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REAL ESTATE
LONGMONT - In its second sale of the month, Circle Capital has sold its 450,000-square-foot Seagate/Maxtor property in Longmont for about $60 million.
New York-based FEIGA/Sandstone LP purchased the flex buildings at 2452 Clover Basin Drive for approximately $133.50 per square foot.
Circle Capital President Terry Fitzpatrick said he sold the building because it didn't fit with company's strategy.
"We are a value-add firm, and when you get a big tenant set at a long-term lease in what we believe to be a rising-rate environment, then that's not an upside for us."
Value-add investors seek either vacant buildings or short-term leases where they can make improvements, or rely on an improving market, to raise lease rates and make a profit. Long-term leases allow no additional profits. Maxtor's lease is locked until 2018, and Seagate inherited that lease when it bought computer data-storage company in 2005. Seagate said it plans to vacate the building and move the former Maxtor employees to Seagate's Longmont campus.
Ron Urgitis, Tim Swan and Mary SuIlivan of Denver-based CB Richard Ellis represented the Circle Capital on the deal, and Keith Broemmer of Broad Street Advisors represented FEIGA/Sandstone.
Earlier in July, Circle Capital struck a deal to sell its 78,000-square-foot building, leased by Array BioPharma, at 2600 Trade Centre Ave. to BioMed Realty Trust Inc. for $20.8 million. About $14 million of that sale is expected to go to Array, because the biopharmaceutical company had secured an option to buy the building. The deal is expected to close sometime during the third quarter.
Totaling up the numbers, Circle Capital has sold about 528,000 square feet, or 26.4 percent of its holdings, for $66.8 million - at a rate of $126.52 per square foot. That's nearly double the $71 per square-foot rate Circle Capital paid Pratt Properties when it acquired about 2 million square feet of buildings, which include the two aforementioned properties,...