User pays $16M for building in Encompass Business Park

Rincon Research Corp. purchased the building it occupies in Encompass Business Park in Centennial.

A user paid $16 million for a build-to-suit in Encompass Business Park, where a new speculative industrial building is being delivered and plans for another 171,000 square feet are underway.

Rincon Research Corp., a defense contractor, exercised an option to buy the office building it occupies at 7140 S. Potomac St. in the Centennial business park. An affiliate of Encompass Business Park developer Central Development LLC sold the 50,000-sf building, which it completed in August 2018, for $320 per sf.

Also at Encompass Business Park, Central Development is in the process of delivering Encompass 106, a 106,000-sf industrial building at 7151 S. Blackhawk St. Mygrant Glass, a national wholesale glass distributor, preleased 40,000 sf in the building and, along with a couple other tenants, is negotiating for additional space, according to Central Development’s Brad Cushard.

“We signed Mygrant before the walls were even tilted,” Cushard commented.

Located near Centennial Airport, Encompass Business Park is a 55-acre development that, in addition to the Rincon building and Encompass 106, includes a 150,000-sf industrial building that houses Brakes Plus offices, and Amazon and Room & Board delivery centers.

Brad Cushard

Central Development has started designing a new industrial building, Encompass 171, a 171,000-sf building it is targeting for construction late in the first quarter. Located at the corner of East Fremont Avenue and South Blackhawk Street, Encompass 171 will feature 28-foot clear height and will be delivered in fourth-quarter 2020.

“After we build 171, we’ll have the ability to build three more buildings, and then the park will be fully built out at that point,” said Cushard. The final three lots can accommodate buildings of 20,000 to 132,000 sf.

Intergroup Architects designed the buildings at Encompass Business Park, and Alcorn Construction is the contractor. T.J. Smith, Cody Sheesley and Nick Rice of Colliers International handle leasing.

Featured in CREJ’s Oct. 16-Nov. 5, 2019, issue

Jill Jamieson-Nichols has been an Editor with the Colorado Real Estate Journal for more than 15 years, providing coverage of office, industrial, hospitality and mixed-use development news in the Denver metro area, plus all property types in Northern Colorado, Boulder County and along the Highway 36 corridor. Prior to joining CREJ, Jill was Editor of…