BWE has arranged a new loan to support the acquisition of Prospect Innovation Campus, a flex and light-industrial research and development portfolio in Fort Collins, Colorado. The financing totals $27.3 million and is being used to fund the purchase of the 11-building campus, which spans 226,461 square feet. The seller in the transaction was Ogilvie Partners, and the buildings traded for $42 million.
The loan was originated by BWE professionals Peter Keepper and Summer McSwain. They sourced the debt from a life insurance company lender. According to BWE, the financing is structured with a fixed interest rate and provides interest-only payments for most of the term, along with prepayment flexibility. This structure gives the borrower the ability to manage cash flow while retaining options around the timing of a potential future payoff or recapitalization.
Prospect Innovation Campus is positioned on Prospect Road, which is described as one of the major east-west arterials on the north side of Fort Collins. BWE characterizes the property as one of the most established flex and office-oriented nodes along this important corridor. The 11-building portfolio is composed of a mix of space types, with approximately 30% of the area built out as office, 40% as warehouse, and 30% devoted to research and development uses.
Occupancy at the campus is reported to be more than 91%, with the tenant roster comprising a range of users that BWE describes as diverse and tenured. The high leased percentage indicates that the property is largely stabilized at the time of sale and financing. The combination of office, warehouse, and research and development space positions the campus to serve multiple types of commercial and industrial users under one portfolio.
BWE also noted that both the industrial and office submarkets in Fort Collins are experiencing low vacancy and have seen little to no new construction activity. Within that context, Prospect Innovation Campus stands out as an infill asset along a key transportation corridor, with existing improvements in place and limited new competitive supply being added nearby. The financing arranged by BWE provides long-term, fixed-rate capital from a life insurance company to support the new ownership of a largely leased, multi-building flex and R&D campus in a constrained local market.
