A Chicago-based developer that entered Denver’s southeast industrial submarket last year is reaching into the northern metro area with plans for just under 1 million square feet of Class A industrial product.
Brennan Investment Group, in a joint venture with New York Life Real Estate Investors, bought 61.4 acres of land at East 112thAvenue and Havana Street in Commerce City for a phased speculative development. Groundbreaking for the first three buildings is set to occur in second-quarter 2019.
Located 11 miles north of downtown, the site offers proximity to Interstate 76 and E-470, and connectivity to Interstate 80, the country’s main transcontinental logistics corridor.
“The majority of goods that are coming in on truck from the inland ports – Chicago, Cleveland, New York City – come down I-80 and to Denver via 76,” said Dominic DiOrio of Stream Realty Partners. The site also is strategic for its proximity to labor force, visibility to I-76 and U.S. Highway 85, and zoning – two-thirds of the size allows heavy industrial zoning and outside storage, he said.
“When assessing the dynamics of industrial users serving the Denver market, this location’s intrinsic logistic value was compelling,” said Brian Roach, Brennan Investment Group managing principal. “Users will benefit from reliable transportation routes and from a large labor pool in the surrounding area. Transportation and labor are the key considerations for any user seeking industrial space.”
The first phase of construction will total approximately 557,000 sf. The three buildings will comprise cross-dock, bulk distribution and front-park, rear-load construction with ceiling clearance ranging from 28 to 36 feet. There will be “abundant” car parking and truck loading positions, as well as ample yard.
The first phase is targeted for completion in second-quarter 2020. The second phase – two buildings totaling 396,000 sf – will follow as the first phase reaches stabilization.
DiOrio is leading the marketing effort with Stream’s Tyler Reed, Peter Beugg and John Torp, who also handled the land acquisition. Brinkmann Constructors is the general contractor for the buildings designed by Intergroup Architects.
New York Life Real Estate Investors is a division of NYL Investors LLC, a subsidiary of New York Life Insurance Co. It formed the joint venture with Brennan on behalf of an institutional client. The price paid for the site wasn’t released, but Adams County records indicate the Aigaki family sold the land for $9.36 million, or about $3.50 per sf.
Brennan Investment Group is completing its first development in the Denver market: a 150,000-sf speculative industrial building at 14101 E. Otero Ave. in Arapahoe County. It also is developing 310,000 sf in Salt Lake City and has projects underway in Central Florida, Atlanta and Chicago’s O’Hare market.
“We continue to increase our investments in demographically strong markets,” said Scott McKibben, Brennan chief investment officer.
Brennan Investment Group has acquired more than $3 billion in industrial real estate since 2010. Its portfolio spans 28 states and encompasses nearly 40 million sf.
Featured in CREJ’s Dec. 19, 2018-Jan. 1, 2019, issue (view full issue here)