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November Talking Points

The largest CRE deals in NoCO remain solidly in the Multi-family product type. November’s sales activity was led by two major deals:

  • Florida State retirees placed a $49 million investment in Fort Collins as the Florida State Board of Administration purchased the 102 unit Stadium Apartments, a student oriented development. The property commanded $480,000 per unit. Operating net income was stated at approximately $2.58 million for the property, which translates to a CAP rate just above 5.25%.
  • The 177 unit Stonebridge at Twin Peaks apartments in Longmont sold for $44.2 million to a San Francisco individual investor at a reported 4.7% CAP rate and $257,000 per unit. This property was sold for a $10 million gain from the last sale in early 2016.

While those two sellers made money in their trades, the next largest November deal was a long term loss for the CA based REIT Seller. One Directory Place in Loveland sold to Tharp Cabinets who will occupy the vacant property with their growing business. Last sold in 2010, the 170,000 SF building had become vacant in latter years. That previous purchase price was $5 million higher in 2010. This time, Tharp paid $6.85 million, or only $40 PSF for the industrial property.

Loveland was also the location for a $4.95 million sale of the Rocky Mountain Self Storage facility. A Pennsylvania buying entity purchased the property at a reported 5% CAP rate from a long term Denver based Seller.

Retail activity was led by a $3.15 million purchase of a 9800 SF strip center on Centerplace in Greeley. A local Greeley investor bought the multi-tenant property. An industrial property sold for $3.5 million to a user in Hudson, CO. That calculated to $77 PSF, which is relatively low for industrial deals in NoCO as of late.

Several larger office leasing deals were of note in Larimer, Weld and Boulder CO counties over the last month. BDS Analytics led in the leasing area as they rented 31,000 SF on Spine Rd. in Boulder. The new Superior Medical Center got into swing with a 14,000 SF medical office lease, and Louisville featured a 11,000 SF office lease at the Superior Pointe Office Park.