For over 25 years, Etkin Johnson Real Estate Partners has taken a leading role in the acquisition and development of property throughout Colorado's Front Range, earning the company its current status as the premier commercial real estate company in the greater Denver area. Dedicated to innovating while maintaining a fiscally sound base, Etkin Johnson is committed to providing clients with the highest levels of service.

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Exclusive: Denver’s Etkin Johnson to Sell Colorado Industrial Portfolio

As Seen On CoStar.com, August 29, 2018

The Transaction May Be the Largest Colorado Industrial Sale Based on Recent Deals

Denver-based Etkin Johnson is listing for sale a 19-building industrial portfolio totaling 1.95 million square feet spread across Colorado’s Front Range.

Denver-based Etkin Johnson Real Estate Partners said it plans to sell a 1.95 million-square-foot collection of industrial properties it hopes will become the largest industrial transaction in Colorado history based on recent sales amid record construction demand.

Known as the Colorado Industrial Portfolio, the 19 properties are spread across the Front Range from Colorado Springs to Boulder. The portfolio, which Etkin Johnson began acquiring 30 years ago, offers a chunk of industrial real estate that dwarfs those typically sold in Colorado, where large-scale industrial owners are generally long-term holders.

Etkin Johnson Partner and Executive Vice President Derek Conn said he plans to list the portfolio for sale next month. He expects that the portfolio’s purchase price as well as its square footage will make it the largest industrial deal ever to transact in Colorado if a sale is successful.

Industrial real estate has long been Etkin Johnson’s focus, but the development and management company decided to divest the portfolio after being inspired by the record sale prices of other recent large industrial portfolio trades.

“We still love industrial,” Conn said. “We can take this capital and turn it into development and acquisition strategies. It’s not a winding down, but a ramping up. We want to set ourselves up for the next 30 years.”

The Denver area’s industrial market has been on a hot streak for years now. Average rents vaulted to the $9 per-square-foot threshold in the first quarter of 2017 and are climbing, according to CoStar data. Increased demand from major distributors and the rise of e-commerce have pushed levels of new construction to record highs. All of these factors have also motivated property owners to sell, brokers said.

The Colorado Industrial Portfolio is 93 percent leased to a diverse array of tenants, according to marketing materials.

If the company is successful in selling the Colorado Industrial Portfolio, it will still own 1.87 million square feet of industrial space, including properties it has built in its Colorado Technology Center in Louisville, Colorado.

In addition, the company has office and hotel holdings, and is building an apartment complex in north Colorado Springs, the first phase of a 77-acre mixed-use development.

In April, Denver’s Pauls Corp. sold its Gateway Park portfolio in a record-setting transaction. New York-based Clarion Partners purchased the portfolio that included 3.75 million square feet nationwide, of which 1.93 million are located in Colorado, for $206 million.

CBRE Group Inc. Executive Vice President Jim Bolt, who specializes in industrial real estate and represented Pauls Corp. in the deal, told CoStar News at the time that the transaction had attracted an unprecedented level of interest and would reset pricing expectations in the market. Bolt and others on CBRE’s industrial institutional services team will also list the Colorado Industrial Portfolio on behalf of Etkin Johnson on Sept. 5.

Soon after the Gateway Park transaction, a brand-new, 421,000-square-foot industrial park known as Hub 25 sold for $74 million, or about $176 per square foot, compared with a market average of $157 per square foot, according to CoStar data.

Sales like these made the team at Etkin Johnson think about selling some of their older industrial holdings in order to set up a supply of capital that can finance the company’s new projects going forward, Conn said.

Etkin Johnson has $140 million worth of projects under construction right now, but it is looking for the next big tracts of land in Colorado where it can develop, he added.

The company is opportunistic in its development strategy, Conn said, choosing not to pigeonhole itself in any one project type or geographic area in the state. The company is, however, unlikely to develop outside of Colorado in the near future, he said.

Etkin Johnson, which was founded nearly 30 years ago by Bruce Etkin and David Johnson in Denver, also has a property management arm that Conn said will help smooth out any ownership transition.

