A pair of new industrial buildings in Broomfield sold for a record $199.32 per square foot as prices for industrial investment properties continue to escalate.
San Francisco-based Stockbridge Real Estate paid $47.8 million for Interpark Industrial Center, a two-building, 239,816-sf property on 16.13 acres at 11325 Main St. and 11380 Reed Way. United Properties developed and sold Interpark with partner Brue Baukol Capital Partners.
Completed in 2018, the buildings are 89.7% leased to Swisslog Healthcare, MKS Instruments and GC Imports.
The price per sf is a record for warehouse/distribution product in the Denver metro market.
“Interpark Industrial Center is a brand-new, state-of-the-art Class A development in a highly sought-after location along the U.S. 36 corridor, allowing for convenient access to Denver and Boulder,” said Jeremy Ballenger of CBRE. “The buyer was attracted to the high-quality tenant mix with long-term leases and the location, which has both increasingly high barriers to entry and rapid economic growth projections.”
Ballenger represented the sellers with Tyler Carner, Jim Bolt, Jessica Ostermick and Frank Kelley, all with CBRE’s Denver office, and Jeremy Kroner of the firm’s Boulder office.
Interpark Industrial Center features 24-foot-clear ceiling heights, ESFR fire sprinklers, dock-high and drive-in loading, a 220-foot shared truck court and 60-foot concrete loading pads. It is just north of amenities at Westminster Promenade and across Highway 36 from 1stBank Center, part of the Arista mixed-use development.
“The development at Interpark involved the assistance from a number of dynamic groups that played a role in creating a successful project. Special thanks to our partners at Brue Baukol; our contractor, Murray & Stafford; and kudos to the tenant rep brokers Jason White, Mitch Zatz at JLL and Jason Addlesperger at Newmark,” said Megan Turner, director of development at United Properties.
”We are obviously thrilled with the outcome and are especially grateful to the entire CBRE brokerage team who were involved in all the marketing aspects of this project from initial land acquisition to sale,” added Kevin Kelley, United Properties executive vice president.
Interpark Industrial Center is located in Denver’s northwest industrial submarket, which recorded 579,165 sf of positive net absorption last year, the highest level of absorption in the submarket since 1988, according to CBRE research.
“There’s an extremely limited amount of land zoned for industrial along Denver’s U.S. 36 corridor. At the same time, industrial users are trying to expand and seek a foothold in the booming northwest submarket. Together this creates a supply and demand imbalance that benefits well-positioned properties like Interpark,” commented Carner.
The overall average price per sf for metro Denver industrial investment sales reached $146.60 in 2019, a 27.4% increase from the previous year, according to CBRE research.