CBRE Brokers $14.6 Million Sale of Fully Leased New Construction Industrial Property Near Colorado Springs Airport
29 May 2020
CBRE announced the $14.6 million sale of a 99,960-sq.-ft. industrial property located at 2640 Zeppelin Road in Colorado Springs, Colo. Tyler Carner, Jeremy Ballenger, Jim Bolt and Jessica Ostermick with CBRE’s Denver office represented the seller, the Denver office of Scannell Properties. Nearon Enterprises, a private real investment company headquartered in Walnut Creek, Calif., purchased the property in a sale that closed May 21. Brad Bird with CBRE’s Colorado Springs office served as leasing advisor, bringing the property to full lease-up four months prior to delivery.
“2640 Zeppelin is a newly constructed, fully stabilized Class A distribution warehouse in a low industrial vacancy market. With little recent industrial construction in Colorado Springs, there is pent-up demand for quality warehouse space,” stated Jeremy Ballenger, Executive Vice President, CBRE. “Despite recent economic turmoil, investors are still pursuing industrial properties in strategic markets, especially when they include long-term leases with high-credit tenants.”
Developed by Scannell Properties and completed in 2019, 2640 Zeppelin Road is a multi-tenant distribution center leased to Geary Pacific Corp. and a national home improvement retailer. The building includes 30-ft. clear heights, ESFR sprinklers, dock-high and drive-in loading, LED lighting and a front-park, rear-load design.
Scannell Properties is a privately owned commercial real estate developer that has completed 328 build-to-suit or speculative development projects exceeding 63 million sq. ft. in 44 states and three Canadian provinces.
Nearon was founded in 1945 and has a 75-year history of successfully investing in commercial real estate throughout the Western U.S. Today, Nearon owns and operates a diverse portfolio of approximately 5 million square feet, including approximately 3.7 million square feet of industrial properties. Throughout much of its history, the company has owned and developed property in the Colorado Springs region. The current Nearon portfolio is primarily concentrated in California, Utah, Arizona and Colorado.
2640 Zeppelin is located in east Colorado Springs off Zeppelin Road and Aviation Way. The site is near a large e-commerce distribution warehouse that is under construction, as well as five minutes away from the Colorado Springs airport and 15 minutes from downtown Colorado Springs. 2640 Zeppelin is within a larger business park that will consist of four buildings at full build-out.
Colorado Springs’ industrial vacancy rate has been tightening, reaching 4.2% at the end of 2019, down 380 basis points from a year prior.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.