A new industrial park is planned just north of Denver, one the developer says will help fill a gap in a part of the market where demand for industrial space outpaces supply.
Hines, a global real estate investment and development firm, is building the 868,360-square-foot project in unincorporated Adams County, west of Interstate 25 on 56th Avenue.
The first phase of Quantum 56 will be three buildings totaling 581,250 square feet of warehouse and manufacturing space, which is expected to be completed in the second quarter of 2024.
“This is really the last large-parcel industrial development in the north-central submarket. There really are no other sites greater than 10 or 15 acres in this whole submarket,” said Jason White, managing director of JLL, a global commercial real estate company with an office in Denver.
The entire site is 60 acres and the first phase will sit on nearly 32 acres. Courtney Schneider, director at Hines, said the north-central industrial market “has one of the highest barriers to entry of any submarket in Denver” due to contaminated sites in the area and the lack of open spaces.
White, Mitchell Zatz and Carmon Hicks of JLL will lead the leasing efforts on behalf of Hines.
“We already are seeing interest in proposals from groups and we’re just now breaking ground,” White said.
Building 1, which will be 350,400 square feet, is the only industrial space in the area with docks on both sides of the building, White added. Building 2 will be 121,600 square feet and Building 3 will be 109,250 square feet.
Schneider said the industrial park will include a 1.6-acre park, a walking path, picnic tables, benches and a full-sized, fenced basketball court.
“I don’t know of any other industrial project that has an outdoor space with walking trails and a basketball court,” White said. “It’s going to be a unique, one-of-a-kind park for the employees and tenants.”
The site is close to major transportation routes and highways and is near an intermodal rail terminal and close to downtown Denver, White said. He believes Quantum 56 will attract a wide range of user types, including distribution and logistics companies, light manufacturing and such businesses as plumbing and heating, ventilation and air conditioning companies.
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“You have good access to a dense population and a good workforce,” White said.
Another advantage is taxes. Because the park will be in unincorporated Adams County, White said the taxes will be lower for any on-site sales than they would be in the surrounding cities.
Schneider declined to disclose the size of Hines’ investment in the property, but said the company plans a series of enhancements, including a perimeter fence around the entire site, lighting throughout the warehouses, air supply and exhaust systems and “more than ample power” for the buildings.
“Each building truly will be occupancy-ready at completion rather than kicking that can down the road,” said Schneider.
Ware Malcomb’s Denver office is designing Quantum 56 and Arch-Con Corp. is building it. Essex Financial Group secured the construction loan for the first phase.
