Investor snaps up CTC flex property in record-breaking sale
A fully occupied flex property in the Colorado Technology Center sold to a local investment company in a record-breaking sale.
Boulder-based buyer Bh 305 Arthur LLC purchased the 17,940-square-foot, Class B office/flex property at 305 S. Arthur Ave. in Louisville from seller Etkin Johnson. The property traded for $5.6 million, or approximately $314 per sf, which is a record sale price for the CTC, according to an Etkin Johnson press release. Riki Hashimoto and Dan Grooters of Newmark represented the seller, while Brad Pugh of Compass Colorado Realty represented the buyer.
Built in 2017 by Etkin Johnson, the property offers both office and warehouse space as well as a conference room and kitchen. There are multiuse trails located directly behind the property, and it’s easily accessible to and from U.S. Highway 36 and Interstate 25.
Accurence Inc., a local software company, occupies the entire property. Hashimoto declined to release the terms of the tenant’s lease agreement. However, he noted that the tenant was the first to occupy the property following its construction, and it has a significant amount of time remaining on its primary term. According to CoStar data, the rental rate at the property falls between $10 and $13 per sf.
Grooters said the asset garnered strong interest, despite being listed during the ongoing pandemic.
“This was one of the first assets we brought to market after the onset of COVID-19, and we were pleasantly surprised by the number of quality offers we received in a short period of time,” said Grooters. “This speaks to the location, strength of tenancy and high-quality building Etkin Johnson developed.”
Hashimoto agreed that the asset’s quality location and stable tenant were driving factors in the sale, saying, “We’ve seen a significant amount of capital for assets with longer remaining lease terms. The opportunity for credit quality and a lease term that will withstand through this period of time is not lost on the investment marketplace.
“Due to the lack of quality investment offerings in Boulder County, we received a heightened level of interest on this property from multiple buyer groups, including 1031 exchange, private capital and family offices,” Hashimoto added.
Featured in the December 16, 2020 – January 5, 2021, issue of CREJ