Flex Office & Warehouse
45,635 Square Feet
Highlands Business Center
``One of the only for-lease warehouse facilities in Gypsum area``
Highlands Business Center is a 45,635 SF warehouse facility situated on 2.28 acres in Gypsum’s Light Industrial zoning district. This steel construction, A-frame building is divided into 12 units that average 3,750 SF. This is a one-of-a-kind property in Eagle County that directly serves contractors, service providers and tradesman with a mix of national and regional tenants. The property represents one of the only for-lease warehouse facilities in Gypsum’s light industrial zoning district. This area is home to most of Eagle County’s contractors, building and material suppliers, distribution and construction related companies.
Acquiring the Listing
Cementing a Symbiotic Partnership.
- IPO Ventures acquired the property in April of 2019, hiring the firm to handle management and leasing of property.
- After successfully reprogramming the property in under two years, Fortius Commercial Advisors (“FCA”) underwrote a potential sale of the property and provided ownership with possible holding period returns. The company advised that if ownership had any interest in selling, the time would be now (FCA believed it unlikely to achieve a stronger sale price in the foreseeable future).
Aligning Strategy
Achieving Client Objectives with Proven Tactics.
- Direct outreach to most likely buyer profile given the unique nature of the market, tenants and property owners.
- In parallel, reach as many investors as possible, nationwide.
- Client did not have a burning desire to sell the property and wanted to achieve a strong sale price. Additional desire, included: having financing assumed.
Acquiring Multiple Offers
Curating multiple buyers at the right time was critical.
- Initial interest was strong due to rarity of the offering.
- 45K SF, fully leased, unique product.
- Multiple offer scenario.
Finding the Right Buyer
Thinking local, selling to current CRE Owner in market.
- Upon completion of the firm’s marketing process and receipt of all offers, capital markets were feeling the brunt of tightening monetary policy.
- Seller was motivated to select a Buyer that was already in detailed conversations with lenders on where a closing interest rate would fall.
- Seller was advised by FCA to pursue a Buyer that is familiar with this market and already owns CRE in the area, or within a neighboring mountain market.
Closing Without Friction
The end result? Even with headwinds, the property traded at a desirable number to seller.
- The cost of capital continued to increase and the Buyer discovered that the property would require significant repairs in the near future.
- Even with headwind-related discovery, the property transacted at a low cap rate for the market and product type.
Overdelivering on FCA Value
Reprogramming the property completely created strong transaction performance.
- Suites that were vacated while the firm handled leasing were replaced with better credit tenants; adding value to the property.
- Under the firm’s property management team, several deferred property maintenance issues were resolved, operating expenses were brought in line with market, and tenant relations improved.
- Underwrote the property and advised to sell. Seller achieved exceptionally strong pricing.
- Aided in selecting a Buyer that understands this market, providing certainty of close and a smoother transaction.
Interested in working with us?
CRE stakeholders seeking to buy, sell or optimize
a portfolio in Colorado may consider inquiring.
