By: Jill Jamieson-Nichols, Colorado Real Estate Journal
United Properties got the real thing for its first building at Enterprise Business Center and, with the first buildings under construction, is looking to grow the size of the park.
Swire Coca-Cola USA, which is taking on distribution of Coke products in Denver, Colorado Springs and other locations in Colorado as part of Coke’s new business model, leased a 257,000-square-foot building. The deal is one of a handful of 175,000-sf-plus industrial leases to be completed in the Denver market within the last several weeks.
Swire’s building is among the first two buildings to be developed at Enterprise Business Center, a 38-acre industrial park at the southwest corner of Interstate 70 and Havana Street in Denver. United Properties originally planned to build a 514,000-sf warehouse/ distribution facility, but split that project into two buildings to accommodate Swire Coca- Cola’s desire for a freestanding structure.
The state-of-the-art building will have 32-foot ceilings, ESFR sprinklers, large truck courts and an abundance of natural light. It has easy interstate access via Havana Street and Central Park Boulevard, something that has received very positive response from users that have looked at the park, said Newmark Grubb Knight Frank broker Mike Wafer, who represented United Properties in the 12-year lease with NGKF broker Tim D’Angelo. Joe Cantalamessa of Cantalam – essa Partners represented Swire.
Swire is one of the largest Coca-Cola distributors in the United States.
United Properties is building a companion, 231,000-sf building on a speculative basis that should be available when the Swire building is delivered in May. A lease for a portion of that building is under negotiation.
United Properties’ also will build two 100,000-sf flex buildings at Enterprise Business Center beginning in the first quarter of 2014. The buildings will sit along 40th Avenue.
United Properties’ purchased land to develop Enterprise Business Center from Forest City Stapleton, the master developer of Stapleton, last July. It now is under contract to buy an additional 24 acres to develop 480,000 more sf of industrial space.
Wafer said demand for industrial space in the Denver market has increased as the market has tightened.
“We haven’t seen preleasing like this in a dozen years, and it is the result of near record-low vacancy rates. We’re also seeing a resurgence of demand for large blocks of Class A space,” he said.
Based in Minneapolis, United Properties operates a Colorado division that develops industrial, retail and office buildings. The company has nearly 60 buildings in Minnesota, Colorado and Wisconsin.