BRIGHTON (NE DENVER), CO

In 2018, Vittone in his role of Co-Managing Principal of Starboard Realty Partners (“Starboard”) acquired an approximate 1.3 million square-foot distribution center in the northeast submarket of Denver for $40 million. The sole tenant was the Sears Holding Company, which was on the precipice of filing for bankruptcy protection. The building was constructed in 1993 for Kmart Corporation, later acquired by Sears, under a Planned Unit Development (PUD) that solely permitted “distribution center” uses and which required a rezoning should anything outside the building footprint be modified.

Sears accepted the 30-year lease through bankruptcy and later sold their logistics arms to Costco Wholesale, who became the sole tenant of the building in 2020. In the first quarter of 2023, Starboard sought to rezone the property under a new Planned Development (PD) to expand permissible uses to traditional light industrial uses, together with light and general manufacturing that are typically considered heavy industrial uses. In addition, Starboard sought to create a new (yet to be defined) use entitled “Manufacturing Technology” that would permit it to lease the building to a lithium-ion battery manufacturer amongst other high-tech manufacturers.

In September 2023, Starboard secured city council approval of its proposed PD. Following stabilization of the distribution center, Starboard expects to sell the project in the low 9-figure range.