1:30 PM
Newmark Grubb Knight Frank (NGKF) announces the development of a new 55-acre Class A office and industrial project, Encompass Business Park (Encompass). The development is located in Centennial, CO, on South Blackhawk Street, between East Arapahoe Road and East Fremont Avenue. Central Development (Central), a Colorado based, family-owned development company is acquiring and developing the site, which was formerly known as Centennial East Corporate Center. Central has purchased Phase I, measuring 25 acres, for $4.5 million from Jordan-Arapahoe LLC. NGKF’s Kittie Hook and Wade Fletcher represented Jordan-Arapahoe LLC and assisted Central Development in the acquisition, and is handling the marketing, sales and leasing for Encompass.
“I’m proud to announce we will be breaking ground on the largest ever individual speculative industrial project in southeast Denver, with a 150,000-square-foot building,” commented Jeremy Records, principal at Central Development. “The new Encompass Business Park will offer a total of 13 development sites, ranging from 14,000 to 150,000 square feet, with broad and flexible zoning to accommodate retail, office, flex, industrial, medical and storage uses.” Central Development’s capital partner on the project is a limited liability company managed on behalf of its clients by Washington Capital Management, Inc. out of Seattle.
“Encompass Business Park, with its easy access, proximity to business, amenities and a large and educated labor pool, offers one of the best values in the eastern Centennial area,” noted Kittie Hook, managing director at NGKF. “Flexible zoning and its shovel-ready nature for buildings of all sizes provide a speed-to-market option for select tenants. One of the last vacant parcels available along Arapahoe Road, once complete, Encompass Business Park will fill a needed niche in an area impacted by limited supply,” added Hook.
Centennial’s high quality of life continues to attract businesses, residents and accolades,” added Centennial Mayor Cathy Noon. “Central Development’s Encompass Business Park will provide the flexibility and ease of access that appeals to today’s users, while also delivering value and service.”
Recently ranked as the 13th “Best Place to Live” in America by USA Today and Money magazine, Centennial was also named the 9th “Best City for 1st Time Home Buyers” by WalletHub and was listed as the Top 5 “Most Customer Friendly City” by Yelp.
“Centennial is known for being an innovative leader in successfully using both public and private partnerships to provide high quality and cost effective municipal services to our community and businesses,” added Mayor Noon.
Denver’s Southeast (SE) submarket continues to post strong industrial absorption and declining vacancy. It was the only submarket to record positive quarterly absorption without new deliveries for the second quarter of 2016, posting 196,752 square feet of positive absorption and bringing the annual total to a positive 274,910 square feet. Vacancy fell year-over-year from 8.0% to 4.9%.
NGKF Research notes five industrial buildings under construction in the SES, totaling 432,902 square feet. “Consistent low vacancy throughout the market has led to new construction providing an attractive path to provide high quality space for entry for new tenants or space for existing tenants to expand,” stated Wade Fletcher, managing director at NGKF.
About Central Development
Central Development is a Denver-focused real estate developer with over 20 years of experience in office, retail, multi-family, built-to-suit, and hospitality industry projects. Central Development’s portfolio currently includes over $45M in active properties, and nearly 1M square feet of managed property valued at over $100M. Additional information can be found at the company’s website, www.centraldevelopment.com.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.