Colorado Real Estate Journal - January 21, 2015
A high-visibility office building along a key corridor in Boulder sold to a local investor who plans to take it to the next level. Doctus Partners LLC, an investment group led by Scott Pudalov of Boulder, acquired the Premier Members Federal Credit Union building at Arapahoe Avenue and 55th Street. The credit union sold the building and will remain in approximately a third of the space for the foreseeable future, said Pudalov, who plans an extensive capital investment in the property. “We’re going to make it a first-class office building,” he said. The 60,000-square-foot structure at 5495 Arapahoe Ave. was purchased for “roughly $100 a square foot” and will be redeveloped in an environmentally conscious manner, Pudalov said. Improvements will include a second lobby, and technology and other upgrades. The building sits along the East Arapahoe Avenue corridor, a mile-long stretch of Arapahoe that is the subject of a community planning effort. Various scenarios are being discussed, ranging from maintaining the corridor’s mostly industrial nature to creating office, arts and entertainment districts to promoting affordable housing and retail development. Located a half-mile from the new Foothills Hospital campus, the Premier Members Federal Credit Union building is zoned for a variety of uses, including office and medical office, said Pudalov. There currently is about 40,000 sf of “wide-open, high-ceiling space” on the first and second floors. “The interest in the space has been astonishing,” said Pudalov, adding the investment group is hoping for one or two tenants to fill the building. The asset is the 11th building that Pudalov has acquired in the Denver area. His holdings include North Point Business Park in Northglenn, which he said has been appraised at twice the price the paid for it in late 2013. FirstBank provided financing for the acquisition of 5495 Arapahoe. Pudalov has worked with the bank before and brought it in during the preliminary stages of the deal. “They were willing to take the time and effort to look at the property even when we were looking at it in a very preliminary way,” he said. “Between FirstBank and my partners, I had a team assembled that was a huge assistance to me.” Pudalov said he and his investors are interested in acquiring additional assets. “I really enjoy Colorado and Boulder. I as well as my investment group are actively looking for additional transactions in the value-add category,” he said.