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Making Money in Tri-county CRE

  • December 6, 2017
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Making Money in Tri-county CRE

The northern Colorado tri-county region (Larimer, Weld, and Boulder counties), continues to reward property owners with nice gains. November showcased several such transactions. The Arbors at Sweetgrass in Fort Collins returned a gain of over $15 million for the Ohio based Landmark group as it sold the property for $47 million to a California investment group. The 259 unit apartment complex sold for $181 thousand per unit. It was acquired by the Seller in 2012 for $30 million.

A quicker holding period and nice gain was shown for the current VASA Fitness center in Greeley. That was a former Albertsons grocery, which was acquired by the Seller for $2.4 million just 18 months ago. It just sold as an investment property to a Princeton NJ investment fund for $7.3 million. This deal was at an approximate 7.25% cap rate yield to the investors.

The Gallery Flats developer sold their 66 unit apartment in downtown Loveland for $11.1 million to a local buyer. The reported 6% cap sale on the 66 units, calculates to $169,000 per unit.

On the industrial end there also was an investment sale in Longmont. A multi-tenant boat and RV center on the I-25 frontage road sold to a Denver based investor for $3.1 million and a reported 7% cap rate. The 16500 SF building sold for $188.00 PSF approximately.

Leasing activity this time was led by two office leases amounting to 116,000 SF, with Medtronic Industries as the tenant at both Coal Creek Business Park locations in Louisville. Eppress Messenger took 19,000 SF of industrial space on Byrd Avenue in the Loveland-Fort Collins Airport business park, Redstone Aerospace took down 17,000 SF of flex space at the Campus at Longmont, and United Rentals leased 11,400 SF in Windsor off Technology Circle Dr., to round out the top lease deals in the region during November.

Our graphs this month show the increasing trend of institutions and REIT’s buying into the market. While they make up almost 30$ of the sales volume of purchases, they are only 20% of the sales volume of Sellers. Therefore, they are a net Buyer in our market.

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