- December 17, 2016
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Tri-county sales volume likely to surpass $2 billion again this year.
The bottom of the vacancy rate seems to be settling at 5-6% in our region.
Outlying Areas Show Strong Activity in NoCO CRE
November featured some small town commercial real estate activity in the tri-county northern Colorado region. Estes Park led this category as the Rocky Mountain Park Inn sold to a Buffalo, NY buyer for $7 million. The Seller financed $4 million of the purchase price. Firestone, CO then checked in as the Carl’s Jr. restaurant sold to a CO based investor for $2.15 million. This price was a reported 6.4% cap rate to the investor, and at $651 PSF for the building. Colorado Country Homes leased 11,700 SF in an industrial property in Hudson, CO, and Earth Roamer leased 10,000 SF of industrial space in Frederick, CO.
The larger deals of the month, however, were in the larger population areas. Case in point was the $20.35 million purchase of a multi-tenant office building at 5775 Flatiron Parkway in Boulder. Two and one-half years earlier, the property sold for over $4 million less. Major tenants include Ch2m Hill, and Vexcel. The Buyer from Palo Alto CA paid $212 PSF for the property. Boulder also featured the $6.9 million sale of the Walnut Eleven building downtown. This retail property anchored by a popular watering hole sold for $300 PSF to a CO investor. The art and hobby store Michaels leased 23,500 SF in Boulder Market Square off 30th St. in Boulder, to add to that city’s November activity.
CB & Potts sold their brewery/restaurant on Elizabeth street in Fort Collins to a group hoping to re-develop it into multi-family housing use. The $5.65 million sale equated to a land value of $150 PSF for the lot (since the building will likely be torn down). This is one of the highest land sales on a square foot basis in Fort Collins this year, and was driven by proximity to the CSU campus and shopping areas.
Greeley weighed in with a 5000 SF office lease to the Whole Life Center for Spirituality on 8th Avenue. Outside of that, it was relatively quiet in Greeley last month.
Louisville, CO featured the largest lease, as it has done repeatedly all year. The Colorado Technology Center has been growing, especially with the natural foods industry. Etkin Johnson, a major landlord and developer, leased out 101,000 SF in the new industrial building they built this year, on Taylor street.
With one month left to go, the tri-county region has a good chance to top the $2 billion mark in sales again, as it did in 2015. The volume stands at approximately $1.85 billion now. While October and November were relatively quiet in the sales volume tallies, many feel this was due to buyer uncertainty over the national election. Local CRE activity seems to be picking up again as the drama of the election tapers off.