$1.5 million was the Median Point of All June Sales
Average Sales Price in June was $5 million- Driven by a Few Larger Deals
Normally vacant office properties are relatively rare in Boulder. However, a 61,000 SF office property on 55th St. sold to a Boston MA investment group and represented the largest NoCO June single property sale at $21 million which is $343 PSF. The Buyer intends to position the property to the expanding Life Sciences industry developing in our area, and had an opportunity to obtain a vacant building allowing them to redesign it for this purpose.
A larger office sale in Fort Collins was of note in June, as 64,000 SF building in Horsetooth East office park sold for $11.435 million, or $177 PSF. This one was 85% occupied at time of sale, and was bought by a Boulder private investor. Perhaps the pricing variance between Boulder unoccupied property noted above, and Fort Collins occupied property was partial motivation for this Buyer.
The next highest sale was a portfolio of two NoCO apartment buildings totaling 127 units. The Foothills Apartments in Loveland and the Centennial Place in Greeley were sold to a Del Mar CA institutional buyer for a California-like 4% cap rate. Both properties had minimal vacancies at time of sale. Combined sales price was $23.95 million.
Southern Weld county is known for industrial properties, and a Brighton CO sale of a 52,000 SF light industrial building closed at $12.38 million, or $238 PSF. We continue to see recent vintage (2014 in this case) industrial properties trade above $200 PSF. FMC Technologies is the sole tenant at this particular property. Snow Lion Residence Hall, a student housing facility near the Naropa University in Boulder sold for $9.4 million. At that price, the 32 unit facility was sold for about $247,000 per unit, to another Boulder private investor. Naropa University was the Seller. Development land is hot in our market as well. A 42 acre parcel sold for about $5 PSF in Lafayette CO. Proposed use includes retail and apartments. The property is bordered by Highway 287 and the Northwest Parkway toll road, with Open space on another side.
The Axis 25 industrial park announced a significant lease, as 95,000 SF in building 2 was inked during June. The speculative Loveland CO project by Etkin-Johnson Partners shows the emergence of the NoCO distribution market. The region includes about 750,000 people living within reasonable trucking distance, and now demands its own distribution capacity rather than relying on Denver-centric distribution as in the past.