Two Boulder Industrial Buildings to be Converted into Creative Office Space
JLL has arranged $8.7 million in acquisition-bridge financing for two flex buildings totaling 46,702 square feet at 5300 and 5305 Sterling in Boulder. Beginning in the summer of 2020, borrower Ivy Realty plans to begin converting the buildings into modern creative office space for use by large single tenants.
5300 Sterling was built in 1983 and is currently a two-story industrial warehouse consisting of 19,904 square feet, while 5305 Sterling, which was constructed in 1996, is a 26,798-square-foot, two-story, Class B flex building. The borrower owns the adjacent building at 5360 Sterling and executed a similar repositioning plan with great success, leasing the property to a multinational technology company.
The properties are in the heart of downtown Boulder, one of the most vibrant hubs for technological innovation and progress in the country, having recently being named “America’s Startup Capital” by Inc. Magazine. The property location provides access to a highly educated talent pool and one of the highest concentrations of software engineers in the country.
JLL worked on behalf of Ivy Realty, to place the three-year, floating-rate loan with two one-year extensions with a regional lender.
The JLL Capital Markets team representing the borrower was led by Senior Director Leon McBroom.
“Ivy has a proven track record in Boulder, and their acquisition of 5300 and 5305 Sterling will be a continuance of their creative vision that attracts best-in-class tenancy,” McBroom said.