CBRE announced the sale of 316 acres of undeveloped land between Interstate 70 and Denver International Airport to The Opus Group. Opus plans to build a 3.9 million-sq.-ft. industrial park at the site called Sun Empire. The project is a joint venture between Opus and Principal Real Estate Investors. CBRE’s Todd Witty and Daniel Close represented Opus in the acquisition and will market the project for lease, sale and build-to-suit development.
Opus acquired the land from a private seller for $49.7 million. CBRE’s Tyler Carner, Jeremy Ballenger and Jessica Ostermick advised on the capital raise, helping to source Principal Real Estate Investors as the joint venture partner.
“Our team first identified the potential of this site for industrial development two years ago. Opus is the perfect leader to bring the site’s vision to life. We worked with them to get the land under contract in a competitive timeframe. While there are other large-scale industrial development projects underway in the area, Sun Empire has a competitive advantage in being farther along in the entitlement process, thereby expediting the timeline for future tenants,” said Mr. Witty, senior vice president, CBRE.
The first phase of development at Sun Empire is scheduled to break ground in the third quarter of 2022.
It will include two Class A buildings sized 624,094 sq. ft. and 204,859 sq. ft. Later phases of construction will be influenced by tenant requirements. The park can accommodate building sizes ranging from 200,000 sq. ft. to 1 million sq. ft. Each building is slated to include substantial trailer parking as well as dock and drive-in loading.
“User requirements have become more specialized, with many companies needing large sites for bulk distribution centers that can accommodate a heavy amount of trailer parking. The Sun Empire site provides the utmost flexibility in offering speculative buildings for lease as well as build-to-suit and land sites for sale where the tenant can customize their space,” added Mr. Close, first vice president, CBRE.
The site is located at East 56th Ave. and Harvest Rd. in Aurora, Colo., part of metro Denver’s Airport submarket. It is a five-minute drive from Denver International Airport, two minutes from E-470, eight minutes from I-70 and approximately 25 minutes from downtown Denver.
“We were pleased to collaborate with the City of Aurora to bring this business park to life, which will attract new businesses to the area,” said Joe Swensson, director of real estate development for Opus. “Opus looks forward to continuing to introduce vibrant new developments in the Denver market.”
Denver’s Airport submarket remained the highest performer across all primary industrial metrics in the metro area in the second quarter, according to CBRE research. The Airport submarket accounted for 54 percent of all industrial leasing activity and 41 percent of all positive net absorption. The submarket has recorded nearly 1.3 million sq. ft. of positive net absorption year-to-date, which is triple any other Denver submarket’s year-to-date figure.
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 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend 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 The Opus Group:
The Opus Group® is a family of commercial real estate development, construction and design companies headquartered in Minneapolis with offices and projects across the country. Opus operates as an integrated, multidisciplinary team with expertise in development, capital markets and finance; project management and construction; architecture, engineering and interior design. The Opus Group includes Opus Holding, L.L.C. and its operating subsidiaries: Opus Development Company, L.L.C., Opus Design Build, L.L.C. and Opus AE Group, L.L.C. Specializing in industrial, office, residential, retail and institutional projects, The Opus Group has broad capabilities, deep experience and a proven design-build model that delivers solutions for customers on time and on budget. For more information, visit www.opus-group.com and follow @TheOpusGroup on Twitter and Instagram.
About Principal Real Estate Investors:
Principal Real Estate Investors is the dedicated real estate investment group within Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®. As a top 10 global real estate manager1 Principal Real Estate Investors has more than 60 years of real estate investment experience2. The firm’s capabilities span the spectrum of public and private equity and debt investments, and it manages or sub-advises $106 billion in commercial real estate assets (as of March 31, 2022).
1 Managers ranked by total worldwide assets (net of leverage, including contributions committed or received, but not yet invested, REIT securities are excluded), as of 30 June 2021. “The Largest Real Estate Investment Managers,” Pensions & Investments, 4 October 2021.
2 Principal Real Estate Investors became registered with the SEC in November 1999. Activities noted prior to this date were conducted beginning with the real estate investment management area of Principal Life Insurance Company and later Principal Capital Real Estate Investors, LLC, the predecessor firm to Principal Real Estate Investors.