• October 4, 2016

NGKF handles big Centennial deal

NGKF brokers handle big Centennial office, industrial deal.
NGKF sold land for Encompass Park.
NGKF brokers Kittie Hook, Wade Fletcher also assisting buyer, Central Development.

Denver-based Central Development on Monday unveiled what is being touted as the largest individual industrial/warehouse ever built along Denver’s Southeast corridor.

The 55-acre, Class A office and industrial Encompass Business Park will be developed in Centennial and anchored by the 150,000-square-foot warehouse, the largest ever built along the corridor without any pre-leasing.

Central paid $4.5 million for the 25-acre first phase of Encompass Business Park.

Encompass, formerly known as Centennial East Corporate Center, is between East Arapahoe Road and East Fremont Avenue.
The seller was Jordan-Arapahoe LLC.

Kittie Hook and Wade Fletcher, brokers with Newmark Grubb Knight Frank, or NGKF, represented Jordan-Arapahoe in the transaction.
They also assisted Central Development in the transaction.

Hook and Fletcher are handling the marketing, sales and leasing for Encompass.

“I’m proud to announce we will be breaking ground on the largest ever individual speculative industrial project in southeast Denver, with a 150,000-square-foot building, said Jeremy Records, principal at Central Development.

“The new Encompass Business Park will offer a total of 13 development sites, ranging from 14,000 to 150,000 square feet, with broad and flexible zoning to accommodate retail, office, flex, industrial, medical and storage uses,” Records said.

Central Development’s capital partner on the project is a limited liability company managed on behalf of its clients by Seattle-based Washington Capital Management Inc.
“Encompass Business Park, with its easy access, proximity to business, amenities and a large and educated labor pool, offers one of the best values in the eastern Centennial area,” said Kittie Hook, managing director at NGKF.

“Flexible zoning and its shovel-ready nature for buildings of all sizes provide a speed-to-market option for select tenants,” Hook continued.
“One of the last vacant parcels available along Arapahoe Road, once complete, Encompass Business Park will fill a needed niche in an area impacted by limited supply,” Hook noted.
“Centennial’s high quality of life continues to attract businesses, residents and accolades,” said Centennial Mayor Cathy Noon.

“Central Development’s Encompass Business Park will provide the flexibility and ease of access that appeals to today’s users, while also delivering value and service,” Noon said.
Recently ranked as the 13th “Best Place to Live” in America by USA Today and Money magazine, Centennial was also named the 9th “Best City for 1st Time Home Buyers” by WalletHub and was listed as the Top 5 “Most Customer Friendly City” by Yelp.

“Centennial is known for being an innovative leader in successfully using both public and private partnerships to provide high quality and cost-effective municipal services to our community and businesses,” Noon said.

Denver’s Southeast submarket continues to post strong industrial absorption and declining vacancy.

It was the only submarket to record positive quarterly absorption without new deliveries for the second quarter of 2016, posting 196,752 square feet of positive absorption and bringing the annual total to a positive 274,910 square feet. Vacancy fell year-over-year to 4.9 percent from 8 percent.

NGKF Research notes five industrial buildings under construction in the SES, totaling 432,902 square feet.

“Consistent low vacancy throughout the market has led to new construction providing an attractive path to provide high quality space for entry for new tenants or space for existing tenants to expand,” said Fletcher, a managing director at NGKF.