Colorado Real Estate Journal - January 1, 2014
A local investor bought a fully occupied, small-tenant office building in Boulder for $1.3 million. Steve Remmert purchased the Matrix Office Building, a 3,704-square-foot building at 954 North St., for $350.97 per sf. The acquisition was part of a 1031 exchange. The building houses 18 holistic health practitioners. The three-story, elevator-served building is within walking distance of the Pearl Street Mall and has 16 parking spaces, including eight covered spaces. Todd Walsh of The Colorado Group called it “a nice property in a nice location.” Remmert concurred. The building is just south of the Boulder Community Hospital property, with its potential redevelopment, in an area that is seeing new construction. “I think that whole little area is poised to grow,” said Remmert. Because 954 North has so many tenants, the vacancy risk is very low, said Walsh. On the flip side, the property required someone willing to actively manage it, said Walsh, who represented the seller, 954 North LLC, with Jessica Cashmore, also of The Colorado Group.
“We had good activity, but some of the concern was the strength with this buyer,” he said. “I think this was something that a local investor could take and manage on their own and keep the vacancy very low.” The cap rate was in the high 6 percent range, said Walsh, adding the price was in line with the market. “I think the buyer got a good deal. The seller was happy,” he said.