First tenants sign on to join JAG @ DEN
One of the first industrial opportunity zone projects out of the ground in the United States has its first two tenants.
JAG Logistics Center @ DEN, a 250-acre industrial park immediately south of Denver International Airport in Aurora has signed Air General and a second international cargo and logistics company to long-term leases totaling more than 125,000 square feet, or nearly 70%, of JAG @ DEN’s Trade 1 Building.
Air General will occupy 31,200 sf while the other undisclosed tenant will lease 94,000 sf of Trade 1, which features a 148,000-sf footprint with 40,000 sf of mezzanine office space.
“A building like this doesn’t exist in Colorado,” said Tyler Smith of Cushman & Wakefield. The cross-dock design of Trade 1, Smith explained, is typically only seen in much larger distribution facilities. Previously tenants needing 10 dock doors would have to lease at minimum 40,000 sf to accommodate their needs, while at JAG @ DEN there is one dock door per 1,000 sf.
“It’s an interesting new concept. It’s never been done in Denver,” added Smith, who, with Cushman & Wakefield’s Alec Rhodes and Aaron Valdez, are leasing the freight forwarding and logistics park. Mike Camp and Jim Bolt of CBRE represented the undisclosed tenant. Mike Viehmann and Jesse Clifford of Newmark Knight Frank represented Air General.
The 110-foot, column-free, warehouse-depth buildings also feature 30-foot ceiling clearance, ESFR sprinklers, truck courts, on-site trailer parking, elevator access to the mezzanine level and on-site management.
JAG Logistics Center @ DEN is developed, owned and managed by J.A. Green (JAG) Development Corp., a family owned and operated business since 1941, with extensive expertise in airport-adjacent development and product that is specifically suited for smaller- to medium-size tenants that often get overlooked.
“We specialize in this type of airport-adjacent development with buildings that are designed to maximize efficiency of freight logistics for our clients and we have built a strong brand in this arena,” Daniel Green, CEO and co-managing partner of JAG said in a release regarding the two new companies signing on to join Trade 1.
“These are exactly the types of clients that we are targeting and we are pleased to see that even in the current climate, there are companies that understand our value and are moving forward.”
In addition to owning the property, JAG is a vertically integrated company and acts as its own developer, general contractor and property manager. A generational holder of assets, it also takes a longer-term view of its projects.
Furthermore, JAG is excited about the potential the area near the airport offers over the next decade.
“We’re excited for the momentum we see growing. Eighteen months from inception to occupancy is a feat in any market,” added Green. “The city of Aurora is an outstanding partner and we appreciate the city’s efficiency in allowing us to bring this product to market. We are delighted to relocate our headquarters into Trade 1 this summer and call Aurora our home.”
The two tenants signed on 18 months after the development’s conception and prior to the completion of Trade 1 expected June 1. Trade 1 is the first of an anticipated 3 million sf of Class A cross-dock warehouse space to be developed at JAG @ DEN, which provides the closest and most direct access to the airport cargo tarmac of any current or future privately owned business park around DEN.
Trade 2 will start construction June 1 and is anticipated to be complete in March. Interest already is being fielded for that building, which too features a 148,000-sf footprint with 40,000 sf of mezzanine office space above. A total of six buildings similar to Trade 1 and 2 are planned with, market dictating, the eastern portion of the property to feature build-to-suit projects.
Future buildings at the park will be able to accommodate tenants ranging from less than 10,000 sf to more than 1 million sf.
JAG @ DEN is located within one of Aurora’s five opportunity zones and can be accessed at 64th and 68th avenues as well as has direct access to DEN via Jackson Gap Road.
“As the Aurora Economic Development Council anticipated, JAG Logistics Center @ DEN is a unique and valuable project in the region that is important to the future economic development in the northeast portion of Aurora and Adams County in the aerotropolis,” said Wendy Mitchell, president and CEO of the Aurora Economic Development Council. “While COVID-19 has had a significant impact on the economy, long term we believe we are positioned to come out of this stronger and with more primary employers and high-quality jobs for the region’s talented and diverse workforce. The opportunity zone census tract that includes Porteos and JAG @ DEN will aide in the creation of tens of thousands of jobs in the future.”
Featured in CREJ’s May 20-June 2, 2020, issue