Small-user industrial project achieves $111.11 per sf
An owner that saw potential in an unfinished industrial property reaped its rewards with the sale of the asset for $111.11 per square foot.
Oneida Street Partners LLC sold the two-building, small-user property at 8085-8095 Oneida St. in Commerce City to Dexter Street Six LLC for $4 million.
The buildings contain 15 1,500- and 3,000-sf units that were 100 percent occupied at the time of the sale, according to Nick Schill of Pinnacle Real Estate Advisors, who represented the seller in the transaction. All of the units have outside storage and at least two drive-in loading doors; the larger units have four doors each.
Oneida Street Partners bought the property – originally intended as an industrial condominium project – in core-and-shell condition six years ago. It completed the construction and worked with Schill to lease up the units.
“It was always our intent to fill it up and resell it, and we did,” said Schill. The property achieved a strong price for metal frame construction, he noted, but much of the build-out was very recent. Also, “It was a terrible market when he bought it and a great market when he sold it.”
The buyer exchanged out of a multifamily asset, more than tripling its cash flow with the purchase, according to Kevin Calame, also of Pinnacle Real Estate Advisors. Calame and Matt Lewallen of Pinnacle represented the buyer in the transaction.
Around 60 percent of the tenants in the buildings are automotive related. There also are a painting company, a couple of distributors and Chipotle Mexican Grill, which has a test kitchen there.
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