A new joint venture of CWCapital and Kenai Capital Advisors has acquired three industrial buildings in Compark Business Campus in Englewood for $41 million.
The 263,734-square-foot portfolio included 8490 and 8560 Upland Drive, along with 14800 Grasslands Drive. Hendricks Commercial Properties sold the assets for $155.46 per sf.
The deal provided a rare opportunity to acquire Class A industrial properties with value-add potential, according to Jules Sherwood of Kenai Capital Advisors. While the portfolio was fully occupied at the time of closing, 14800 Grasslands, which comprises 50,488 sf, is immediately available for lease or sale.
Charter Communications, Quantum Corp. and LabCorp occupy the Upland buildings.
All three properties have 24-foot ceiling heights, ESFR fire sprinklers and heavy power, and have been tailored to each tenant’s specific needs, according to Sherwood.
With continued increases in domestic and foreign capital forecasted for 2020, the Denver industrial market is expected to continue to thrive, noted Sherwood, who added that increased demand and dwindling supply have led to speculative demand and a rush of build-to-suits that cement Denver’s position as a top regional distribution hub.
“This acquisition reflects a major investment in the Colorado market and one that lays the framework for continued acquisitions by our group,” Sherwood commented. “CWCapital and Kenai are happy to be a part of the exciting environment within Compark, and we are committed to expanding our investment footprint throughout the Denver market.”
Compark Business Campus is located north of E-470 and east of Centennial Airport, providing quick access to the 470 beltway and Interstate 25, as well as significant housing developments.
“This was a unique opportunity to buy a Class A offering that combined top-quality office/industrial assets, credit tenancy value-add leasing opportunities and secure cash flow in the southeast submarket,” commented Jeremy Ballenger of CBRE, who represented the seller with CBRE’s Jim Bolt and Tyler Carner.
Tyler Reed, Peter Beugg and Dominic DiOrio of Stream Realty Partners represented the buyers and are the listing brokers for 14800 Grasslands. Situated on 4 acres, the building features large drive-in doors, dock loading, available outdoor yard space and the ability to add additional loading.
“With approximately 9,000 square feet of quality office build out and the ability to store materials outside, the Grasslands property is right in the sweet spot for users in the southeast Denver market,” Sherwood commented.
CWCapital’s investment team, Galaxy Investment Group, focuses on value-add and opportunistic transactions in the industrial, office, multifamily, retail and hotel sectors. Kenai Capital Advisors is a Littleton-based owner and operator of office, retail and industrial assets across the Mountain West region.
