1531 West Bayaud Avenue
- 1531 West Bayaud Avenue, Denver, CO 80223
- Property Type:
- Multi Tenant
- Cap Rate:
- 3.42% cap
- Square Feet:
- 11,688 sqft
- Lot Size:
- 0.46 acres
- Price Per Square Foot:
- Year Built:
- Industrial Investment or Owner-User Opportunity
- Delivered in 1985, the Property Is 11,688 Square Feet Divided Into 3 Individual Suites With 9% Office Space
- Features Include 3 Grade-Level Doors, 12’ Clear Height, and 3 Phase Power
- Below Market Rents and Short-Term Leases In Place With 45% Of the Space on Month-To-Month
- Located Adjacent to Santa Fe and I-25, Providing Easy Highway Access
- No New Construction in Submarket Limits Supply For Tenants and Users
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1531 West Bayaud Avenue in Denver, Colorado, anchored by the current owner, Benchmark Woodworks. The subject property consists of approximately 11,688 square feet of warehouse space and is situated on 0.46 acres of land. The asset features three grade-level doors, a clear height of 12’, and 3-phase power. Delivered in 1985, the fully leased property is divided into three individual suites, consisting of 9 percent office space. Upon sale of the property, Benchmark Woodworks will execute a six-month lease. With 45 percent of the remaining space currently leased on a month-to-month basis, the property can be acquired for owner use. Given that this space is currently priced below market rent, the asset also offers investors a value-add opportunity. Located adjacent to Santa Fe Drive, the property has easy highway access to Interstate 25.
The subject property is located in Lower South Central, a midsized submarket containing 9.2 million square feet of industrial space. After a bumpy 2020 in which net absorption fell to a decade’s low, the submarket has far outperformed the general Denver market. Thanks to four consecutive quarters of positive net absorption in Lower South Central, the vacancy rate has fallen from 4.0 percent in 2020 to 2.1 percent in Q2 2022. This compares to a 5.1 percent vacancy rate for the overall market. With supply tightening, market rent growth jumped to 8.8 percent year-over-year, the highest level since 2015. Given there are no industrial projects currently under construction, there are no supply restraints on rent growth or vacancies 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.