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Denver, CO

5145 Colorado Boulevard

Address:
5145 Colorado Boulevard, Denver, CO 80216
Property Type:
Single Tenant
Price:
$2,500,000
Square Feet:
12,517 sqft
Lot Size:
1.41 acres
Price Per Square Foot:
$199.73
Year Built:
1955
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Investment Highlights

Investment Highlights

Investment Highlights

  • Single-Tenant Industrial Property on Nearly 1.5 Acres
  • Located at the Junction of Colorado Boulevard and Vasquez Boulevard, With Colorado Boulevard Frontage
  • Highly Trafficked Desirable Industrial Zone, 46,000+ Vehicles Per Day on Colorado & Vasquez
  • Property Includes an Active Rail Spur, Two Drive-In Doors, and a One-Ton Crane
  • Property Includes a Billboard With a Long-Term Lease as Additional Income
  • Less Than One Mile to Both I-70 and I-270
  • Less Than 15 Minutes to Downtown Denver and 20 Minutes to DIA

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5145 Colorado Boulevard in Denver, Colorado. The subject property consists of approximately 12,517 square feet of space and is situated on 1.41 acres of land. The single-tenant asset features two drive-in doors, a one-ton crane, and an active rail spur. For additional income, the property includes a billboard with a renewing lease. With Colorado Boulevard frontage, the property sits at the junction at Vasquez Boulevard. The property is located in a desirable industrial zone that is highly trafficked with 46,000 vehicles that pass the junction each day. Located less than one mile from Interstate 70 and 270, the property is a 15-minute drive from Downtown Denver and a 20-minute drive from the Denver International Airport.

The asset is situated within Upper North Central, a midsized submarket containing around 10.1 million square feet of industrial space. Logistics facilities account for the majority of the inventory, with 6.7 million square feet. The remaining local inventory is made of 3.2 million square feet of specialized space and 190,000 square feet of flex space. Despite the vacancy rate trending up since the beginning of the pandemic, the rate remains at a relatively low 6.6 percent, and annual rent growth is up a solid 2.6 percent. Industrial rents in Upper North Central average $10.02 per square foot, offering tenants a slight discount to the metro average of $10.31. With no industrial properties under construction, there are no supply-side pressures on vacancy or rent in the near term. Inventory has actually contracted over the past ten years, as demolition activity has outpaced new construction (CoStar). Given today’s market conditions, industrial properties continue to trade with regularity in Upper North Central, providing a sound opportunity for investors given today’s market conditions.

A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. Robust demand in this regional market and strong economic development during this cycle stem from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, the emergence of the marijuana industry’s presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than six million square feet of deliveries. Entering 2020, around 5.5 million square feet was under construction. Industrial rents are more than 60 percent above the peak of the previous cycle, one of the best performances in the nation. Investors remained enthusiastic about Denver’s industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year. Pricing continues to climb upward, albeit at a more modest pace than in past years, according to CoStar’s Pricing Trends (CoStar).

BROKER OF RECORD
ADAM LEWIS
Denver Broker of Record
1225 17th Street, Suite 1800
Denver, CO 80202
Tel: (303) 328-2050
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. © 2021 Marcus & Millichap. All rights reserved. (Activity ID: ZAC0050632)