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Denver, CO

1221 East 56th Avenue

Address:
1221 East 56th Avenue, Denver, CO 80216
Property Type:
Multi Tenant
Price:
$7,000,000
Cap Rate:
5.23% cap
NOI:
$366,000
Square Feet:
36,300 sqft
Lot Size:
4.03 Acres
Price Per Square Foot:
$192.84
Year Built:
1981
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* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

• 36,300-Square-Foot Industrial Property on 4+ Acres
• Two Buildings: 32,800 Square Feet; 3,500 Square Feet with Potential to Connect
• Warehouse Has 22’ Clear Height, New Parking Lot Surface, 3-Phase Power
• Two Tenants with Leases Into 2025, with 2 Renewal Options
• Ideal Location – Unincorporated Adams County/Denver Address
• Just Off I-25/58th Avenue, Easy Highway Access to Both 70 and 76
• Less Than 15 Minutes to Downtown Denver
• Fully Fenced-In Property

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1221 East 56th Avenue in Denver, Colorado, anchored by Tribus Services. The subject property consists of
approximately 36,300 square feet of warehouse space and is situated on 4.03 acres of land. The two-building asset features a clear height up to 22’, 3-phase power, and a newly surfaced parking lot. As a
fully fenced-in property, the asset provides security for 90 storage units that generate additional revenue. The 32,800-square-foot warehouse and 3,500-square-foot warehouse situated on the property
can potentially be connected. Positioned in unincorporated Adams County, the property is less than a 15-minute drive from Downtown Denver. The property is located just off Interstate 25 and 58th
Avenue, with easy access to both Interstates 70 and 76.

About 90 percent of the property is leased to Tribus Services through 2025, with two renewal options. Tribus Services provides end-to-end smart metering and utility services for electric, gas
and water utilities. Acquired by Olameter in 2020, Tribus Services has completed more than 25 million Smart Meter, Advanced Meter Infrastructure (AMI), Automated Meter Reading (AMR)
implementations, and meter replacements, deploying all types of meter models and smart meter technology.

The subject property sits adjacent to Upper North Central, a midsized submarket with 10.0 million square feet of industrial space. The submarket largely consists of logistics facilities, accounting for
6.7 million square feet. While the vacancy rate was impacted by the onset of the pandemic, the ten-year average is at just 3.4 percent. At $10.38 per square foot, the average market rent is about 83
percent higher today than in 2011. With no industrial properties under construction, there are no supply-side pressures on vacancy or rent in the near-term. In addition, the inventory has actually
contracted over the past decade, as new construction has lagged demolition activity (Costar).

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 with strong economic growth this
cycle is stemming 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
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: ZAC0050733)