California-based Nearon Enterprises has purchased a 99,960-square-foot industrial property located at 2640 Zeppelin Road near Colorado Springs Airport for $14.6 million.
Developed by Scannell Properties and completed in 2019, 2640 Zeppelin Road is a multi-tenant distribution center leased to Geary Pacific Corp. and a national home improvement retailer. The building includes 30-ft. clear heights, ESFR sprinklers, dock-high and drive-in loading, LED lighting and a front-park, rear-load design.
“2640 Zeppelin is a newly constructed, fully stabilized Class A distribution warehouse in a low industrial vacancy market. With little recent industrial construction in Colorado Springs, there is pent-up demand for quality warehouse space,” stated Jeremy Ballenger, executive vice president, CBRE. “Despite recent economic turmoil, investors are still pursuing industrial properties in strategic markets, especially when they include long-term leases with high-credit tenants.”
Tyler Carner, Jeremy Ballenger, Jim Bolt and Jessica Ostermick with CBRE’s Denver office represented the Denver office of Scannell Properties. Brad Bird with CBRE’s Colorado Springs office served as leasing advisor, bringing the property to full lease-up four months prior to delivery.
Scannell Properties has completed 328 build-to-suit or speculative development projects exceeding 63 million square feet in 44 states and three Canadian provinces.
Nearon was founded in 1945 and has a 75-year history of successfully investing in commercial real estate throughout the Western U.S. Today, Nearon owns and operates a diverse portfolio of approximately 5 million square feet, including approximately 3.7 million square feet of industrial properties. Throughout much of its history, the company has owned and developed property in
the Colorado Springs region. The current Nearon portfolio is primarily concentrated in California, Utah, Arizona and Colorado.
Colorado Springs’ industrial vacancy rate has been tightening, reaching 4.2 percent at the end of 2019, down 380 basis points from a year prior.
