Pauls Corp. sold more than $200 million worth of Class A industrial space in Gateway Park in the biggest industrial investment deal ever in the Denver market.
The Gateway Park properties, which public records show sold for $206.06 million – or $106.77 per square foot – comprise 1.93 million sf in 14 buildings in Aurora. Clarion Partners bought the essentially 100 percent leased assets as part of a 3.76 million-sf portfolio that also included industrial buildings Pauls developed in Las Vegas, Dallas and Atlanta.
The acquisition makes Clarion Partners the third largest owner of industrial properties in the Denver market. The assets are located within the airport/ Interstate 70 industrial submarket.
“This opportunity allows Clarion Partners to establish a significant light-industrial position in Denver within the premier submarket of Denver, where Class A assets are rarely traded,” said Dayton Conklin, managing director in Clarion Partners’ Dallas office.
“With our occupancy, and with pricing the way it is, it was an opportune time for us to sell,” commented Pauls Corp. President Brian Pauls. “Clarion was great to deal with. CBRE did an awesome job on the execution. We’re very happy with the result.”
Pauls developed the Aurora buildings from the mid-1990s through 2015. They are located near the Interstate 70-Peña Boulevard interchange in the 1,200-acre Gateway Park mixed-use development. Pauls continues to develop industrial product in the park with two buildings totaling approximately 600,000 sf currently under construction.
“Our plan is to continue in the industrial real estate business both locally and outside of Denver,” Pauls commented.
The Aurora buildings range from roughly 75,000 to 350,000 sf and house numerous national credit tenants, including Whole Foods, SSI Venture, Whirlpool, Simmons Co. and others. They are located predominantly along East 32nd and East 33rd avenues near Lewiston Street.
A national team led by CBRE Executive Vice President Jim Bolt in Denver handled the transaction.
Clarion Partners also owns four buildings totaling 1.18 million sf at Mile High Business Center in Denver. In addition, the company is developing an 855,000-sf build-to-suit for Amazon in Thornton in partnership with Trammell Crow Co.