Louisville industrial property sells for $49M
A fully occupied multitenant industrial property in Louisville sold for $49 million.
Berkeley Partners purchased the 411,485-square-foot building at 333-335 Centennial Parkway from sellers DPC Cos. and Long Wharf Capital. Tyler Carner, Jeremy Ballenger, Jim Bolt, Jessica Ostermick and Jeremy Kroner with CBRE’s Denver and Boulder offices represented the sellers. The buyer was unrepresented in the sale. It closed July 10.
At the time of the sale, the property was 100% occupied by six tenants, including Bestop Inc. and Servtech Inc., which rent 50% of the property, and Alpen High Performance Products Inc., ArcherDX Inc., Synnex Corp. and an undisclosed e-commerce company that collectively rent the other half. The tenants represent multiple industries, including robotics, biotechnology, information technology, e-commerce and manufacturing.
According to Ostermick, the sellers’ initial plan upon its acquisition in 2017 was to create value by improving the property and fully stabilizing it from 50% occupancy, both of which were accomplished within the past year. In 2019, the sellers completed an extensive renovation project that included replacing the old roof, improving the outdoor façade and entries and adding more loading docks and new monument signage. Following the renovation, the building was fully leased up in April with assistance from Carner, Ballenger and Kroner.
After completing the lease up, Ostermick said her team listed the property for sale. “We saw impressive but targeted buyer interest for an off market process, despite uncertain times, underscoring the high-value location and tenancy embodied at 333-335 Centennial,” Ostermick said.
“We found that some buyers were still on the sidelines in April, but buyer appetite for Denver and Boulder industrial investments has steadily improved.”
“Industrial real estate remains the most favored product type among U.S. investors, and the last few months have further solidified this preference. Buyers were immediately drawn to 333-335 Centennial Parkway’s unique combination of a fully leased multitenant industrial asset with a Boulder County address,” added Ballenger.
According to Carner, the property’s location was a major drawing factor for prospective buyers, as it sits on 24.9 acres at the first exit along U.S. Highway 36 out of Boulder.
“(This property) is one of the largest multitenant industrial assets in the submarket. It is the closest to Boulder, the closest to the highway and has the most amenities of any industrial park along the U.S. 36 corridor,” Carner said. “This was a rare opportunity to acquire a significant industrial foothold in an amenity-rich and supply constrained location.”
Being less than a 10-minute drive from downtown Boulder, it’s close to numerous regional and national retailers as well as golf courses and hotels, and it offers views of the Flatirons and access to trails and open space.
The buyer adds this property to a portfolio of similar industrial properties in Colorado, including the state’s largest industrial portfolio, made up of 19 properties spanning 1.95 million sf, that Berkeley Partners purchased in 2019 for $247.5 million. The national investment firm also owns properties in several other states, including California, Massachusetts and Texas.
Featured in the August 5-18, 2020, issue of CREJ
