CBRE announced today the sale of the Monaco I-70 Industrial Park, a four-building property totaling 183,319 sq. ft. at the intersection of East Smith Road and Monaco Parkway in Denver. CBRE's Jim Bolt, Tyler Carner, Jeremy Ballenger and Jessica Ostermick represented the seller, a confidential Denver-based investor. Stockbridge Real Estate of San Francisco purchased the property in a sale that closed Oct. 17. CBRE has served as the leasing agent for the property since it was developed and retained the assignment.
"Monaco I-70 Industrial Park offers highly-functional Class A space in a central, last mile location within Denver's prime logistics corridor. With rising transportation costs and customers demanding fast delivery, infill industrial locations that cater to last mile users are in high demand," said Jim Bolt, Executive Vice President, CBRE.
According to an Oct. 2019 CBRE U.S. MarketFlash, demand for well-located, small bay industrial buildings of less than 120,000 sq. ft., like those found at Monaco I-70 Industrial Park, continues to outpace that for larger warehouses, driven in large part by urban population growth and same-day delivery expectations of consumers. CBRE's research finds that rents for small bay, also called light industrial, spaces in the U.S. have climbed more than 30 percent over the past five years, compared to 16 percent growth for large warehouses over 250,000 sq. ft.
Buildings / Sq. Ft. included in the Monaco I-70 Industrial Park sale:
• 6490 East Smith Road / 49,500 sq. ft.
• 6489 East 39th Avenue / 48,550 sq. ft.
• 3925 Monaco Parkway / 42,200 sq. ft.
• 3975 Monaco Parkway / 43,069 sq. ft.
The four buildings were built between 1998 and 2007 and sit on a total 9.89 acres. Class A features include ESFR fire protection systems, drive-in and dock-high loading and office space.
Monaco I-70 Industrial Park is 100 percent leased to five distribution tenants: Restoration Hardware, Red Bull Distributing, Shred-It USA, Classic Beverage and Majestic Hearth Distribution. The property is located in a Colorado Enterprise Zone and Opportunity Zone directly off I-70 on the border of Denver's Central and Airport submarkets.
"This infill location is at the west end of the Airport submarket, Denver's primary logistics arterial, but it performs as if it is an extension of Denver's Central submarket with great accessibility to the region's population and high barriers to future supply. Together the two submarkets are home to 60 percent of Denver's industrial square footage and are the most desirable for top distribution tenants in Denver," added Mr. Bolt.