RiNo Real Estate Closings Total $365 Million In Two Years
A three-warehouse asset sale tops off RiNo's hottest neighborhood trend
DENVER, June 11, 2015 /PRNewswire/ -- Newmark Grubb Knight Frank (NGKF) announced the sale of 3911, 3925 and 3963 Walnut Street by J & E Properties, LLC. The three warehouses, measuring approximately 20,000 square feet in total and situated on 40,625 square feet of land, sold to local developer, 3925 Walnut Street, LLC, who paid $3.5 million or $175.50 per square foot. NGKF's Russell Gruber and Steve Fletcher handled the transaction.
Located within a block of the new light rail station complex serving DIA and Union Station at 38th and Blake Streets, the Walnut Street assets will be converted to more adaptive uses appropriate for the burgeoning arts district that has turned into a hotspot for Millennials. "We are a mixed use, multi-family development and construction company with other assets in RiNo, LoHi, Tennyson and Sunnyside," stated the buyer, who purchased the assets under 3925 Walnut Street, LLC. "Much of our success in acquiring the assets was a result of Gruber and Fletcher's expertise to seamlessly handle the tenant and deal structure complexities that come with income properties. As a result, we have successfully added this site into our overall portfolio of income producing assets that are geared towards future development in cool, urban, walkable areas near transit corridors."
"The sale of the Walnut property underscores the flourishing activity in RiNo with warehouses rapidly converting to redevelopment sites," stated Gruber, director at NGKF. "In the past two years, sales topped $365 million, representing a total of 130 assets, a remarkable contrast from just a few years ago, where only 50 assets traded for a total of $43 million between 2009 and 2011. In the last 90 days alone, 15 assets have sold for a value of $40 million."
Recent property sales include office, industrial, flex, retail, land and multifamily, which is booming in central Denver, according to NGKF Research. City Gate apartments are one RiNo asset that recently closed, selling for $52.1 million.
"It's a feeding frenzy in RiNo" added Gruber. "At a sale price of $175.50 per square foot, these three industrial assets achieved a rate higher than the 2014 average for both the Central submarket (at $62.88/SF) and the overall Denver metro market (at $63.77 per square foot)." Originally an owner-occupied industrial area, RiNo, nestled just north of downtown Denver, was derelict and desolate just a few years ago.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF's 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF's strong foundation makes it one of the most trusted names in commercial real estate. NGKF's full-service platform comprises BGC's real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC's common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit http://www.bgcpartners.com/.
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SOURCE Newmark Grubb Knight Frank
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