A 103,000-square-foot manufacturing building on 13.37 acres in Johnstown changed hands in a $7.7 million transaction that also included 12 acres of adjacent ground.
A U.S. Engineering affiliate bought the property at 390 Mountain View Drive to expand the company’s Rocky Mountain operations. A Kansas City, Missouri-based mechanical contractor, U.S. Engineering has offices in Westminster and will use the building to manufacture HVAC systems for large buildings.
Civeo Corp., which builds modular housing and villages in remote locations, including oil fields, sold the property.
There was “solid” interest in the clear-span building, according to Matt Trone of Cushman & Wakefield. Built in 1999, it has frontage on Interstate 25, access to U.S. Highway 34, drive-in loading and a single dock-high door.
“We had a number of distribution companies looking at it, trying to figure out how to retrofit it for distribution,” said Trone. “We also has a number of groups that were interested in just half of the building,” he said.
Civeo had a conditional use permit from Weld County that allowed adjacent land to be used for outside storage. U.S. Engineering wanted that same capability for the 12 acres it acquired north of the building and, therefore, had to obtain its own conditional use permit. In addition, the buyer had to get a recorded exemption to carve the 12 acres out of a larger, 128-acre parcel zoned for agricultural use.
“We had a time crunch to get the transaction closed by the end of the year and Weld County was great to work with,” said Trone.
A McWhinney entity bought the rest of the 128 acres, or a total of 116 acres, for $1.8 million. It plans to hold the property for possible future development.
Bruce Mawhinney of Newmark Grubb Knight Frank said U.S. Engineering has had a smaller manufacturing facility in Loveland for many years. “This one came on the market and was a good fit, so they’re going to relocate to it,” he said.
The building sets up well for manufacturing, with a long configuration for workflow and up to 30-foot ceilings, as well as cranes, good electrical service and plenty of employee parking, said Mawhinney, who represented U.S. Engineering with NGKF broker Mike Wafer.
The additional land gives the company options for storage and future expansion if needed, Mawhinney added.
Civeo was in the process of relocating the Johnstown operations to Canada at the time of the sale.
Trone, along with Cushman & Wakefield brokers Steve Hager and Sam Slaton, represented Civeo in the building and land sales.
Featured in CREJ’s Jan. 20-Feb. 2, 2016, issue.