It was probably a good thing that the developers behind one of Colorado's newest speculative industrial projects were faced with a shrinking pool of options in the high-profile Denver market because it meant hunting for an alternative in what is now one of the state's fastest-growing hubs.
The land shortage in Denver pushed Silver Point Development to look beyond the city for the space it needed to build a multi-phase warehouse project, ultimately landing on Mead, Colorado, as the spot for Elevation25. The project, which is expected to span upward of 1 million square feet, is the only speculative industrial development in the immediate area, a distinction that earned it a 2024 CoStar Impact Award, as judged by real estate professionals familiar with the market.
Despite few developers venturing to the region — located equidistant to major markets in Denver, Boulder and Loveland — the developer's bet is already paying off.
The initial 203,750 square feet or so of Elevation25 was fully leased to four tenants within a few months of the project's October 2023 completion, attracting a mix of tenants from nearby, underserved markets willing to pay some of the highest industrial rents in the greater Mead area.
Situated along the bustling Interstate 25 corridor, "the location pioneering strategy of the developers was well thought out," said CoStar Impact Award judge Steve Kawulok, the managing director for SVN | Denver Commercial.
The project's fast lease-up period also set the stage for its subsequent phases. Mark IV Capital, a California real estate firm, acquired the remaining 54 acres from Silver Point for $12.3 million late last year and will kick off construction for the remaining seven Elevation25 buildings later this year.
About the Project: The first phase of Elevation25 includes two buildings — 4460 and 4480 Elevation Drive — with features such as a 28-foot clear height, four drive-in doors and 26 dock-high doors. The future components of the project are expected to include another 850,000 square feet of speculative industrial space as well as features such as outdoor storage and a public park.
What the Judges Said: The initial phase of Elevation 25's "delivery of over 200K square feet of speculative, high-bay product, which leased to 100% within a few months of project completion, speaks to the success of the project and the innovative design-build approach taken by the development team," CoStar Impact Award judge Sara Croot, a JPMorgan Chase client manager and executive director, said of the development.
They Made It Happen: Silver Point Development Partner Stuart Platt and Brad Cuchard led the project with help from Bill Smith, a senior principal with Intergroup Architects; Chris Alcorn, the president of Alcorn Construction; Avison Young's Dawn McCombs and Ryan Almaleh were the leasing brokers; and Walker & Dunlop Investment Partners' Brian Cornell and Rob Boydston.
CoStar Market Manager Kathryn Binns contributed to this report.