- September 13, 2018
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As summer comes to a close, all property types had a place in area CRE leases in excess of 20,000 SF. The former Hobby Lobby store next to the Greeley Mall was backfilled by a 51,000 SF retail tenant yet to be identified, to rank as the month’s largest lease activity. An office property on Walnut and 33rd in Boulder found a 32,000 SF office tenant, and Boulder also featured a new 25,000 SF industrial tenant in the Twin Lakes Tech Park in the Gunbarrel region. Industrial action also featured in a 22,000 SF lease in Brighton/Weld county, and retailer Spirit Halloween leased 20,000 SF in the Marketplace at Centerra in Loveland.
The Array Biomed R&D/Flex property at 32nd and Walnut in Boulder led the sales activity in our region with a $52 million sale to a firm in Boston MA. The property traded at almost $350 PSF, which was higher than other flex buildings in the region demonstrating investor’s confidence in the future of the tenant and bio-pharma business in the Boulder area. A pro-forma cap rate of 7.6% was presented in marketing collateral, though no actual final cap rate information is yet known.
Archer Daniels Midland bought the Rodelle food flavoring campus on Precision Dr. in Fort Collins for approx. $13.2 million. Analysts calculated that the 62,000 SF campus traded for approx. $207 PSF for the two buildings, while the third land site traded near $6.50 PSF for the E. Harmony location. ADM acquired the underlying business and purchased its real estate too.
A 37 year old 26 unit multi-family complex near Boulder’s downtown area traded for $7.6 million. The property reportedly traded at a 4.38% cap rate, again showing investors are willing to pay top dollar for well located Boulder multi-family properties. Boulder also featured the $6.5 million sale of two properties which included a Concentra urgent care facility as the main anchor tenant. The 14,000 SF medical tenant was part of a 39,000 office/retail tenant mix portfolio which traded at a reported 7.49% cap rate in the sale to a Denver area investment group. Nearby Boulder, in Longmont at the Twin Peaks Center, a 89,000 SF retail center (in two strip centers) sold for $7.2 million to a California investment group. The major tenant at the center is Hobby Lobby. Wrapping up the Boulder county monthly CRE trading activity, a 32,000 SF industrial building in the Gunbarrel area traded for $5.5 million, or $173 PSF. Namaste Solar was one of the building tenants. It traded at twice the price from the last sale less than 3 years ago.
Greeley featured an industrial investment sale too. The reported 7.2% cap trade of a multi-tenant 42,000 SF building at $5.45 million or $130 PSF transacted in western Greeley on 24th St.. The Seller had only held the property for about one year, and realized a gain of approximately $500,000.00.
Estes Park got into the regional CRE trade arena, as the Rodeway Inn Hotel sold for $5 million, or $33,333 per key. In all, the property has 150 rooms. A buyer out of the Denver metro area bought the 40+ year old property.
Investors were not all on vacation in August. The Boulder, Larimer, and Weld county region has continued to attract buyers from out of the region.
Average Lease Asking Rates