Boulder-based Tepuy Properties, a real estate syndicator and property management company, has purchased 1 Park St. in Broomfield, a 26,400-square-foot single-story industrial building, for $1.75 million. Located just off Highway 36 and the Interlocken Loop, the property has suffered significant hail, fire and water damage, as well as other neglect.
“I’ve been looking for a while for a building we could improve and reposition, and I was wanting to do a more involved project than we typically do,” Ricardo Bottome, Tepuy’s asset manager, said. “This one fit the bill. The building has good bones and great potential. We are getting ready to perform a complete revamp of the entire property.”
Built in 1986, the property had suffered neglect for years due to bankruptcy and lien proceedings, Bottome said. In addition to the property’s extensive weather damage from hail, fire and water, the building also has significant parking lot and landscaping neglect. Tepuy Properties plans to spend more than $1 million on repairs and improvements, according to Bottome.
The building is currently 54 percent vacant. Shoot Indoors, a public gun range, is the sole tenant of the property, but Bottome hopes to attract a diverse group of new tenants, including companies needing manufacturing, food and kitchen, office or distribution space.
Tepuy Properties operates as a real estate syndicator, meaning the company gathers investors to participate in the purchasing of commercial real estate they couldn’t purchase individually. For the property at 1 Park St., 26 investors from the United States, Latin America and Europe purchased the building via a 506 (c) raise. Despite the building’s dilapidated state, Bottome said investors still flocked to be a part of the purchase.
“People look at the potential rather than the current condition of the building,” Bottome said. “We were fully subscribed within a week. It’s probably the fastest we’ve ever subscribed one of our projects.”
Tepuy Properties purchased the property from Evans Charles Properties via the bankruptcy estate of Jeanette Wellers. Eric Rutherford with WK Real Estate represented Tepuy in the transaction, while Joe Krahn with Cushman and Wakefield represented the seller.
The purchase of 1 Park St. marks the second property in Broomfield that Tepuy purchased this month. The company also recently closed on a 68,400-square-foot flex space for $11 million, its largest acquisition to date.
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