Every now and then large land deals transact in our tri-county CRE market, and November’s top sales fell into that category. The combined Centennial & Kragh farms along the I-76 corridor in Hudson CO sold for $11.8 million. The 1,450 acre farm thus sold for about $8,100 per acre, or 19 cents per square foot. The one mile long farmland was sold with some aquifer water attached. It is slated for a master-planned development including retail and single family homes. Fort Collins then featured a 58 acre residential development land tract, which sold for $4.2 million to a local developer. This tract closed at almost $72,000 per acre or $1.65 per square foot, as it was in the Fort Collins city limits. Rounding out the significant area land deals in November was a 2.67 acre property along I-25 in Loveland. It sold for $1.25 million, or $10.45 per square foot, to an Iowa based hotel developer.
With relatively strong office occupancy in our market, investors were active last month. A 36400 SF office building on Eastbrook in Fort Collins was the largest November office transaction. The sale was to a local owner for $4.95 million or $136 psf, which is below replacement costs. McWhinney corporation sold the 1982 built property. Next in size, Vintage Properties in Greeley sold a 21,500 SF office building in Greeley to a Fort Collins investor. This deal sold for $3 million, or $139 psf. The Hiland Park location was exchanged at a reported 8.66% cap rate, and included multiple tenants including KUNC the public radio station.
On the retail front, the Kum ‘n Go on Bonanza street in Erie sold for $4.3 million to a Greeley investor. The property was sold at $906 psf, and 5.65% cap rate. A larger (13,800 SF) free standing retail building on Timberline Ave. in Fort Collins sold for $2.7 million, or $196 PSF, to a local Fort Collins investor. The property was previously occupied by a single tenant (ThriftRite).
A Longmont warehouse building on John Deere Dr. sold for $3.5 million, which is $278 PSF. The 12,900 SF building has multiple tenants, but also sits on almost 200 acres of AG zoned land. The Buyer was also out of Longmont. On the industrial leasing front, a 38,500 Boulder warehouse on Winchester Cir. was sublet to represent the largest lease deal in the tri-counties. Next on the leasing list was a 28,300 deal signed by The Pro’s Closet in Longmont. This Vista View property was leased at a reported $12.50 PSF plus NNN operating expenses.
Multi-family always has a say in top sales, and in November, that was in Greeley. Two buildings on 35th Ave., comprising 9 two-bedroom units, sold for $1.8 million to a Minnesota based Buyer for a reported 5.8% cap rate.