Colorado Real Estate Journal - August 17, 2016
A Northern Colorado developer is making a substantial investment in 2534 with construction of an office/warehouse development and plans for Class A office buildings. “Our focus is 2534. It’s a popular location,” Roland Lockard, CEO of Lockard Development Group Inc., said of the quickly developing area at Interstate 25 and U.S. Highway 34 in Johnstown. “People love the location. They are wanting to be out here. It’s in the middle of Greeley, Fort Collins and Loveland and has great access the freeway. It’s all new and up-and-coming.” Lockard Development is under construction on approximately 10,000 square feet of office/warehouse space that will be delivered by early November. The two building project includes four heated units with 20-foot ceilings, drive-in doors, finished bathrooms and build-to-suit office spaces. Three of the four units are presold, two to users and one to an investor, said Lockard, adding there is approximately 5,000 sf available for lease. Lockard Development plans a second phase of similar product next year. It will comprise about 15,000 sf in two to three buildings. Units will average around 1,560 sf and will start at $215,400. The developer is looking to presell a portion of the project and hopes to have it under construction in spring. Also at 2534, Lockard Development is planning construction of two approximately 12,000-sf office buildings catering to medical and professional users. The buildings will be located on Ronald Reagan Boulevard and Larimer Parkway, across from the new Clear View Behavioral Health hospital and a number of medical offices. The developer is looking to partner with physicians or medical practices to kick off the project, possibly in late fall. “There is a lot of medical out here already,” said Lockard, noting the building will provide an opportunity for medical users to own their space at a core-and-shell cost of approximately $180 per sf. The 2534 development comprises a mix of high-end housing and commercial development. It incorporates the 43-acre Johnstown Plaza, which is buzzing with construction of what will be 1.1 million sf of development, including a 250,000-sf Scheels sporting goods store. Lockard Development Group is a Loveland-based construction management and real estate brokerage firm. Other News Northern Colorado apartment rents reached a new record of $1,184 per month per unit in the second quarter, but the rate of increase is much lower than in the recent past, according to Apartment Insights’ Statistics/Trends Summary. And while the vacancy rate for stabilized, conventional properties with 50 or more units decreased for the first time in six quarters, to 5.1 percent, it still is 154 basis points higher than a year ago, according to the report. Weld County has the lowest vacancy rate, 4.27 percent, followed by Loveland, which dropped from 7.18 percent vacancy in the first quarter to 4.33 percent. The tri-city area absorbed 191 apartment units in the second quarter, most of that in Loveland. Vacancy rates in Fort Collins South and North were 4.42 and 7.34 percent, respectively, Apartment Insights reported. Greeley Ranch and Farm paid $900,000 for 40.3 acres of land at the southeast corner of Highway 34 and 83rd Avenue in Greeley. The buyer plans to hold the land for development, according to Dan Leuschen of SVN/Denver Commercial, who handled both sides of the transaction. The seller was Pauline Fafoutis. A 9,146-square-foot office property at 995 N. Wilson Ave. in Loveland sold for $770,000 cash. NAN Maderia Stuart Trust purchased the property from PDQ Properties LLC. Larry Hawe of SVN/Denver Commercial was the listing broker. Richard Forde of HICO Realty represented the buyer. Murphy Eriksen Enterprises LLC paid $649,380 for an 8,220-sf industrial building at 1409 Olive Court in Fort Collins. Steve Stansfield of Realtec Commercial Real Estate Services Inc. represented the buyer. T.J. Antinora of Antinora Real Estate represented the seller, 1409 Olive Court LLC. Jayna K. Donoho bought 4.23 aces of land at 3341 E. C St. in Greeley, which will house a new temperature-controlled facility. Peckham Development Corp. sold the property for $497,000. Dan Leuschen of SVN/Denver Commercial was the listing broker. Lorrie Sparks of K&O Realty LLC represented the buyer. The Evans Redevelopment Authority purchased 11,083 sf of land at 3102 and 3108 State St. and 807 31st St. in Evans. The property will be used to realign the frontage road on the east side of Highway 85 to make it more functional, according to Mark Bradley of Realtec Greeley, who represented the authority in the transaction. Lallo Investments LLC, which is affiliated with an oilfield transportation company, sold the property, which used to house Randy’s Diner. Dan Leuschen of SVN/Denver Commercial was the listing broker.