NoCO Sales Volume & Price PSF (All product types)
Sales Volume Near $1B per Quarter, Pricing at 10 Year High
Average Rent Growth (All product types)
Rents Show Dampening Impact of Covid Era
The constant rains over Memorial Day may have been trying to douse a – hot – CRE sales market in our northern Colorado tricounty area. However, the market was hot! 89 deals were closed in May, with 5 over $10 million. One of them topped $100 million. That sale was a 322 unit apartment complex in Fort Collins that sold for $101 million. Bucking Horse apartments, which was built in 2019, sold for $313,000 per unit, and the reported cap rate was 4.1%. Seller was a local developer, (Bellisimo) and Buyer was the Equus Capital Partners group out of Pennsylvania. Out of state capital has established a strong ownership footprint in NoCO multi-family properties of larger size, and price per unit continues to rise on these sales. Almost 1/3rd of the units in this complex are one-bedroom apartments.
The next three largest sales were also multi-family sales to large out-of-state investment groups. Cortland out of Atlanta GA purchased the 254 unit Johnstown Plaza in Johnstown for $71 million / $279,500 per unit / 4.03% cap rate. A combined 288 units between the Landmark Apartments and the Stone Creek Apartments, both in Fort Collins, sold in a portfolio sale for $38 million and $27 million respectively. Buyer was Brickstone Partners out of Nashville TN in this case. Price per unit for these older Class B units was around $225,000 each. Buyer plans significant renovations and upgrades to the properties.
Breaking into the over $10 million sales price club is Loveland retail property, 1604-1606 Lincoln, which sold for $10.44 million, or $235 PSF to a Miami buyer. Tesla Motors is occupying the showroom and auto repair facility.
Greeley was the site of the largest industrial sale. A flexindustrial property that is 88,000 SF on Dundee Ave. sold for $8.5 million, or almost $100 PSF, to a Denver investor. Banner Health occupies 37% of the space as a tenant.
NoCO has a very large appetite for land developed for residential homes. Eagle Brook Meadows in Loveland recently sold at over $550,000 per acre for the 11 acre site. Saint Aubyn Homes purchased this parcel to continue their presence in the region with another new home community. Total purchase price was approximately $6.1 million.
For the first time in years there was no Boulder sale in the top 20 closings in May. Unlikely that this situation will continue, though.