- July 6, 2017
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2017 Sales at same pace as 2016. On our way to $2.5 billion!
Absorption year to date on its way to a 3 million SF year.
Halfway Through Year, and We Are Halfway To Last Year’s Pace
All the construction we’ve seen in the tri-county area is starting to be completed and filled up. This is best evidenced by our absorption rate this year. Last year, we absorbed 2 million square feet, while we are already at 1.5 million at the half year marker. So we are on our way to top last year by 50%. This is mostly in the new buildings coming online since existing buildings are largely fully occupied. Much of this construction has been owner-occupant, versus speculative building.
Meanwhile sales and leasing activity has largely matched the pace of the year before. Leasing activity in June was led by the flex/industrial category. Longmont featured a 19,000 SF and a 25,000 SF lease The Campus at Longmont and 2950 Colorful Ave. respectively. The Loveland-Fort Collins airpark had a 19,000 SF lease highlight as well.
Sales activity was led by two $20 million plus deals. The Brooklyn Row Apartments in Fort Collins were sold by the original 2007 developer of the property, a local group, to a Santa Barbara trust fund investor for $27.8 million. This calculates to $265,000 per door for the 105-unit complex.
A King Soopers anchored retail center in Longmont, the Fox Creek Village Center, sold for $24.8 million. Seller was a publicly traded REIT, and the Buyer was the Kroenke Group out of Missouri. 108,000 SF in the four buildings, traded for $230 PSF in this transaction.
An interesting purchase in Boulder was by the founder of Upslope Brewing Company, who purchased the building occupied by the brewer for $7 million. The $170 PSF sale
was from Goff Capital out of TX, to the Boulder based buyer.
Smaller regional cities had a few highlights last month. The North Star Mobile Home Park in LaPorte sold for $3. million. The park features 59 spaces, and was purchased by a Seattle, WA area buyer. A flex building in Johnstown sold to a local investor for $3.5 million. That property was occupied by General Electric, and its 25,000 SF traded for $141 PSF. Finally, Loveland featured the $3.4 million sale of the Wintergreen Village Shops, an 11,200 SF multi-tenant retail center at $307 PSF. The Longmont Buyer obtained the property with multiple tenants in place, including Pacific Dental and Domino’s Pizza.
In June, most of the large sales were to investors seeking cash flow yield. The high absorption has been largely from owner-occupants. We will see what fireworks come in July for Boulder, Larimer and Weld counties in the commercial real estate world!