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BOULDER - Two multimillion-dollar building sales in Boulder County this month are indicative of the sting felt by local developers in the wake of the downturn in the office lease market. The sales are a boon to Boulder's economy but also show a conservative streak among buyers in the market.
In the largest sale, the Commonwealth Building at 1843 Folsom in Boulder was sold for $3 million to a trio of investors led by Neil Lubar of Gibbons-White Real Estate. Lubar, along with George Vicenzi of New York and an unnamed partner in Aspen, purchased the 17,000-square-foot building for roughly $175 per square foot.
Owners Keith Jenkins, Lee Erb and Ken Wagers sold the building to Lubar and his partners while Neil Littman of the Colorado Group also received a referral fee from the sale.
"We were looking for a conservative, blue-chip Boulder investment, and we liked the concept of the property, the structure of the building and the location," Lubar explained. The building is occupied primarily by dentists and other medical professionals and is at 100 percent occupancy.
"We interviewed all the tenants, and, at that point, we really liked the deal. They are dentists who have been in practice for a while and are going to stay there a long time. A lot of times when these dentists leave their practices, too, they will sell it so we automatically inherit a new tenant. The market is pretty shaky right now as far as office space goes so this was land of a bright spot in the market where medical and dental use is a little bit more conservative in terms of tenants," Lubar said.
In another $1.1 million deal, Irwin & Hendrick sold the 14,825-square-foot property at 408 South Pierce St. in Louisville to a local partnership called Musei LLC. The company bought the building, which was brokered by Littman and Audrey Berne of The Colorado Group, in order to specifically place a single tenant. Stassen North America, a tea company, will occupy the building following the completion of the sale.
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