Colorado Real Estate Journal - May 4, 2016
A company tied to the homebuilding industry doubled its footprint with a 200,972 square feet lease for space in an industrial building at 445 W. 53rd Place in Denver. Precision Building Systems, which builds wall panels and trusses for residential structures, has occupied approximately 100,000 sf in the building for several years. It had a few years remaining on its lease but has been growing and needed room to expand its operations, according to Cushman & Wakefield Managing Director Alec Rhodes. “We expanded them into the full 200,000 sf and did a long-term lease,” he said. “The building works well for them because of the outside storage and rail capability, which is paramount for their process,” he said. “It’s a good indication of the strength of the housing market,” Rhodes added. Rhodes, along with Cushman & Wakefield’s Tyler Smith and Aaron Valdez, represented the tenant in the transaction. Mitch Zatz of JLL represented the landlord, Colfin Cobalt I-II Owner LLC. Other News J.R. Butler Inc. recently purchased the building it occupies at HighField Business Park in Douglas County for $12.6 million. Central Development developed the building, located at 8535 HighField Parkway in Englewood, in partnership with Bradbury Properties. The building comprises 98,975 square feet, plus second-story mezzanine space. J.R. Butler, a glass and fenestration company, leased the majority of the building, which also houses a data center, last year. Jeremy Records, Central Development principal, said J.R. Butler has been investing in its space and wanted to control its investment over the long term. Sam Slaton, Steve Hager and Matt Trone of Cushman & Wakefield represented J.R. Butler in the transaction. Tyler Carner and Jeremy Ballenger of CBRE represented the seller. In a separate deal earlier this year, Central Development bought a 45,999-sf warehouse that J.R. Butler formerly occupied at 2452 W. Second Ave. in Denver for $2.49 million. It is in the process of turning the building into multitenant space and has leases out for signature. Slaton, Trone and Hager are the leasing brokers. “It’s a great location,” said Records, noting that redevelopment in central Denver, especially River North, has put “a real pinch on that inner-city industrial space.” The building was constructed in 1962, and J.R. Butler had maintained it well, he said. “We were comfortable with buying something of that vintage, knowing that it had good prior ownership,” Records said. Martz Supply, a wholesale plumbing company, leased 78,000 sf of industrial space at 5000 Moline St. in Montbello Industrial Park in Denver. The deal represents a significant expansion from the company’s current location at 5330 Pecos St. Tyler Carner, Jim Bolt and Mike Camp of CBRE Inc. represented the tenant in the transaction. Tom Stahl of Colliers International was the listing broker. An industrial investment property at 6535 York St. in Denver sold for $2.15 million in a deal that drew multiple offers within the first two weeks of marketing, according to listing broker Jeff Kummer of Altitude Commercial Realty. Emerald Isle LLC sold the 34,850-sf multitenant building to 6535 York LLC, a local investment group. The building, whose unit sizes range from 1,000 to 3,750 sf, was 100 percent occupied at the time of sale. Constructed in 1999, it includes some ministorage units. Kummer attributed the interest to a lack of industrial investment properties in the market and a wealth of 1031 exchange money looking for opportunities. Although most of the offers were from 1031 buyers, 6535 York LLC was not satisfying an exchange requirement. Chase Grimes, Mark Goodman and Paul Schneider of Pinnacle Real Estate Advisors represented the buyer in the transaction. Red Brick LLC sold a 14,250-sf industrial building at 3845 Forest St. in Denver to Advantex Inc. for $1.11 million. Russell Gruber of Newmark Grubb Knight Frank represented the seller. Steve Serenyi of Colliers International represented the buyer. Gruber also represented Rocky Crest Enterprises LLC in the purchase of 3.21 acres of Industrial 2-zoned land at 8871 Yosemite St. in Henderson. Rocky Crest Enterprises plans to construct a building on the site, which sold for $525,000, Gruber said. Scott Patterson and Alex Ringsby of Ringsby Realty Corp. represented the sellers, Frank and Karen Rossi.