A Utah-based family investment group secured a Class A industrial building in Arvada for $6.5 million, or $131.25 per square foot.
Located on 3.06 acres at 5525 W. 56th Ave. in Arvada, the 49,524-sf building is fully leased to four tenants, including Water Remediation Technology LLC, which does work nationwide.
Aspen Grove Holdings LLC, a local builder/developer that completed the building in 2008, was the seller.
Suited to office/warehouse, distribution and manufacturing uses, the front-park, rear-load building offers high-image, energy-efficient construction with 24-foot clear height, ESFR sprinklers, skylights, outside storage, and easy access to Interstates 70 and 76 via Sheridan Boulevard.
The buyer purchased it in a 1031 exchange for property it sold in another state.
“It was almost full price. We put it on the market and essentially identified this particular buyer within a couple of weeks,” said Bruce Mawhinney, director with Newmark Grubb Knight Frank.
Newmark Grubb Knight Frank’s Mike Wafer, who handled the transaction with Mawhinney, and NGKF brokers Riki Hashimoto and Dan Grooters, said the buyer had a tight time frame to meet its 1031 requirement, and the deal worked well for both parties, “So it was a pretty quick transaction.”
Wafer said the building offered a rare opportunity because opportunities to acquire industrial investment properties in the metro area, “especially quality buildings like this,” are scarce.
“There’s very little competitive product on the market,” added Mawhinney. “Vacancies are very low, and this building in particular was so well designed. It really has all the bells and whistles – heavy power, dock and drive-in doors. A lot of the competitive buildings have some of those features, but not the whole package, so it’s extremely flexible and it works for a lot of different tenants.”