 

Etkin Johnson Welcomes Two New Tenants to Enterprise Park in Stapleton

As Seen In Mile High CRE, June 13, 2018
Etkin Johnson Real Estate Partners recently secured two new, strong-credit tenants for its Enterprise Park at Stapleton, with long-term leases on two industrial/flex buildings totaling more than 320,000 square feet. Pinnacle Architectural Lighting, Inc. is scheduled to move into a 172,627-square-foot building located at 3801 N. Havana St. in Q3 2018. Floor & Decor Outlets of America will move into a 148,902-square-foot building located at 10075 E. 40th Ave. later this month.

“We developed Enterprise Park because of its potential to attract top companies like Pinnacle and Floor & Decor, who are supporting the long-term economic vitality of the area,” said Ryan Good, partner at Etkin Johnson. “Stapleton has grown into one of the most desirable places to live, work and play in the Denver metro area, offering unparalleled connectivity and accessibility to I-70 and surrounding amenities.”

In 2016, the buildings’ former tenant, SMA America Production LLC, notified Etkin Johnson it would be closing its Colorado operations to move jobs back to its home country, Germany.

“Having built a strong relationship with SMA during their time as our tenant, we understood the company’s decision to move jobs back ‘home’,” added Good. “We negotiated a buyout and strategically sought companies looking for long-term leases that would bring even more jobs to the area. Together, Pinnacle and Floor & Decor represent more than 500 jobs between these buildings.”

Pinnacle is relocating and expanding its operations from an 80,000-square-foot building in Stapleton. Floor & Decor is new to the Stapleton market, with three other locations in the Denver metro area.

Enterprise Park comprises three buildings totaling 461,224 square feet and has received multiple accolades since its development in 2011, including Metro Denver Economic Development Council’s Deal of the Year and ENR Mountain States’ Outstanding Industrial Project (Silver).

The business park features an energy-efficient design, using renewable power generated by wind turbines that offset carbon emission and low-E glass that transmits more than 60 percent of the sun’s natural light while blocking more than 70 percent of its heat. Similarly, the GenFlex cool roof system’s white surface reflects more than seven percent of the sun’s heat away from the buildings, and the energy efficient HVAC systems generate operational cost savings which are passed directly to tenants. Strategically placed skylights further bring daylight in to support optimal performance in the workplace while reducing energy consumption. The outer walls were created from runways recycled from the old Stapleton International Airport, part of one of the nation’s largest recycling projects.

Pinnacle is a Denver-based lighting manufacturer, part of Legrand, North America, committed to providing creative design, quality manufacturing and short lead-times to meet customers’ needs in the lighting and design community. Floor & Decor, founded in 2000, is a leading specialty retailer in the hard surface flooring market, offering a broad in-stock selection of tile, wood, stone, related tools and flooring accessories at low prices.

FalconView: Low-Density Living in Northern Colorado Springs

As Seen In Colorado Construction & Design, June 6, 2018

New thinking is influencing low-density living at FalconView, a Northern Colorado Springs apartment community with initial occupancy slated for May 2019. Located at I-25 and Interquest Parkway, FalconView will incorporate a garden-style concept and just 15.1 dwelling units per acre to create a sense of community. Designed to meet the growing demand for upscale apartments among young professionals working along the I-25 corridor, FalconView will take advantage of the amenity-rich dining, shopping, and entertainment district that has sprung up on the city’s outer edge. 16 buildings will spread across the 19-acre site in low-rise structures connected by garden paths with casual gathering spots. FalconView will boast an open park and play spaces showcasing views of Pikes Peak and the United State Air Force Academy to the west. Key on-site amenities include a clubhouse with a pool and fitness center, yoga studio, dog wash, and outdoor gear repair shop. 288 units will be available from one to three bedrooms, ranging from 701- to 1,843-SF. Nine-foot ceilings, high-end appliances, walk-in closets, and either balcony or patios in every unit elevate the rental experience.

The project iCLUBHOUSE.HDR_sms being developed by Etkin Johnson Real Estate Partners with design services led by OZ Architecture. Construction is being managed by Martines Palmeiro Construction, who broke ground in April 2018.

Etkin Johnson Secures $75M Refi Loan for CO Portfolio

As Seen In Commercial Property Executive, March 5, 2018

HFF arranged the 10-year, sub-4 percent fixed-rate loan with MetLife to refinance five properties in the Colorado Technology Center.

Aerial of Colorado Technology Center

Etkin Johnson Real Estate Partners has closed on a $75 million refinancing loan for its Colorado Technology Center portfolio. HFF arranged the 10-year, sub-4 percent fixed-rate loan with MetLife.

