CBRE announced the sale of the Airport Central Portfolio, a two-building industrial portfolio totaling 340,960 sq. ft. near Denver International Airport in Denver, Colorado. TA Realty acquired the portfolio from institutional investors advised by J.P. Morgan Global Alternatives. Boston-based TA Realty is one of the largest investment managers, buying and selling, of industrial real estate in the U.S. The firm has managed, acquired, and/or invested over $38.5 billion in real estate since 1982.
Jeremy Ballenger, Tyler Carner, Jim Bolt and Jessica Ostermick with CBRE National Partners in Denver represented the seller, J.P. Morgan.
The portfolio includes two multi-tenant distribution buildings located on a cumulative 15 acres at 11777 E 55th Ave. and 11475 E 53rd Ave. The infill location is close to several major interstates and nearby labor pools. The buildings are 93% leased to seven diversified tenants. Current unit sizes range from 19,600 sq. ft. to 86,200 sq. ft. with the ability to demise and combine units in the future, as tenant demand dictates.
The portfolio has clear heights ranging from 24 ft. to 26 ft. with dock-high and drive-in loading, ESFR/wet sprinklers and rail service by Union Pacific.
“The Airport Central Portfolio provided an opportunity to acquire two highly efficient industrial buildings in the most institutionally desired submarket in metro Denver. Investors were intrigued by the near-term cash flow, infill location, and the upside potential in bringing it to full occupancy while raising rents as leases roll,” said Mr. Carner, executive vice president, CBRE.
The Airport Central Portfolio is in metro Denver’s Airport submarket, a target for industrial users due to its proximity to key economic drivers like major interstates and airports. The Airport is Denver’s largest and best-performing industrial submarket locally, according to CBRE research, and it also stands out in relation to other U.S. markets. Denver’s Airport submarket has experienced 20 consecutive years of positive annual net absorption—a measure of net industrial move ins and move outs—outpacing the Airport submarkets in Atlanta, Dallas-Ft. Worth, Miami and Chicago, among others.
The Airport Central Portfolio is named for its location in the Airport Central micromarket, a subset of the larger Airport submarket. The Airport Central micromarket is characterized as having some of the lowest industrial vacancy rates in the Denver area. As of the third quarter of 2022, direct vacancy in the Airport Central micromarket was just 4.5%, 260 basis points below the Airport submarket overall, and 320 basis points below the metro area as a whole.
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 TA Realty
TA Realty is among the largest and most experienced providers of real estate investment management services to U.S. and non-U.S. institutional investors. Since its inception in 1982, TA Realty has managed $38.5 billion of real estate assets through value-add and core strategies and customized separate/advisory accounts. TA Realty’s investment philosophy focuses on creating diversified real estate portfolios that aim to generate strong cash flow, receive intensive asset management, and seek to achieve long-term value creation. For four decades, TA Realty has maintained this philosophy through multiple real estate and economic cycles, a strength recognized by pension funds, endowments, foundations, and high-net-worth individuals. For more information, please visit www.tarealty.com.
About J.P. Morgan Global Alternatives and J.P. Morgan Asset Management – Real Estate Americas
J.P. Morgan Asset Management – Real Estate Americas is the U.S. real estate investment platform of J.P. Morgan Global Alternatives. With more than US$73 billion (Gross Asset Value as of June 30, 2022) in assets under management and 180 professionals, the platform offers real estate strategies that span from core to opportunistic and across debt and equity. J.P. Morgan Global Alternatives is the alternative investment arm of J.P. Morgan Asset Management. With more than 50 years as an alternatives investment manager, US$208 billion in assets under management and more than 800 professionals (as of June 30, 2022), J.P. Morgan offers strategies across the alternative investment spectrum including real estate, private equity, private credit, hedge funds, infrastructure, transportation, timber and liquid alternatives. Operating from offices throughout the Americas, Europe and Asia Pacific, our independent alternative investment engines combine specialist knowledge and singular focus with the global reach, vast resources and powerful infrastructure of J.P. Morgan to help meet each client's specific objectives. For more information, visit jpmorgan.com/am.