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Warehouse

4090 Dahlia St

4090 Dahlia St, Denver, CO 80216

Listing Price: $1,450,000

Gross SF
10,054
Price/Gross SF
$144.22
Lot Size
0.49 acres
Year Built
1971
Rentable SF
10,054

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4090 Dahlia Street in Denver, Colorado. The subject property consists of approximately 10,054 square feet of warehouse space and is situated on 0.49 acres of land. Constructed to be split into two spaces, the asset features four dock-high doors, a 16’ clear height, and heavy power. Situated on the corner lot, the property is less than one mile from the intersection of Colorado Boulevard and Interstate 70. With access to Interstate 25 in less than a 10-minute drive, the asset is located 15 minutes from Downtown Denver and 25 minutes from the Denver International Airport. The property is well positioned within the Quebec Street submarket, containing 11.4 million square feet of industrial space. At 4.2 percent, the vacancy rate in Quebec Street is 270 basis points lower than the overall Denver market. Furthermore, the vacancy rate on comparable properties up to 20,000 square feet sits at just 1.1 percent. While the submarket’s industrial rent is $1.87 below the market’s average, the rent on comparable properties is about 15 percent higher than the overall market at $11.77 per square foot. Like the subject property, more than half of the Quebec Street inventory was delivered in the 1960s and 1970s. In 2014, developer United Properties acquired 118 acres of land from Forest City Enterprises. Of the nearly 2 million square feet of distribution and warehouse space constructed on the land, less than 5 percent is currently available. The Union Pacific rail line runs East and West through Quebec Street, making the submarket an idea distribution hub (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 industry’s 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 Denver’s 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. Pricing continues to climb upward, albeit at a more modest pace than in past years, according to CoStar’s Pricing Trends (CoStar).

Investment Highlights

  • Building Sits on a Corner Lot and Includes Four Dock-High Doors, 16' Clear Height, and Heavy Power
  • Centrally Located in the Quebec Street Industrial Submarket: 25 Minutes to DIA & 15 minutes to Downtown Denver
  • Less than One Mile from Colorado Boulevard and I-70; Less than 10 Minutes to I-25
  • Submarket Has Low Vacancy Rate Below 2% for Properties This Size
  • Building is constructed to be easily split into 2 spaces: 4080 Dahlia & 4090 Dahlia
  • Market Rent for Industrial Property This Size is Above $11 Per Square Foot In This Area

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Financing By

Listing Price: $1,450,000

Gross SF
10,054
Price/Gross SF
$144.22
Lot Size
0.49 acres
Year Built
1971
Rentable SF
10,054

Investment Highlights

  • Building Sits on a Corner Lot and Includes Four Dock-High Doors, 16' Clear Height, and Heavy Power
  • Centrally Located in the Quebec Street Industrial Submarket: 25 Minutes to DIA & 15 minutes to Downtown Denver
  • Less than One Mile from Colorado Boulevard and I-70; Less than 10 Minutes to I-25
  • Submarket Has Low Vacancy Rate Below 2% for Properties This Size
  • Building is constructed to be easily split into 2 spaces: 4080 Dahlia & 4090 Dahlia
  • Market Rent for Industrial Property This Size is Above $11 Per Square Foot In This Area

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4090 Dahlia Street in Denver, Colorado. The subject property consists of approximately 10,054 square feet of warehouse space and is situated on 0.49 acres of land. Constructed to be split into two spaces, the asset features four dock-high doors, a 16’ clear height, and heavy power. Situated on the corner lot, the property is less than one mile from the intersection of Colorado Boulevard and Interstate 70. With access to Interstate 25 in less than a 10-minute drive, the asset is located 15 minutes from Downtown Denver and 25 minutes from the Denver International Airport. The property is well positioned within the Quebec Street submarket, containing 11.4 million square feet of industrial space. At 4.2 percent, the vacancy rate in Quebec Street is 270 basis points lower than the overall Denver market. Furthermore, the vacancy rate on comparable properties up to 20,000 square feet sits at just 1.1 percent. While the submarket’s industrial rent is $1.87 below the market’s average, the rent on comparable properties is about 15 percent higher than the overall market at $11.77 per square foot. Like the subject property, more than half of the Quebec Street inventory was delivered in the 1960s and 1970s. In 2014, developer United Properties acquired 118 acres of land from Forest City Enterprises. Of the nearly 2 million square feet of distribution and warehouse space constructed on the land, less than 5 percent is currently available. The Union Pacific rail line runs East and West through Quebec Street, making the submarket an idea distribution hub (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 industry’s 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 Denver’s 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. Pricing continues to climb upward, albeit at a more modest pace than in past years, according to CoStar’s Pricing Trends (CoStar).

Exclusively Listed By

Financing By

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