- March 20, 2017
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The buildings started in 2015 & 2016 are now delivering to the market (5 million SF in last 12 months).
Prices may be starting to level off after several years of steep upward climbs.
A Hot CRE Neighborhood Features in this Month’s NoCO Talking Points
The Gunbarrel neighborhood in Boulder seemed to be the place to be for “smoking hot” commercial real estate deals this last February. BI Inc. leased 12,000 additional square feet in the former HEI building. That building was then sold to an investment equity fund out of Vermont for $16 million. The property had previously sold for $10.5 million only a year ago. Gunbarrel seems to be a renewing area with apartment and retail construction adding to the always strong flex and industrial product base there. Topping off the activity, was indeed an apartment sale. The Apex 5510 project, with 231 units constructed just two years ago, sold to a Des Moines IA group for $75 million. The property sold for $326,000 per door, showing how strong the multi-family market has become in that neighborhood.
Multi-family sales always feature in these Talking Points, and the Apex 5510 sale was not alone in making headlines. The 54 unit Mill House in Fort Collins sold for $13.6 million to a New Jersey buyer, who paid $251,000 per door at that price. The University of Northern Colorado Trustees sold their 98 unit University Apartments at a 6.5% cap rate, for $7.1 million, or $72,000 per door in Greeley.
Retail real estate activity was highlighted by the $3.1 million sale of the Markets at Maplewood in Eaton. A Colorado investor bought the property for $173 PSF, and at a reported 7.2% cap rate. Retail leases of note include 9,000 SF tenants at both the Greeley Mall and Foothills Mall in Fort Collins.
Re-positioning is an active strategy in our tri-county area. This was evidenced by the Boulder area sale of a garden center on 33rd St. to a group redeveloping the site into senior housing. The $4.5 million sale translated into a land sale, came in at $66 PSF for the land (since the building will be razed in redevelopment).
Don’t forget the energy industry in Weld county! Though not as booming as it was a few short years ago, we are noticing some new activity. A Milliken warehouse, comprising 128,000 SF, sold to a Houston, TX based energy company for $4 million, or $31 PSF.
Leasing activity included the Zayo Group moving into the former Whole Foods office center in Boulder’s 29th St. Mall area. They are occupying 46,000 SF. United States Building Supply leased 24,000 SF in east Loveland for a distribution center. Overall building was robust in the last twelve months. Over 5 million SF of new construction has occurred in Boulder, Larimer and Weld counties.