Colorado-Real-Estate-Journal_372210

Build-to-suit health Anchor Health breaks ground on outpatient building at Quail Crossing INSIDE Trading hands MG Properties buys 4400 Syracuse Apartments for $95.25 million 14 6 FEATURED New dining concept Patrinely signs Leven for largest ground-floor retail space at Block 162 18 CONTENTS NOVEMBER 15-DECEMBER 5, 2023 Office 6 Industrial 10 Multifamily 14 Retail 18 Finance 22 Law & Accounting 26 CDE News 34 Who's News 47 Expanded facility Aqua-Hot Heating Systems doubles footprint with new Frederick facility 10 by Avalon Jacka LONGMONT – A Denver- based commercial real estate firm acquired two industrial parks near the Front Range Community College Boulder County Campus for a total of $16.65 million. CentrePoint Properties purchased the properties at 1501-1551 S. Sunset St. and 2120-2150 Miller Drive from Berkeley Partners. The parks total approximately 98,600 square feet across four build- ings constructed in the 1980s. The properties offer small- bay industrial space for ten- ants that need between 3,500 sf and 27,000 sf. The parks were 93% leased to nine diverse ten- ants at the time of sale, with the largest being Scythe Robot- ics, Continental Control Sys- tems and General Atomics Jeremy Ballenger, Tyler Carner, Jessica Ostermick and Jim Bolt of CBRE repre- sented the seller in the sale, while CentrePoint Properties was unrepresented. Boulder and its surrounding submarkets have a highly edu- cated and skilled workforce, amplifying the area’s desir- ability for growing companies, Ostermick noted. “Small-bay industrial space is seeing strong tenant demand in today’s market,” Oster- mick said. “Properties in the Longmont area are especially unique due to their flexibility in space configuration, ample car parking, hefty power and HVAC systems, and ability to offer distribution options CentrePoint purchases 2 industrial parks by Jill Jamieson-Nichols The Denver office market posted a record high 30.1% total vacancy at the end of the third quarter as compa- nies continue to downsize to cut costs, according to Avison Young’s quarterly Denver Office Market Report. Avison Young attributed the elevated vacancy rate to large tenants relocating to more effi- cient spaces and the delivery of new product, adding the rate reflects economic conditions as well as changing work pat- terns. But it also noted a 33% increase in year-over-year leasing activity, especially among tenants in the 5,000- to 10,000-square-foot range. There have been 1.1 million sf of office space leases and r e n e w a l s in that size range, fol- lowed closely by 873,000 sf in the 10,000- to 20,000-sf arena. “Small to m i d - s i z e d tenants are leading the way to recovery in the Denver market,” said Marcy Moneypenny, princi- pal and managing director for Avison Young’s Denver office. “They are taking advantage of the opportunity to secure favorable lease rates. We are hopeful that as overall eco- nomic conditions improve, these companies will flourish and grow over the coming years, expanding their office space needs and elevating demand, which bodes well for the entire Denver region.” An estimated 3.4 million sf of new office space is set to be delivered to the Denver market through 2025. As new product continues to come on line in River North and Lower Downtown and large tenants, such as law firms, relocate to more efficient, new spaces, the heart of the central busi- ness district is expected to see elevat- ed vacancy rates. “ T h e CBD is see- ing histori- cal vacancies, particularly in the CBD core,” said Howard Schmidt, Avison Young vice president and tenant represen- tation specialist. “Diminished safety and security are also not helping, as many tenants are exiting downtown for better locales. The commute into and Office market posts record high vacancy Please see Avison Young, Page 48 Marcy Moneypenny Howard Schmidt Virtuance The industrial parks at 1501-1551 S. Sunset St. and 2120-2150 Miller Drive total approximately 98,600 square feet across four buildings. Please see CentrePoint, Page 48 Avant by Avison Young, CoStar Avant by Avison Young, CoStar