Denver, CO – Newmark Grubb Knight Frank (NGKF) announced the sale of 28 acres of land at 10600 Havana in Commerce City to Rocky Crest Enterprises, LLC. Rocky Crest plans to construct a 30,000-square-foot multi-tenant industrial building at the site with outside storage and has secured a lease for ten acres with logistics giant Denver Intermodal Express (DIX). William C. Gruenewald, Robert W. Deer & Derr Family Limited Partnership sold the land at 10600 Havana to Rocky Crest Enterprises for $3.1 million, in what is one of the largest land sales in the area since 2007. NGKF’s Director Russell Gruber represented Rocky Crest Enterprises, LLC on the transaction.
“We are excited with the potential for this site,” added Aaron Kinney, vice president at Rocky Crest Enterprises, LLC. “The timing for new development in the Commerce City area is ideal, and the desirability of the location was highlighted by the lease with Denver Intermodal Express.” Denver-based DIX services the 48 contiguous states with its over the road trucking division headquartered in Denver at 10700 E. 40th Avenue, Denver, CO. The firm plans to use the 10-acre site at 10600 Havana for small office use, trailer storage and its grain operation.
Fronted by Interstate 76 and zoned I-2, the 28-acre parcel’s location offers easy access to the metropolitan area in a growing industrial district. “The area, neighboring the City of Brighton, is experiencing record breaking lease rates and diminishing vacancy over the long term, and in many ways is a representative microcosm of the larger Denver metro industrial market,” commented Gruber. “Although the current vacancy rate is at its highest peak in 15 years, it is due to a single large move out of a retail tenant, rather than a general trend.” Kmart/Sears vacated 1.2 million square feet in 4Q2015, pushing an otherwise drum tight industrial market to 30%.
“There are no current industrial developments underway in the immediate area,” continued Gruber. “Larger deals have been completed, but the need for smaller-sized units to accommodate small related users is critical.” Larger industrial users leasing space in the market include Staples (303,300 SF), Intertape Polymer Group (174,039 SF) and BASF Construction Chemicals (152,000 SF). Additionally, Transwest owns and occupies a 226,000-square-foot industrial asset. “We are seeing demand for land in the area as developers and users look for value alternatives in an ever expanding market.”
“Rocky Crest’s planned addition of a multi-tenant industrial building designed to accommodate small service industry type related users with grade-level loading will create tremendous draw,” added Gruber. “This is new construction, 15 minutes from Denver, in a tight market and underserved premier location – picture perfect for small, yet mighty business. I predict lease rates will be upwards in the vicinity of $10.50 per square foot.” Construction is expected to commence in 3Q2017, with completion scheduled for early 2018.
Image Courtesy of Newmark Grubb Knight Frank