An empty warehouse that for decades stored merchandise bound for Sports Authority shelves has sold for $10.95 million.
Maryland-based Realterm bought the former warehouse at 50 S. Kalamath St. last week.
Listing broker Alex Ringsby said the 212,000-square-foot warehouse will be a good fit for distribution companies looking for a hub at the end of their supply chain, where goods come in from larger distribution centers and ship to final destinations around Denver.
“One of the problems that we’re trying to solve in the marketplace with this property is the so-called ‘last mile’ need,” Ringsby said. “It’s a kind of just-in-time fulfillment center for large distributors or retailers such as Wal-Mart or Amazon.”
Ringsby, of Denver brokerage Ringsby Realty, represented Realterm along with fellow Ringsby broker Scott Patterson. He said they’ll look to lease it for $7 to $8 per square foot, depending on lease terms, tenant credit and improvements.
“We’re just getting started on the marketing process, but we’re already entertaining proposals,” Ringsby said. “The current interest has been between 50,000 and 100,000 square feet, and it could be one tenant or multiple tenants.”
The property takes up the entire block bounded by Ellsworth Avenue, Kalamath Street, Bayaud Avenue and Santa Fe Drive. Realterm also acquired a small triangular lot across Bayaud Avenue.
The seller in the deal was an LLC led by Dave Hagan, whose firm paid $3.7 million for the building in 2014, according to Denver city real estate records.
Sports Authority operated out of the Kalamath Street warehouse until April last year, when it shut down its distribution center and cut 70 employees. The now-defunct sporting goods retailer was the only tenant.
Hagan told BusinessDen in February 2016 that there was about one year left on Sports Authority’s lease.