Broe reveals purchase of beer warehouse

DENVER – The Broe Group Thursday announced its purchase of the biggest distribution warehouse in Northern Colorado – a facility dedicated to serving the local beer industry.

The warehouse encompasses more than 250,000 rentable square feet on 17 acres on the northwest corner of Interstate 25 and Colorado Highway 14, Mulberry Street. It was built in 1992 to serve the needs of the nearby Anheuser-Busch brewery.

Broe purchased the property for $8.9 million, or $36 per foot — down from the original 2008 asking price of $13 million – from Minnesota-based developer Karl Bohn. The deal closed Aug. 27.

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The building is fully occupied by three tenants — New Belgium Brewing Co., Saint-Gobain and Hydra Trucking. New Belgium, the eighth largest brewer in the nation, utilizes 99,000 sq. ft. of cooler and floor storage for its distribution hub. Saint-Gobain produces glass bottles for Anheuser-Busch and Hydra Trucking provides transportation and warehouse logistic services for Saint-Gobain.

The warehouse is also served by the Great Western Railway, which is owned and operated by Denver-based Broe affiliate Omnitrax, and includes 11 rail dock doors. Great Western interconnects with both the Burlington Northern and Union Pacific rail lines.

Broe pursued the property as part of its effort to substantially grow its portfolio over the next five years through opportunistic acquisitions of unique and high quality real estate assets, according to Rich Montgomery, vice president of Broe’s Great Western Development Co.

“This is almost a no-brainer, because of the tenants, its role in the supply chain, and its location,” he said in announcing the purchase. “We feel very confident that this will be a long-term solution for the needs of the current tenants in a growing and strong market in Northern Colorado.”

Broe will handle all management of the property in-house.