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April 5-18, 2017 - Page 13 COLORADO R EAL ESTATE JOURNAL
Industrial
by Jill Jamieson-Nichols
A 30,000-square-foot mul-
titenant industrial building
with outside storage will kick
off development of a 28-acre
parcel of land at 10600 Havana
St. in Commerce City.
Rocky Crest Enterprises LLC
purchased the site from Wil-
liam C. Gruenewald, Robert
W. Deer and Derr Family LP
for $3.1 million. The sale was
one of the largest land sales
in the area since 2007, accord-
ing to Newmark Grubb Knight
Frank.
NGKF Director Russell Gru-
ber represented the buyer in
the transaction. Larry Cornell
and Pete Gunderson of Phill
Foster and Co. represented the
sellers.
The buyer secured a lease
with logistics company Den-
ver Intermodal Express for 10
acres of the property. It plans
to break ground on the mul-
titenant building in the third
quarter.
The land fronts Interstate 76
and is zoned I-2. It is adjacent
to the city of Brighton.
“We're excitedwith the poten-
tial for this site,” said Aaron
Kinney, vice president of 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 Intermo-
dal Express,” he said. Denver
Intermodal, whose over-the-
road trucking division is head-
quartered in Denver, will use
the site for
trailer storage
and its grain
o p e r a t i o n ,
as well as a
small office
component.
Gruber said
the area has
experienced
record-break-
ing industrial
lease rates and diminishing
vacancy.
“Although the current vacan-
cy rate is at its highest peak
in 15 years, it is due to a sin-
gle, large move-out of a retail
tenant, rather than a general
trend,” he said, noting Kmart/
Sears vacated 1.2 million sf in
2015, pushing the otherwise
tight industrial market to 30
percent vacancy.
“There are no current indus-
trial developments underway
in the immediate area,” said
Gruber. “Larger deals have
been completed, but the need
for smaller-sized units to
accommodate small, related
users is critical.” Large users
in the vicinity include Staples,
Intertape Polymer Group,
BASF Construction Chemicals
and Transwest.
Gruber said he sold a neigh-
boring 30,000-sf building as an
investment last year. “The ten-
ants there were great, it’s never
vacant, your rents are high. It
was just a home-run deal.”
He expects Rocky Crest’s
building will be similarly
received. “Availability is really
low in that market, period –
especially for a building that’s
going to have high visibility,
with yard.
“Rocky Crest’s planned addi-
tion of a multitenant industrial
building designed to accom-
modate small service industry-
type users with grade-level
loading will create tremendous
draw. This is new construction,
15 minutes from Denver, in a
tight market and underserved,
premier location,” he said, add-
ing lease rates likely will be
in the vicinity of $10.50 per sf
triple net or higher.
The building will be deliv-
ered in 2018.
Other News
■ A10,000-square-foot indus-
trial building at 5350 Vivian St.
in Arvada sold for $1.55 mil-
lion.
The buyer, BloomCO Proper-
ties LLC, is affiliated with a con-
struction company that occupies
about half of the building, accord-
ing to Casey Grosecope of New-
mark Grubb Knight Frank, who
represented the buyer. There also
are two other tenants.
Rodney Gustafson of Case
Commercial Real Estate repre-
sented the sellers, Joseph L. Poli-
to, Jill F. Polito, FESI LLC and
Hanco Investments LLC. ▲
$10,000,000
David O’Brien • John Richert • Kevin Chadwick
Brandon Rogers • Craig Branton • Chris Bourgeois
(303) 757-7800
10 year term 25 year amortizationl
Refinance
Russell Gruber