Platteville Office Building Leased to Occidental Petroleum Corp. Sells for $32.5M
Platteville Energy Partners has sold its 114,524-square foot, two-story office building located at 501 N. Division Boulevard in Platteville to an undisclosed buyer for $32.5 million, or $282 per square foot. The two-story office building is 100 percent leased to Occidental Petroleum Corporation (formerly Anadarko Petroleum Corporation) as a mission critical operations center in the heart of the Denver-Julesburg (D-J) Basin.
John Jugl, Newmark Knight Frank’s vice chairman, Western Region Capital Markets, represented Platteville Energy Partners I, LLC in the transaction.
“The sale, which achieved extraordinarily high pricing for Weld County, comes at a time in which regulations surrounding the oil and gas industry throughout the State of Colorado remain at the forefront of state and local legislative discussions,” commented Jugl, who has completed investment sales transactions valued at more than $5 billion throughout his career.
“Additionally, Anadarko underwent one of the largest merger and acquisition deals in oil and gas history during the marketing process, having been acquired by Occidental Petroleum for $57 billion. The property’s unique location, integrated operations center and Anadarko’s long-term commitment to the D-J Basin were all driving factors in the sale,” continued Jugl. The D-J Basin is centered in eastern Colorado and produces almost all of the State’s crude oil and nearly half of the State’s natural gas.
As the nerve center for Occidental Petroleum Corporation’s operations in the D-J Basin, 501 N. Division Boulevard functions as a logistics hub that plays a critical role in managing drilling, human resources and product flows across Occidental Petroleum Corporation’s wells in the D-J Basin.
“Many investors recognized this asset’s strategic significance which resulted in a highly competitive sale process,” concluded Jugl. “We were fortunate to work on this transaction, which also gave us the opportunity to dig deep into understanding Colorado’s oil and gas industry.”
Photo courtesy of NKF