(To read more on the net lease market, click here.)
AURORA, CO-MasterCraft Cabinets Inc., a subsidiary of Chicago-based Elkay Manufacturing Co., leased 200,000 sf in a 283,000-sf spec building developed by ProLogis in its ProLogis Park 70 at Interstate 70 and the E-470 toll road. ProLogis, also based in Aurora, is the world's largest industrial REIT.
MasterCraft will consolidate business operations from two locations in the Denver metro area into a single new building at ProLogis Park 70, the company's 182-acre industrial park. The building will serve as both a light manufacturing facility and as a regional distribution center for MasterCraft cabinets.
"We look forward to building our business with the increased efficiency and enhanced service that we'll reap by consolidating our Aurora operations," says Tom Cook, executive vice president and general manager for MasterCraft. ProLogis Park 70 is at the confluence of two major highways, as well as being close to Denver International Airport, notes Wayne Barrett, ProLogis vice president and Denver market officer.
ProLogis ultimately will house up to 2.7 million sf at full build out. In addition to the MasterCraft facility, ProLogis built a 400,000-sf distribution warehouse at the park that is now owned and operated by General Motors. The building functions as GM's Service Parts Distribution Center and serves more than 200 dealerships across 12 states.
MasterCraft will occupy approximately 70% of Building #2 at the park, which includes 32-foot clear heights, cross-dock design, extensive truck parking and deep bays. The facility was recently named "Project of the Year" in the industry category by the Franklin L. Burns School of Real Estate and Construction Management at the University of Denver.
The transaction was handled by Jim Bolt and Mike Camp, industrial brokers at CB Richard Ellis. "I'd say it is fair to say this is the largest industrial deal of the year," Camp tells GlobeSt.com. He says that MasterCraft wanted to stay along the I-70 corridor because of its access and existing employee base. Also, the company had a time constraint as its lease in its current 164,000-sf facility expires in the second quarter of 2006, he tells GlobeSt.com.
Camp says MasterCraft liked the new building, the location and the deal. "ProLogis came up with an aggressive, economical deal," he tells GlobeSt.com, although he didn't release the exact details of the transaction.
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