MARCH 18-31, 2020 In the zone Jefferson, Boulder and two other counties are part of Colorado’s newest foreign-trade zone INSIDE Data-driven EdgeConneX buys its building in Highfield Business Center Financing JLL Capital Markets arranges $81.8 million in acquisition financing for a Denver property 31 14 23 FEATURED Rarity A rare commodity – an entire ground floor of retail downtown – sells for $5.25 million 20 CONTENTS Metro Denver 4 Office 8 Multifamily 10 Industrial 14 Retail 20 Boulder County 24 Larimer & Weld Counties 26 Colorado Springs 28 Law & Accounting 30 Finance 31 Property Management 34 CDE News 35 by Jill Jamieson-Nichols A longtime Colorado commercial real estate com- pany is entering the North- ern Colorado market with a 200,000-square-foot indus- trial/flex development at Interstate 25 near Crossroads Boulevard in Loveland. Etkin Johnson Real Estate Partners will develop two speculative Class A build- ings at Axis 25, a 14.18-acre site with interstate visibility. The Denver-based company plans to break ground toward the end of the second quar- ter and complete the two 100,000-sf buildings in first- quarter 2021. “A significant percentage of the in-migration that’s coming to C o l o r a d o has shifted t o w a r d N o r t h e r n Colorado, so we’re excit- ed for this to be our first foray into the market,” said Derek Conn, partner at Etkin John- son. “Northern Colorado is solidifying itself as a key busi- ness hub, thanks to the city of Loveland and local stake- holders who are committed to unlocking the potential of underutilized corridors in the region. Axis 25 will offer companies the industrial/flex space they need to grow and the modern amenities needed to attract the area’s skilled workforce.” Located across the inter- state from the Budweiser Event Center and Larimer County Fairgrounds, the site is adjacent Brands West, part of a proposed 60-acre mixed- use/entertainment develop- ment spanning both sides of the highway. Etkin Johnson bought the Axis 25 site from Ham- mons of Colorado LLC for $3.55 million, or $5.75 per sf, according to Larimer County records. The development will tar- get companies seeking to be at the center of growth for Northern Colorado. The state-of-the-art campus will offer prominent I-25 ten- ant signage opportunities, 24-foot-clear ceilings, 10-foot glass lines, ESFR sprinklers, multiple loading capabili- ties, car charging stations and environmentally responsible design. “Etkin Johnson has a 30-year track record of capi- talizing on new opportuni- ties in emerging submarkets across the Front Range,” said Conn. “Because we hold our assets long-term, we’ve seen Etkin Johnson enters NoCo industrial market by Jennifer Hayes A Santa Barbara, California- based buyer is making its mark on Colorado Springs with not only its second apart- ment acquisition in the market but also its second of a presta- bilized asset in the city. NALS Apartment Homes, a fully integrated real estate investment firm, purchased the Watermark on Union apartment community, renamed Aliso Briargate, for $64 million, according to pub- lic records. Its purchase of the 244-unit community follows NALS Apartment Homes’ purchase of the prestabilized Overlook at Interquest property, which sold in 2019 at the then record- setting per-unit figure of $251,894. At $262,295 per unit, the price for Watermark/Aliso appears to be a record per-unit price paid for any multifamily product in Colorado Springs, according to data from Apart- ment Insights, a comprehen- sive apartment database web- site. “Watermark on Union was 65% occupied at the time of sale, demonstrating the buy- er’s belief in their ability to fully stabilize the property in the coming months,” stated Kevin McKenna of Newmark Knight Frank Multifamily, noting that NALS’ previous purchase of the prestabilized Overlook at Interquest and subsequent lease-up of it gave it confidence moving forward on this acquisition. “As one of the leading com- munities in the metro area, Watermark on Union is well- positioned to capitalize on the growth this market anticipates in the foreseeable future.” Watermark on Union trades at record price Axis 25, located at I-25 near Crossroads Boulevard, will deliver 200,000 square feet of state-of-the-art industrial/flex space to the market. Derek Conn Please see Axis, Page 16 The purchase of Watermark on Union, renamed Aliso Briargate, is the second acquisition by NALS Apartment Homes of a prestabilized apartment asset in the Colorado Springs market. Please see Watermark, Page 22 • NAIOP Colorado Awards of Achievement • ULI Colorado District Council Spotlight • Who’s News Office Properties Quarterly