Real estate company DCT Industrial Trust Inc. has announced its acquisition of a 118,000-square-foot building in Denver.
In the Denver Central submarket, DCT Industrial acquired 5330 Pecos Street, a well-located bulk distribution building. The building was acquired for $6.7 million or $56.48 per square foot, approximately 20-25 percent below replacement cost. The Company anticipates a year-one cash yield of 7.9 percent.
Last month, the real estate company signed leases totaling 4.0 million square feet in the quarter ended June 30, 2011. Currently, DCT Industrial’s leasing activity has totaled 7.0 million square feet which compares to 6.3 million square feet in the first six months of 2010.
The building is located with access to major interstates serving Denver, the Rocky Mountain region and Denver International Airport. The multi-tenant facility was constructed in 2003 and is a rear loaded, highly functional distribution building that is currently 100 percent occupied. The acquisition brings DCT Industrial’s Denver portfolio to 1.1 million square feet.
“We are excited to acquire such a quality building in a submarket that is mainly comprised of older buildings and very little developable land,” said Brian Roach, Vice President, Regional Market Representative, DCT Industrial.
DCT Industrial owns, operates and develops bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico.
As of June 30, 2011, the real estate company owned interests in, managed or had under development approximately 77.8 million square feet of properties leased to more than 860 customers, including 14.6 million square feet managed on behalf of three institutional joint venture partners.