Matthews™ facilitated the sale of a single-tenant net leased industrial outdoor storage (IOS) property located at 7925 and 7985 Industry Road in Colorado Springs, Colorado. This transaction involved a highly sought-after industrial outdoor storage (IOS) asset in one of the most competitive and supply-constrained segments of the industrial market. Properties offering extensive outdoor storage with low building-to-land coverage ratios have become increasingly difficult to identify and acquire, particularly in Colorado Springs. Securing an opportunity that met every aspect of their client’s acquisition criteria required the Matthews™ agents to take a proactive, off-market approach and swiftly execute before the asset was exposed to the broader marketplace.

 

Strategy

Matthews™ represented a repeat national IOS investor. Leveraging their extensive network within the industrial sector, the agents targeted low-coverage industrial properties situated along major transportation corridors. They sought assets that offered substantial usable yard space, strong functionality, and durable tenancy fundamentals.

 

The agents’ efforts uncovered a unique opportunity consisting of a 24,000-square-foot industrial facility situated on a combined 6.07-acre site. With an exceptionally low 9% building coverage ratio, the vast majority of the property was dedicated to highly desirable paved yard area and covered fleet parking, an increasingly scarce feature in today’s market.

 

Several key characteristics made this asset particularly attractive:

• Rare I-3 Heavy Industrial Zoning: This allows for a wide range of heavy industrial uses. The scarcity of this zoning code continues to drive strong demand and enhances the property’s long-term value.
• Long-Term Credit Tenancy: The property was fully leased to a global telecommunications company that has operated from the site for decades, providing stable occupancy, reliable cash flow, and a proven operating history.
• True Absolute NNN Lease Structure: The lease completely insulated ownership from operating expenses and capital obligations. In addition to property taxes, insurance, and utilities, the tenant was also responsible for all roof, structural, exterior maintenance, repair, and replacement costs.
• Long-Term Upside: Beyond the immediate stability, the existing tenant was paying below current market rates. This embedded long-term mark-to-market upside into the deal, providing our client with a clear path to substantially increase cash flow upon future lease renewal or restructuring.

 

Result

By effectively communicating the property’s unique combination of rare zoning, institutional-quality tenancy, stable cash flow, and long-term value creation potential, Matthews™ successfully guided the transaction from initial negotiations through closing.

 

Through structuring the acquisition as an all-cash purchase, the agents were able to simplify the transaction and reduce potential hurdles along the way. This approach allowed the parties to avoid financing-related delays, streamline the due diligence process, and maintain momentum throughout escrow.

 

The result was a successful off-market acquisition of a premier IOS asset that aligned perfectly with the client’s investment objectives while securing a highly desirable property before it ever reached the open market.