The Ninigret Group Buys Milliken Property in 1031 Exchange

The Ninigret Group has acquired Ranger Energy Services’ mission-critical building in Milliken, Colorado, in a sale-leaseback that will keep the well service rigs provider in the property long term.

The Utah firm paid $13 million, or about $99 per square foot, to acquire the property at 3333 E. Center Drive in a 1031 Exchange, or the swap of two similar investment properties that would make the trade tax deferrable.

Built in 2000, the 131,389 square-foot complex houses oil and gas operations for Ranger, including fleet maintenance and storage supporting the operations of its regionwide DJ Basin energy services business.

As part of the acquisition, Ranger agree to a 15 year, triple-net lease that will keep the company in the building into 2036. The company put the property on the market late last year, and with the sale-leaseback retains its mission-critical facility while reducing its real estate holdings, a strategy for the company amid the pandemic, Avison Young said in a release.

Ninigret had been seeking a 1031 exchange opportunity, Rick Egitto of Avison Young’s industrial services team in Denver said in a statement. The Salt Lake City firm owns and manages a 30-building portfolio in Utah, Florida, Arizona, North Carolina, Georgia and Rhode Island.

The Milliken property sits on 23.32 acres and features 11 loading docks, three ground level doors, six cranes and a secured fenced lot.