DENVER, Dec. 14, 2020 /PRNewswire/ -- 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 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 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 traditional light industrial users.
GSR purchased 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. Food and beverage production, aerospace, bioscience and energy-related product sectors have been heating up as well. This, coupled with a growing population and related distribution needs, has resulted in expanding local, national, and international company footprints throughout the region.
This deal brings 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 San Francisco-based commercial real estate investment firm founded in 2007. Since that time, GSR has purchased over $275 million in assets. As of Q3 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 building market. To learn more, visit www.grahamstreetrealty.com.