- August 10, 2017
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Tri-county area approaching 1 million SF of positive absorption this year.
Buyers evenly divided between property classes. All spectrum of properties are selling in equal proportion.
Opportunistic Purchases Highlight July in NoCO CRE
Two major sales in the tri-county region featured opportunism on the purchaser’s behalf. Denver based DPC Development teamed up with Long Wharf out of Boston to purchase two flex buildings on Centennial Parkway in Louisville that were only 50% leased up. The new owners intend to re-position the property to achieve full lease up. The 403,000 SF property sold for $25 million, or about $62 PSF, substantially below replacement cost.
A 165,000 SF vacated industrial building in Johnstown formerly occupied by FiberSpar, was purchased by the local owners of rapidly expanding Canyon Bakehouse. The bakery will occupy the building for $89 PSF, and a purchase price of $14.7 million.
Nary a month goes by without a major apartment building sale and July featured the $21 million Buttes Apartments sale in Loveland. The 111 units were purchased for $187,000 per unit, at a 5.19% reported cap rate. This property previously sold for $12 million in 2011.
Boulder always has some interesting sales to review. The 5718 Central flex property sold for $166 PSF in a vacant status. Crescent Real Estate out of Texas expanded its Boulder holdings with the purchase. The Sellers had paid $4.4 million 20 years ago when they acquired the building. A $3.9 million downtown Boulder office sale at 14th and Pearl valued the multi-tenant building at $582 PSF, showing continued investor interest in the sub-market.
Further north, a $5 million sale on Clydesdale Rd. in Loveland was a local investor play. The multi-tenant office building sold for $237 PSF and a reported 6.5% cap rate. A $3.9 million sale of an industrial building on 24th in Greeley sold for $117 PSF as industrial activity is still strong in Weld county.
Leasing activity was led by a 48,000 SF Boulder County Business Center industrial flex deal in Longmont, and a 23,000 SF Summit View Industrial Park lease (to Colorado State University Services), in Fort Collins. Rounding out the lease activity were two approximate 7,000 SF deals. One being an industrial property lease to Salus Bath & Body in Fort Collins, and the other being a downtown Boulder office lease on Walnut Street.