Potomac Park I and II, two Class-A industrial buildings in Englewood, were acquired for $48.2 million by partners Mortenson Properties and Hyde Development.
Records filed with Arapahoe County said one building sold for $26.8 million and the other for $21.4 million. The seller, Westcore, an industrial real estate investment firm, acquired the Potomac Park property in 2020 for $39.3 million.
“We are incredibly excited to join forces with Mortenson Properties on this acquisition,” said Paul Hyde, CEO of Hyde Development.
“One of the reasons these buildings were attractive to us is the tenant mix in the buildings. Potomac Park I and II have tenants focused on engineering and the aerospace industry, which is different from the warehouse distribution tenants we have in our other buildings.”
The two partners also recently announced the acquisition of the Raceway Commerce Center in West Valley City, Utah. These two industrial properties are part of the National Core Industrial Portfolio, a multistate industrial portfolio spanning 2.4 million square feet across eight assets in six states.
Cushman & Wakefield’s executive vice chairmen, Jeff Chiate and Will Strong; directors Michael Matchett and John Schreck; senior director Phillip Eilers; and CBRE’s executive vice presidents, Joe Cesta, Tyler Carner and Jeremy Ballenger, represented the seller and procured the buyer.
“The industrial real estate markets in Denver and Salt Lake City are flourishing, fueled by robust investor demand for premium, strategically located industrial properties across the Mountain West. With prime logistics hubs, limited land availability and dynamic economic growth, these cities are magnets for capital investment,” Cesta said in a news release about the acquisitions.
Potomac Park I and II, totaling more than 265,000 square feet at 7901 and 7955 S. Potomac St., is 80% leased. The buildings provide space for a wide range of uses such as industrial, e-commerce, aerospace, manufacturing and food service.
Building 1 is 118,270 square feet with a 28-foot clear height, 26 dock-high doors, six drive-in doors and 225 parking stalls.
Building 2 is 147,252 square feet with a 30-foot clear height, 30 dock-high doors, six drive-in doors and 271 parking stalls.
With access to Interstate 25 and E-470, the buildings reside within the Dove Valley Business Center.
“We are proud to deepen our investment in both Salt Lake City and Denver, two markets where we see tremendous long-term potential,” said Ryan Bartley, head of investments at Mortenson Properties.
“This portfolio acquisition highlights our commitment to investing in dynamic, high-growth regions where we see opportunities for innovation and long-term value creation. The strength of these submarkets, the building quality and the growing tenant demand that underscores the region’s momentum were key drivers in our decision to pursue this opportunity. We look forward to contributing to the ongoing vitality of Salt Lake City and Denver’s industrial sectors.”
This is the partners’ third acquisition in the past 15 months. Mortenson and Hyde previously partnered on projects in Fridley, Eagan and Inver Grove Heights, Minn.
Mortenson is a U.S.-based, top 25 developer, builder and engineering services provider serving the commercial, institutional and energy sectors.
Hyde Development was founded in Minneapolis by Mac and Paul Hyde. Hyde is a privately owned developer, operator and manager of industrial real estate.