Mixed-Use
Ferguson & Montrose Climate Controlled Storage
924 Spring Creek Rd, Montrose, CO 81403
Listing Price: $4,950,000
Investment Overview
Marcus & Millichap, as exclusive advisor, is pleased to present 924 Spring Creek Road to market for sale. This 3.05-acre property is mixed use, with 19,003 square feet of climate-controlled self storage and 17,500 square feet of industrial space with a secured yard. The property’s effective year built is 1990 and it was renovated in 2022 and 2024 to add a second floor of storage over part of the building. For a value-add investor this property is a prime opportunity in a development-constrained market,
Ferguson Enterprises is a publicly-traded company that supplies plumbing, HVAC, Waterworks, and Industrial products to contractors and has been in business since 1953. The company has operated in this location for 24 years. The Tenant distributes regionally across the West Slope, supplying Plumbing/PVF and HVAC parts for residential and commercial development and maintenance.
Montrose, CO is the regional hub of the Uncompahgre Valley with a population of 20,291 people, second to Grand Junction (71,827 population). Key economic activities include agriculture and resource extraction, while the Montrose Regional Airport serves over 502,790 commercial passengers each year. This is the primary airport for Telluride / Mountain Village and Purgatory Resort in the winter, plus various national parks including Uncompahgre, San Juan National Forest, and numerous mountain peaks.
This Property offers and investor the chance to invest a growing area of Colorado with significant scheduled rent increases and value-add potential. The rarity of climate-controlled storage and low FAR offer significant upside at the asking basis of $135.61.
Ferguson & Montrose Climate Controlled Storage
Investment Highlights
- Rents Well Below Market - Both industrial and self storage rents sit well below market, with 12.5% contractual increases at each Ferguson renewal, a clear path to growing NOI and returns.
- Supply-Constrained Industrial Market - Little to no competing industrial space nearby leaves Ferguson few relocation options, reinforcing renewal and protecting the buyer's income
- Tourism and Logistics Hub - Montrose anchors the Uncompahgre Valley, and its airport moves 502,790 passengers a year as the gateway to Telluride and other nearby resorts.
- Investment-Grade Anchor with Long Tenure - Ferguson (NYSE: FERG) carries Baa1/BBB+ ratings and has operated out of this branch continuously, since 2002. Below-market rent, a site outside city limits that avoids Montrose's 3.88% sales tax, and almost no comparable space make renewal the likely path.
- Rare Climate-Controlled Storage - Climate-controlled storage is scarce on the Western Slope, and in-place storage rents run 51.3% below market across 144 units. The format commands premium rents that the competing sites cannot match, giving the buyer a differentiated income stream.
Broker of Record
-
Adam Lewis
Senior Managing Director, Market Leader- Colorado/Idaho
Listing Price: $4,950,000
Investment Highlights
- Rents Well Below Market - Both industrial and self storage rents sit well below market, with 12.5% contractual increases at each Ferguson renewal, a clear path to growing NOI and returns.
- Supply-Constrained Industrial Market - Little to no competing industrial space nearby leaves Ferguson few relocation options, reinforcing renewal and protecting the buyer's income
- Tourism and Logistics Hub - Montrose anchors the Uncompahgre Valley, and its airport moves 502,790 passengers a year as the gateway to Telluride and other nearby resorts.
- Investment-Grade Anchor with Long Tenure - Ferguson (NYSE: FERG) carries Baa1/BBB+ ratings and has operated out of this branch continuously, since 2002. Below-market rent, a site outside city limits that avoids Montrose's 3.88% sales tax, and almost no comparable space make renewal the likely path.
- Rare Climate-Controlled Storage - Climate-controlled storage is scarce on the Western Slope, and in-place storage rents run 51.3% below market across 144 units. The format commands premium rents that the competing sites cannot match, giving the buyer a differentiated income stream.
Investment Overview
Marcus & Millichap, as exclusive advisor, is pleased to present 924 Spring Creek Road to market for sale. This 3.05-acre property is mixed use, with 19,003 square feet of climate-controlled self storage and 17,500 square feet of industrial space with a secured yard. The property’s effective year built is 1990 and it was renovated in 2022 and 2024 to add a second floor of storage over part of the building. For a value-add investor this property is a prime opportunity in a development-constrained market, Ferguson Enterprises is a publicly-traded company that supplies plumbing, HVAC, Waterworks, and Industrial products to contractors and has been in business since 1953. The company has operated in this location for 24 years. The Tenant distributes regionally across the West Slope, supplying Plumbing/PVF and HVAC parts for residential and commercial development and maintenance. Montrose, CO is the regional hub of the Uncompahgre Valley with a population of 20,291 people, second to Grand Junction (71,827 population). Key economic activities include agriculture and resource extraction, while the Montrose Regional Airport serves over 502,790 commercial passengers each year. This is the primary airport for Telluride / Mountain Village and Purgatory Resort in the winter, plus various national parks including Uncompahgre, San Juan National Forest, and numerous mountain peaks. This Property offers and investor the chance to invest a growing area of Colorado with significant scheduled rent increases and value-add potential. The rarity of climate-controlled storage and low FAR offer significant upside at the asking basis of $135.61.
Broker of Record
-
Adam Lewis
Senior Managing Director, Market Leader- Colorado/Idaho
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