SKB Buys Former Pharma Manufacturing Site Near Denver
3 min readScanlanKemperBard, a Portland, Ore.,-based real estate investment and development firm, is expanding its Denver-area holdings with the acquisition of a 436,534-square-foot former pharmaceutical manufacturing facility in Broomfield, Colo., which will be aimed at attracting a diverse range of advanced manufacturing tenants.
SKB purchased the 22.68-acre site at 2555 W. Midway Blvd., for $17 million from Mile High Labs, a CBD producer and cannabinoid product manufacturer. Todd Gooding, SKB president & principal, told Commercial Property Executive the firm plans to spend $27 million to improve, demolish and renovate the two existing buildings on the site.
“We have enough land to add about 100,000 square feet,” Gooding said. “We have not made that determination at this time.”
Gooding said the buildings are currently vacant but noted the property could be used by multiple tenants or a single tenant. The property has nearly 12,000 amps of power, making it a prime location to serve businesses with substantial power requirements including those with advanced manufacturing operations. The buildings currently have clear heights ranging from 18 feet to 38 feet and include existing labs and clean rooms. The property has 609 parking spaces. There is also ample outside storage space for prospective tenants.
READ ALSO: Top Mid-Atlantic Markets for Industrial Transactions
The site is located between Denver and Boulder, Colo., providing access to the region’s highly skilled labor pool and advanced infrastructure, Gooding said. Broomfield is the primary aerospace and advanced manufacturing hub of the Denver metropolitan market. Nearby industry leaders include Honeywell Aerospace, Sierra Nevada Corp., Ball Aerospace and Lockheed Martin.
The industrial property was developed in 1974. Mile High Labs purchased the facility for $18.8 million in June 2019 from Novartis, which no longer used the site due to declining generics sales, according to Fierce Pharma. That deal included the land, labs, buildings and all the drug manufacturing equipment. The international company, founded in 2016, is now based in Loveland, Colo. In 2019, the company opened a distribution center in Belfast, Northern Ireland.
SKB Colorado moves
Founded in 1993, SKB focuses on major West Coast markets including Portland, Seattle, the Bay Area, Phoenix and Denver. The firm has generated more than $5.3 billion in portfolio activities and its diverse assets total more than 34 million square feet of commercial real estate.
Gooding said SKB started investing in the Denver market in 2004. The firm acquired York Street Yards, a flexible mixed-use industrial campus in Denver, in January 2020. Tenants include electric vehicle manufacturer Rivian, which has a showroom in York Street Yards.
Earlier this month, SKB and Landrock announced the acquisition of Walnut Business Center, a 6.4-acre urban industrial and retail complex in Boulder, Colo. The partners plan to invest heavily in the property to modernize it and create a state-of-the-art urban mixed-use district that caters to a variety of tenants similar to York Street Yards, Gooding said. Planned enhancements include upgrades to roofing, parking lots and mechanical systems, as well as significant aesthetic improvements. The property, located between Walnut Street and Pearl Parkway, will be rebranded.
The post SKB Buys Former Pharma Manufacturing Site Near Denver appeared first on Commercial Property Executive.
