A three-building downtown Boulder office portfolio sold last month for $146.3 million, according to property records. Clarion Partners, a real estate investment management firm headquartered in Los Angeles, purchased the 235,316-square-foot portfolio in a sale that closed Dec. 23, 2019.
Tim Richey, Mike Winn, Jenny Knowlton, Charley Will and Chad Flynn with CBRE Capital Markets in Denver represented the confidential seller. Clarion Partners also named CBRE’s Erik Abrahamson and Sarah-Joan Rotholz as exclusive leasing advisors.
“This portfolio includes some of the highest quality and most creative office space in Colorado, located in one of the country’s top tech markets. Boulder’s tech ecosystem is world-renowned, and downtown has seen an influx in recent years of tech firm growth. These growing companies are looking for options like the Boulder office portfolio that combine Class A features with walkable amenities and access to highly educated tech talent,” said Erik Abrahamson, a vice president with CBRE in Boulder.
The three properties in the portfolio include 1881 9th Street (also called Canyon Center), 1050 Walnut Street and 1900 15th Street. The buildings were constructed between 1983 and 1994 with each undergoing significant renovations within the last several years, including a new exterior façade and plaza improvements at Canyon Center, showers and bike storage, and upgraded lighting. Two of the buildings — Canyon Center and 1050 Walnut — are Energy Star® and LEED Gold Certified.
The portfolio includes above-average parking ratios, and the properties are each within walking distance of Pearl Street pedestrian mall and over 250 shops and restaurants. The portfolio is currently 96 percent leased to more than 20 tenants, including the Southwest Research Institute (SWRI) and ABT Associates. Approximately 10,000 square feet of space is available for lease at Canyon Center.
“The Boulder Portfolio provided the opportunity to acquire a critical mass of Class A office space with high-credit tenancy located in one of the nation’s most supply-constrained and desirable office markets,” added Jenny Knowlton, vice president with CBRE Capital Markets, Institutional Properties.
The Boulder office market closed out 2019 with a direct vacancy rate of just 5.4 percent, less than half of metro Denver’s office vacancy rate of 11.6 percent, according to CBRE research.
The new owner, Clarion Partners, is a real estate investment management firm headquartered in Los Angeles. The firm made headlines in Colorado last year with its record-breaking acquisition of 1.93 million square feet of Denver industrial space, marking Denver’s single largest industrial transaction to date.
CBRE also retained the property management assignment for the Boulder office portfolio.
Photo courtesy of CBRE