The Koll Company Enters Colorado with $15.8M All-Cash Industrial Building Acquisition in Denver Market
THE KOLL COMPANY ENTERS COLORADO WITH ALL-CASH INDUSTRIAL BUILDING ACQUISITION IN DENVER MARKET
- Company re-enters Denver market with strategic acquisition
- 142,413 SF single-tenant building
- All-cash acquisition is below replacement cost
The Koll Company recently announced the company’s expansion into the Denver, Colorado, market of Aurora with a $15,800,000, all-cash purchase of the RK Mission Critical building at 17450 East 32nd Place. This is the company’s first acquisition in Colorado since 2007, and marks the 7th state in which they own property (CA, AZ, NV, OR, UT, MN).
“We are excited about expanding our portfolio to the Denver market in Colorado,” said Scott Meserve, Principal, The Koll Company. “This market’s fundamentals ended 2024 strong with low, decreasing vacancy rates, sustained leasing activity and strong positive absorption outpacing new supply for the first time in 18 months. With our long-term view on this asset, as well as the overall market, we look forward to owning the property for the foreseeable future.”
Meserve added, “Over the last 7 years, we have been building out an industrial portfolio focused on the Western US, closing numerous investments that have brought our collection to just under 6 million square feet. As part of that strategy, we have been eager to strategically enter the Denver market and this deal afforded us the perfect opportunity. The 6.21% cap rate and low basis per square foot are what attracted us to this deal, and made it the right fit.”
The 142,413-square-foot, single-tenant industrial building was honored as ‘The Outstanding Building of the Year’ by BOMA for Greater Denver in 2023. RK Mission Critical, a subsidiary of RK Industries, is the building’s sole tenant through 2029. A global provider of custom-engineered modular solutions, RK Mission Critical is a single-source provider with the experience and knowledge to conceive, design, engineer and manufacture the right modular building for businesses. The building has recently been upgraded with a new roof, asphalt, loading areas and office improvements.
Aurora, the third-most-populous city in the State of Colorado, is home to a number of key employers, including the Buckley Space Force Base, Anschutz Medical Campus, Children’s Hospital Colorado, University of Colorado Hospital, Raytheon Technologies, Kaiser Permanente, Amazon, Northrop Grumman and the Lockhead Martin Corporation. The city enjoys more than 300 days of sunshine each year, making it an ideal location for outdoor enthusiasts who enjoy hiking, biking and picnicking as well as the number of parks and recreational facilities.
Colliers brokered the transaction, representing both the seller and purchaser.
About The Koll Company: The Koll Company is a well-capitalized fully integrated real estate operating company headquartered in Irvine, California and led by Gerald Yahr, Scott Lanni and Scott Meserve. With more than 55 years in the real estate industry, Koll was originally established as a general construction firm and rapidly grew into a leading real estate services company. Koll’s track record includes the development and acquisition of over 155 million square feet of office, industrial, retail, resort, and golf properties. Koll acquires, develops, and manages investments while serving institutional investors and high net worth individuals. The firm’s investment strategies are implemented by a disciplined and dedicated team of professionals with a long history of integrating fundamental real estate knowledge, capital markets experience, and local and economic research. The Koll Company’s AUM currently exceeds $1.3 billion, operating a portfolio of 32 properties, totaling almost 6 million square feet, 4.8 million square feet of which has been acquired since 2017.