NoCO CRE Running at Half-Pace
The rolling 4 quarter sales volume for the tri-county region has slipped from the highs of the $2 billion plus range to just over $1 billion (per Real Capital Analytics). The Pandemic has had a definitive impact on CRE sales volume.
Boulder featured the largest deal in our region to kick off 2021. The Pfizer four building campus on 33rd in Boulder sold for $99 million, or approximately $665 PSF. It was previously sold at $52.3 million in 2018 when it was Array BioPharma’s location. Pfizer acquired Array in 2019, and Buyer Invesco Real Estate took on the Life Sciences campus, which is heavily R&D / Laboratory space. The price per square foot rivaled that of the Google campus sale in Boulder a few years ago. Boulder has attracted global investment groups with the presence of these global tenancies. Boulder is a hot spot for attraction of highly educated workers, and has been able to get firms such as Pfizer and Google to locate in the city based on that attraction.
Longmont had a large, newly built apartment complex on County Line Road sell for $76.9 million. The price per unit over the 256 units was $300,000.00 each, approximately. Union Point Apartments was acquired by Minneapolis based apartment operator Centerspace in this trade.
A Denver area investor bought a multi-tenant retail center in Johnstown from Carson Development out of Overland Park KS. The $6.3 million sale calculated to $383 PSF. Six Tenants in the building include Visionworks, Big Daddy Burgers, and Sprint.
The Health District of Northern Larimer County purchased an office building at 425 Mulberry in Fort Collins for $2.75 million. The Health District currently occupies a majority of the space for administrative purposes. Final selling price was about $173 PSF for the central Fort Collins property.
Estes Park doesn’t get in CRE news often, but in January the Twin Owls Motor Lodge sold for $3.5 million, or $161 PSF. Seller and Buyer are both from Estes Park. Similarly, the Apenzell Inn in Estes sold for $2.95 million to the same Buyer, though Seller was a different entity in Estes Park than the Twin Owls transaction. The Pandemic has impacted tourism and hotel usage considerably, but some Buyers are taking this opportunity to get into the industry at lower acquisition cost.
Finally, Greeley always seems to have a lower cost per square foot transaction when compared to NoCO cities in general. The Bittersweet Square building 8 property in central Greeley sold for $4.5 million, or $128 PSF. Bittersweet campus has primarily medical based tenants, and building 8 contains dental practices and labs as tenants. Investors seek the stability of medical tenants because they rarely move once established at a certain location.