CBRE today announced the sale of Buildings 4 and 5 within 76 Commerce Center, a Class A logistics park in Denver’s I-76 corridor, purchased by Principal Real Estate Investors from sellers Mortenson Properties, Inc. and Hyde Development. CBRE’s Tyler Carner, Jeremy Ballenger, Jessica Ostermick, Judson Welliver, Sonja Dusil and Bentley Smith represented the sellers.
76 Commerce Center is a 155-acre regional distribution center with one full mile of Interstate 76 frontage and immediate interstate access. At full build out, the project will have four buildings totaling 1.7 million sq. ft. Located at 22600 and 22700 E I-76 Frontage Rd in Brighton, Colo., Buildings 4 and 5 total 618,480 sq. ft. and are fully leased. Building 5 was constructed in 2018 and Building 4 in 2020. The buildings have Class A features throughout in addition to fenced outside storage, trailer parking and office space.
“We are thrilled to be working with Principal Real Estate Investors. We share many of the same values, integrity, a commitment to create best-in-class industrial projects, and a genuine interest in making these projects a great place to work for our tenants,” said Paul Hyde, CEO of Hyde Development.
Mortenson Properties and Hyde Development remain managing members of 76 Commerce Center and Hyde Development will continue to serve as property manager. Hyde Development has completed more than 4.4 million sq. ft. of industrial and office development in Minnesota, Colorado and North Dakota and has won numerous awards for their projects.
“We are grateful for our partnership with Hyde Development and to successfully deliver 76 Commerce Center to the market,” said Ryan Bergman, vice president, Mortenson Properties, Inc. “Today’s announcement that Principal Real Estate Investors is now a majority partner in this project is an incredible milestone. We look forward to continuing our involvement in the project and working together with Principal to build out 76 Commerce Center to completion.”
“Hyde Development along with Mortenson Construction built a truly Class A business park with features and an attention to detail that attracted tenants quickly. The strong leasing momentum and quality of product made the offering extremely attractive to top tier institutional capital,” said Mr. Carner, executive vice president, CBRE.
Industrial demand is accelerating amid the pandemic-fueled growth of e-commerce and warehouse inventories. Companies are leasing space at a historically robust pace to accommodate the large increase in e-commerce sales.
“Metro Denver is in a unique position to capitalize on e-commerce growth. Denver is the only major U.S. city that has no other major population center within a one-day drive time. With one-day deliveries critical to e-commerce, this has shifted Denver from an endpoint distribution market to a critical location for e-commerce and third-party logistics companies,” added Mr. Carner.
Denver was recently named the fifth most-desired market for real estate investment in CBRE’s 2021 Investor Intentions Survey with industrial properties ranked as the most attractive property type for investment.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About Principal Real Estate Investors
Principal Real Estate Investors manages or sub-advises $98.4 billion in commercial real estate assets (as of September 30, 2021). The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
About Hyde Development
Hyde Development was founded in Minneapolis, Minn. by Mac and Paul Hyde. Hyde is a privately-owned, commercial real estate investment and redevelopment company focused on promoting innovative development for a sustainable future. For more information, visit hyde-development.com.
About Mortenson Properties
Mortenson Properties, Inc. (MPI) is the commercial real estate investment division of M.A. Mortenson Companies, Inc., a privately held corporation. MPI oversees a portfolio of industrial, medical office, life science, office and development projects in the U.S.