Newmark Grubb Knight Frank (NGKF) negotiated a full-building, 257,000-square-foot lease, on behalf of developer United Properties in Enterprise Business Center at Stapleton. Swire Coca-Cola USA will open a new distribution center at the Class A industrial park, which is under development near the southwest corner of Interstate 70 and Havana Street.
NGKF’s Executive Managing Director Mike Wafer and Senior Managing Director Tim D’Angelo market Enterprise Business Center for lease and represented United Properties in the negotiation. Joe Cantalamessa of Cantalamessa Partners represented the tenant.
A subsidiary of Swire Pacific Ltd., Swire Coca-Cola is one of the largest Coca-Cola distributors in the United States. The company has announced plans to acquire the distribution rights for Coca-Cola in eastern Colorado and to operate its beverage distribution for the Denver metropolitan area from Enterprise Business Center. Swire plans to move into the space at the close of construction next May.
“This large commitment to a speculative building, scheduled for completion as early as spring of 2014, underscores just how strong demand for industrial space has become in the Denver area,” Mr. Wafer said. “This is the first time we’ve seen preleasing of speculative warehouses in more than a decade.”
United Properties acquired the property in July and immediately launched construction of two industrial buildings totaling 489,000 square feet, retaining NGKF to lease the space. The first building is now leased to Swire Coca-Cola, and the second building, offering similar features such as 32’ clear cross dock configuration and trailer parking, also is scheduled for a May 1 delivery.
At full build-out, the 62-acre Enterprise Business Center will measure 1.15 million square feet in five buildings, including a 231,000-square-foot distribution building under construction west of the Swire building and two flex buildings of approximately 100,000 square feet each, to begin construction in the next few months along E. 40th Avenue. United Properties plans to begin construction in the next few months on two flex buildings of approximately 100,000 square feet each along 40th Avenue. Additionally, a newly planned 469,000-square-foot distribution facility is being designed due to the significant demand for large blocks of Class A space in the market.
“Denver’s industrial vacancy rate of 6.1 percent is close to an all-time low and demand is as strong as ever,” Mr. Wafer said. “The recent, unprecedented rush for industrial buildings, particularly in the city and county of Denver, make a compelling case for high-quality speculative construction projects, including Enterprise Business Center.”
About United Properties
United Properties, based in Minneapolis, Minn., specializes in commercial real estate development and investment. Since 1975, United Properties has provided development services for the retail, residential, office, medical and industrial sectors. In addition to a large presence in the Minneapolis-St. Paul market, United Properties’ Colorado division develops retail, office and industrial buildings. Formed in 1916, the United Properties investments group acquires, manages, finances and disposes of the company’s real estate investments, which includes nearly 60 office, medical, industrial and retail assets in Minnesota, Wisconsin and Colorado. For more information, visit www.uproperties.com.
About Swire Coca-Cola USA
Swire Pacific Holdings Inc. (dba Swire Coca Cola USA) is a division of Swire Pacific Ltd. (HKSE: 00019/00087) (www.swirepacific.com). It has the exclusive right to manufacture, market and distribute the products of The Coca-Cola Company in Hong Kong, Taiwan, seven provinces in Mainland China and an extensive area of Western USA. The relationship with Coca-Cola began in 1965, with the acquisition by Swire of the majority shareholding in the Hong Kong franchise. Swire Beverages manufactures over 63 beverage brands and distributes them to a franchise population of over 440 million people.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank (NGKF) is one of the world’s leading commercial real estate advisory firms. Together with its affiliates and London-based partner Knight Frank, NGKF employs more than 12,000 professionals, operating from more than 320 offices in established and emerging property markets on five continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. Its integrated services platform includes leasing advisory, global corporate services, investment sales and capital markets, consulting, program and project management, property and facilities management, and valuation services. A major force in the real estate marketplace, NGKF serves the local and global property requirements of tenants, landlords, investors and developers worldwide. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.