Colorado Real Estate Journal -

Encompass owners buy land for headquarters on river

The owners of a growing Fort Collins software company acquired land along the Cache la Poudre River for construction of a mixed-use building that will house the company’s headquarters.

Linden Bridges LLC, led by Encompass Technologies owners Kent O’Neil and Jonathan O’Neil, purchased the former Poudre Pre-Mix property at 418 Linden St. for $1.03 million cash. Known as Block One, the 44,885-square-foot site is within the River District Redevelopment Area, which lies between the river and downtown Fort Collins.

“This is one of two sites along the Poudre River that can be developed for the future. This is a very rare and unique site, and it will be a catalyst for development of that area,” commented Kyle Lundy of Sperry Van Ness/The Group Commercial.

Lundy and Rich Shannon of Pinnacle Consulting Group handled the transaction and are the owner’s representatives for the approximately $9 million development.

Encompass Technologies, which has outgrown its building around the corner at 324 Jefferson St. and expects to double in size within the next couple of years, will have its headquarters in 11,000 sf on the second floor of the new four-story building. The main level will include a 4,140-sf riverside restaurant with an outdoor patio and 7,000 sf of for-lease Class A office space. The two upper floors will house 12 apartments.

The building also will include underground parking, which will give it a parking ratio of about 2:1,000, likely the highest parking ratio for an office property in downtown Fort Collins, said Shannon. “We have a ratio,” quipped Lundy.

Encompass hopes to have its city approvals by late spring and start construction in midsummer. The building will take 12 months to complete. Besides accommodating the company’s growth, the headquarters facility will be a showplace for Encompass, which brings people to Fort Collins for training, and is a long-term investment for the O’Neils, Lundy said.

The project represents a big step for the future of the river district, which Shannon said is the Fort Collins equivalent of Lower Downtown Denver.

A prime redevelopment area immediately adjacent to Old Town, it includes a mix of industrial, commercial and residential uses.

The city of Fort Collins has invested in infrastructure and streetscape improvements on Linden Street within the River District, which has a relatively new recreation center and adjacent townhome development.

Block One is “absolutely” a catalyst for the area because, “It’s one of the few private redevelopment projects that’s happened in the area in recent years,” said Josh Birks, Fort Collins economic health director.

A 70-unit senior apartment community is planned across the street from Block One, and another parcel is under contract for apartments and the conversion of a historic building to a restaurant, according to Shannon.

With no large blocks of Class A office space available in downtown Fort Collins, rents for the available space at Block One, as well as the restaurant space, are anticipated to be at the top of the market.

“If somebody wants 8,000 sf of office or a 4,000-sf restaurant on the river, this is it,” said Lundy.

RB+B Architects Inc. designed the building, which will be built by Sampson Construction.