A San Francisco buyer paid $100.72 per square foot for a 121,133-sf industrial property just off U.S. Highway 36 in Broomfield.
Stockbridge Real Estate purchased 224 and 226 Commerce St. from Boulder-based Flagstaff Holdings-224 LLC. The price recorded with Broomfield County was $12.2 million.
The two buildings, 74,853 and 46,280 sf, were fully leased at the time of the sale; however, there are two upcoming lease expirations, according to CBRE, which is marketing those spaces.
CBRE Senior Vice President Jeremy Ballenger said, “224 and 226 Commerce St. are unique not just because of their Boulder-driven location but also because the buildings offer true small-bay space, which is increasingly difficult to find in metro Denver. Tenants also appreciate the functional design and features like ample clear heights, sprinklers, dock-high and drive-in loading.”
There are six tenants at the property, including Puregas, Stone Lighting and Spaceman USA.
Located on 7.6 acres just off 36 and Wadsworth Parkway, the buildings feature office spaces plus warehouse areas with 18- to 21-foot clear heights. Stockbridge is rebranding the property as Northwest Commerce Park and undertaking a capital improvement plan that will include painting the buildings.
According to CBRE, the northwest corridor industrial submarket experienced strong leasing activity, with positive absorption of more than 200,000 sf, in the second quarter.
“As Boulder’s rents have continued to climb and we’ve seen no new industrial construction in the market since 2014, many industrial tenants are relocating to the northwest corridor and seeking out properties like 224-226 Commerce St. There’s also organic growth within the greater northwest area, and the property allows companies to secure more competitive rents while maintaining access to the area’s outstanding labor pool,” said Jeremy Kroner, vice president with CBRE in Boulder.
Kroner, along with Ballenger and Tyler Carner of CBRE, is handling leasing. Ballenger, Carner and Jim Bolt, also of CBRE, represented the seller in the transaction.
Stockbridge Real Estate is a real estate investment management company that invests in all major real estate property types and across the risk spectrum, from value-add properties to core assets.