5540-5564 Gray StArvada, CO 80002

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.