- February 12, 2018
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Denver investors moved an hour down the Interstate to start the new year’s investment activities in the tri-county Front Range area. The three-year-old Prospect Station apartments in Fort Collins sold to a Denver investor for $16.5 Million. The 68-unit complex sold for $243,000 per door at a reported 6% cap rate to the Buyer. Then, the Aspen House Memory Care facility in Loveland sold to a Denver operator for $8.4 million. That price included two vacant expansion lots and the 13,000 SF facility. The Hillside-Grandview apartments in the Hill area of Boulder on Broadway Street also sold to a Denver investor for $9.15 million. Those units were sold at $233,000 per door and had last sold for only $1.6 million in 2010.
Chicago investors always like this region too. Walton St. Capital bought two apartment complexes on Kansas St. in Fort Collins for $12 million total. The 24-unit buildings sold at $250,000 and a reported 4.65% cap rate. That cap rate marks a low (which means high price) rate for the area. The sales price almost doubled the price these buildings sold for only 5 years ago. Boulder also attracted a Chicago buyer to the US Bank building on Canyon Blvd. That building sold for $6.5 million.
Local based investors weren’t shut out. The Miramont Fitness facility in Fort Collins sold to EPR Fitness of Greeley for $7.75 million or $115 PSF for the 67,000 SF building. And Boulder based investor Stephen Tebo purchased a Centennial Parkway, Louisville office building for $9 million. The tenants in that building are Uber and CoBiz Bank.
On the leasing front, the largest deals were in the warehouse sector. 23,000 SF was the size of leases at the Longmont Xilinx building, and another at Weaver Business Park, also in Longmont. Other warehouse leases of note were two 10,000 SF deals. One was Bentley Welding in Greeley on 5th St., and the other was a U-Haul operation on Canal St. in Fort Collins. Office leasing was led by a 14,000 SF deal at Pearl East in Boulder.
Demand Greter than Supply
Leasing Activity Slightly Dropped in 2017