The portfolio comprises five properties totaling 535,787 square feet in the Colorado Technology Center. The buildings are located at 1900 Cherry St., 1960 Cherry St., 2000 Taylor Ave., 1900 Taylor Ave. and 633 CTC Blvd. A sixth 109,386-square-foot built-to-suit project, located at 2035 Taylor Ave., will be added to the loan once construction is complete in fall 2018.

“Through this financing, we are able to return a significant portion of investors’ capital earlier than expected,” said Derek Conn, executive vice president & partner at Etkin Johnson, in prepared remarks. “It is a testament to our strategic development approach in the Colorado Technology Center as well as our commitment to the marketplace long-term.”

HFF Senior Managing Director Eric Tupler and Director Brock Yaff, led the financing arrangement. Last September, Etkin Johnson’s leasing team led by Executive Vice President & Partner Ryan Good leased up the company’s 633 CTC Boulevard property, with the signing of three long-term tenants that fully occupy the new building.

Industrial space can support evolving retailer needs

As Seen In The Colorado Real Estate Journal’s February issue of Retail Properties Quarterly.

An emerging trend is the growing reliance on the industrial market for manufacturing, storage and distribution solutions as companies employ more e-commerce strategies.

The retail industry is evolving, and while the growth of e-commerce has not made traditional retail obsolete, as once predicted, it has forced the entire industry to adapt to changing consumer behaviors and meet a new set of expectations.

With almost any product available for online purchase, consumers are less likely to drive to a store, park, walk in, make a selection, stand in line, pay and then drive home, unless there’s a compelling reason. As a result, retailers are introducing new solutions that offer customers both the ease of online shopping as well as memorable in-store experiences that reinforce their brands.

This evolution also means that retailers in Colorado and across the country are thinking differently about their real estate needs. One emerging trend is the growing reliance on the industrial market for manufacturing, storage and distribution solutions as companies employ more e-commerce strategies.

Future demand for industrial space. Regardless of how companies are choosing to adapt to changing consumer demands, the industrial market is starting to play a major support role in the retail revolution and will continue to do so in the coming years.

E-commerce users typically require up to three times more industrial space than a traditional retail supply chain user, according to CBRE’s 2018 U.S. Real Estate Market Outlook. The report goes on to predict that with e-commerce sales forecast to grow by 10 percent annually and to top $500 billion by 2020, demand for high-quality, well-located industrial real estate will remain steady.

Last year alone, the Denver metro area delivered 5.4 million square feet of new industrial space – the highest since 2001 – according to CBRE. Looking at 2018 and beyond, Denver’s strong industrial and logistics market is well positioned to continue providing the type of proximity to consumers and accessibility to major transportation arteries that the retail industry needs.

Deliveries of industrial space in the Denver market, compared with population growth for the area. Courtesy CBRE

How industrial space can be used. Advances in e-commerce have created a new kind of retail experience that allows consumers to get what they want, when they want it. Consider the evolution of Amazon, for example.

In 2005, Amazon introduced Amazon Prime, which offers free two-day shipping on most products. More recently, the company introduced Prime Now, which guarantees free two-hour delivery in select cities, including Denver. This type of on-demand consumerism has created a feeding frenzy and, to keep up with demand, Amazon has constructed dozens of fulfillment centers across the country to store thousands of products that are ready for shipment at a moment’s notice.

Amazon aside, smaller operations also are driving demand for industrial space. As companies continue to grow in Colorado, many are finding success through e-commerce retail strategies that require more space for their operations.

For example, Fenix Outdoor Imports (the parent company behind popular outdoor brands including Fjällräven) nearly doubled the number of its Colorado employees a couple of years ago, necessitating a move into a larger industrial/flex space in the Colorado Technology Center that could accommodate immediate and future growth. The warehouse houses manufacturing, distribution and office functions, as well as a showroom that doubles as a retail staging area.

Similarly, WishGarden Herbs – Colorado’s herbal remedies expert – relocated to the Colorado Technology Center from Boulder in 2014 to expand its manufacturing and distribution operations due to increased consumer demand across the country. This woman-owned, family run company has grown from a small startup to a nationally recognized company by employing both traditional and e-commerce retail strategies.

