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Warehouse

4975 N Jackson Street

4975 Jackson St, Denver, CO 80216

Listing Price: $4,300,000

Cap Rate
5.15%
Gross SF
38,656
Price/Gross SF
$111.24
Year Built
1955
Rentable SF
38,656

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the properties located at 4975 & 4995 North Jackson Street in Denver, Colorado. The subject properties consist of approximately 38,656 square feet of space and is situated on 1.72 acres of land. These industrial assets are offered together or can be sold separately. Each subject property features heavy power, ample parking, dock-high doors, and drive-ins. All suites are occupied by long-term tenants, including three spaces occupied for 15 years by the same tenant. This property offers tremendous upside, as current tenants are paying below-market rents for the area, and price-per-square-foot is well below replacement cost. The properties are ideally located less than .25 miles from Vasquez Boulevard and Colorado Boulevard. With excellent highway access, they are also approximately one mile from I-270 and less than one mile from I-70. In addition, the assets are a 25-minute drive from Denver International Airport and less than a 15-minute drive to Downtown Denver. The desirable Upper North Central Industrial submarkets vacancy rate sits at about 3 percent.

Upper North Central is a midsized submarket containing around 10.1 million square feet of industrial space. The recent instability has not made a huge impact on the vacancy rate (4.6%), which has only edged up slightly in the past 12 months. Rents edged up by 0.3% over the past year. There are no supply-side pressures on vacancy or rent in the near-term. Moreover, the inventory has actually contracted over the past 10 years, as demolition activity has outpaced new construction. Industrial properties traded with regularity last year, consistent with the generally high level of activity over the past three years. (CoStar)

A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. Robust demand in this regional market with strong economic growth this cycle is stemming from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, the emergence of the marijuana industrys presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than six million square feet of deliveries. Entering 2020, around 5.5 million square feet was under construction. Industrial rents are more than 60 percent above the peak of the previous cycle, one of the best performances in the nation. Investors remained enthusiastic about Denvers industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year.

Investment Highlights

  • Suites Occupied by Long-Term Tenants, 3 Spaces Occupied by Same Tenant for 15 Years
  • Property Offers Tremendous Upside as Current Tenants are Paying Below-Market Rents
  • Price Per Square Foot is Well Below Replacement Cost
  • Very Desirable Area of City with About 3% Vacancy Rate
  • Industrial Properties Offered Together or Separately
  • Each Property Offers Heavy Power, Ample Parking, Dock-High Doors, and Drive-Ins

Exclusively Listed By

Listing Price: $4,300,000

Cap Rate
5.15%
Gross SF
38,656
Price/Gross SF
$111.24
Year Built
1955
Rentable SF
38,656

Investment Highlights

  • Suites Occupied by Long-Term Tenants, 3 Spaces Occupied by Same Tenant for 15 Years
  • Property Offers Tremendous Upside as Current Tenants are Paying Below-Market Rents
  • Price Per Square Foot is Well Below Replacement Cost
  • Very Desirable Area of City with About 3% Vacancy Rate
  • Industrial Properties Offered Together or Separately
  • Each Property Offers Heavy Power, Ample Parking, Dock-High Doors, and Drive-Ins

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the properties located at 4975 & 4995 North Jackson Street in Denver, Colorado. The subject properties consist of approximately 38,656 square feet of space and is situated on 1.72 acres of land. These industrial assets are offered together or can be sold separately. Each subject property features heavy power, ample parking, dock-high doors, and drive-ins. All suites are occupied by long-term tenants, including three spaces occupied for 15 years by the same tenant. This property offers tremendous upside, as current tenants are paying below-market rents for the area, and price-per-square-foot is well below replacement cost. The properties are ideally located less than .25 miles from Vasquez Boulevard and Colorado Boulevard. With excellent highway access, they are also approximately one mile from I-270 and less than one mile from I-70. In addition, the assets are a 25-minute drive from Denver International Airport and less than a 15-minute drive to Downtown Denver. The desirable Upper North Central Industrial submarkets vacancy rate sits at about 3 percent.

Upper North Central is a midsized submarket containing around 10.1 million square feet of industrial space. The recent instability has not made a huge impact on the vacancy rate (4.6%), which has only edged up slightly in the past 12 months. Rents edged up by 0.3% over the past year. There are no supply-side pressures on vacancy or rent in the near-term. Moreover, the inventory has actually contracted over the past 10 years, as demolition activity has outpaced new construction. Industrial properties traded with regularity last year, consistent with the generally high level of activity over the past three years. (CoStar)

A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. Robust demand in this regional market with strong economic growth this cycle is stemming from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, the emergence of the marijuana industrys presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than six million square feet of deliveries. Entering 2020, around 5.5 million square feet was under construction. Industrial rents are more than 60 percent above the peak of the previous cycle, one of the best performances in the nation. Investors remained enthusiastic about Denvers industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year.

Exclusively Listed By

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