Westfield Co. Sells Industrial Park for $318M

Pecos Logistics Park. Image courtesy of CBRE

Institutional investors advised by J.P. Morgan Global Alternatives acquired Pecos Logistics Park, a newly built 1.2 million-square-foot Class A industrial development in Denver from Westfield Co. for more than $300 million.

Westfield, a Denver-based real estate firm, developed the 66-acre park in central Denver in two phases. The first phase was completed in September and totals 675,100 square feet across four buildings. It was 68 percent leased at the time of the sale. PepsiCo Beverages North America leases the largest building, a 283,500-square-foot warehouse, according to the Denver Business Journal. Phase II, which will comprise three buildings totaling 471,000 square feet, will deliver in the second quarter of 2022.

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Park features include 28- to 32-foot clear heights, shared amenity space for tenants, Union Pacific rail access, trailer parking and at least 3,000 amps of power per building. The site is also near the Pecos Junction light rail stop.

Central location

Nick Firth, executive director, Real Estate Americas, at J.P. Morgan Asset Management, said in a prepared statement the industrial park was attractive to investors because it is a modern, state-of-the-art warehouse located in a prime, supply-constrained location easily accessible to Denver’s growing population. Firth said the firm’s national industrial holdings total 75.9 million square feet, including 2.8 million square feet in the Denver market.

The property is located at 5675-5725 Pecos St. in Denver’s Central submarket near the interchange of I-25, I-70 and I-76. New developments in the Central submarket are rare. The submarket has more than 60 million square feet of industrial space and only 3.1 million square feet has been added since 2000, according to CBRE, which arranged the sale. All of the new space has been either preleased or leased immediately upon completion. The submarket is regularly among the lowest in the metro area for industrial vacancy.

CBRE Executive Vice President Tyler Carner said in prepared remarks the location is one of the best in Denver for last-mile e-commerce activities because of the highway access. He noted two-thirds of the population is accessible within a 15-mile radius of the site.

Carner and his colleagues Jeremy Ballenger, Jessica Ostermick and Jim Bolt with CBRE’s Capital Markets in Denver represented Westfield in the sale. Citing Adams County property records, the Denver Business Journal reported the disposition was made in three separate sales with Lot 1 at 5675 Pecos St. selling for $103.8 million; Lot 2 at 5725 Pecos St. selling for $123.2 million and Lot 3, 5716 Pecos St. selling for $91 million.

The CBRE team, including Carner, Ballenger, Ostermick and Daniel Close, is handling marketing for another Denver area industrial site that recently broke ground. Trammell Crow Co. and its capital partner Clarion Partners LLC started construction of 104th Commerce Park, a 1.2 million-square-foot industrial development at 104th Avenue just east of I-76 and State Highway 85, in September. When completed, the development will have five Class A buildings on an 89.6-acre site.