as across the country, according to Johnson.
“While there is reluctance in many communities to allow for the creation of new outdoor storage and service facilities, we are committed to finding creative solutions, as we have in Commerce City and are doing in other markets across the U.S.,” Johnson said.