Saturday, 1 July 2017

USA: Frontier Airlines Buys Prologis Building Near Airport For Its New HQ

Frontier Airlines has purchased a property at 4545 Airport Way in Denver formerly occupied by Prologis, the San Francisco-based developer of industrial real estate, according to a deed filed earlier this month.

Frontier, which is currently in a quiet period leading up to an initial public offering, is aiming to relocate its headquarters to the building by the end of the year, according to a letter sent by Jimmy Dempsey, Frontier's CFO, to employees.

Prologis in 2015 announced that it would move its operations from the Airport Way building to Dairy Block, a new development in LoDo, and has since relocated its offices.

And Frontier needs more space, according to Dempsey's letter:

As we plan for Frontier's growth, our conclusion has been that a change is needed either in the existing facility or through moving to an alternative building.

With our board, we concluded that our current facility does not fit the ambitious growth plans of the airline as we take delivery of 78 new Airbus aircraft over the next five years.

We've looked at several options, including a reconfiguration of our current facility and investing in a purpose-built headquarters.

But in the end, we settled on an opportunity to buy a nearby building.

Frontier purchased the building for $14 million, according to the deed.

Tenant finish will have to be completed before Frontier occupies the property.

Frontier leases its current headquarters in 70,000 square feet at 7001 Tower Road, about five miles north of the Prologis building. About 475 people work there.

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