Silver Point JV Plans Denver-Area Warehouse Project

The company, alongside Walker & Dunlop Investment Partners, acquired 37 acres for the development’s first phase.

Elevation25. Image courtesy of Silver Point Development

Silver Point Development has partnered with an affiliate of Walker & Dunlop Investment Partners to acquire 37 acres of land for the construction of five warehouse properties in Mead, Colo. Avison Young’s Dawn McCombs and Kevin Hann represented the partnership, which acquired the parcel of land for an undisclosed price.

Silver Point will use the site to develop the first phase of Elevation25, an industrial project that’s expected to total 1 million square feet at full build-out. The first phase of the project will include five buildings totaling 578,240 square feet.

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Silver Point is expecting to break ground on the first two buildings of the first phase later this month, with an expected completion for the fall of 2022. Building 1 of the first phase will total 94,076 square feet and is already 40 percent preleased to Premier Manufacturing, while the 109,676-square-foot Building 2 is fully available.

Elevation25 is located near the intersection of Weld County Road 9 ½ and Highway 66, putting the Colorado warehouse project equidistant from the region’s three major markets of Denver, Boulder and Loveland/Fort Collins. Hann said in prepared remarks that Elevation25’s location allows companies to recruit from the nearby markets to help address the ongoing labor shortage.

Second phase to bring Elevation25 to 1 MSF

Beyond the first phase of Elevation25, the developer will acquire an adjacent 36-acre land parcel within the next three years, which will be used for the project’s second phase. The second phase will include four buildings totaling 422,000 square feet and would bring Elevation25 to 1 million square feet of warehouse space.

McCombs said in prepared remarks that Denver’s industrial market is performing very well and is expected to continue doing well in the future. McCombs added in her prepared statement that industrial land opportunities are scarce in the Denver market, leading developers and investors to look toward secondary markets like Mead.

The market has already attracted major companies for distribution and logistics purposes, including Amazon, Home Depot, UPS and FedEx. Other developers have also responded to the demand in suburban Denver, including Hines, which has partnered with L.C. Fulenwider Inc. to develop a 3 million-square-foot industrial complex in Aurora, Colo.

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