Philip Morris International (PMI) already made waves after closing one of the Denver area's largest land deals, but the firm is preparing an even larger economic development punch with its plans for the site to house a $600 million manufacturing hub.
According to the seller, Opus Development Co., the site acquisition by PMI's United States-based affiliate, Kairus, Inc., was one of the largest direct land sales to a user, and set a record price per square foot based on land area in Aurora, Colorado, where it is developing a facility expected to generate more than $1 billion in economic contributions for the Denver-area suburb by the time it makes its scheduled operational debut later this year.
The acquisition, along with the company's expansive investment plans, earned a 2025 CoStar Impact Award, as judged by real estate professionals familiar with the market.
Closing the deal wasn't a simple buyer-seller transaction and involved lining up a series of requirements, parties and construction permits in order for it to cross the finish line. Along with adhering to a strict site-selection process, PMI had to land a mix of state and local incentives, state health certifications, as well as financing prior to finalizing the acquisition, with seller Opus Development Co. responsible for installing miles of infrastructure.
Complexities aside, PMI's estimated contributions are expected to be well worth the challenges — both across the Denver area as well as beyond it.
“PMI and its U.S. affiliates are accelerating their mission to move adults who smoke away from cigarettes by investing in new manufacturing capacity to meet the increasing demand for nicotine options that are scientifically substantiated as better alternatives,” PMI Americas President and U.S. CEO Stacey Kennedy said in a statement unveiling the company's development plans. “We believe Colorado is like-minded in its commitment to innovation, economic opportunity and public health, and we’re eager to work with the state and its talented workforce as we expand our U.S. manufacturing presence.”
About the project: After breaking ground on the new Aurora facility late last year, Philip Morris International estimated the construction phase alone would create nearly 5,000 jobs before its late 2025 completion. The manufacturing hub, which will produce smoke-free nicotine pouches, is expected to be fully operational by 2026, employing at least 500 full-time roles and generating upward of $550 million annually in economic benefits statewide.
What the judges said: “This brings major tax revenue and investment into the area, period, regardless of one's opinion on smokeless tobacco,” CoStar Impact Awards judge Nick Jurgens, a managing partner with Madison Commercial Properties, said of the land deal as well as the development plans slated for it.
They made it happen: The Opus Development team handling the land sale included Executive Vice President Larry Pobuda and Senior Directors of Real Estate Development Joe Swensson and Randy Danielson. PMI was represented by Senior Managing Directors David K. Lee and Jason B. Addlesperger, and Managing Director Chuck Rosien with JLL. CBRE Senior Vice Presidents Daniel Close SIOR and Todd Witty SIOR were the listing brokers.
CoStar Market Manager Kathryn Binns contributed to this report.