Enterprise building sells for $85.7 million
A Denver warehouse distribution building sold in one of metro Denver’s largest single building industrial trades.
An investor advised by Zurich Alternative Asset Management LLC of New York paid $85.7 million for Enterprise Business Center Building Six, a 647,483-square-foot facility at 3980 Central Park Blvd. in Denver.
“Enterprise Business Center Building Six offered a true infill distribution property of scale with state-of-the-art amenities and a long-term tenant in a recession-proof industry. Getting this deal across the finish line despite a global pandemic affirms the strong appetite among institutional capital for Denver industrial product,” said Tyler Carner, executive vice president, CBRE.
“The sale speaks to the industrial market in general and capital’s belief in the market,” he added. “The industrial market is benefitting from our changing world more than other asset classes. Prior to COVID-19 it was a favored asset class; post-COVID-19, it’s an even more favored asset class.”
Carner, along with Jeremy Ballenger, Jim Bolt, Mike Winn and Jessica Ostermick of CBRE’s Denver office represented the seller, United Properties. ZAAM was represented by Zurich’s Thomas Buffa, executive director, and Sean Bannon, managing director and head of U.S. real estate.
“This checked all the boxes for capital as an ideal trophy distribution asset with a long-term lease in a premier industrial park within walking distance to light rail,” added Ballenger.
The purchase of Building Six follows ZAAM’s first Denver industrial purchase – the acquisition of Moncrieff Business Center in November.
“We recently set out to grow our real estate holdings in Denver and are pleased to add EBC6 to our national portfolio, having now added such a quality position – our second Denver industrial acquisition since November 2019,” said Buffa, who spearheaded the deal for ZAAM.
“This is the second closing into our programs during COVID, and the only one that was initiated and closed during this period. It’s physical and locational merits are obvious. What we found equally compelling was the recession resiliency of the tenant. We anticipate holding this asset for the long term,” added Bannon.
Building Six is fully occupied by Beverage Distributors Company LLC, whose parent company is Breakthru Beverage Group, North America’s largest wholesaler and distributor of premier wine, spirit and beer brands.
Built in 2017 as a build-to-suit for the tenant, Enterprise Business Center Building Six spans the length of four football fields and can accommodate 1 million cases of product. In addition to warehouse space, the building includes nearly 84,000 sf of two-story office and showroom space plus approximately 70,000 sf of climate-controlled cooler space. It also has a west-facing roof deck with unobstructed mountain views and an Alchemy Room for tastings.
The building also includes 32-foot minimum clear heights, ESFR fire protection, electronically secured fencing, 71 trailer parking stalls, a magnetized floor guide for forklifts, interior roof drains, a structural warehouse mezzanine and a moveable office system.
“When we built Building Six, we were extremely proud of the high-quality product we had created, and you certainly can’t beat the location. Breakthru Beverage is a first-class tenant and has been a great partner for us, so we couldn’t be happier to pass this asset on to a reputable group like Zurich. CBRE did a terrific job of identifying a buyer who could perform in the middle of this crazy pandemic, and Mike Wafer of Newmark, who originally represented Breakthru, has been a great partner throughout this process as well,” said Jamie Pollock, senior vice president, United Properties.
Situated just off Interstate 70 at Central Park Boulevard, Enterprise Business Center Building Six has two direct and fully signalized access points to I-70 at either end of the business park – Central Park or Havana Street. It is part of the larger, 38-acre, 1.97-million-sf Class A Enterprise Business Park.
The area is served by 2.4 million sf of nearby retail, hotel and other amenities, as well as surrounding master-planned residential communities. Additionally, the Regional Transportation District’s University of Colorado A Line route is within walking distance of the building.
Featured in the June 17-30, 2020, issue