Real estate investment management firm Intercontinental Real Estate Corporation has added to its multi-million square-foot industrial portfolio with the acquisition of a newly developed 147,000-square-foot warehouse and distribution building in Downtown Denver, CO.
The property is located on a 37.3-acre site at 875 W. 64th Street, in Denver’s Central Industrial submarket with immediate access to I-25, I-70, I-76 and US 36 providing connectivity to the entire Denver metro. It was purpose-built as a state-of-the-art last-mile delivery facility for a multi-national e-commerce retailer. The Class A development with 33’-6” clear heights, 14 dock high doors and 12 drive-in doors is 100% net leased for 15 years.
This is the first industrial real estate asset in Colorado for Intercontinental whose portfolio includes 29 million square feet of commercial and industrial space, and more than 12,000 multifamily units across the United States.
“We’ve been tracking the Denver industrial market for some time,” said Jessica Levin, Senior Director, Acquisitions at Intercontinental. “The property is perfectly suited for last mile delivery as it benefits from its location near a superior intermodal infrastructure. This provides the tenant with the potential to offer same-day delivery to nearly five million people that live or work within a 90-minute drive from the facility.”
While significantly smaller than the nation’s major industrial markets, Denver is one of the fastest growing in the country, catching the eye of both users and investors. According to property research firm Commercial Edge, Denver, with more than $1.2 billion in transaction volume, was among the top 10 industrial markets for industrial transactions in 2020. Others on the list included such major markets as Los Angeles, Chicago, Boston, New Jersey and Dallas-Fort Worth.
Intercontinental acquired the property on behalf of its U.S. Real Estate Investment Fund, which focuses on on core and core-plus industrial, office, multifamily and mixed-use real estate assets in key markets throughout the United States.
“This was a great fit for us as it met the stringent investment criteria demanded by the institutional investors in our fund,” added Allen Logue, Director, Acquisitions at Intercontinental. “This is an excellent yield-driven asset in an emerging industrial market that will provide steady in-place cash flow from a strong credit tenant.”
The property was marketed for sale by Cushman & Wakefield’s National Advisory Group led by Jeff Chiate, Will Strong, Jeff Cole and Mike Adey. Other team members Matt Trone, Steve Hager, Drew McManus and Joey Trinkle in Cushman & Wakefield’s Denver office.