The buildings at 4999 Oakland St. in Denver, top, and 18245 E. 40th Ave. in Aurora have sold. (Courtesy Malman Commercial Real Estate)
A Chicago industrial investment firm is adding hundreds of thousands of square feet to its Denver portfolio.
Last week, Brennan Investment Group closed on two warehouses in northeast Denver and Aurora. The first, a 50,000-square-foot building at 4999 Oakland St. in Montbello, sold for $5.25 million, or $105 a foot. The other, a 156,000-square-foot warehouse at 18245 E. 40th Ave. in Aurora, sold for $16 million, or $103 a foot.
The properties are located on large lots. The 40th Avenue warehouse, built in 2005, sits on 9.4 acres, while the Oakland Street building, constructed in 1977, is on a 2.3 acre site. A snack and beverage distributor leases part of the 40th Avenue space, while a container supplier leases all of the Oakland Street building.
Brian Roach, managing principal at Brennan, said in an email that the purchases were “very well located industrial assets … that are both optimal in terms of size and design to meet the bulk of the historical industrial demand in Denver.”
William Gold III signed the sales paperwork for both properties.
The broker representing the sellers was Jake Malman, who owns his own brokerage, Malman Commercial Real Estate. For Malman, it was his biggest deal since the launch of his own firm in 2022.
Jake Malman
“The seller had owned these for a long time and they’ve been family assets,” he said. “So, it was an honor to be part of such a monumental family transaction. They were very meaningful properties to the seller.”
Both properties came with tenants renting below the market rate. The 40th Avenue building will have 68,000 vacant square feet hitting the market June 1, providing Brennan the chance to secure a market-rate tenant.
“The price point the seller wanted for them was a good price point for a buyer only if they could stomach lower returns for a longer period of time,” Malman said. “So, it took a unique buyer to be able to purchase these buildings at a price that the seller wanted.”
Brennan, meanwhile, is making moves in 2024. In January, the firm bought an 18-building, 856,000-square-foot portfolio in Montbello.
But despite the investments, there have been challenges.
“Utility capacity and higher property taxes are certainly challenges here in Denver,” Roach said.
Other real estate professionals echo those sentiments, especially as the city ramps up its Energize Denver initiative, which requires upgrading building facilities to certain energy standards by 2030.
“We think the Energize Denver program is definitely unique or at least, ahead of other markets,” Roach said. “We as property owners understand the need for the program and account for it in our underwriting and business plans.
“Using solar power as an alternative seems compelling on the surface as has been adopted in other states like California. But the candid answer is that industrial occupants here in Denver have yet to fully embrace that alternative.”
Brennan has acquired or developed roughly 3.7 million square feet of industrial real estate in Denver since 2017, spending $450 million to do so. The firm now controls 1.6 million industrial square feet and a 370,000-square-foot development site.
Brennan has offices in 16 cities across the country. There are four employees based in Denver. Per its website, the firm is the second largest privately held industrial real estate owner in the country.
“Brennan pursues any and all industrial opportunities — be it acquisition or development — and includes single tenant net lease properties as well. Generally speaking, we will consider all areas of the Denver metro area,” Roach said.
The buildings at 4999 Oakland St. in Denver, top, and 18245 E. 40th Ave. in Aurora have sold. (Courtesy Malman Commercial Real Estate)
A Chicago industrial investment firm is adding hundreds of thousands of square feet to its Denver portfolio.
Last week, Brennan Investment Group closed on two warehouses in northeast Denver and Aurora. The first, a 50,000-square-foot building at 4999 Oakland St. in Montbello, sold for $5.25 million, or $105 a foot. The other, a 156,000-square-foot warehouse at 18245 E. 40th Ave. in Aurora, sold for $16 million, or $103 a foot.
The properties are located on large lots. The 40th Avenue warehouse, built in 2005, sits on 9.4 acres, while the Oakland Street building, constructed in 1977, is on a 2.3 acre site. A snack and beverage distributor leases part of the 40th Avenue space, while a container supplier leases all of the Oakland Street building.
Brian Roach, managing principal at Brennan, said in an email that the purchases were “very well located industrial assets … that are both optimal in terms of size and design to meet the bulk of the historical industrial demand in Denver.”
William Gold III signed the sales paperwork for both properties.
The broker representing the sellers was Jake Malman, who owns his own brokerage, Malman Commercial Real Estate. For Malman, it was his biggest deal since the launch of his own firm in 2022.
Jake Malman
“The seller had owned these for a long time and they’ve been family assets,” he said. “So, it was an honor to be part of such a monumental family transaction. They were very meaningful properties to the seller.”
Both properties came with tenants renting below the market rate. The 40th Avenue building will have 68,000 vacant square feet hitting the market June 1, providing Brennan the chance to secure a market-rate tenant.
“The price point the seller wanted for them was a good price point for a buyer only if they could stomach lower returns for a longer period of time,” Malman said. “So, it took a unique buyer to be able to purchase these buildings at a price that the seller wanted.”
Brennan, meanwhile, is making moves in 2024. In January, the firm bought an 18-building, 856,000-square-foot portfolio in Montbello.
But despite the investments, there have been challenges.
“Utility capacity and higher property taxes are certainly challenges here in Denver,” Roach said.
Other real estate professionals echo those sentiments, especially as the city ramps up its Energize Denver initiative, which requires upgrading building facilities to certain energy standards by 2030.
“We think the Energize Denver program is definitely unique or at least, ahead of other markets,” Roach said. “We as property owners understand the need for the program and account for it in our underwriting and business plans.
“Using solar power as an alternative seems compelling on the surface as has been adopted in other states like California. But the candid answer is that industrial occupants here in Denver have yet to fully embrace that alternative.”
Brennan has acquired or developed roughly 3.7 million square feet of industrial real estate in Denver since 2017, spending $450 million to do so. The firm now controls 1.6 million industrial square feet and a 370,000-square-foot development site.
Brennan has offices in 16 cities across the country. There are four employees based in Denver. Per its website, the firm is the second largest privately held industrial real estate owner in the country.
“Brennan pursues any and all industrial opportunities — be it acquisition or development — and includes single tenant net lease properties as well. Generally speaking, we will consider all areas of the Denver metro area,” Roach said.
