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Warehouse

1221 E 56th Avenue, Denver, CO 80216

1221 E 56th Ave, Denver, CO 80216

Listing Price: $7,000,000

Cap Rate
5.23%
Gross SF
36,300
Price/Gross SF
$192.84
Lot Size
4.03 acres
Year Built
1981
Rentable SF
36,300

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1221 East 56th Avenue in Denver, Colorado, anchored by Tribus Services. The subject property consists of approximately 36,300 square feet of warehouse space and is situated on 4.03 acres of land. The two-building asset features a clear height up to 22’, three-phase power, and a newly surfaced parking lot. As a fully fenced-in property, the asset provides security for 90 storage units that generate additional revenue. The 32,800-square-foot warehouse and 3,500-square-foot warehouse situated on the property can potentially be connected. Positioned in unincorporated Adams County, the property is less than a 15-minute drive from Downtown Denver. The property is located just off Interstate 25 and 58th Avenue, with easy access to both Interstates 70 and 76. About 90 percent of the property is leased to Tribus Services through 2025, with two renewal options. Tribus Services provides end-to-end smart metering and utility services for electric, gas and water utilities. Acquired by Olameter in 2020, Tribus Services has completed more than 25 million Smart Meter, Advanced Meter Infrastructure (AMI), Automated Meter Reading (AMR) implementations, and meter replacements, deploying all types of meter models and smart meter technology. The subject property sits adjacent to Upper North Central, a midsized submarket with 10.0 million square feet of industrial space. The submarket largely consists of logistics facilities, accounting for 6.7 million square feet. While the vacancy rate was impacted by the onset of the pandemic, the ten-year average is at just 3.4 percent. At $10.38 per square foot, the average market rent is about 83 percent higher today than in 2011. With no industrial properties under construction, there are no supply-side pressures on vacancy or rent in the near-term. In addition, the inventory has actually contracted over the past decade, as new construction has lagged demolition activity (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

  • 36,300-Square-Foot Industrial Property on More than Four Acres
  • Two Buildings: 32,800 Square Feet; 3,500 Square Feet with Potential to Connect
  • Warehouse Has 22' Clear Height, New Parking Lot Surface, 3-Phase Power
  • Two Tenants with Leases Into 2025, with 2 Renewal Options
  • Ideal Location - Unincorporated Adams County/Denver Address
  • Just Off I-25/58th Avenue, Easy Highway Access to Both 70 and 76
  • Less Than 15 Minutes to Downtown Denver
  • Fully Fenced-In Property

Exclusively Listed By

Financing By

Warehouse

1221 E 56th Avenue, Denver, CO 80216

Listing Price: $7,000,000

Cap Rate
5.23%
Gross SF
36,300
Price/Gross SF
$192.84
Lot Size
4.03 acres
Year Built
1981
Rentable SF
36,300

Investment Highlights

  • 36,300-Square-Foot Industrial Property on More than Four Acres
  • Two Buildings: 32,800 Square Feet; 3,500 Square Feet with Potential to Connect
  • Warehouse Has 22' Clear Height, New Parking Lot Surface, 3-Phase Power
  • Two Tenants with Leases Into 2025, with 2 Renewal Options
  • Ideal Location - Unincorporated Adams County/Denver Address
  • Just Off I-25/58th Avenue, Easy Highway Access to Both 70 and 76
  • Less Than 15 Minutes to Downtown Denver
  • Fully Fenced-In Property

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1221 East 56th Avenue in Denver, Colorado, anchored by Tribus Services. The subject property consists of approximately 36,300 square feet of warehouse space and is situated on 4.03 acres of land. The two-building asset features a clear height up to 22’, three-phase power, and a newly surfaced parking lot. As a fully fenced-in property, the asset provides security for 90 storage units that generate additional revenue. The 32,800-square-foot warehouse and 3,500-square-foot warehouse situated on the property can potentially be connected. Positioned in unincorporated Adams County, the property is less than a 15-minute drive from Downtown Denver. The property is located just off Interstate 25 and 58th Avenue, with easy access to both Interstates 70 and 76. About 90 percent of the property is leased to Tribus Services through 2025, with two renewal options. Tribus Services provides end-to-end smart metering and utility services for electric, gas and water utilities. Acquired by Olameter in 2020, Tribus Services has completed more than 25 million Smart Meter, Advanced Meter Infrastructure (AMI), Automated Meter Reading (AMR) implementations, and meter replacements, deploying all types of meter models and smart meter technology. The subject property sits adjacent to Upper North Central, a midsized submarket with 10.0 million square feet of industrial space. The submarket largely consists of logistics facilities, accounting for 6.7 million square feet. While the vacancy rate was impacted by the onset of the pandemic, the ten-year average is at just 3.4 percent. At $10.38 per square foot, the average market rent is about 83 percent higher today than in 2011. With no industrial properties under construction, there are no supply-side pressures on vacancy or rent in the near-term. In addition, the inventory has actually contracted over the past decade, as new construction has lagged demolition activity (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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