By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) Principal Real Estate Investors has acquired two buildings in 76 Commerce Center, a Class A logistics park in Denver’s Interstate 76 corridor.
Principal purchased Buildings 4 and 5, totaling 618,480 square feet, at 22600 and 22700 E. I-76 Frontage Road in Brighton. Terms of the deal, which closed last week, were not disclosed.
The industrial park is a 155-acre regional distribution center with a mile of I-76 frontage and immediate interstate access. The project will have four buildings totaling 1.7 million square feet at full buildout.
“Today’s announcement that Principal Real Estate Investors is now a majority partner in this project is an incredible milestone,” said Ryan Bergman, vice president of Mortenson Properties Inc., which sold the property to Principal. “We look forward to continuing our involvement in the project and working together with Principal to build out 76 Commerce Center to completion.”
Mortenson and Hyde Development will continue to manage the logistics park.
Industrial is a hot commodity
Industrial demand has accelerated during the pandemic-fueled growth of e-commerce and warehouse inventories. Companies are leasing space at a historically robust pace to accommodate the significant increase in e-commerce sales.
“Metro Denver is in a unique position to capitalize on e-commerce growth, said Tyler Carner, senior vice president of CBRE, which represented the seller. “Denver is the only major U.S. city that has no other population center within a one-day drive time. With one-day deliveries critical to e-commerce, this has shifted Denver from an endpoint distribution market to a critical location for e-commerce and third-party logistics companies.”
Denver was named the fifth-most desired market for real estate investment in CBRE’s 2021 Investor Intentions Survey, with industrial properties ranked as the most attractive property type for investment.