Value-add industrial property trades for $3.25 million

A local buyer acquired a value-add industrial property in the heart of Denver’s central submarket for $3.25 million.

The more-than-30,000-square foot multitenant property at 5830 Downing St. was purchased by 5830 Downing Street LLC, which is planning improvements to the asset.

“While the property had a prime location and multitenant industrial components, it had no signed tenant leases, below-market rents and the buildings were in need of real improvements,” said Russell Gruber of Gruber Commercial Real Estate Services Inc., who, with Jon Treter of Coldwell Banker Commercial NRT, handled the sale of the facility, which was sold by Bob and Renee Nickerson.

“This made for more of a value-add setting and took a creative buyer with the capability to handle revamping the property.”

In addition to leasing up the property, the buyer is expected to make improvements, including new paint, remodel warehouse units and secure the property.

Gruber noted there was interest in the asset due to the fact central Denver multitenant warehouse space is hard to come by coupled with the neighborhood activity, such as the redevelopment of the National Western Stock Show and the interest in updating the Washington corridor and potential changes for the Merchandise Mart, make the area very desirable for investors.

The three-building property comprises a 15,000-sf warehouse building, which includes 14-foot clear, drive-in loading, built in 1985; a 6,825-sf shop building featuring 13 525-sf units and was built in 2004; and an 8,568-sf storage building with 21 total units of 408 sf that was constructed in 2007.

Featured in CREJ’s May 20-June 2, 2020, issue