Hyde and Mortenson Team Up Again In Denver
Hyde Development and Mortenson will develop 2.2M SF of industrial space at E-470 and 64th Avenue in Aurora.
Just south of Denver International Airport and east of the Gaylord Rockies Resort, the 125-acre site will be called HighPoint Logistics Park.
The team “immediately” saw the vision of the neighboring landowners and the city of Aurora, which is hoping to guide the area into a vibrant mixed-use district of retail, entertainment and housing, said Gene Hodge, Mortenson Denver Operating Group vice president and general manager.
When asked why this location would be attractive for industrial tenants, Hyde Development President Paul Hyde said his answer would have been different two or three years ago.
“We’ve seen a new openness and demand from tenants for locations that are alternate to the traditional I-70 industrial submarket,” he said. “That’s opened our eyes to look for other options.”
Hyde said there are two primary factors for that demand: labor and traffic. With more residential options in this area, it would give potential workers at the site a nearby place to live. It will also bring more jobs for those already in the area.
Hyde said that he has heard from tenants in some of his other buildings that they are becoming comfortable and excited about using E-470.
“They’d much rather pay a modest toll than $15 an hour or more for their drivers to sit in heavy traffic,” he said. “470 is becoming a really efficient way for folks to move product around Denver.”
Because of that, Hyde predicted they would see some distribution uses at High Point. Additionally, because it’s so close to Gaylord, the retail options on 64th Avenue and new residential, he also predicted some heavier office finishes and research and development facilities.
HighPoint Logistics Park is also in three economic benefit zones: an opportunity zone, an Adams County Enterprise Zone and a Limon Foreign Trade Zone. These benefits will provide tenants property tax perks for jobs and capital investments made in the building and in their tenant spaces.
“Attracting tenants these days is a competitive business,” Hyde said. “This is just another tool we have that we can talk to tenants about when they ask what the economic incentives are.”
Once completed, HighPoint Logistics Park will be an eight-building industrial park. The project will likely break ground in Q3 2020.
Hyde Development and Mortenson have already developed about 2.5M SF together, according to Hodge. They have Northern Stacks in Minneapolis, 76 Commerce Center and Brighton, and they bought two Minneapolis area industrial buildings.
The process for securing the site was incredibly quick, taking less than 60 days, according to Hyde. Once word got out about the rezoned and permitted site, Hyde said they had to act quickly, knowing it would be in high demand. CBRE’s Tyler Carner, Jeremy Ballenger and Jessica Ostermick represented the seller, Westside Investment Partners. Todd Witty and Daniel Close, also of CBRE, represented Hyde and Mortenson in the acquisition.
“For nearly four decades, Mortenson has been invested in building some of Colorado’s most iconic places,” Hodge said. “We’re deeply committed to investment, development and construction that creates stronger communities here in Colorado, and we look forward to bringing this project to life in Aurora.”
