According to Cushman & Wakefield, Lipan Street Industrial Park in Denver has sold for $21 million to New York-based IG Logistics LLC, Imperium Capital’s Industrial platform. The unique property, totaling approximately 34.4 acres, is located at 6045 Lipan Street and features outside storage, trailer parking, administrative offices, a fueling station, and a truck maintenance facility. The seller was EP Investments LLC.
The property recently completed multiple long-term leases consisting of land leases with Freeman Expositions, a leading integrated event services provider, totaling 7.25 Acres and System Transport, the largest flatbed trucking company based on the west coast, totaling 4.5 Acres for 10 years. Existing tenant Mesilla Valley Transportation, one of the largest locally-owned Truck Load carriers in the U.S., extended its lease for 3.5 acres. All Fleet Services, a Denver-based transport company, also leased the 22,000-square-foot shop and diesel station on the property.
Each lease was transacted prior to sale but were all contingent upon IG Logistics acquiring the property. Matt Trone, Steve Hager, and Joey Trinkle with Cushman & Wakefield negotiated the leases, except for the Mesilla deal, on behalf of IG Logistics and were also retained to handle project leasing following its acquisition.
Daniel Glaser, managing partner, Imperium Capital, said, “We will continue to operate this property as the premier transportation logistics asset in Central Denver but are also excited about its future development potential.”
“IG logistics is very bullish on infill industrial properties with outside storage components in premier markets around the US. Denver is a market we are very focused on and will continue to be aggressive to purchase irreplaceable properties like the Lipan Street Industrial Park,” added Sam Schneider, managing partner, Imperium Capital.
The property currently has available for lease a 14,000 SF freestanding office building as well as an additional 11-acre parcel for trailer parking or as a potential industrial build-to-suit. The property is surrounded by corporate neighbors and other amenities and is strategically positioned with a population of 3.5 million residents.
“IG Logistics took a very smart and aggressive approach in wanting to pay a premium for this unique site located in the central submarket of one of the highest population growth markets of any large city in the country,” said Matt Trone, managing director. “These types of properties that fulfill a specialized niche and are able to meet the growing needs of transportation companies requiring trailer storage are very challenging to find in the Denver region.”
Trone continued, “There is high demand for trailer park and outside storage and these sites are becoming increasingly rare as greater infill redevelopment occurs which often displaces these types of tenants across the country that have a critical need for storage trailers, etc. for inbound/outbound business. Furthermore, these sites are also important to the flourishing e-commerce sector that also relies on this type of facility for additional space. We fully anticipate for demand to continue to outweigh supply, making these properties not only valuable but essential.”
Photo courtesy of Cushman & Wakefield
