A light industrial and research campus in Fort Collins has changed hands for $42 million. Denver-based ZS Capital Partners picked up the 11-building Prospect Innovation Campus, a 226,000-square-foot property.
The financing came together through BWE, which secured the $27.3 million acquisition loan on behalf of ZS Capital Partners, according to Mile High CRE. Peter Keepper, an SVP in BWE's Denver office, and Summer McSwain, a transaction manager in the same office, originated the loan, per the same account.
The purchase marks ZS Capital Partners' fifth industrial acquisition since late 2023 and its largest investment to date, pushing the firm's Colorado Front Range industrial footprint to roughly 460,000 square feet, according to Connect CRE.
Portfolio Sales
The current Prospect Innovation Campus sale involves 11 buildings.
REBusinessOnline breaks the current 11-building footprint into four sub-portfolios — Midpoint 3, River Center, Spring Creek, and One Prospect — with buildings constructed between the late 1980s and early 2000s.
A Mix of Uses
Connect CRE describes the property as a mix of industrial, flex, and research-and-development space.
Keepper said the combination of the asset and its location allowed BWE to run a highly competitive process in the debt market, attracting interest from life insurance companies, banks, and debt funds before the life insurance company relationship ultimately delivered the winning terms.
Why Lenders and Investors See Room to Grow
Keepper also pointed to Fort Collins' broader appeal, saying the market offers untapped potential for high-tech manufacturing and research, backed by strong underlying fundamentals and a highly educated workforce. The city is described in the financing announcement as an economically resilient and fast-growing mid-size metro, with industrial and office submarkets that combine low vacancy with little to no new construction — conditions that position Prospect Innovation Campus as a sought-after landing spot for companies seeking office, manufacturing, and R&D space.
On the seller's side, CBRE brokers Jeremy Ballenger, Tyler Carner, Patrick Devereaux, James Brady, and Campbell Davis represented Ogilvie Partners in the transaction, according to Connect CRE. The open question now is what ZS Capital Partners does next with the four sub-portfolios that make up the campus, whether that means capital improvements, further leasing pushes, or eventual individual building sales.
