Colorado Real Estate Journal - October 21, 2015

McWhinney to help meet demand for industrial space in N. Colorado

by Jill Jamieson-Nichols

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A lack of industrial space in Northern Colorado and a dearth of new construction are prompting McWhinney to develop 83,890 square feet of speculative space for delivery early next year.

The building will be located at Rocky Mountain Avenue and East 37th Street in McWhinney’s Centerra master-planned community in Loveland.

“McWhinney sees a huge need for Class A industrial space in the Northern Colorado market,” said spokesman Andy Boian of Dovetail Solutions. A second-quarter Xceligent report puts Northern Colorado’s vacancy rate for light-industrial space at 1.1 percent and vacancy within the Loveland submarket at 2.2 percent, he said.

“We see this as an opportunity to quell some of the demand,” he said.

As part of Centerra, the development will offer tenants immediate access to Interstate 25 and U.S. Highway 34, as well as more than 1.5 million sf of retail, hotels, a health club, and open space and trails. It will include ESFR fire protection, 6-inch floors and skylights.

CBRE brokers Kyle Lundy, Mike Eyer and Jim Bolt are marketing space at $9 per sf triple net. The building will provide 24-foot clear height and dock-high loading – features that aren’t readily available in Northern Colorado, Lundy said.

Lundy said there wasn’t a great deal of absorption in the industrial market over the summer, but with vacancies so low and no new construction, tenants don’t have a lot of options.

“This building will meet the demand for quality, Class A construction, of which in Northern Colorado there’s almost zero,” he said.

The building will be divisible to 11,500 sf and will be suitable for uses including office/ research and development, light assembly, light manufacturing, warehouse/distribution and cold storage. There is the capability of adding a sister building of 84,000 sf.

Designed by Ware Malcomb, the building will be constructed by Golden Triangle Construction.

It will be the second speculative project that McWhinney has undertaken this year. McWhinney also is building Hahns Peak Two, a 56,000-sf Class A office building. The last industrial building built at Centerra was a build-to-suit for Constant Contact, which was completed in 2009.

Other News

An 18,730-square-foot industrial building fully leased to three tenants sold for $1.45 million.

Lincoln Properties LLC sold the building at 300 Lincoln Court in Fort Collins to 300 Lincoln Court LLC, led by Dave Sitzman of Sitzman-Mitchell & Co.

Two of the tenants, Sid Harvey Industries and Lewis Paper Co., have been in the property for more than 25 years, according to Steve Stansfield of Realtec Commercial Real Estate Services.

Stansfield was the listing broker. Brian Strible of Sitzman-Mitchell represented the buyer.

Omaha, Nebraska-based Cornerstone Associates LLC purchased a 128,000-sf development site at the northeast corner of Stanford and Horsetooth roads in Fort Collins from Bella Vista Development LLC for $860,000.

Cornerstone plans to develop a second Fort Collins Legacy Senior Residence for low-income seniors on the property. It will be similar to the 72-unit facility the company opened last year at 413 Linden St.

Dave Pettigrew, a partner and broker with Ascent Real Estate Professionals represented the buyer and seller in the transaction.

Pettigrew and Bill Albrecht of PA Partners are completing development of The Plaza at Pavilion Lane at the northwest corner of JFK Parkway and Pavilion Lane in Fort Collins. The property is just north of Goodwill and King Soopers.

PA Partners purchased the three-acre site and sold a portion of it to Spirit Hospitality, which developed and opened a Candlewood Suites late last year. There are three pad sites remaining that can accommodate up to 28,000 sf of retail, office, service and restaurant space. PA Partners plans to sell the sites for development, do build to suits, or lease or condo space.

Chrisland Commercial brokers Andy Smith and Jake Hallauer are marketing the pads.

Lillis Properties LLC paid $500,000, or $14.64 per sf, for a 34,148-sf office property at 808 W. Eisenhower Blvd. in Loveland. Western States Bank was the seller.

Patrick O’Donnell, Bruce Campbell and Larry Melton of Realtec-Loveland were the listing brokers. Cliff Johnson of Coldwell Banker represented the buyer.

Mountain Supply and Service LLC, an oil and gas services and supplies company, leased 11,243 sf of industrial space at 661 Innovation Circle, Unit B, in Windsor. A Plus Investment Systems LLC is the landlord.

Jerry Chilson of Sperry Van Ness/The Group Commercial handled the transaction.

The Denver Post LLC leased 7,500 sf of industrial space at 1106 N. Boise Ave. in Loveland from Ward Spaces LLC.

Patrick O’Donnell and Bruce Campbell of Realtec-Loveland represented the landlord. Keith Bell of Newmark Grubb Knight Frank represented the tenant.

A pair of industrial buildings off U.S. Highway 85 and 26th Street in Garden City sold for $750,000.

Bruckner Truck Sales Inc. acquired the buildings at 600 and 624 26th St., which comprise 7,300 sf, for sales of Mack Trucks and parts. The buildings were built in 1957 and 1972.

Matt Call and John Wit of NavPoint Real Estate Group represented the buyer. Travis Ackerman of Cushman & Wakefield represented the seller.

Banner Health leased 4,391 sf of office space at 1808 N. Boise Ave., Suite D, in Loveland for use by Banner Home Care.

Larry Hawe and Rhett Strom of Sperry Van Ness/The Group Commercial represented the landlord, PDQ Properties LLC. Eric Brynestad of JLL represented the tenant.

Major Medical Supply signed a lease for 4,025 sf of office space at 3640 W. 10th St. in Greeley.

Jim Vetting of Wheeler Management Group represented the landlord, Dong Lin LLC. Bill Reilly of Sperry Van Ness/The Group Commercial represented the tenant.

Carhop Auto Sales and Finance leased a freestanding industrial building along the Mulberry Street corridor in Fort Collins.

The single-story, 3,220-sf building with monument signage is located at 1437 E. Mulberry, just east of Lemay Avenue. It will be Carhop’s first Fort Collins location.

Greg Roeder of Brinkman Partners represented the landlord, Trust Company of America FBO.