JULY 15-AUGUST 4, 2015
by Jill Jamieson-Nichols
Rally Software’s headquar-
ters achieved record pric-
ing for an office building in
Boulder, selling for $53.2 mil-
lion – or a whopping $344
per square foot – according to
public records.
Houston-based
Lion-
stone Investments bought
the 154,624-sf building from
MAVDevelopment on behalf
of an institutional client.
MAVD acquired the property
in 2012 and just completed an
89,000-sf expansion for Rally.
The building at 3333 Walnut
St. is exceptional for Boulder
in that it offers essentially new,
large-floor-plate office space
in an infill location. It’s within
a couple of blocks of Boulder
Junction, the city’s new transit
village, as well as the Twenty
Ninth Street shopping and
entertainment area and future
Google campus.
CBRE’s Mike Winn, Tim
Richey, Geoff Baukol and
Chad Flynn had the listing
on the property. They didn’t
return phone calls about the
transaction.
The asset reportedly attract-
ed a crowd of institutional
investors because of its loca-
tion, quality and tenant. Rally
Software, which signed a
10-year lease with MAVD a
couple of years ago, is being
acquired by software giant CA
Technologies in a $480 million
deal set to close next year.
“The investor demand for
this infill Boulder asset was
phenomenal. Institutional
buyers quickly recognized the
strong underlying fundamen-
tals, which combined with
an incredibly high barrier to
entry creates a very appeal-
ing investment opportunity,”
Baukol said in a press release
posted on Lionstone’s web-
site.
“This is a sizeable office asset
in the context of the Boulder
market,” added Winn. “Many
institutional buyers had been
waiting for the right oppor-
tunity to buy in this dynamic
market, and this was a solid
fit.”
“Lionstone is thrilled to be
in the Boulder market. This
area is highly educated and
is home to an innovative and
growing tech industry,” said
Lionstone CEO Jane Page.
“The Rally Software building
offers tenants top-of-the-line
amenities and the campus
environment their talent pre-
fers.”
Ann Arbor, Mich.-based
MAVDevelopment bought
the original 65,545-sf build-
ing and land for $15.8 million
three years ago. It knew it was
likely Boulder-grown Rally
Software would expand, but
said even if that didn’t occur,
the acquisition was a rare
chance to build large-floor-
plate office space that doesn’t
exist in central Boulder.
Boulder’s office vacancy
rate currently is in the single
digits.
Lionstone Investments is a
privately owned real estate
investment firm that also
owns the Janus Capital World
Headquarters in Cherry
Creek North.
s
Rally Software’s building in Boulder sold for $344 per square foot.
by John Rebchook
When Pat Broe developed
the 20-story Country Club
Towers and Gardens about
three decades ago, it was a
visionary and bold move.
“It had been at least 10 years
since any high-rise apartment
had been built in Denver,”
said Carl Luppens of the Broe
Real Estate Group.
“He was really visionary,”
by building the 183-unit tower
at 1001 E. Bayaud Ave., in the
West Washington Park neigh-
borhood.
“He was the first to realize
that people would want to
live in these urban corridors
and have all of the amenities
that you find with high-rise
living,” Luppens said.
Recently, the Broe Real
Estate Group, an affiliate of
the diversified Broe Group,
based in Cherry Creek North,
broke groundon an evenmore
impressive apartment com-
munity, County Club Towers
II and III. (They are referred
to as Country Club Towers II).
The $190 million twin tow-
ers, each with 31 stories, are
at 1001 E. Bayaud Ave. and
1091 E. Bayaud Ave., at the
southwest corner of Speer
Boulevard and South Down-
ing Street.
When completed, they will
have 552 high-rise apartments
and six garden units. The
average size will be around
900 square feet. About two-
thirds of them will be one-
bedroom units.
They are immediately west
of the Denver County Club
Towers and Gardens.
A rendering of Country Club Towers II, being developed by the Broe Real Estate Group and designed
by Chicago-based Solomon Cordwell Buenz
Inside
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