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Warehouse

6161 E 88th Avenue

6161 E 88th Ave, Henderson, CO 80640

Listing Price: $2,850,000

Cap Rate
7.04%
Gross SF
13,114
Price/Gross SF
$217.32
Lot Size
2.95 acres
Year Built
1969
Rentable SF
13,114

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6161 East 88th Avenue in Henderson, Colorado. The subject property consists of approximately 13,114 square feet of warehouse space and is situated on 2.95 acres of land. The asset features outdoor storage space and two roofs replaced in 2020. With more than $34,000 in monthly income, the property generates a steady stream of tenant revenue. Located just off Interstate 76 and 88th Avenue, the asset, zoned C-5, has an accessible location in unincorporated Adams County. Downtown Denver is just a 15-minute drive from the property and the Denver International Airport can be reached in 25 minutes. The subject property is situated within North Denver, a large submarket containing 12.1 million square feet of industrial space. Logistics facilities account for the largest proportion of inventory at 8.5 million square feet, followed by 1.9 million square feet of specialized space and 1.7 million square feet of flex space. While the vacancy rate in North Denver remains at 10.1 percent, availability is much tighter for smaller industrial spaces. For comparable properties ranging 10,000 to 50,000 square feet, the vacancy rate sits at just 3.1 percent in Q4 2021, down 100 basis points from a year earlier. Net absorption over the past year tallied about 260,000 square feet in North Denver, 75 percent above the 10-year average. Rents posted a gain of 5.1 percent over the past 12 months, which is in line with the overall Denver market. Industrial rents average $11.70 per square foot, representing a nine percent premium over the market average. Thanks in part to strong rent growth and prime location, developers have continued to expand the local inventory. The 403,108 square feet currently underway in North Denver will increase the inventory by 3.3 percent. Even with tallying still in process, sales volume posted a record $150 million in 2021. The median sales price also hit a record of about $186, up over 26 percent year-over-year (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

  • Nearly three-acre Property Zoned C-5 in Unincorporated Adams County
  • Property Includes Outdoor Storage & Industrial Tenant Revenue
  • More Than $18,000 Monthly Income
  • Two Roofs Replaced in 2020
  • Accessible Location Just Off I-76/88th Avenue
  • 15-Minute Drive to Downtown Denver; 25 Minutes to DIA

Exclusively Listed By

Financing By

Warehouse

6161 E 88th Avenue

Listing Price: $2,850,000

Cap Rate
7.04%
Gross SF
13,114
Price/Gross SF
$217.32
Lot Size
2.95 acres
Year Built
1969
Rentable SF
13,114

Investment Highlights

  • Nearly three-acre Property Zoned C-5 in Unincorporated Adams County
  • Property Includes Outdoor Storage & Industrial Tenant Revenue
  • More Than $18,000 Monthly Income
  • Two Roofs Replaced in 2020
  • Accessible Location Just Off I-76/88th Avenue
  • 15-Minute Drive to Downtown Denver; 25 Minutes to DIA

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6161 East 88th Avenue in Henderson, Colorado. The subject property consists of approximately 13,114 square feet of warehouse space and is situated on 2.95 acres of land. The asset features outdoor storage space and two roofs replaced in 2020. With more than $34,000 in monthly income, the property generates a steady stream of tenant revenue. Located just off Interstate 76 and 88th Avenue, the asset, zoned C-5, has an accessible location in unincorporated Adams County. Downtown Denver is just a 15-minute drive from the property and the Denver International Airport can be reached in 25 minutes. The subject property is situated within North Denver, a large submarket containing 12.1 million square feet of industrial space. Logistics facilities account for the largest proportion of inventory at 8.5 million square feet, followed by 1.9 million square feet of specialized space and 1.7 million square feet of flex space. While the vacancy rate in North Denver remains at 10.1 percent, availability is much tighter for smaller industrial spaces. For comparable properties ranging 10,000 to 50,000 square feet, the vacancy rate sits at just 3.1 percent in Q4 2021, down 100 basis points from a year earlier. Net absorption over the past year tallied about 260,000 square feet in North Denver, 75 percent above the 10-year average. Rents posted a gain of 5.1 percent over the past 12 months, which is in line with the overall Denver market. Industrial rents average $11.70 per square foot, representing a nine percent premium over the market average. Thanks in part to strong rent growth and prime location, developers have continued to expand the local inventory. The 403,108 square feet currently underway in North Denver will increase the inventory by 3.3 percent. Even with tallying still in process, sales volume posted a record $150 million in 2021. The median sales price also hit a record of about $186, up over 26 percent year-over-year (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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