Other retailers are pioneering solutions that incorporate e-commerce strategies into new concepts that most likely will require more industrial space in the future. For example, the recently introduced 3,000-sf Nordstrom Local keeps limited inventory on site with the opportunity to purchase selections online. With off-site storage nearby, customers can expect same-day delivery of their products to the store or their homes. It is yet to be seen how this type of model will affect the demand for new industrial space, but it is certainly a trend to watch.

As retail continues to evolve in Colorado and throughout the country, companies will continue to figure out new and innovative solutions to meet the changing demands. And while this evolution might take many different forms, it’s becoming increasingly clear that retail will rely heavily on the flexibility and functionality of the industrial market moving forward.

Denver’s Etkin Johnson to build 3-building industrial campus in Louisville

As Seen In The Denver Business Journal – October 5, 2017

The lease-up of 633 CTC Boulevard triggered the development of a 400,000-square-foot industrial campus in Louisville’s Colorado Technology Center.

Denver-based Etkin Johnson Real Estate Partners will break ground on a 400,000-square-foot, three-building industrial campus in Louisville following the lease-up of another of its industrial projects.

Both projects are located in Louisville’s Colorado Technology Center, located roughly near the intersection of Northwest Parkway and 104th Street.

“Now that 633 CTC Boulevard is fully leased, we’re starting construction on a brand new spec campus in the Colorado Technology Center with state-of-the-art technology and amenities,” said Ryan Good, executive vice president and partner at Etkin Johnson.

The 400,000-square-foot Louisville Corporate Campus at CTC will be built on a 33-acre parcel purchased by Etkin Johnson earlier this year.

Louisville Corporate Campus’s construction was triggered by the the lease-up of 633 CTC Boulevard, a 153,018-square-foot project that wrapped up construction last month. The leases bring that building to full occupancy.

The Keystone Group, which specializes in LED safety flares, work lights and sun shades, will move into its 52,336 square feet in January, while Molecular Products, which designs and manufactures safety equipment for working with breathable gases will move into 63,030 square feet in April after completing tenant finish.

Wild Goose Canning, which serves the craft beer, wine and spirits industries, as well as coffee and juice makers, will move into 37,652 square feet in January.

ULI Foundation Governor Bruce Etkin Expands Student Scholars Program beyond ULI Colorado

As Seen In The ULI Foundation Fall 2017 Newsletter

Bruce Etkin

ULI Foundation Governor Bruce Etkin has pledged $100,000 to expand the Etkin Johnson Student Scholarship Program, which began at ULI Colorado to support undergraduate and graduate students at the University of Colorado as they launch their careers in real estate and other land use professions. The funding will be competitively awarded over two years to district councils to support student memberships, networking and mentorship activities, and involvement with ULI at the local level.

“The $70 or so fee to attend a district council event might not seem expensive, but many students simply can’t afford it,” Etkin says. “Building your professional network through ULI is an essential building block early on in your career, and it was important to me to expand this program so that more deserving students benefit from the important skills and connections that a ULI membership brings with it.”

For the 2017-2018 academic year, ten councils applied to participate, and four were selected to recruit and support ten Etkin Johnson student scholars each: ULI Baltimore, ULI Kansas City, ULI North Florida, and ULI Philadelphia. ULI Colorado will also continue to receive funding for its program.

ULI Colorado’s model for the program will be replicated in these other locations, with an emphasis on encouraging student members to participate in district council events, programs, and Young Leaders Group; establish connections with mentors among local ULI Key Leaders; and gain valuable leadership and networking skills. One of Etkin’s goals is to have the scholarship program permanently endowed in these new locations by additional benefactors.

Etkin, also a ULI governing trustee, has been an active ULI member since 1979. He is a former ULI Foundation board member and has served on several ULI product councils. He is chairman of Etkin Johnson Real Estate Partners, a privately owned commercial real estate investment and development company based in Colorado.

California-based family trust pays $8.6M for Interlocken building

As Seen In BizWest – September 18, 2017

295 Main Photo_2014

This 65,127-square-foot office/flex building at 295 Interlocken Blvd. in Broomfield has sold for $8.6 million.

BROOMFIELD — Denver-based Etkin Johnson Real Estate Partners has sold an office/flex building at Interlocken in Broomfield for $8.6 million.

