Overview
Kenai Capital Advisors (“Kenai”), acting as exclusive advisors for the seller, is pleased to present the opportunity to acquire the fee simple interest in 10963 Leroy Drive, a 30,000 SF industrial property located in Northglenn, Colorado (“Property”). This Property, situated off 104th Avenue & Interstate 25, used by 154,000 cars daily, presents a mark-to-market opportunity for investors with significant potential for rent increases. The Property is currently fully leased to a tenant with 2.0 years of lease term left that has occupied the premises for over a decade. The tenant recently completely capital improvements and signed a renewal, indicating long-term occupancy and ongoing rental income for the next owner. This centrally located infill site offers investors a rare chance to acquire a single tenant net leased asset with specialized and highly desirable building systems along with a functional layout. The recent capital improvements and prime location within a supply-constrained market further enhance the Property’s appeal. This investment offers a unique opportunity to acquire a stable, cash-flowing asset in an irreplaceable location with the near-term ability to adjust rents to market.
Investment Highlights
Mark-to-Market Opportunity
- The current lease rate is nearly 24% below market providing a great value-add opportunity upon renewing or reletting the space in 2026. The combination of quality finishes, specialized renovations, and functional loading make this property highly desirable and easily leasable in the future. The unique attributes of this property should contribute to an early renewal or quick leasing and fetch significantly higher rental rates with very little capital investment.
Priced Significantly Below Replacement Cost
- 10963 Leroy Drive is priced significantly below replacement cost, presenting a remarkable investment opportunity. The cost savings provide flexibility in lease negotiations that can attract a diverse range of tenants and ensure high occupancy rates. This strategic pricing, combined with the property’s desirable location and unique building systems, positions investors to capitalize on the growing demand in Denver while maintaining a strong competitive edge in the market.
Committed Tenancy with Recent Capital Improvements
- B&B Blending has shown consistent commitment to this unique facility since 2009, anchoring its tenancy through recent capital investment. The extensive fire rating & hazardous storage improvements tailored to the tenant’s specific needs not only enhance the property’s value but also ensure the tenant’s long-term commitment to the Property. These upgrades have created a uniquely customized space that significantly reduces the likelihood of tenant turnover that can lead to a stable and continuous rental income stream for years to come. This combination of a dedicated tenant and strategic capital improvements makes this property a standout investment with enduring financial benefits.
Highly Specialized Improvements with Functional Layout
- This unique facility is equipped with multiple specialty fire ratings allowing for the storage and processing of highly corrosive and combustible chemicals. This level of infrastructure is rarely found in industrial buildings in the Denver MSA due to the high cost of installation. Even with these specialized systems, this facility still has functional loading with a robust truck court, multiple dock high doors, and an oversized drive-in door on the west side of the facility.
Prime Legacy Location
- Located in one of the few industrial pockets of Northglenn, this prime legacy location offers exceptional strategic advantages. Positioned within close proximity to I-25, one of Colorado’s most notable logistics arteries, 10963 Leroy provides tenants with unparalleled access to the main north-to-south route through the front range of the Rocky Mountains. This proximity ensures efficient transportation and distribution capabilities, crucial for any industrial operation. This area is a highly sought-after location for businesses requiring reliable and swift connectivity near workforce housing.
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