Rocky Crest Enterprises acquired 28 acres in Commerce City, one of the largest land sales in the area since 2007, and is planning an industrial development on the site for what it sees as an underserved client base: relatively small businesses.
The buyer, which paid $3.1M for the site, plans to develop a 30K SF multi-tenant industrial building with outside storage, and has also secured a lease for 10 acres with logistics giant Denver Intermodal Express. “Rocky Crest’s planned addition of a multi-tenant industrial building for small service industry-related users with grade-level loading will create tremendous draw,” NGKF director Russell Gruber said.
The property is fronted by I-76 and zoned I-2. Construction is expected to start in the third quarter, with completion slated for early 2018. William Gruenewald, Robert Deer and the Derr Family Limited Partnership sold the land at 10600 Havana; Gruber repped the buyer.
Gruber said northern suburban market fundamentals are driving demand for new industrial space. "The area, neighboring the City of Brighton, is experiencing record-breaking lease rates and diminishing vacancy over the long term," he said. Although the current vacancy rate is at its highest peak in 15 years, that is because Kmart/Sears vacated 1.2M SF a little more than a year ago.
Otherwise, Gruber said, the development will be in a tight market and underserved location for small businesses. "I predict lease rates will be upwards in the vicinity of $10.50/SF."
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