Colorado Real Estate Journal - March 16, 2016
A Denver industrial user found a needle in a haystack in Denver’s Montbello Industrial Park. Stone International bought a 56,897-square-foot Class B industrial building with an approximately 1-acre lot at 11411 E. 51st Ave. for $4.3 million, or $75.58 per sf. It plans to occupy about 35,000 sf and grow into the remaining space over time. “Quite frankly, it was one of the very few buildings they could buy,” said JLL's Jason White. There have been few industrial user sales recently, and there are very few buildings available for sale, especially in that size range, he said. Buildings with yard also are few and far between. “That was really attractive not only for their parking but also to be able to store product out there,” said White. The deal was the largest industrial owner-user sale in the Denver market so far this year, according to JLL. Stone International is a direct importer of cabinets and granite countertops. It currently leases about 33,000 sf off of Interstate 70 and Peoria Street, and that lease is expiring. “This was a great deal to be a part of as it was one of the only vacant industrial deals of considerable size in the I-70 corridor,” said Brandon Kramer of Marcus & Millichap. Montbello is home to a number of marijuana grow facilities, and that added to the level of interest in the property, Kramer said. “The extremely tight market, combined with the possibility of marijuana cultivation, drew tremendous interest from multiple buyers. We ultimately came to an agreement with one of the first groups to approach us, an owner-user that was nearing the end of their lease at another property,” he said. Built in 1987 and expanded 10 years later, the building features a two-story office area. It was vacant at the time of the sale. Fire-suppression company Cintas used to be in the building but couldn’t come to an agreement with the landlord when its lease expired and decided to leave the property, according to Kramer. Kramer represented the seller, 11411 Limited LLLP. White and Mitch Zatz of JLL represented the buyer.