CBRE announced the $29.75 million sale of Dove Valley Business Center, a warehouse distribution center in Englewood, Colorado, to an undisclosed private investor represented by MidPacific Asset Advisors, LLC. Jeremy Ballenger, Jim Bolt, Tyler Carner and Jessica Ostermick with CBRE National Partners in Denver represented the seller, Westcore.
Built in 2018, Dove Valley Business Center is a Class A industrial facility located in southeast metro Denver at 14101 E. Otero Ave. The property is a few minutes from both E-470 and I-25, providing connectivity across Colorado’s Front Range cities. Tyler Reed, Dominic DiOrio and Peter Beugg of Stream Realty Partners handled the leasing of the property.
The 149,776-sq.-ft. building is fully leased to five tenants with amenities catering to logistics needs, including 28-ft. clear heights, ESFR sprinklers, dock-high and drive-in loading, a large truck court and outdoor storage. Tenant suites within the building range between 23,700 and 26,300 sq. ft., classified as “small bay” space.
“Dove Valley Business Center attracted investor interest because of its best-in-class logistics features, attractive rent roll and small-bay tenant spaces, which are becoming increasingly rare in the Denver market,” said Tyler Carner, executive vice president, CBRE.
Denver’s industrial fundamentals are strongest in the small-bay segment, defined as suite sizes less than 75,000 sq. ft. In 2022, over 40% of all leases signed in metro Denver were for small-bay space, per CBRE research. Yet the cost to build small bay has rapidly inflated in recent years, prompting many developers to focus on larger footprint projects.
Industrial property sales volume totaled $98 million in metro Denver in the second quarter of 2023, per CBRE research. This is low compared to historical levels as rising interest rates and inflation have dampened investor activity this year, but metro Denver’s industrial market fundamentals remain strong. Sales are anticipated to recover in correlation with the improvement of the macro-economic environment.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Brokers $30M Sale of Fully Leased Distribution Center in Southeast Denver
Buyer attracted to logistics features and unique small-bay offering
