By Jennifer Hayes, Editor at the Colorado Real Estate Journal
Dallas-based Dalfen Industrial made its second Denver-area acquisition with its purchase of a value-add, vacant industrial building in the airport submarket.
Dalfen paid $7.13 million for the Class A 75,000-square-foot distribution building, renamed Aurora Center I at Gateway, at 15800 E. 40th Ave. in Aurora. The building was sold by Serta Simmons Bedding as part of the continued consolidation of Serta and Simmons facilities across the country.
“We plan to continue expanding our presence in the rapidly growing Denver area through the acquisition and development of well-located, high quality last-mile properties,” said Mark Bowen, senior vice president-head of investments and the western territory market officer at Dalfen Industrial.
“We like Aurora Center I at Gateway’s location right off I-70, its fantastic visibility, being equidistant between the airport and downtown Denver, and its last-mile location that can easily access metro Denver. It’s a tremendous location for e-commerce. It’s so unique. No one is developing this size of property and it’s hard to find a development of this quality in this location. It’s not done today.”
“This acquisition aligns perfectly with our strategy of buying best-in-class, last mile industrial properties in key metro locations across the U.S.,” added Sean Dalfen, president and chief investment officer at Dalfen.
Constructed in 2003 for Serta, Aurora Center I at Gateway features a fully gated, secured truck court, 12 dock-high doors, drive-in loading, 24-foot-clear ceiling heights, radiant heat throughout, mechanical pit levelers, dock lights and seals, skylights, an air exchange system and additional unpaved land on the east side of the building that could be used as yard, additional trailer parking or as a potential 30,000-sf building expansion.
Additionally, the building, located between Chambers Road and Peña Boulevard, has approximately 6,500 sf of office space, is visible to more than 120,600 vehicles traveling on Interstate 70 and is near several hotels and restaurants, including Outback Steakhouse, Ted’s Montana Grill, Applebee’s Grill & Bar, UNO Pizzeria & Grill, KFC, Qdoba, A&W, Wendy’s,
Sonic and Long John Silver’s.
“Located in the center of the I-70 corridor in the airport submarket, 15800 E. 40th Ave. is a great value-add opportunity with excess land for future building expansion or trailer parking and storage,” stated Todd Witty, first vice president, CBRE. “This property demonstrates continued aggressiveness in Denver’s industrial sector.
“A building selling as a vacant investment is a sign of a healthy industrial market,” Witty added. “We continue to see investor interest in leased or vacant properties regardless of COVID-19.”
Witty and Doug Viseur of CBRE’s Denver office represented the seller, which had vacated the building and consolidated to a larger facility a few miles away.
“The building has heavy power, high ceilings, excess land and great loading, making it a fit for both manufacturing and distribution tenants. With its highway visibility and excellent location, it would even be a good fit for a showroom use,” commented Viseur, senior vice president. “The property is also within an enterprise zone, offering potential tax benefits to tenants.”
Dalfen plans for the property include painting the building, renovating the office area, seal coat resurfacing the parking lot and bringing up the building to today’s standards, said Bowen.
CBRE retained the leasing assignment for the property, which could be used for manufacturing, however, given its location, image and available land, is well-suited for an e-commerce user, noted Bowen.
Last fall, Dalfen Industrial entered the Denver market with the purchase of two small bay buildings totaling 77,222 sf at 700 and 702 W. 48th Ave.,
immediately northwest of the interchange of Interstates 25 and 70.
Dalfen Industrial is a real estate investment manager that acquires, develops and manages industrial real estate in key markets in the United States and Canada. It is seeking additional acquisition and development
opportunities in Denver.