BWE, a national commercial and multifamily mortgage banking firm, secured a $27.3 million loan to finance the acquisition of Prospect Innovation Campus, an 11-building, 226,461-square-foot light industrial flex/R&D portfolio located in Fort Collins.
Peter Keepper, SVP, and Summer McSwain, transaction manager, in BWE’s Denver office, originated the loan from a life insurance company relationship on behalf of ZS Capital Partners, a Denver-based real estate investment firm led by Derek Conn and Spencer Pariser, two longtime investors with deep knowledge of Fort Collins’ potential in the industrial space. The fixed-rate loan features interest-only payments for the majority of the term and prepayment flexibility, all while aligning with the borrower’s business plan and exit strategy for the property.
“Anyone familiar with high-tech manufacturing and research knows that the Fort Collins market offers loads of untapped potential, thanks to strong underlying fundamentals and a highly educated workforce. The strength of the asset and location, paired with the sponsor experience, allowed us to run a highly competitive process to clear the debt market – attracting life insurance companies, banks, and debt funds. Ultimately, it was our relationship with the life company lender, combined with their unique knowledge of the market, that led them to provide the competitive terms our client needed to execute on the acquisition,” said Keepper. “It was a pleasure working with the ZS Capital team to close this deal, and we look forward to working with them and other investors in the future as Fort Collins continues to establish itself as a premier location for high-tech research, development, and manufacturing.”
Located in a strong infill location on Prospect Road, one of the major east-west arterials on the north side of Fort Collins, Prospect Innovation Campus is one of the most established flex/office nodes along the corridor. The campus features a mix of roughly 30% office, 40% warehouse, and 30% research and development space and is more than 91% leased to a diverse range of tenured tenants. While Fort Collins is one of the most economically resilient and fastest-growing mid-size metros in the country, its industrial and office submarkets have low vacancy with little to no new construction, positioning Prospect Innovation Campus to be a sought-after location for companies seeking new office, manufacturing, and R&D space.
