Etkin Johnson sets Colorado record with $247.5M portfolio sale

Denver-based Etkin Johnson Real Estate Partners has sold its 1.95 million-square-foot Colorado industrial portfolio to Berkeley Partners for $247.5 million, making it the largest industrial sale in Colorado in terms of both size and price. Until now, the $206 million Pauls Corp. portfolio sale was the state's largest. It closed early last year. This sale is San Francisco-based Berkeley Partners' first acquisition in the Colorado market. The portfolio consists of 19 properties, which range in size from 26,078 square feet to 293,510 square feet. Fourteen of the properties are in metro Denver, two are in Boulder and three are in Colorado Springs. Etkin Johnson acquired these properties between 1990 and 1998. Jim Bolt, Jeremy Ballenger, Tyler Carner and Mike Winn of CBRE represented Etkin Johnson in the transaction. Derek Conn, principal at Etkin Johnson, said the most exciting part of closing this sale is to see co-founders Bruce Etkin and David Johnson's vision that started 30 years ago culminate in the largest sale in the state's history. "This sale creates flexibility for Etkin Johnson as we pursue new opportunities in Colorado markets," he said, and added that is also provides a great return for investors. The high demand for this type of product is what led to the decision to sell these assets, Conn said. He added that the opportunity for a buyer to enter a market with this size of portfolio is "almost unheard of." Though it might be the end of this portfolio's life cycle with Etkin Johnson, Conn said the company still believes strongly in Denver's real estate fundamentals. Berkeley spent "significant time" getting to know the portfolio, which made them stand out from a vast number of qualified buyers, Conn said. "Similar to Etkin Johnson, they plan to manage the assets in-house,” he said. “They were a great buyer to work with from start to finish.” Matt Novak, a partner at Berkeley, said in a press release that the acquisition provides them a “critical mass of properties in the market.” The firm’s goal is to hold the assets for 10 to 20 or more years. “This sale represented a unique opportunity to own a critical mass of infill industrial in Colorado’s growing Front Range markets,” said Jeremy Ballenger, senior vice president with CBRE, in a press release. “The attractive tenant mix and well-maintained properties affords Berkeley a great path forward as one of the largest industrial owners in Colorado.” Though the firm closed a record sale in just the first month of the year, Conn said this by no means indicates that Etkin Johnson is slowing down. It is pursuing “multiple acquisitions,” of land and existing buildings. In December, it wrapped up construction on two new buildings in the Colorado Technology Center in Louisville. One of the buildings is a 109,386-square-foot FedEx distribution center at 2035 Taylor Ave., and the other is a 136,610-square-foot industrial flex building at 700 Tech Court, where Conn said he expects to sign a tenant soon. (Denver Business Journal)