U.S. 36 Corridor vs. Boulder Real Estate Market

The Boulder paper had an article about Hwy 36 that seemed pertinent to the Boulder real estate market situation and so I’m reproducing parts of it here because it talks about some important changes that took place a little over a year ago.

Interesting to see what’s happening now and measure it against the observations made by Chris Avery in his Daily Camera article. I’ll be looking for some comparisons so let me know if you see something worthwhile. How much of this has come to completion and how’s it affected our local Boulder real estate situation?

U.S. 36 real estate picking up
By Grey Avery

More than $153 million spent buying offices on corridor

Investors have dropped more than $153 million in a trio of office property purchases that signal the U.S. 36 corridor’s real estate market is bouncing back.
The stretch of highway between Boulder and Denver had seen high vacancies and little real estate investment in the years following the tech industry meltdown in 2000 and 2001.
The leasing activity now has attracted institutional real estate investors.
Of the three recent sales, none may exemplify the change in the corridor’s fortunes more than last month’s $35 million sale of The Views office complex, located at 11800 Ridge Parkway in Interlocken.
Alliance Commercial bought the two empty buildings and 55 acres in 2003 for $14 million from struggling telecommunications company Level 3 Communications Inc., also based in Broomfield.
Alliance soon landed McData Corp., another Broomfield-based company, as a tenant.
Some thought Alliance paid far too much for the property three years ago, but the company saw the potential for the kind of rebound that has taken hold since last fall.
“The economy has clearly started to really come back,” said Larry Lance, a partner Alliance Commercial Partners.
Buyers are scouting the area for investment properties, driven by rising occupancy rates and the return of jobs to the area. In the largest deal, Hines VAF Mountain View LP, a holding company formed by the multinational real estate investment firm Hines, paid $71.5 million for the Mountain View Corporate Center off of Colo. 128, which overlooks Interlocken.
The 461,000-square-foot office park is home to White-Wave Foods, Zoll Data and Axciom Corp.
Legacy Partners, of Foster City, Calif., built the four-building Mountain View Corporate Center between 1999 and 2001.
A week prior to the Mountain View deal, Washington, D.C. based real estate company Northridge Capital bought the Circle Point Corporate Center in Westminster.
The 273,000 square-foot office building, on the north side of U.S. 36, adjacent to the Westminster Promenade, is said to have sold for $47 million. The massive Denver industrial real estate firm ProLogis sold the property.
“We are bullish on the future performance of the property and the Boulder corridor as a whole,” said David Jackson, president of Northridge Capital, in a statement about the purchase.
Nearby, Long Beach, CA-based Urban Pacific Builders plans to build a $200 million residential and retail community called Axis, with construction starting later this year. Author Deepak Chorpra also lending his fame to a $40 million condominium and spa project next to the Westin Hotel and Conference Center.
The corridor buys were preceded late last year by TIIACREF’s $125 million purchase of the 10-building Westmoor Technology Park located just south of Interlocken in Westminster.

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