A local developer has paid $3.5 million for three warehouses in Denver's RiNo neighborhood.
3825 Walnut Street LLC, which bought the property from J & E Properties LLC, to convert the buildings, totaling 20,000 square feet, into a more appropriate use for the property. The developer, which has assets in RiNo, LoHi, Tennyson and Sunnyside, focuses on mixed-use, multifamily construction.
"The sale of the Walnut property underscores the flourishing activity in RiNo with warehouses rapidly converting to redevelopment sites," says Russell Gruber, a director at Newmark Knight Frank who handled the transaction with Steve Fletcher.
In the past two years, sales topped $365 million, representing a total of 130 properties, Gruber says. That's a big jump from the 50 assets that traded hands for a total of $43 million between 2009 and 2011. In the last 90 days, a total of 15 assets have sold for about $40 million.
"It's a feeding frenzy in RiNo," Gruber says. "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 a square foot) and the overall Denver metro market (at $63.77 a square foot)."
Contact Confluence Denver Development News Editor Margaret Jackson with tips and leads for future stories at margaret@confluence-denver.com.
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