5540-5564 Gray St Arvada, CO 80002
- Warehouses
- 15,000 SF
- 0.69 lot acres
Current Use by Public Records
- Warehouses
Property Details for 5540-5564 Gray St
- Year built
- 1973
- Lot size
- 0.69 lot acres
- Property size
- 15,000 SF
- Property type
- Warehouses
- Property subtype
- Industrial properties
Description
This Arvada, Colorado industrial property presents a compelling value-add opportunity. Located at 5540-5564 Gray St, 80002, this single-story, 15,000 square foot building sits on a 0.69-acre lot and boasts four dock-high doors and a 16-foot ceiling height. Currently operating at 50% occupancy with five tenants under NNN leases, the property offers significant upside potential. The current NOI is $85,125, yielding a 2.90% cap rate; however, a pro-forma NOI of $223,253 projects a 7.83% cap rate, reflecting the potential for rent increases. Average rents are currently $2-$3 per square foot below market rates, with 7,000 square feet currently vacant. The property is zoned I-2 (Jefferson County) and was built in 1973. The asking price is $2,850,000, translating to $190 per square foot and $94.82 per square foot for land value. This presents an owner-user opportunity, with the potential for a business to occupy 5,000 to 10,000 square feet by the end of 2024 while maintaining income from existing tenants. The property benefits from its location in a high-barrier-to-entry submarket with low vacancy and strong rent growth, providing easy access to major thoroughfares. Short-term leases allow for swift rent adjustments to market rates.
Value Estimation
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CAP approach
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Comparable approach
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Alternative Use
Location Insight
- Map
- Local Demand
- City
- Arvada
- County
- Jefferson
- State
- Colorado
- Longitude
- -105.061
- Latitude
- 39.7972
