Corum Real Estate Group, the Denver-based real estate firm, has purchased a 7.5-acre parcel of land in Adams County to develop Central 62 Distribution Center, a 124,600-square-foot, Class A, spec industrial warehouse and distribution facility. HFF worked on behalf of Corum to arrange joint venture equity partnership with a pension fund advisor, and also secured the construction loan for the partnership through a local bank. Corum bought the land from father-and-son Tony and Lou Ficco for $2.08 million, who had owned the site since 1941. Associate Director Matt McClintock and Senior Managing Director Jeff McClintock of NGKF handled the transaction. According to a Business Den article, their property originally had 10 acres but was cut down to 7.5 acres when Interstate 25 was built in the 1960s.
"Industrial real estate is a pretty hot commodity right now, and infill industrial is even harder to find," said Corum Vice President Eric Komppa, who runs Corum Real Estate Group along with his father Mike Komppa. "It's going to be the first development deal with I-25 visibility since the last cycle at least, if not longer."
Targeted at mid-size tenants requiring office, retail and showroom space, Central 62 is the latest speculative development in a "drum tight" industrial market experiencing under 2 percent vacancy in the central Denver area, according to Newmark Grubb Knight Frank. "This new industrial construction fronting I-25 is the first in decades, and as land values skyrocket in RiNo and along Brighton Boulevard, centrally located companies need new options," explained Matt McClintock, who brought the opportunity to Corum Real Estate.
BSD Builders has been contracted as the general contractor on the Central 62 project, which was designed by Ware Malcomb. Asking rates will hover around $8 per square foot, Komppa said, adding that the building has drawn leasing interest primarily from distribution outfits.
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