Value-Add Industrial Building for Sale in Metro Denver

Thursday, August 16, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale the fee simple interest in The Northern Business Center, a 128,998-square-foot, Class A industrial asset in Thornton, Colorado. The industrial property for sale presents a unique opportunity to acquire a rare value-add industrial asset with repositioning versatility in one of metro Denver’s strongest industrial submarkets.

The Northern Business Center will provide an investor a Class A, cash-flowing, industrial asset with optionality for several repositioning strategies, all with significant upside potential. Existing ownership has multi-tenanted the warehouse and office space with short-term leases that generate above-market rents. New ownership has several different options for repositioning the asset, including continue the current strategy of leasing smaller warehouse and office spaces at higher rents, allowing flexibility for tenants to expand as they grow and reducing rollover risk at the property and capture the cash flow from existing short-term tenants while marketing the asset to a single-tenant or large-block user.

Situated on 10.45 acres at 12789 Emerson Street, the industrial property for sale is ideally positioned in the North Denver Industrial market conveniently located off of 120th Avenue with easy access to the state’s north-south thoroughfare Interstate 25 in the city of Thornton. This centralized location is surrounded by one of Colorado’s most populous areas and has access to Colorado’s major highways including east-west arterials E-470, East 136th Avenue and East 160th Avenue (Highway 7) providing an efficient 30-minute or less drive time to downtown Denver, Denver International Airport, Boulder County and most Denver metro area municipalities.

Industrial Property for Sale Investment Highlights

  • Perfect Large-Block Industrial User Building:  The Northern Business Center caters perfectly toward a single-tenant user needing a regional or corporate headquarters or a flagship warehouse. The property offers of highly amenitized space, including a nearly 100,000-square-foot warehouse with 22- to 24-foot clear heights, warehouse, four bridge cranes with 30-ton total capacity, three dock-high and two drive-in doors, planned high-end Class A office finishes, seven conference rooms, training room, workout facility, showers, lockers and ample parking.
  • Value-Add Industrial Profile:  The Northern Business Center offers value-add investors the unique opportunity to acquire a newly constructed and renovated industrial asset for sale in a submarket with robust fundamentals that has historically accommodated large industrial users. The industrial property for sale has been large-block constrained due to the existing short-term micro-tenants within the building. New ownership will have the opportunity to capture the existing cash flow from the short-term tenants while executing an aggressive leasing strategy to attract large-block users.
  • Attractive Basis that Is Significantly Below Replacement Cost:  The Northern Business Center is being offered at a deep discount to replacement cost, generating an attractive investment basis. Currently, Class A industrial development costs are pricing at approximately $150 per square foot. With major industrial spec developments adjacent to the property, The Northern Business Center offers an investor a low basis to compete aggressively with the new construction.

For more information on this commercial property other industrial properties for sale, please contact Jules Sherwood or Nate Perry in HFF’s Denver office. 

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