- May 17, 2017
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Landlords appear to be asking for 3% increases in their rents this year as compared to end of 2016.
Tri-County running a pace at 500,000 SF of inventory absorption a quarter. Seemingly, we could support 2 million SF of new construction annually at this rate.
$130 Million Of Apartment Sales Top The Tri-County April CRE Activity
Boulder was the target of several apartment investors. The Hive sold for $57 million to a Washington D.C. equity fund. The 138-unit project, which is student oriented, sold for over $400,000 per unit. 17*Walnut, a 26-unit apartment in the downtown area, sold for $15.7 million, or $600,000 per unit to a New York investment group. The city of Boulder Housing Authority got into the act as well. They purchased the 185 unit Tantra Lake Apartments in the Martin Acres subdivision, for $46 million, or almost $250,000 per unit.
Boulder Orthopedics bought a property for occupancy on Pearl Parkway in Boulder for $20.75 million. Also for occupancy, United Power purchased the former Abound Solar facility in Longmont along I-25 for $9.2 million, or $70 PSF.
Retail investment is always a preferred property type, and a Denver investor bought the Noodles/Verizon strip center in Greeley’s Centerplace market, for almost $4 million, at a reported 6.23% capitalization rate. The property value tripled over the Seller’s 10-year hold period.
Office lease activity was most pronounced in our region in April. Twitter took 17,000 SF in Boulder’s Pearl East complex, while a firm called Energy leased 17,000 in the LakeCentre business park in Boulder as well. Longmont got into the office action with 14,000 SF leasing to CoSolve on Terry Street.
The largest lease in April (33,000 SF) was a flex property in the Colorado Technology Center in Louisville. CTC has had steady activity over the past few years with similarly sized larger tenants.
A couple small towns in the region pulled in some industrial leases. A 20,000 SF lease was signed in LaSalle, CO on 5th Ave., and 12,600 SF was leased in Campion, CO. We continue to watch a slow revival in oil and gas service companies coming back to the market.