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Lincoln Property Co. Buys Brand-New Industrial Building in Englewood

Chicago-Based Company Pays $13.5 Million for Highfield Building 5
February 1, 2018
A new industrial building in Englewood has traded hands for $13.5 million, marking the second sale of a property co-developed by Confluent Development in as many months.

Highfield Building 5, a 101,000-square-foot property at 14150 Grasslands Dr. in Englewood, was purchased last month by Lincoln Property Co. of Chicago. The property sold for $133 per square foot, well above the average for the submarket, which was $111 per square foot in 2017, according to CoStar data.

The property was developed by Confluent and Bradbury Properties, both Denver-based companies.

"The opportunity to acquire Highfield Building 5 attracted tremendous interest from both private and institutional capital," said Jeremy Ballenger, senior vice president with CBRE’s industrial and logistics division, which represented the sellers in the transaction. "Investors are drawn to Denver’s positive market dynamics - including job and population growth - as well as the outlook for the industrial sector in general.

"The price per square foot shows the investors are willing to pay for a top-tier, state-of-the-art, well-located industrial distribution asset," Ballenger said. "On top of the above-average pricing, the building sold at a record low cap rate for the southeast market."

Highfield Building 5 is 100 percent leased to Charter Communications and Gateway Classic Cars, both of which signed up to occupy the building within 12 months of the property’s speculative groundbreaking.

"We’re thrilled with the successful sale of this high-quality industrial asset," said Marshall Burton, president and CEO of Confluent Development. "The sale represents the strength of Highfield Business Park as an industrial hub primed for continued expansion. We’re pleased to continue growing our strong partnership with Bradbury Properties to support the need for high-quality industrial development within Denver’s growing market."

Along with Ballenger, CBRE's Jim Bolt and Tyler Carner represented the developers in the deal.

At full build-out, Highfield Business Park will include up to 1 million square feet on 100 acres. The submarket is the third-largest for industrial space in metro Denver, and carries a vacancy rate of about 6.4 percent in spite of new construction, according to CBRE.

Last summer, Confluent and Bradbury broke ground on a 115,000-square-foot build-to-suit project for EdgeConneX, a data center provider, and in November, they launched a third project in the park - the 92,000-square-foot speculative industrial facility. Both are expected to deliver this spring. Fifty-two acres are still available for development at Highfield Business Park.

In December, Confluent, along with Texas-based Granite Properties, sold a brand-new office building for nearly $127 million to Crestone Partners.

For more information on the Highfield Building 5 property, please see CoStar Comp # 4110254.

Molly Armbrister, Denver Market Reporter  CoStar Group   
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