This three-property industrial portfolio is located in two strategic submarkets in Denver. The properties are 100% leased to 20 tenants, providing a staggered lease renewal schedule and variation in tenant size and type.
Totaling 485,984 sq.ft., this portfolio includes two highly functional urban infill properties in desirable central Denver locations and an irreplaceable large-scale, high-bay, rail-served industrial property in west Metro Denver. Historically, the portfolio has been extremely well leased to both regional and national companies with businesses ranging from logistics and transportation, food distribution, showroom/storefront, packaging, and business services. A weighted average lease term of approximately four years offers great income stability with the opportunity to execute a mark-to-market strategy over the hold period.
Denver is a strong industrial performer with upside in the city’s population and job growth. We believe this portfolio’s staggered rent roll, strategic locations, and variant building profile provides additional diversification for the fund.
Denver is a lifestyle leader and a millennial magnet. Its attractive quality of life, proximity to the mountains, and relatively favorable costs of living and doing business drive population and job growth, particularly among millennials.
The city is a technology trailblazer. The tech sector is well-diversified, with specializations ranging from traditional web-based computing, to aerospace, to biotech. Denver’s cost advantage and highly-educated and skilled workforce drive innovation, supported by city initiatives such as Denver Start-up Week.
Denver is an attractive location for logistics, benefiting from its strong highway connectivity, air and rail access, and a large and growing population base. The large tech sector provides synergies with e-commerce demand for industrial space; Amazon recently expanded in the metro area.