Denver Warehouse, 3PL & Freight Brokerage, 265k SF Rail-Served Facility

$7.2M

Revenue

$1.1M

SDE

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Full Editorial Writeup

This is a Denver-based logistics operation running three complementary lines under one roof: freight brokerage (45% of revenue), warehouse storage (34%), handling (10%), and cross-docking (7%). It operates from a 265,000-square-foot single-tenant facility in Denver's industrial corridor with heat-controlled, fenced storage and direct Union Pacific rail access, which is a genuine operational edge for inbound and outbound bulk freight. The business does $7.24M in revenue and throws off $1.15M in SDE, a roughly 16% owner-earnings margin, which is healthy for a mixed asset-light and asset-heavy logistics model.

The real differentiator here is specialized handling of oversized and difficult freight, the kind of cargo most 3PLs and brokers won't touch. That niche creates pricing power and stickier relationships because customers with awkward loads have few alternatives. The storage and handling segments behave like recurring revenue through ongoing storage agreements and repeat shipper relationships, while the brokerage book is more transactional and sensitive to spot-rate volatility.

The operation sits on a NNN lease running through April 2028 at roughly $170k per month, so a buyer inherits a sizable fixed real estate obligation rather than owning the asset. A tenured management team and 23-person workforce suggest the business is not fully owner-dependent, and the seller flags open warehouse capacity, client reactivation, and business development as unexploited upside. Seller financing and SBA structures are on the table for a qualified buyer.

Why we like it

Earnings quality is solid with $1.15M in SDE on $7.24M in revenue, a roughly 16% margin, and revenue diversified across four service lines so no single segment dominates the P&L. The storage and handling portions provide a base of repeat, agreement-driven income that smooths out the more volatile brokerage spot-market swings.
The moat is real and underappreciated: direct Union Pacific rail access on a 265k SF single-tenant site plus specialized handling of oversized and difficult freight. That combination is hard to replicate, keeps competitors out of the niche, and gives the business pricing leverage with shippers who have few alternatives for awkward cargo.
Warehousing and 3PL is essential infrastructure that keeps moving goods in a downturn, and Denver sits on a major intermountain distribution corridor. Even when discretionary freight slows, storage contracts and essential-goods handling continue, making the cash flow more defensible than pure brokerage comps.
A tenured management team and 23-person workforce mean the business is not a one-person show, and the seller explicitly flags available warehouse capacity, client reactivation, and underdeveloped business development as growth levers. An operator with sales discipline can grow revenue against largely fixed overhead.

How to improve it

Attack the available warehouse capacity immediately by filling unused square footage with new storage and handling contracts. Because rent is already a fixed $170k per month, every incremental storage dollar drops heavily to the bottom line, so a focused leasing push on open space is the fastest margin win.
Run a structured client reactivation campaign on dormant and lapsed accounts in the first 90 days. The seller named this as low-hanging fruit, and reactivating existing relationships is far cheaper than new acquisition since the pricing, process, and handling capability are already proven.
Build or professionalize an outbound sales function, as the listing cites business development as an untapped lever. Hiring one or two commission-weighted reps targeting oversized-freight shippers would monetize the specialized handling niche that currently appears to grow by word of mouth.
Shift revenue mix toward the stickier storage and handling lines versus the volatile 45% brokerage book. Spot-rate brokerage is cyclical and low-margin at the trough, so emphasizing contracted storage and value-added handling improves both durability and the eventual exit multiple.
Address the April 2028 lease expiration proactively by negotiating a renewal or extension before close. The entire enterprise depends on this single facility and its rail access, so locking in favorable terms early removes the biggest tail risk and protects the valuation.
Implement a transportation management system and clean KPI dashboard covering load margin, storage utilization, and dock throughput. Tighter visibility on per-load brokerage spreads and warehouse utilization exposes unprofitable freight and idle capacity that can be repriced or repurposed.

Diligence notes

Scrutinize the lease in detail: a NNN obligation of roughly $170k per month expiring April 2028 is the single largest fixed cost and the foundation of the business. Confirm renewal options, rent escalators, the Union Pacific rail easement terms, and what happens to the operation if the landlord does not renew.
Break down the $1.15M SDE by the four revenue segments to understand true margin per line. Freight brokerage at 45% of revenue is spot-rate sensitive and can swing hard, so verify how much of the earnings came from a strong freight cycle versus durable storage and handling income.
Analyze customer concentration and the nature of storage agreements. Determine whether storage and handling revenue is contractual with renewal terms or month-to-month, and whether any single shipper represents an outsized share of total revenue or of the oversized-freight niche.
Validate the strength and retention risk of the tenured management team and 23-person workforce. With only 2 weeks of seller training offered, the business must run on its managers, so confirm key personnel will stay, review compensation, and identify any single points of failure.
Confirm the reason for selling, which is listed only as other, and reconcile it against the financials. Pair that with a review of the $433k in included FF&E to verify condition, ownership, and whether any material equipment is leased or encumbered rather than owned outright.

Source

Originally listed on BizBuySell. View original listing →