Adler Pays $38M for Denver Light Industrial Facility
Adler Real Estate Partners has purchased Valley Business Center, a 204,981-square-foot light industrial property in Denver. BKM Capital Partners sold the asset for $37.7 million, according to CommercialEdge data.
JLL Capital Markets arranged $21 million in acquisition financing for the buyer. Voya Financial originated the fixed-rate insurance company loan.
BKM purchased the light industrial property from Baron Properties for $24.3 million in 2019, the same source shows. That sale was subject to a $17.5 million loan from Bank of America.
Valley Business Center encompasses five buildings with an average suite size of 10,249 square feet. The 1984-built facility features suite configurations and various loading capabilities, 16- to 20-foot clear heights, climate control, ESFR and approximately 224 parking spaces.
READ ALSO: Industrial Property Values on the Upswing
The asset is within South Denver, at 700 W Mississippi Ave. Interstate 25 is a nearby major thoroughfare, allowing access to the wider metro area.
Valley Business Center’s tenant roster includes Baron Glass, Metall, RadonAway, Capital Paint Co., DEWALT and ReSource Colorado, among others, with an average lease term of 13.3 years. At the time of the deal, the property was 100 percent leased and had maintained an average occupancy rate of 98 percent over the past decade.
Senior Managing Director Melissa Rose and Director Rob Bova led JLL Capital Markets’ Debt Advisory team that represented Adler.
Denver’s industrial sector remains attractive for investors
In April, Investcorp paid $200 million for a 31-building industrial portfolio, located in Denver and South Florida. The properties encompass 1.3 million square feet.
Another major deal took shape in March—Prologis sold a 431,157-square-foot industrial park in Denver. A joint venture of Westfield and Reinsurance Group of America purchased the 100 percent leased property.
Denver investors traded $585 million in industrial assets year-to-date through May, according to a recent CommercialEdge report. These traded for an average of $147 per square foot, just $5 above the U.S. figure.
The post Adler Pays $38M for Denver Light Industrial Facility appeared first on Commercial Property Executive.
