Furniture Row Adding 625,000-SF Dist. Center

DENVER-Furniture Row Cos. is having a 625,000-sf warehouse built near Interstate 70 in Aurora. The national retailer will use the site as a national distribution center for its Oak Express and Bedroom Expressions Co. stores.

The warehouse will be located within ProLogis Park 70, a 182-acre master-planned industrial park at the intersection of Interstate 70 and E-470 that is owned by Prudential Real Estate Investors and ProLogis Trust. Furniture Row has acquired the land for its warehouse and is paying ProLogis a fee to design and build the facility, ProLogis' Denver market officer Wayne Barrett tells GlobeSt.com.

The building is scheduled for completion in the second half of 2007. Concurrently, without any signed tenants, ProLogis is constructing a 360,000-sf inventory building at the park. The net rental rate for the inventory building will range from $4.50 to $5.00 per sf per year, depending on the size and length of the lease commitment and the cost of the build out.

There is currently 683,000 sf of built space at the park, including a 400,000-sf building built by ProLogis and owned by GM, and a 283,000-sf building owned by ProLogis Trust that is 100% leased and anchored by Mastercraft Cabinets. At full build out, the park will hold 2.5 million sf of industrial space. In addition, ProLogis owns an additional 300 acres on the other side of the highway on the same road that runs through the middle of Park 70.

ProLogis typically develops for its own accord and leases out its space. Barrett tells GlobeSt.com that it is selling some of its land holdings in Denver for several reasons. One, it is not a land constrained market. Two, some of its clients prefer to own their own land and buildings. Three, because its land holdings there are substantial ProLogis is looking to monetize some of it, Barrett says.