Denver: How does the Etkin Johnson industrial portfolio sale compare?

February 07, 2019
  • The recent announcement of Etkin Johnson’s 19 building, $247,500,000 portfolio sale to Berkeley Partners is without a doubt the largest industrial deal in Colorado’s history for sale volume. But how does it compare to the past years’ highest portfolio deals?
  • Not only is the Etkin Johnson portfolio sale the largest by sales volume, it is also the first year-high portfolio deal since 2011 to be entirely made up of Colorado buildings. Other portfolio deals, such as the Clarion Partners/Pauls Corporation exchange in 2018, involved multiple states. This reflects the recent surge of interest and activity level for investors here in the Mile High City. Not surprisingly, 2018 was a record for total industrial sales volume.
  • Another criteria of a deal is cap rate. While the Etkin Johnson deal did not set a cap rate record, it is still the lowest of any of our top yearly portfolio deals. At 5.64%, it is a full 226 basis points lower than 2010’s largest portfolio deal.
  • The average price per square foot (p.s.f.) of all the Colorado buildings involved in all top yearly portfolio deals since 2008 is $104.99 p.s.f. At $126.92 p.s.f., Etkin Johnson’s sale is above average. However, it’s not a record; 2008, 2012, 2013, and 2016 all had higher p.s.f. deals. This is likely a reflection of Etkin Johnson’s portfolio being mostly B and C class properties.

Source: JLL Research

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