CBRE brokered the $49 million sale of the multi-tenant industrial building located at 333-335 Centennial Parkway in Louisville, Colo. Tyler Carner, Jeremy Ballenger, Jim Bolt, Jessica Ostermick and Jeremy Kroner with CBRE’s Denver and Boulder offices represented the sellers, DPC Companies and Long Wharf Capital. Berkeley Partners purchased the property in a sale that closed July 10, 2020. In April 2020, CBRE announced the full lease-up of the 411,485-sq.-ft. building to six tenants, following the completion of key building improvements in 2019.
“333-335 Centennial Parkway is one of the largest multi-tenanted industrial assets in the submarket. It is the closest to Boulder, the closest to the highway and has the most amenities of any industrial park along the U.S. 36 corridor. This was a rare opportunity to acquire a significant industrial foothold in an amenity-rich and supply-constrained location,” stated Tyler Carner, Executive Vice President, CBRE.
The property sits on 24.9 acres, located at the first exit along U.S. 36 out of Boulder.
“Industrial real estate remains the most favored product type among U.S. investors, and the last few months have further solidified this preference. Buyers were immediately drawn to 333-335 Centennial Parkway’s unique combination of a fully leased multi-tenant industrial asset with a Boulder County address,” noted Jeremy Ballenger, Executive Vice President, CBRE.
DPC Companies and Long Wharf Capital purchased 333-335 Centennial Parkway in 2017, which was 50% leased at the time. In conjunction with a capital improvement campaign, CBRE brought the property to full lease-up with a total of six tenants representing a diverse mix of industries, including e-commerce, robotics, biotechnology, information technology and manufacturing.
“This was an exciting and gratifying project given where we started and the large user nature of the building. Our business plan included making material changes to the building by adding new entries and additional dock doors, allowing us to subdivide the large space into more desirable sizes and diversifying the rent roll. Justin Lutgen our Chief Investment Officer spearheaded our team leading us to the stabilized success. This building is now a solid asset in the limited supply Boulder County market,” said Chris King, President & CEO, DPC Companies.
Originally constructed in 1995, 333-335 Centennial Parkway features dock-high and drive-in loading, heavy power, sprinklers, 28-ft. clear heights, ample parking and fiber connectivity. A new roof, improved entries, an updated façade and new monument signage were part of the renovations completed last year.
“Long Wharf is thrilled to have successfully concluded our value-add business plan at 333 Centennial in partnership with the DPC team. We are pleased that the collaborative vision and ensuing renovation efforts to change a well-located but functionally challenged asset resulted in a 100% leased diversified rent roll. We enjoyed the smooth disposition process and wish Berkeley Partners the best of luck shepherding this asset into its next phase of ownership,” stated John Schonborn, Director, Long Wharf Capital.
The acquisition is the latest by Berkeley Partners, which made history in Colorado last year with its purchase of the 1.95 million sq. ft. Colorado Industrial Portfolio.
“We are very pleased to have acquired 333 Centennial. This is a unique industrial property given its access to amenities, Boulder and Greater Denver. The DPC/Long Wharf team did a great job repositioning the asset. The sub-market benefits from a lack of new supply, with continued strong demand fundamentals, which will be a strong benefit for the next phase of ownership,” stated Andrew Holmberg, Principal, Berkeley Partners.
According to CBRE Research, the Northwest industrial market recorded the strongest rate of absorption in the entire Denver region in 2019 – 3.5% compared to 1.2% for the market average. Industrial development, however, has been limited by the lack of available and zoned industrial sites in the corridor.
“The Northwest submarket faces an imbalance in industrial supply and demand. Tenants are actively looking for facilities accessible to both Denver and Boulder labor pools, but supply is limited. The U.S. 36 corridor is surrounded by open space that cannot be developed and, in Boulder, existing industrial inventory is being converted to creative office or demolished,” added Jeremy Kroner, First Vice President, CBRE.
333-335 Centennial Parkway is located less than five minutes from U.S. 36 and 10 minutes from downtown Boulder. The location includes numerous regional and national retailers in the immediate vicinity as well as golf courses, hotels, views of Boulder’s Flatiron mountains and access to trails and open space.