Suburban Denver E-commerce Facility Commands $114M

875 W. 64th Ave., North Washington, Colo.

A joint venture of Karis Capital—as developer—and AEW—as capital partner—has sold a newly developed Class A warehouse/distribution building in north suburban Denver for $114 million. Cushman & Wakefield advised the sellers.

The buyer of the approximately 147,000-square-foot property was not disclosed, only described as a national real estate investment, development and management firm.

The property, completed this year, is fully leased to an unidentified global Fortune 100 e-commerce company.

Its location, at 875 W. 64th Ave., puts the development in the unincorporated village of North Washington, in Adams County, just north of I-76 and just west of I-25, only a few miles west of Rocky Mountain Arsenal National Wildlife Area.

The overall site is 37.3 acres, a Cushman & Wakefield spokesperson told Commercial Property Executive, which seems to raise the possibility of further development there in the future.

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Cushman & Wakefield Executive Managing Director Will Strong, Vice Chairmen Jeff Chiate and Jeffrey Cole, Director Mike Adey, Associate Greer Oliver, and Analyst Connor Nebeker-Hay, all of the National Industrial Advisory Group, represented Karis Capital and AEW in the transaction. The firm’s Matt Trone, Steve Hager, Drew McManus, Ryan Searle and Joey Trinkle also provided market leasing advisory.

Strong said in a prepared statement that the property was “an exceptional investment asset with a superior tenant and a premier location defined by its excellent access to major freeways and the entire Denver Metro.” He added that “Denver is poised for continued growth and sustainability, with a strong population growth rate that has far outpaced the national average the past decade … coupled with steady employment.”

Back to normal?

The metro Denver industrial real estate market could be heading into better supply-demand balance, with a more diverse group of tenants absorbing somewhat more modest spaces, versus a spate of 1 million-square-foot build-to-suits seen earlier this year, according to a second-quarter report from JLL.

Currently, there’s 9.9 million square feet of industrial space in the pipeline, and while total vacancy (at 6.7 percent) is a post-2011 peak, asking rents are—at least for now—holding fairly steady, with stable concessions.

Last February, AEW sold the two-building, 235,400-square-foot Lanark Distribution Center in San Antonio to Albany Road Real Estate Partners for an undisclosed amount.