NexGen Properties Acquires Rare Value-Add Industrial Building in Littleton
Greenwood Village-based NexGen Properties, LLC has acquired Shaffer Tech Center, a 100,550-square-foot industrial building located at 7910 Shaffer Parkway in Littleton, for $7.8 million.
Shaffer Tech Center was built in 2002 and served as the home of Apria Healthcare for 15 years. The building features a 24’ clear height, 13 dock-high doors with 4 levelers, 1 drive-in door, an ESFR fire sprinkler system, and a strong parking ratio of 2.9:1,000 sf. The property is in the affluent Southwest Denver suburb of Ken Caryl, which benefits from impressive demographics, a constrained supply of Class A industrial buildings, close proximity to nearby rooftops, and immediate access to the C-470, I-70, and 285 mountain corridors.
Shaffer Tech Center is the only option in Southwest Denver for industrial users with a 100,000-square-foot requirement as it is the largest block of available space in the submarket. The building also provides users with an option at a significant discount to the competitive new construction lease rates due to the existing office infrastructure and favorable basis.
“NexGen Properties was attracted to the rare opportunity to acquire a well-constructed Class A industrial infill warehouse well below replacement cost. There just isn’t anything like Shaffer Tech Center on the Southwest side of town,” said Matt Bernstein, director of acquisitions and asset management. “We see a real opportunity to add value to Shaffer Tech Center by multi-tenanting the asset and restoring the building to its highest and best use with significantly less office space. In addition to restoring the warehouse space, we plan to upgrade the building’s loading capabilities, roof, HVAC, flooring, lighting, exterior paint and interior finish. NexGen Properties looks forward to bringing long-term stability to Shaffer Tech Center,” he said.
“Shaffer Tech Center fits perfectly into NexGen’s business model of investing in underperforming properties. We seek to create value in real estate by leveraging our industry knowledge and in-house management capabilities,” said Travis McNeil, president of NexGen Properties. “We see a tremendous opportunity to attract a diverse array of potential users to the supply constrained Southwest submarket such as: defense contractors, last mile distributers, biotech/pharmaceutical companies, and outdoor recreation retailers. For users looking in Jefferson County, this building provides a unique opportunity to be in a high-quality building with immediate access to the great outdoors.”
David Marulli and Patrick McGlinchey of Trevey Commercial brokered the transaction on behalf of NexGen Properties. Doug Viseur and Matt Kawulok of CBRE represented the Seller, LS General Partnership out of New Jersey, in their disposition of the asset.
NexGen Properties has partnered with TJ Smith and Nick Rice of Colliers International to provide leasing services for the building. With the acquisition of 7910 Shaffer Parkway, NexGen Properties owns 322,856 square feet of office, industrial and retail space, primarily in Colorado.
Photo courtesy of NexGen Properties