California-based Steve and Loretta Scheenstra Trust purchased the property at 295 Interlocken Blvd., in the Interlocken Advanced Technology Environment. NavPoint Real Estate Group, based in Castle Rock, will manage the property moving forward.

Etkin Johnson purchased 295 Interlocken in December 2009 for $6.92 million. Constructed in 1984, the property includes 65,127 square feet of office/flex space and is divided into eight business suites. The property was 92 percent leased at the time of sale.

“This sale is the culmination of a successful investment for Etkin Johnson and its partners, and we are working with NavPoint to ensure a seamless transition for all of our tenants,” said Derek Conn, executive vice president and partner at Etkin Johnson. “We remain very invested in the Northwest Corridor and are looking forward to many continued years of prosperity in the region.”

Since the company’s founding in 1989, Etkin Johnson Real Estate Partners has developed and acquired more than 85 properties across Colorado’s Front Range, totaling more 7.5 million square feet. Its current portfolio is made up of office, hotel and industrial holdings, totaling approximately 5 million square feet.

Newmark Knight Frank brokers Riki Hashimoto and Dan Grooters represented Etkin Johnson in the transaction. Matt Call and John Witt from NavPoint represented the Scheenstra Trust.

Etkin Johnson sells Clear Creek Business Center for $18.1M

As Seen In The Colorado Real Estate Journal – June 21 – July 4, 2017

An eight-building business park under the same ownership for a dozen years sold to a Honolulu-based buyer for $18.1 million.

Denver-based Etkin Johnson Real Estate Partners sold Clear Creek Business Center to Watumull Properties Corp. The park consists of 187,865 square feet of office/flex space.

“Clear Creek Business Center has been part of the Etkin Johnson portfolio for 12 years and we are working closely with Watumull Properties to create a smooth transition for all of our tenants there,” said Derek Conn, Etkin Johnson executive vice president and partner. “This sale will allow us to better focus on existing properties in the area as well as new developments and potential acquisitions,” he said.

Clear Creek Business Center, located at 6800-6880 N. Broadway in Denver, was built from 1984 to 1987. It houses 47 tenants from 526 to 19,415 sf, the largest of which are ZS Pharma, Red Hawk Fire & Security LLC and Dish Network Service LLC. Occupancy was 95 percent at the time of sale.

Situated at the confluence of Interstate 25, U.S. Highway 36 and I-76, the park provides good visibility and access. The single-story buildings are fully sprinklered and have 10-foot windows, individual HVAC units, 10-by-10-foot drive-in doors and 14- to 16-foot ceiling clearance.

Etkin Johnson sold the Clear Creek Business Center for $18.1 million.

“Thanks to our best-in-class leasing and property management teams, we were able to achieve dramatic rent growth over the last several years while maintaining near full occupancy,” said Conn. “This made for an exceptional investment opportunity for a qualified buyer.”

Brad Calbert and T.J. Smith of Colliers International handled the transaction.

Etkin Johnson owns nearly 5 million sf of industrial, commercial, hospitality and multifamily properties in Colorado, including approximately 1.2 million sf in the Colorado Technology Center in Louisville.

Watumull Properties’ holdings include more than 2 million sf of flex/industrial properties in the Denver market.

Etkin Johnson sells Denver office complex for $18.1 million

As Seen In The Denver Business Journal – June 1, 2017

Denver-based Etkin Johnson Real Estate Partners has sold a 187,865-square-foot office complex for $18.1 million.

Honolulu-based Watumull Properties purchased the Clear Creek Business Center, at 6800-6880 N. Broadway in Denver, which Etkin Johnson had previously owned for more than a decade.

Etkin Johnson sold the Clear Creek Business Center for $18.1 million.

“Clear Creek Business Center has been part of the Etkin Johnson portfolio for 12 years, and we are working closely with Watumull Properties to create a smooth transition for all of our tenants there,” said Derek Conn, executive vice president and partner at Etkin Johnson. “This sale will allow us to better focus on existing properties in the area as well as new developments and potential acquisitions.”

Clear Creek Business Center, an eight-building business park, was built in the 1980s and is occupied by 47 tenants ranging in size from 526 square feet to 19,415 square feet. The facility was 95 percent occupied at the time of sale.

Etkin Johnson owns nearly 5 million square feet of real estate in Colorado and is developing new industrial space in Louisville and a hotel in Westminster.