Trammell Crow Dives into Denver
- Jul 29, 2015
Trammell Crow Co. has acquired prime commercial infill land in Denver, from Globeville I L.L.C., with plans to build Crossroads Commerce Park, a new industrial project scheduled to be approximately 1 million square feet.
Principal Real Estate Investors will serve as TCC’s capital partner in Phase I of the Crossroads project.
“There hasn’t been any industrial development in Denver’s central marketplace for over 10 years because of a total dearth of available sites,” Ann Sperling, Trammell Crow Co.’s senior director for its Denver business unit, told Commercial Property Executive. “Tenant demand for close-in, industrial locations of a Class A institutional nature is very, very high. In fact, the vacancy rate in the central market covers about 2.5 percent.”
Located at East 55th Ave. and Washington Street near the I-25/I-70 interstate in unincorporated Adams County, when completed, the Crossroads Commerce Park will consist of multiple buildings with the first tranche of land developed as speculative industrial buildings equaling 640,000 square feet and a build-to-suit building for a user.
According to Sperling, TCC’s goal is to make Crossroads a prime location for companies with showroom, distribution, warehouse and light manufacturing needs, looking to locate or expand in the Denver market.
“The appeal was the fundamentals and lack of development in the last cycle and the improving economy in all sectors,” she added. “When you see migration in terms of employment, the general indicators in terms of consumer demand and the girth of supply, that’s a great equation for success.”
TCC has a long history in Colorado’s Front Range, having developed numerous industrial, office, residential, healthcare and public-private projects, including over $2 billion in projects over the past 10 years.
“Nationally, TCC has been in the industrial business since its inception in the 1940s and we have always seen the value of industrial development as a kingpin to the way the U.S. economy functions,” Sperling concluded. “With respect to Denver, specifically, this is a very healthy industrial market, and while it’s not a gateway city, has served regional and national interests for a long time.”
The Newmark Grubb Knight Frank team of Mike Wafer and Tim D’Angelo brokered the land sale and will also handle the marketing of the site on Trammell Crow Co.’s behalf.