Marcus & Millichap is pleased to present the opportunity to acquire the property located at 12425 West 54th Drive in Arvada, Colorado, leased to Hestra Gloves LLC. The subject property consists of approximately 26,434 square feet of warehouse space and is situated on 1.29 acres of land. Built-to-suit for the tenant in 2019, the asset features metal construction, 2,648 square feet of basement storage space, a clear height of 26’, two grade-level doors, and heavy power with 800 amps. Located at the intersection of Ward Road and West 54th Drive, the property sits just one mile north of Interstate 70.
This sale offers buyers the opportunity to acquire a property with an assumable loan at 5.375 percent, representing 312.5 basis points lower than the current bank prime loan rate. Hestra Gloves is signed to a triple-net lease through February 2029 at the going market rate of $15.37 per square foot with 3.0 percent annual rent escalations. Founded in 1936, Hestra Gloves specializes in manufacturing luxury gloves for outdoor recreational activities such as skiing and hiking. Based in Sweden, Hestra produced over 2 million pairs of gloves in 2021 with distribution channels in over 40 countries. The subject property serves as the North American headquarters for Hestra Gloves (Hestra).
The subject property is primely located within West Denver, a mid-sized submarket with 24.5 million square feet of industrial space. Nearly 87 percent of West Denver’s industrial inventory consists of properties developed prior to 2000, giving a premium to newer facilities. In 2023, net absorption dropped into negative territory for the first time since 2011 at -175,000 square feet. Together with 163,000 square feet of new deliveries, the vacancy rate rose by 130 basis points but settled at just 2.7 percent. Asking rents increased by 4.7 percent to about $15.40 per square foot last year, managing to stay ahead of the Consumer Price Index. During the first quarter of 2024, about 235,000 square feet of industrial space were under construction, representing just 1.0 percent of current inventory. As a result, rents and vacancies will largely be unaffected by new supply for the foreseeable future (CoStar).
Denver-Aurora-Lakewood metro is home to three million people among 10 counties. Known as the Mile High City, Denver, which is also a county, serves as the state’s capitol and largest city, with approximately 742,800 residents. Metro Denver houses 10 Fortune 500 companies, including Newmont Goldcorp, Arrow Electronics, and DISH Network. Aerospace, financial services, and health care are some of the industries that have driven economic growth in the new millennium. The passage of Amendment 64 in November 2012, created a new industry in marijuana, largely consisting of young thriving businesses. Metro Denver provides a high quality of life with rural and urban amenities. Rocky Mountain National Park is less than two hours driving from the metro area, and the city houses franchises for all four major sports.
BROKER OF RECORD
ADAM LEWIS
Colorado Broker of Record
1144 15th Street, Suite 2150,
Denver, CO 80202
Tel: (303) 328-2000
Adam.Lewis@MarcusMillichap.com
License CO: ER100091205
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0050514)
