CBRE announced the sale of 75 acres of HighPoint Elevated Industrial and Logistics Park in Aurora, Colorado to Dollar General. The park’s development team, Hyde Development and Mortenson, will build a 919,000 square foot complex. Class A distribution facility for Dollar General on site.
CBRE’s Daniel Close, Todd Witty, Tyler Carner, Jeremy Ballenger and Jessica Ostermick represented Hyde Development in the sale to Dollar General and are marketing HighPoint Elevated for lease and sale opportunities with speculative and speculative build options available.
“We are delighted that Dollar General has chosen HighPoint as their new home. The new 919,000 square feet. The Dollar General building will anchor the east side of the HighPoint development and is already generating new rental activity. The combination of the workforce, easy access to E-470 and the infrastructure in place attracted Dollar General and other users to this unique site,” said Paul Hyde, Director at Hyde Development. Hyde Development ranked the top commercial real estate developer in Denver last year, developing nearly 1.1 million square feet in the metro area in 2021.
The Dollar General project is the first custom construction commissioned at HighPoint Elevated, which began last year and will include up to 5.5 million square feet of industrial and logistics space at full construction. Several agreements are currently signed or under contract in the park.
“The agreement with Dollar General is a perfect example of our extensive custom construction capabilities here at HighPoint,” said Brian Fitzpatrick, vice president and general manager of Mortenson. “Speed to market has never been more valuable and we are able to deliver that advantage as a developer and design-builder on the fleet.”
Dollar General announced the project as part of an expansion of three distribution centers in Arkansas, Colorado and Oregon. The company said it plans to invest $172 million in the Aurora facility, which will create about 400 new jobs at full capacity. The expansion comes as inflation pushes some shoppers towards more affordable options for their day-to-day needs. According to analytics firm InMarket, average grocery spend at discount chains increased 71% from October 2021 to June 2022. Construction is expected to begin this summer on the Dollar General facility at HighPoint and s to be completed by the end of 2023.
“Tenants appreciate that HighPoint provides regional access to labor and customers. Its central location makes it a strategic choice for companies looking to distribute their products in northern and southern Colorado,” said Daniel Close, senior vice president of CBRE. “HighPoint is one of the few developments in the Denver metro area that can accommodate industrial needs from 20,000 square feet to a mega distribution facility. This is significant as demand for industrial space approaching or exceeding 1 million square feet has skyrocketed, spurred by increased e-commerce sales and a shift in retail inventory strategy.
Last year was a banner year for large warehouse transactions, according to CBRE research. The companies have pledged to lease 57 1 million square foot warehouses. or more in the US in 2021, a 19% increase from 2020. The general retail/wholesale sector leads in the number of large leases, followed by e-commerce only occupiers and food and beverage companies.
HighPoint Elevated is located on the southeast corner of East 64th Ave. and E-470, six minutes from Denver International Airport. Building 1 is currently under construction and is expected to be completed this summer. The 37% leased speculative building totals 542,000 square feet with 340,588 square feet remaining available. The building is divisible at 170,294 square feet with 36 square feet. clear heights, 50 by 54 feet. column spacing, an ESFR sprinkler system, dockside and drive-through loading and trailer parking. Additional buildings will range from 64,000 square feet to 1 million square feet with at least one building planned for cold storage. Outdoor storage is available at several locations in the park.
The retail space will run through the middle of HighPoint Elevated along East 64th Avenue, providing walkable retail options for tenants and visitors with outdoor seating. Infrastructure upgrades are underway to widen East 64th Avenue to four lanes in the park (six lanes west of E-470) and to add a full interchange at East 64th and ‘E-470, giving tenants the ability to bypass I-70 to reach the northern and southern suburbs of the metro.
HighPoint is a 20-minute drive from downtown Denver and is located in three Economic Benefit Zones: a Federal Opportunity Zone, an Adams County Enterprise Zone, and a Limon Foreign Trade Zone. .
Visit highpointelevated.com for more information.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate investment and services company (based on 2021 revenue ). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving customers 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; assessment and evaluation; real estate leasing; strategic advice; real estate sales; mortgage services and development services. Please visit our website at www.cbre.com.