Motz Equity Group LLC announces the acquisition of six industrial buildings on two parcels in Rifle, Colorado. The buildings total just under 30,000 square feet and are improved upon 8.9 acres. The properties were acquired 60% vacant and require significant value-add improvement work which will be arranged over the next several months.
RIFLE, Colo., June 27, 2022 /PRNewswire-PRWeb/ -- Motz Equity Group LLC announces the acquisition of six industrial buildings on two parcels in Rifle, Colorado. The buildings total just under 30,000 square feet and are improved upon 8.9 acres. The properties were acquired 60% vacant and require significant value-add improvement work which will be arranged over the next several months.
The limited supply of industrial space in the Rifle area presents a unique opportunity to improve the properties and provide long-term value to users as the buildings will be marketed for lease at competitive rates. These large parcels offer plenty of secure contractor/supply yard areas with excellent access and visibility - zoning is Commercial General which permits robust opportunities for industrial, material, retail & manufacturing uses. Financing for the deal was provided by Alpine Bank, a Colorado-based community bank, headquartered in Glenwood Springs, CO.
What makes Rifle, Colorado an ideal market to make late-cycle real estate acquisitions?
- Rifle is located in Garfield County, Colorado, which is on the western side (a/k/a the "Western Slope") of Colorado and approximately 180 miles west of Denver, 87 miles west of Vail and 68 miles northwest of Aspen. Garfield County's population is just over 62,000, making it the 13th most populated county out of 64 counties in Colorado. Garfield County's population has doubled since 1992 and is expected to double again through 2050. In addition, Colorado added 774,518 new residents between 2010 and 2020, growing the state's population by 14.8% to 5.8 million residents. The state's population growth is among the highest in the nation, topped only by Idaho, Nevada, Utah and Texas.
- Colorado's Western Slope continues to draw new residents given the desirable climate, active outdoor culture, thriving economy and current affordability compared to similar areas in Colorado. The Western Slope of Colorado is also attracting a tremendous amount of retired and semi-retired individuals who enjoy open-space mountain living and lower altitudes (Rifle elevation is only 5,350 feet above sea level – about the same as Denver).
- There is limited supply and high cost to build and permit new industrial buildings in Garfield County. In addition, land costs are rising – as demand for residential projects are absorbing a limited supply of buildable land, leaving less room for expansion of industrial property development. It is likely that Rifle will become a "high barrier" market over the new few years.
- Rifle is in early innings of its growth Cycle compared to the rest of the country and is an expanding residential hub with sustained population growth and close proximity to world class ski resorts including Aspen & Snowmass, where home prices are substantially higher encouraging workers and residents to seek more affordable housing options in Rifle. With this residential growth, the demand for services is increasing as many service companies require industrial/warehouse space to operate – this increased demand is playing out in the market now.
- Western Colorado is home to the Piceance Basin, the second-largest reserve of natural gas in North America. The region had long benefitted from economic activity brought about by the oil & gas industry, but even as oil & gas activity had slowed, Rifle's growing residential community is causing the local economy to diversify and sustain growth. That said, future economic upside from oil & gas development on the Western Slope remains viable.
ABOUT MOTZ EQUITY GROUP:
Motz Equity Group LLC is a boutique Private Equity Real Estate firm dedicated to carefully selecting and acquiring income-producing commercial real estate, property types which include multifamily, mixed-use, industrial, and retail. The company was founded January 2011 to provide accredited investors direct and straight-forward access to real estate investments that produce income and capital appreciation over extended periods of time. This type of investment appeals to people who understand the wealth-building/low-volatility attributes of well-bought income properties and seek direct long-term ownership in this asset class. MEG LLC seeks to produce durable alpha by adhering to a uniquely rigorous due-diligence process which is critical in deal selection. MEG LLC currently oversees assets in Arizona, Colorado & New Jersey and looks to source transactions within inefficient markets where risk/return dynamics are compelling.
Media Contact
Kenneth Motz, Motz Equity Group LLC, 1 9083095636, [email protected]
SOURCE Motz Equity Group LLC
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