Page 20 —
COLORADO REAL ESTATE JOURNAL
— June 1-June 14, 2016
tan. Kokotan said most down-
town landlords seem to want
to cater to smaller companies,
and rent can be twice as much
downtown as it is in East Boul-
der. That’s partly due to a shift
toward institutional ownership;
Hammerstein said rents have
risen by as much as 30 percent
for some assets.
“Cost preservation is key for
these companies. They’re trying
to balance cost and culture, and
usually cost wins out,” he said.
East Boulder locations such as
Flatiron Park, Pearl East Busi-
ness Park, Tierra Business Centre
and others offer less expensive
space, and Kokotan said Flatiron
Park was flexible with regard to
build-out.
Chris Boston of Gibbons-White
Inc. in Boulder said he has heard
a lot of talk about tech tenants
relocating to the east but that
there also are tenants that have
moved the opposite direction. “I
don’t think you can say it’s a
trend,” he said. “I think some
companies do that, but others
continue to grow and expand
and locate in downtown Boulder.
I think it’s a very company spe-
cific decision.”
SolidFire expanded to 60,000
sf at PearlWest; however, rates in
that downtown project are signif-
icantly higher than many other
locations, including East Boulder.
And Boston agreed that there are
“very few” spaces of 10,000 sf or
more available downtown.
Penton Media/New Hope
Network, Pellucid Analytics,
Shipcompliant and sovrn all
have relocated from downtown
to Flatiron Park.
“We’ve really been creating
space that is attractive for the
tenant base,” said Steve Eaton,
vice president of Goff Capital
Partners, which owns 716,000
sf of office/creative office space
in Flatiron Park. Working with
vacancies and tenant turnover,
the company has assembled
large, open blocks of creative,
dynamic office space.
At 5541 Central Ave., it dou-
bled the size of a former ware-
house and converted the build-
ing to creative office space. “We
had tenants committed prior to
construction for all of that space,”
Eaton said.
Flatiron Park also added ame-
nities over the past few years,
including Ozo Coffee and an
Upslope Brewing Co. taproom.
Kokotan said IMM uses those
amenities for meetings, and they
also have helped camaraderie
with employees hanging out
together after work.
“In Flatiron Park, we’re really
been place making. We’ve creat-
ed a very dynamic place for office
tenants to relocate,” said Eaton,
who noted there are three to five
food trucks in the park each day.
Kokotan said employees have
had to adjust to not having as
many lunch choices as they did
downtown, and IMM responded
by providing company spon-
sored lunches three times a
week and increasing the types of
snacks available. IMM also pro-
vided a Smart car and bicycles for
employee use.
Although it’s easy to access
by car or bike, Kokotan said a
downside is a lack of good public
transportation in the area and
especially into Flatiron Park.
The growth of technology ten-
ants to East Boulder has created
“a nice little tech community,”
which is another attraction to
growing companies, said Ham-
merstein. “They’re surrounded
by other forward-thinking peo-
ple.”
But availabilities are shrink-
ing, just as they are downtown.
“That’s still a challenge any-
where in Boulder. There’s not a
lot of vacant space,” he said.
s
Element Properties, which is
developing the S’PARK mixed-
use development in Boulder,
has completed several very
attractive redevelopments,
mostly multifamily, in the city,
noted Crabtree.
“This building is an oppor-
tunity to diversify our portfo-
lio of projects. Element Prop-
erties is very committed to
community development by
improving people’s interaction
with the built environment. We
looked at 1855 S. 57th Court as
a way to expand the character
and vibe from our residential
projects into this out-of-date
commercial building. There’s a
new creative energy emerging
in Flatiron Park and we feel that
we can deliver an exciting prod-
uct which further enhances the
rebranding,” said Scott Holton,
principal of Element Properties.
The building will be delivered
this fall.
Arch11 Inc. is handling the
redesign. Burke Builders is the
contractor.
Ashley Overton and Mike
Hastings of Flatiron Com-
mercial LLC represented 1855
South 57th Court LLC, which
is affiliated with the ownership
of KMLabs, in the sale of the
building.
Other News
n
A 7,327-square-foot office/
warehouse building on 1.18
acres of land at 4001 N. Valley
Drive in Longmont sold to a user
for $1.45 million.
Integrated Water Services
Inc.
purchased the property,
which has visibility on Interstate
25, from
Brem Partnership.
Dawn McCombs
of
Avison
Young,
who represented the
seller, said the fenced yard and
interstate visibility drove inter-
est in the property.
FCI Constructors previously
occupied the building, which
was built in 1997. FCI recently
relocated to a new building to
the south.
n
A local restaurateur recently
purchased the former Pupusas
Sabor space at 4550 Broadway
in Boulder and has it listed for
lease while he weighs the option
of opening another restaurant
there.
Lava Properties,
led by
David
Fan,
paid $1.03 million for the
2,772-sf restaurant condo.
Fan has operated multiple res-
taurants in Boulder County. He
ran Spice China in Louisville
for 15 years before selling the
restaurant in 2015 and currently
operates China Gourmet. He has
the Broadway property listed for
lease while he weighs the option
of opening another restaurant
there.
Ashley Overton
and
Michael
Hastings
of
Flatiron Commer-
cial LLC
represented Lava Prop-
erties in the acquisition.
s
Tech
Flatiron
Flatiron Park has attracted a number of growing technology tenants.
Element Properties is reinventing the building at 1855 S. 57th Court in
Boulder as creating office space.
California, who are actively tar-
geting the city due to its strong
fundamentals.”
Mulberry & Lemay Crossing
was built in 2002.
Other News
n
Pfankuch Storage 2534 LLP
purchased 2.88 acres of land at
2534 in Johnstown for construc-
tion of a ministorage facility.
The project at 4560 Ventura
Drive is being driven by new
home construction in Thompson
Ranch and nearby apartments
being developed by AG Spanos
Cos., according to
Steve Griffith
of
Griffith Realty Advisors.
The
nearest self-storage facility is sev-
eral miles away, he said, noting
construction will begin immedi-
ately.
Griffith represented the buyer
in the transaction.
Nathan Klein
of
LC Real Estate Group
repre-
sented the seller,
Thompson
Ranch Development Co.
The
price wasn’t released, but public
records indicate the property sold
for $503,192.
Pfankuch owns two other self-
storage facilities inNorthern Colo-
rado.
n
Level 10 Fitness,
doing
business as Farrell’s Extreme
Bodyshaping, renewed its lease for
5,000 square feet at 2716 S. College
Ave., Suite B, in Fort Collins.
Terri Hanna
of
WWR Real
Estate Services
was the listing
broker.
n
Macalegin Electronics LLC
leased3,360 sf of industrial space at
800 Stockton, No. 1, in Fort Collins.
Cobey Wess
of
SVN/Denver
Commercial’s
Northern Colorado
office represented the landlord,
CT
Enterprises. Michelle Hickey
of
Re/Max
represented the tenant.
n
Agia Sophia Properties LLC
paid $217,000 for a 1,975-sf indus-
trial investment property at 1319 S.
GarfieldAve. in Loveland.
RandyMarshall
of
SVN/Denver
Commercial
was the listing broker.
Karin L. Delaney
was the seller.
Mitch Benner
of
The Group
Inc.
represented the buyer.
s
REIT
The UPS Store and Qdoba Mexican Grill are among tenants at the retail strip center at Mulberry & Lemay
Crossing.
