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Building leased to leading player in D-J Basin fetches $32.5 million

The building at 501 N. Division Blvd. in Platteville is 100% leased by Occidental Petroleum Corp. (Newmark Knight Frank)
John Jugl CREJ Colorado Real Estate Journal Speaker

John Jugl

A mission-critical operations center leased to the top oil and gas producer in the Denver-Julesburg Basin sold for $32.5 million, or $282 per square foot.

Occidental Petroleum Corp., which recently acquired Anadarko Petroleum Corp., occupies the entire two-story, 114,524-square-foot building, located at 501 N. Division Blvd. in Platteville. Occidental has more than a decade remaining on its lease.

Platteville Energy Partners I LLC sold the property. The buyer’s name wasn’t disclosed, but Weld County records list it as CIM OFC Platteville CO LLC, which apparently is affiliated with Phoenix-based CIM Group.

The building is a nerve center for Occidental Petroleum’s operations in the D-J Basin, playing a critical role in managing drilling, human resources and product flows across the company’s wells in the region, according to information provided by Newmark Knight Frank.

“Many investors recognized this asset’s strategic significance, which resulted in a highly competitive sale process,” said John Jugl, NKF vice chairman, Western Region Capital Markets. Jugl represented the seller in the transaction.

“The sale, which achieved extraordinarily high pricing for Weld County, comes at a time in which regulations surrounding the oil and gas industry throughout the state of Colorado remain at the forefront of state and local legislative discussions,” Jugl said.

“Additionally, Anadarko underwent one of the largest merger and acquisition deals in oil and gas history during the marketing process, having been acquired by Occidental Petroleum for $57 billion. The property’s unique location, integrated operations center and Anadarko’s long-term commitment to the D-J Basin were all driving factors in the sale.”

The D-J Basin produces almost all of the state’s crude oil and nearly half of its natural gas.

Featured in CREJ’s Nov. 6-19, 2019, issue

Kris Oppermann Stern is publisher and editor of Building Dialogue, a Colorado Real Estate Journal publication, and editor of CREJ's construction, design, and engineering section, including news and bylined articles. Building Dialogue is a quarterly, four-color magazine that caters specifically to the AEC industry, including features on projects and people, as well as covering trends…