November 18, 2019— Avison Young has negotiated the $10.6 million sale of a 96,836-square-foot, single story industrial building with yard space located in Denver’s Central E. I-70/Montbello industrial submarket. The property, at 5555 Joliet Street in Denver, CO is fully leased to Inland Truck Parts & Service on a long term basis.
Avison Young Principals Dawn McCombs and Rick Egitto, CCIM, based in the firm’s Denver office, represented the seller, Key West Land, LLC. The buyer was Lincoln Property Company.
“This acquisition offers the buyer a chance to gain a foothold in the Denver market, where annual absorption is outpacing the development pipeline, with this well-located and highly attractive industrial asset,” said McCombs.
The Denver industrial market is seeing strong leasing, construction and sale activity. The E. I-70/Montbello submarket had the largest number of new construction deliveries to date of any Denver submarket in the third quarter, with 2.62 msf delivered. Leasing kept pace with 2.53 msf leased during the first three quarters of 2019, showing a high demand for space in the popular submarket.
More than 1 msf is currently under construction in the E. I-70/Montbello submarket, the highest of all the submarkets.This area in Northeast Denver, along the Interstate 70 corridor, has been a major industrial area for decades, due to its proximity to Denver International Airport and key distribution corridors, such as Interstate 70, Interstate 270, Interstate 225 and Interstate 25, all of which provide access to all parts of the state.
“The Denver industrial market continues to thrive and investor demand is robust,” added Egitto. “We expect demand for well-located assets of this type, leased to solid companies, to remain in demand throughout 2020.”
Mid-size sales dominated the Denver market during Q3 2019, with the top five sales ranging from 77,251 sf to 249,228 sf. Two of the top five sales last quarter were in the E. I-70 Montbello submarket: the $22.5 million sale of the 112,966 sf building at 6144 N. Panasonic Way and the $6.7 million sale of the 105,911 sf building at 4300 Oneida Street. The Panasonic building sold for a relatively high price, due in part to its “smart” building status, something investors in the E I-70/Montbello market may consider of high value in the future.