CBRE announced today that it has completed the $14.82 million sale of the Ferguson Enterprises building located at 1840 West Oxford Avenue in Sheridan, Colorado. CBRE's Jim Bolt, Tyler Carner and Jeremy Ballenger represented the seller, Cadence Capital of Greenwood Village, Colo. The buyer, LBA Realty of Irvine, Cali., purchased the property in a sale that closed April 20, 2018.
Cadence Capital initially purchased the building in 2017 following the closure of Red & Jerry's, a sports betting lounge and family entertainment center that operated at the site for 22 years. Cadence completely renovated the building, transforming it into a distribution facility and showroom space for Ferguson Enterprises, one of North America's largest wholesale distributors of residential and commercial plumbing supplies, HVAC equipment and industrial products.
"Cadence Capital demonstrated real vision in taking on the renovation of this site. It was a lot of work, but the end result is a Class A industrial facility with a sought-after infill location, excellent visibility and strategic highway access. The building upgrades were highly attractive to Ferguson Enterprises, who has now signed a long-term lease on the property," said Jim Bolt, Executive Vice President, CBRE Industrial & Logistics Services.
Catering to the needs of a distribution user, Cadence focused the property's upgrades on improving functionality, including adding four new dock doors and a new drive-in door, LED lighting, new sprinklers and making upgrades to the parking lot. The property also offers 240-foot bay depth and 24-foot clear heights.
Lucy Dinneen, Managing Director of Colorado and the Northwest for Cadence, noted, "We were drawn to the real estate because the site featured a unique blend of industrial and retail characteristics that created the opportunity for us to deliver increased value to our tenants. The site created a brand-building opportunity for our clients - even industrial clients - because of the great visibility on a high trafficked corridor within the metro market. Our clients were able to get the industrial utility and pricing of an industrial space but with added brand-building benefits of retail and our buyers have a fantastic asset with future potential as infill mixed use, industrial or retail as the future dictates."
The buyer, LBA Realty, is a full service real estate investment and management company with office and industrial properties across the western United States.
"In deciding to purchase this property, LBA Realty recognized the value of the infill location and the fact that the facility is 100-percent occupied by a credit tenant with a long-term lease. The site's proximity to amenities also added to the appeal," said Tyler Carner, Senior Vice President, CBRE Industrial & Logistics Services.
The property is located at the intersection of West Oxford Avenue and South Santa Fe Drive/Highway 85 in metro Denver's South Central submarket. The Oxford light rail station is a five-minute walk, and the River Point at Sheridan shopping center is also within one mile.
"At 3.4 percent, the South Central submarket boasts one of the lowest industrial vacancy rates in metro Denver. Like what we saw at this property, the area is seeing a lot of reinvestment-ranging from apartments to retail to industrial. That combined with compressing cap rates is driving up the area's infill property values," said Jeremy Ballenger, CBRE Industrial & Logistics Services.