Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6701 to 6731 Federal Boulevard in Denver, Colorado, leased to Sanchez Tire. The subject property consists of approximately 5,000 square feet of auto repair space and is situated on 0.81 acres of land. The single-tenant asset features four grade-level doors, a clear height of 14’, 96 parking spaces, and a billboard that produces an additional $11,500 annually. In addition to an investment opportunity, this property can be acquired for owner use as the current lease (set to expire in December 2025) can be terminated at any time with a 90-day notice to vacate. Zoned as C-5 for multi-purpose use, investors also have a covered land play opportunity to plan for redevelopment while collecting income. With direct access to Federal Boulevard, the property sits in close proximity to Interstate 76 and is located just south of Westminster, Colorado.
The subject property is positioned in Northwest Denver, a mid-size submarket containing 17 million square feet of industrial space. Logistics space accounts for the largest share of the inventory at 67 percent, followed by specialized and flex properties at 20 percent and 13 percent, respectively. In recent years, Northwest Denver has experienced a significant amount of growth with a net addition of 2.3 million square feet from 2021 to Q3 2023. The 15.6 percent increase in supply has pushed up the vacancy rate to 9.0 percent during this time. Despite the increase in vacancies, market rents were still up 5.3 percent annually in Q3, which was in line with the overall Denver market. Partly due to the recent rise in interest rates, construction activity in Northwest Denver slowed to about 430,000 square feet, all of which are concentrated in properties over 50,000 square feet (CoStar). As a result, new supply will have a limited impact on small industrial properties for the foreseeable future.
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
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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0050259)
