Mountain Center of Avon

A Flex Office and Self Storage Center

79,000 Square Feet

Case Study

Sold

2012, 2016

Sale Price

$10,100,000, $15,300,000

Project

Mountain Center of Avon is a 79,000 square foot flex office and self-storage center in Avon, CO. Our client purchased the property in 2007, required a major upgrade of the building, and Fortius Construction converted the basement level of the building into a self-storage center as a value-add to enhance a stabilized tenant mix with self-storage tenants and increase overall price charged per sq ft. The majority of the building is a flex office product that is typically used for office, warehouse, and showroom for service companies and construction supply/wholesale. Our investment services team sold this building twice, improving the tenant mix, lowering operating costs and increasing rent per sq ft due to the value-add renovations led by our construction team.

``Within twenty-four months, the property was stabilized and performing well.``

Fortius Capital's collective experts rolled out a strong marketing plan that included a diverse channel strategy of online and offline tactics.

Fortius Capital's investment services team successfully sold the property in 2012 for $10.1 million in less than three months. The new owners retained our team to manage the property from 2012 until 2016, when the property was listed for sale again. Our experts brought Mountain Center of Avon to market, summer of 2016, and closed a few months later for $15.3 million due to stabilization, enhanced tenant mix and value-add construction improvements to secure self-storage operator as tenant.

The self-storage occupancy went from 68% to around 90% and overall rates increased. The flex occupancy rate went from 72% to 89% with a much stronger tenant mix. The NNN’s went from $6.05 per sq ft to $4.75 while simultaneously adding a maintenance reserve.