Nuveen Real Estate Lends $124M on Colorado Industrial Portfolio

A collage of several of the assets within the industrial portfolio.

Nuveen Real Estate, a real estate investment arm of TIAA, has provided $124.3 million to Berkeley Partners for its purchase of an expansive industrial portfolio, with assets located throughout Colorado, according to brokerage HFF, which arranged the debt.

The 10-year, fixed-rate loan went toward of the acquisition of a 19-property, 41-building industrial portfolio in Denver, Boulder and Colorado Springs. The portfolio totals just under 2 million square feet.

HFF’s Kevin MacKenzie, Leon McBroom and Jeff Sause arranged the financing, assisted by analyst Spencer Richley.

In all, the portfolio is situated on 126.3 acres, and comprises 14 industrial facilities in Denver, three in Colorado Springs and two in Boulder. The properties—built between 1973 and 1996—are 93 percent leased to 178 tenants.

This financing comes on the heels of Denver, alone, experiencing 2 million square feet of positive industrial net absorption in the fourth quarter of 2018, which pushed total absorption for the year to over 4.5 million square feet, the highest annual level since 2006, according to a report from CBRE.

Although asking lease rates increased 6.4 percent on the year in the fourth quarter, the number dipped six cents from the third quarter to $8.16 per square foot. In 2018, Denver set a record for overall industrial sales volume in the area, which reach nearly $1.7 billion.

A spokeswoman for Nuveen Real Estate did not immediately respond to a request for comment. Officials at Berkeley Partners could not be reached.

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