By Margaret Jackson / NewsBreak Denver
(Fort Collins, Colo.) Nectar Equities LLC paid $12.9 million for a four-building industrial complex in Fort Collins.
The 73,170-square-foot Plum Tree Plaza, located at 2573,2579, 2601 and 2607 Midpoint Drive, was built in the late 1990s by WW Reynolds Cos. The property is 100% leased to four tenants and anchored by Larimer County government and life sciences company Indivior.
“The buyer was attracted to the strength of the Fort Collins industrial market and the tenants’ long-term commitment to the asset,” said Patrick Devereaux, senior vice president at CBRE who along with Jeremy Ballenger, Tyler Carlson, James Brady and Campbell Davis represented seller Ogilvie Partners. “This sale is indicative of the larger trend of capital pursuing long-term cash flow.”
The property is two miles from Colorado State University, three miles from downtown Fort Collins and one mile from Interstate 25, providing easy access to all of Fort Collins.
According to Unique Properties' third-quarter Industrial Market Report, the Fort Collins industrial market is tight, with just a 3.8% vacancy rate. There is 602,281 square feet of space under construction, and market rents are $11.76 per square foot.
“Record spending both in stores and online has translated into a booming industrial market as goods first need to be stored in logistics properties before reaching the end consumer,” the report states. “While the large-scale distribution market is relatively small here, developers have been active in the pandemic era with major tenants, including Amazon and Bobo’s Oat Bars, expanding in the market.
“Even with an active pipeline, strong tenant demand has kept vacancies relatively stable, which should persist in the near term.”