Chefs Catalog campus trades for more than $7.7 million

The two 75,000-sf buildings at 5050 and 5070 Centennial Blvd. in the Garden of the Gods submarket, purchased by owner users with operations in Colorado Springs, were vacant at the time of sale.

There are new cooks in the kitchen at a pair of Colorado Springs industrial buildings.

Chefs Catalog’s 150,000-square-foot campus recently sold in separate transactions totaling $7.7 million.

The two 75,000-sf buildings at 5050 and 5070 Centennial Blvd. in the Garden of the Gods submarket, purchased by owner users with operations in Colorado Springs, were vacant at the time of sale after Target, which acquired the cooking equipment retailer in 2013, shuttered the business earlier this year.

Target, however, was still leasing the property from seller Centennial Realty Partners, whose brokers negotiated a lease buy-out with Target to move forward on the sales transactions.

Both of the properties saw good interest, however, 5050 was particularly attractive because it comprises entirely warehouse space, noted Randy Dowis of NAI Highland.

A subsidiary of Atlantic Relocation, a national moving and storage company, which does a significant amount of U.S. Department of Defense work, paid $3.7 million, or 95 percent of asking price, for the building.

The transaction, Dowis noted, was a little unusual in that Atlantic had to get into the property “sooner than later” and couldn’t wait out a normal contract period as it needed immediate occupancy due to the roof caving in at its building. A short-term lease was inked by Atlantic for the building, constructed in 1984, before it acquired the facility.

The building at 5050 Centennial includes 18- to 22-foot ceiling heights and three dock doors and one drive-in door.

Dowis, along with John Onstott and Paul Engel of NAI Highland, represented the seller in the deal. Additionally, Dowis and NAI Highland’s Lester Colodny represented the buyer in the deal.

The 5070 Centennial building was purchased by a subsidiary of Samtec, an electronics manufacturing company with operations in Colorado Springs and headquartered in Indiana. It paid $4.02 million, or 97 percent of asking price, for the property.

The building includes 30,000 sf of office space. It was built in 1984. Dowis, Onstott and Engel also represented Centennial Realty Partners in the disposition. Scott Snow of Keller Williams Realty represented the buyer.

“It is nice seeing manufacturing expanding in Colorado Springs,” added Dowis. “I’m glad we kept them here.”

Additionally, a third, 60,000-sf building on the campus, never used by Chefs Catalog, currently is under contract.

Featured in CREJ’s October 19 – November 1, 2016, issue

Jennifer Hayes has been an editor with the CREJ since 2000. Jennifer covers multifamily and retail news in the Denver metro area plus all property types in Colorado Springs and Southern Colorado. She also covers the finance market as well as solicits bylines articles and is editor of the Health Care Properties Quarterly. Before joining…