Real Estate

2800 Walnut Street sells for $3.2 million

March 13, 2015 1

Newmark Grubb Knight Frank (NGKF) announced the sale of 2800 Walnut Street by Gold Star Sausage. The 32,900-square-foot manufacturing facility was sold to 1425 Market LLC for $3.2 million, a price in the River North (RiNo) neighborhood that outperformed 2014 market sale averages. NGKF’s Russell Gruber and Pete Staab represented the seller in the transaction.

The RiNo neighborhood of Denver is very active these days with several projects under construction and many more projects are planned that have yet to begin construction. RiNo is an eclectic neighborhood with a mix of original structures and new developments.

“We are keeping our headquarters in Denver,” explained Rick Rue, President, of Gold Star Sausage. “Our history is here and we love the Mile High City. However, we made the decision to relocate our food processing operation to Nebraska in order to expand and be closer to our suppliers.”

Family-owned Gold Star Sausage’s USDA certified food processing facility has been anchored in Denver’s revitalized RiNo Arts District since 1936. The largest private label producer of sausages and hot dogs of all varieties in the Rocky Mountain Region, Gold Star’s building at 2800 Walnut generated a large amount buyer interest.

Gold Star Sausage at 2800 Walnut Street.

Gold Star Sausage at 2800 Walnut Street. Image courtesy Newmark Grubb Knight Frank.

“Demand for the asset is extremely high,” added Russell Gruber. “At a sale price of $97.26 per square foot, 3200 Walnut Street achieved a price higher than the 2014 industrial average for both the Central submarket (at $62.88/SF) and the overall Denver metro market (at $63.77/SF).”

Built in 1952, 2800 Walnut Street received multiple offers from numerous  Denver market investors with desire to acquire property in the emerging RiNo neighborhood. According to NGKF Research, the Central submarket boasts one of the lowest industrial vacancy rates in the metro area, at just 2.7%. The purchaser, 1425 Market LLC, intends to repurpose the asset to take advantage of market conditions.

Gold Star Sausage has been based in Denver since 1936.

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