As Seen In The Colorado Real Estate Journal – November 2, 2016

Stapleton Square occupies a “bulls-eye” location in Denver, said CBRE’s Jeremy Ballenger.

A small-bay industrial asset in a prime location sold for the full asking price in a deal that drew multiple offers.

Stapleton Square, a two-building project that Etkin Johnson Real Estate Partners had owned for many years, traded to DePaul Real Estate Advisors for $5.15 million, or $78.47 per square foot. The Class A buildings, comprising 65,628 sf, are located at Interstate 70 and Havana Street in Denver.

“Havana and I-70 has always been kind of a bulls-eye location in the northeast submarket, but with the development of Enterprise Business Center over the last several years, this is adjacent to some of the best product in the market,” said Jeremy Ballenger, CBRE vice president.

Stapleton Square, located at 10515 and 10525 E. 40th Ave., was 100 percent leased to 16 tenants.

“The draw to investors was twofold. There were in-place leases about 15 percent below market, and the building had average occupancy of over 96 percent over the past three years,” said Ballenger. Also, “Small-bay product like this is so expensive to build right now that existing assets in this size are especially attractive to private buyers,” he said.

The opportunity to buy that product type well below replacement cost – in a location with “great access” on and off I-70 – was very appealing, concurred DePaul President Paul DeCrescentis.

“We think there’s upside in the market rents over existing rents,” he said. Etkin Johnson Real Estate Partners took “very good” care of the property, so there won’t be any dramatic changes, DeCrescentis added

DeCrescentis said the deal exemplifies why his company recently changed its name, which better reflects the services it provides, including capital markets structuring of debt, joint ventures and investment sales. In the case of Stapleton Square, it identified the property, arranged the debt and equity, and closed on that; it paid cash to meet the seller’s timetable, but will be putting a loan on the property. “Our loan wasn’t ready, but we wanted to live up to what we said we’d do,” DeCrescentis said.

“Etkin Johnson was terrific to work with, he said, adding the CBRE team of Ballenger, Vice President Tyler Carner and Kyle McClure “did a terrific job representing their seller.”

“It was a very smooth transaction from our perspective,” DeCrescentis said.