Graham Street Realty Acquires First Industrial Property With Purchase In Aurora, CO
SAN FRANCISCO, CA – December 11, 2020 – San Francisco-based commercial real estate investment firm Graham Street Realty (GSR) has acquired Commerce Square in the I-70 East Industrial submarket of the Denver-Aurora metro. The deal closed on December 3, 2020 for a purchase price of $16 million. The property is currently fully leased.
“Graham Street is excited to move into the industrial sector with the acquisition of Commerce Square,” said GSR Managing Principal David Messing. “We were drawn to this asset in particular due to its functionality, infill location and long history of institutional ownership. Denver’s light-industrial market has proven resilient in spite of the ongoing pandemic, and we believe it will continue to exceed expectations in the future.”
Commerce Square comprises 144,464 rentable square feet of shallow-bay, light-industrial space across a two 1984-vintage, Class B buildings. The single-story buildings provide smaller industrial tenants with above-standard loading capabilities and attractive storefronts, catering to a wide array of tenants from client-facing businesses to more traditional light industrial users.
GSR is purchasing the property from First Industrial Realty Trust, a prominent industrial REIT that has owned and operated Commerce Square for the past 20 years. The property has been well-maintained for many years, in stark contrast to much of the submarket. Upon acquisition, management of the property was transitioned to Oakland-based GSR affiliate Paramount Property Company.
Commerce Square is located just southeast of the I-70 and Peoria Street intersection in the heart of the I-70 East submarket, which accounts for more than 40% of the Metro Denver industrial inventory. The property is less than a mile from the Regional Transportation District (RTD) Peoria Station, which also provides access to Downtown Denver and Denver International Airport via light rail.
The Denver market has seen notable growth from e-commerce, construction/building materials, and manufacturing companies, particularly food and beverage production, aerospace, bioscience and energy-related products. This, coupled with a growing population and related distribution needs, has resulted in expanding local, national, and international company footprints throughout the metro region.
This acquisition brings the Graham Street Realty’s Colorado portfolio to nine properties and marks the firm’s first industrial acquisition.
ABOUT GRAHAM STREET REALTY
Graham Street Realty (GSR) is a private, San Francisco-based commercial real estate investment firm founded in 2007. Since that time, GSR has purchased over $275 million in office assets. As of third quarter 2020, GSR currently owns and operates 14 properties in three states. Since its founding, the firm’s focus has been on value-add investment in the multi-tenant office building market. To learn more, visit www.grahamstreetrealty.com.