A longtime Colorado commercial real estate company is entering the Northern Colorado market with a 200,000-square-foot industrial/flex development at Interstate 25 near Crossroads Boulevard in Loveland.
Etkin Johnson Real Estate Partners will develop two speculative Class A buildings 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 quarter and complete the two 100,000-sf buildings in first quarter 2021.
“A significant percentage of the in-migration that’s coming to Colorado has shifted toward Northern Colorado, so we’re excited for this to be our first foray into the market,” said Derek Conn, partner at Etkin Johnson.
“Northern Colorado is solidifying itself as a key business hub, thanks to the city of Loveland and local stakeholders 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 interstate from the Budweiser Event Center and Larimer County Fairgrounds, the site is adjacent Brands West, part of a proposed 60-acre mixed-use/entertainment development spanning both sides of the highway.
Etkin Johnson bought the Axis 25 site from Hammons of Colorado LLC for $3.55 million, or $5.75 per sf, according to Larimer County records.
The development will target companies seeking to be at the center of growth for Northern Colorado. The state-of-the-art campus will offer prominent I-25 tenant signage opportunities, 24-foot-clear ceilings, 10-foot glass lines, ESFR sprinklers, multiple loading capabilities, car charging stations and environmentally responsible design.
“Etkin Johnson has a 30-year track record of capitalizing on new opportunities in emerging submarkets across the Front Range,” said Conn. “Because we hold our assets long-term, we’ve seen the evolution of what companies need to succeed. Axis 25 will set a new standard for industrial/flex space in Northern Colorado.”
Demand for industrial/flex space has increased substantially in Northern Colorado in recent years, but to date, Centerra developer McWhinney has been the only company to deliver new 24-foot-clear product to the market. McWhinney has had good success leasing up space while, according to the city of Loveland’s 2019 Annual Data and Assumptions Report, the vacancy rate for industrial properties dropped from 14 to 4% in the past year.
“Northern Colorado really hasn’t been on anybody’s radar,” said Conn. Although, “There certainly is not the depth of demand that we’ve seen throughout the Denver metro,” Conn said there certainly is pent-up demand for new space.
“We’re excited to offer what we think is the highest-quality product that’s been delivered in the Northern Colorado marketplace,” he commented.
Development of Axis 25 follows Etkin Johnson Real Estate Partners’ recent development of 600 and 700 Tech Court in Louisville. The company has its eye on additional opportunities to the north.
“We look at Northern Colorado as one of the emerging places to do business and grow in the state, and we certainly are open to, and hoping to find, new opportunities in that submarket,” said Conn.