DENVER, CO (MAY 16, 2023) – Leading real estate investment advisor EverWest Real Estate Investors (“EverWest”) has purchased Central Connection in Denver’s popular North Central infill submarket from a joint venture of Comunale Properties and institutional investors advised by J.P. Morgan Asset Management. The two-building, 194,710-square-foot Class A industrial asset is fully leased to six diverse tenants in an area known for significant demand and high barriers to entry.
The property sits at the intersection of I-25, I-76 and I-270, minutes from I-36 and I-70, and less than 30 minutes from Denver International Airport.
“Denver’s North Central industrial market is one of the most desirable and connected in the state, with some of the region’s highest rents and lowest vacancy rates, despite a predominantly older inventory of competitive product,” said Brett Birkeland, EverWest’s Managing Director of Acquisitions, Central U.S. “Within this environment, Central Connection is main-and-main real estate, standing out for its modern construction, clear height and ease of divisibility.”
"Central Connection represents our first joint venture with J.P. Morgan,” said Comunale Properties President John Comunale. “Its extensive entitlement and development process honored both the area's agricultural past and this submarket's future as a major economic driver. We couldn't ask for a better buyer than EverWest and look forward to their continued stewardship of this asset."
At the time of its delivery in 2020, Central Connection broke records for the fastest ever lease-up of a speculative industrial project in the Central Denver submarket, securing pre-lease commitments for 76% of its buildings and 100% lease-up within one month of completion.
Central Connection is located on 14.12 acres at 1550 and 1210 E. 73rd Ave. in Denver. Building 1 totals 153,264 square feet with 32’ clear height. It is fully leased to Peloton, Epicurean, Outpost, Alpha and Carlisle. Building 2 totals 41,446 square feet with 24’ clear height. It is fully leased to Newcomb Spring Corp.
Bays at Central Connection range from 16,334 square feet to 50,649 square feet. They are equipped with drive-in and dock-high loading doors and feature ESFR fire protection, gated loading access and a market-leading parking ratio of 2.07/1,000.
Comunale Properties and J.P. Morgan were represented by Jeremy Ballenger, Jim Bolt, Tyler Carner and Jessica Ostermick of CBRE.
According to CBRE, only 2% of industrial buildings in Central Denver have a clear height greater than 32’ and only 12% have a clear height greater than 24’. Modern, Class A shallow bay product like that offered at Central Connection also has a local vacancy rate of just 2.3% and accounted for 80% of the market’s executed leases over the last 12 months.
“This is a versatile project that checks all of the boxes,” said Birkeland. “It can adapt with an evolving market and offers advantages as an infill play benefiting from Central Denver’s high barriers to entry.”
For distribution-centric tenants, Central Connection is 29 minutes from downtown Boulder and 12 minutes from downtown Denver, with 2.1 million people located within a 15-mile radius.
EverWest currently has $5.2 billion in assets under management, invested through separately managed accounts and commingled funds. It provides investment management services including acquisitions, asset management, development and property management for assets throughout the U.S.
About EverWest Real Estate Investors LLC
EverWest Real Estate Investors (“EverWest”) is a real estate investment advisor providing investment management services throughout the U.S. including acquisitions, asset management, development and property management for our investors. With $5.2 billion in assets under management, EverWest clients invest through separately managed accounts and commingled funds. The firm is headquartered in Denver with regional offices in New York City, Charlotte, Los Angeles, San Francisco and Austin metro areas. EverWest is an affiliate of Sagard, a leading global alternative asset management platform within the Power Corporation of Canada ecosystem. For more information, visit www.everwest.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 US$70 billion (Gross Asset Value as of December 31, 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 60 years as an alternatives investment manager, US$211 billion in assets under management and more than 800 professionals (as of December 31, 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.
About Comunale Properties
Comunale Properties (Comunale) is a vertically integrated real estate company based in Denver, Colorado. Through its subsidiaries, Comunale acquires, develops, manages, and constructs single and multi-tenant light industrial properties located in Colorado, Arizona, Pennsylvania, New Jersey, and Ohio. Comunale’s existing portfolio consists of ±1.7 million square feet across 45 assets. For more, visit www.comunaleproperties.com.
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