About

OVERVIEW

Single story, Class B, multi-tenant industrial building with excellent access and visibility totaling 408,045 SF. Located in northwest Denver (Louisville/Broomfield), between Boulder and Denver, the property is located at the last exit prior to Downtown Boulder. The Louisville sub-market is extremely land constrained with limited potential for new development going forward. The market attracts users that want close proximity to Boulder, but also want access to greater Denver.

Acquired in limited marketing process from seller looking to exit asset for portfolio management reasons during a time where few managers were willing to travel to tour the asset. 100% occupied at acquisition with six units ranging from 40,000 SF to 112,000 SF.

OPPORTUNITY

Going-in cap rate of 6.1% with a levered year one cash-on-cash return of approximately 10%. Opportunity to create value by either rolling two tenants to market or re-tenanting the spaces at market rates by 2025. $7.44 PSF NNN base rents are approximately 11% below market rents and 14% below broker rents at acquisition.

VALUE-ADD INITIATIVES EXECUTED

Executed renewal with key tenant occupying 95,000 during Q3 2021 ahead of lease expiration in Q1 2022 above market leasing assumptions. Selectively marketed the building for sale in Q3 2022 given the status of the business plan and fully disposed asset in December 2022.