Newmark Grubb Knight Frank (NGKF) announced the sale of 2800 Walnut Street by Gold Star Sausage. The 32,900-square-foot manufacturing facility was sold to 1425 Market LLC for $3.2 million, fetching a price in the River North (RiNo) neighborhood that far outperformed 2014 market sale averages. NGKF’s Russell Gruber and Pete Staab represented the seller in the transaction.
“We are keeping our headquarters in Denver,” explained Rick Rue, President, of Gold Star Sausage. “Our history is here and we love the Mile High City. However, we made the decision to relocate our food processing operation to Nebraska in order to expand and be closer to our suppliers.”
Family-owned Gold Star Sausage’s USDA certified food processing facility has been anchored in Denver’s revitalized RiNo Arts District since 1936. The largest private label producer of sausages and hot dogs of all varieties in the Rocky Mountain Region, Gold Star’s building at 2800 Walnut is a highly recognized neighborhood landmark, and the property generated extraordinary buyer interest.
“Demand for the asset is extremely high,” added Russell Gruber. “At a sale price of $97.26 per square foot, 3200 Walnut Street achieved a price higher than the 2014 industrial average for both the Central submarket (at $62.88/SF) and the overall Denver metro market (at $63.77/SF).”
Originally built in 1952, 2800 Walnut Street received multiple offers from numerous well-known Denver market investors with desire to acquire property in the emerging RiNo neighborhood. According to NGKF Research, the Central submarket boasts one of the lowest industrial vacancy rates in the metro area, at just 2.7%. The purchaser, 1425 Market LLC, intends to repurpose the asset to take advantage of market conditions.
About Gold Star Sausage
Gold Star Sausage has been based in Denver since 1936 and is still family owned and operated. The company is the largest producer of private label sausages and hot dogs in the Rocky Mountain Region and prides itself on the ability to consistently exceed customer expectations. The company’s focus is on reducing order lead time, 100 % fill rate and on-time deliveries to its customers across the country.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms with 12,000 professionals operating from more than 330 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 owners, tenants, 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/.