Downtown Boulder’s newest office building is gearing up to open next month, and almost before the dust has settled, the sale ofPearlWest is being discussedat a figure experts estimate could easily reach $140 million.
At those prices it could become the most expensive sale in Boulder’s history and a new benchmark for the city’s super-hot commercial real estate market.
“We have discussed the idea with the partners about selling the building,” said Randy Nichols, president and founder of Denver-based Nichols Partnership, the project’s owner and developer.
However, he said, it’s still just talk; no formal action has been taken by the partners.
“At this point, there’s no contract, no agreement — nothing has happened. It remains to be seen what will happen.”
If the site of the former Daily Camera buildings at 1048 Pearl and 1023 Walnut St. does sell, it would probably be the priciest real estate transaction in the city’s history.
“An asset like PearlWest will sell for somewhere between $550 and $600 a square foot at the low end and $800 a square foot at the high end,” speculated longtime local developer Lou Della Cava — putting the final price tag between $96 million and $140 million for the 175,000 square foot property.
That dwarfs the price tag on other recent large real estate deals, like the city’s $40 million buy of the8.8-acre Boulder Community Health Broadwaycampus in December and the sale of more than 1 million square feet of office space toSeattle-based Unico for $168 millionin early 2015. Even if PearlWest sells at $550 a square foot, that’s more than five times the $68 per square foot the Unico properties sold for.
“(PearlWest is) a stable property; it’s new and it’s in a part of town where the barriers to entry are high,” Della Cava said.
A construction worker passes by PearlWest, which has 160,000 square feet of office and retail space, in downtown Boulder.
Wealth management firm Crestone Capital, an investor in the project, was the first announced tenant, snapping up 30,000 square feet on the fourth floor, which it will occupy in mid- to late July
The company has since exercised an option for 6,000 more square feet, founder Dave Wright said Friday. A team of 300 will be moving in November.
“When we talked to Crestone (about leasing space) we talked to them as an investment company, so it’s not surprising they would build it and sell,” he said. “But since they are occupying office space there, they indicated they might be open to holding it for a while as well.”Wright said no chatter had reached him or the other tenants about a pending sale but said it had been discussed as an option in the past.
All of the office space has been leased, according to a Crestone official, with tech companiesGalvanizeandTrade Desktaking 27,000 and 13,000 square feet, respectively.
On the retail side, a first-floor restaurant from California-based Eureka Group and a John Atencio jewelry gallery have been announced. Four remaining retail spaces and a rooftop restaurant are listed on the website of real estate firm Gibbons White, which also gives lease rates for the office and retail space of between $21 to $85 per square foot.
But leases are currently being signed for the remaining spaces, said Lynda Gibbons, and the building should be fully leased at the time of opening. The Pearl Street side should open in July with the Walnut Street side to follow in two to four weeks.
The public rooftop park has already begun being reserved for events for summer 2017, Gibbons said, adding that she has gotten “numerous requests” for the space.
“We couldn’t be more pleased with the way the building turned out and the tenants we have in there,” Nichols said. “We’ve got our incubator, our tech tenant, a homegrown investment company, a whole lineup of retailers and restaurants and entertainment for the area — exactly what we wanted for the building.”
“It’s kind of the new Boulder.”
As to the timing of a sale, Nichols wouldn’t speculate.
“We’re sworn to silence on anything that hasn’t happened yet.”
PearlWest by the numbers:
PearlWest by the numbers
175,000 square feet of office and retail space at 1048 Pearl St. and 1023 Walnut St.
Home to the Daily Camera for 119 years
Sold for $9 million in 2010 to L.A.-based Karlin Real Estate
Sold again in 2012 for $13.5 million to Denver’s Nichols Partnership
$80 million: Original projected cost
Current known tenants: SolidFire, Galvanize, Trade Desk, Crestone Capital, John Atencio jewelry gallery; Eureka Group restaurant.
Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; Denver, Arvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone!For helpwith buying or selling a propertycall 303-981-2750!
My name is Michael Ross Steffen. I’m an Exit Realty Cherry Creek Agent in the Denver metro area and Team Leader For Generation Property Group! We specialize in advanced Internet marketing, buying, s....
This publication is designed to provide information regarding the subject matter covered. It is displayed with the understanding that the publisher and authors are not engaged in rendering real estate, legal, accounting, tax, or other professional services and that the publisher and authors are not offering such advice in this publication. If real estate, legal, or other expert assistance is required, the services of a competent, professional person should be sought.
2. The information contained in this publication is subject to change without notice.
METROLIST, INC., DBA RECOLORADO MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MATERIAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. METROLIST, INC., DBA RECOLORADO SHALL NOT BE LIABLE FOR ERRORS CONTAINED HEREIN OR FOR ANY DAMAGES IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF THIS MATERIAL.
3. PUBLISHER'S NOTICE:
All real estate advertised herein is subject to the Federal Fair Housing Act and the Colorado Fair Housing Act, which Acts make it illegal to make or publish any advertisement that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.
4. METROLIST, INC., DBA RECOLORADO will not knowingly accept any advertising for real estate that is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.
7. ALL RIGHTS RESERVED WORLDWIDE. No part of this publication may be reproduced, adapted, translated, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. The information contained herein including but not limited to all text, photographs, digital images, virtual tours, may be seeded and monitored for protection and tracking.
The real estate listing information and related content displayed on this site is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. This information and related content is deemed reliable but is not guaranteed accurate by the Pikes Peak Realtor Services Corp.
This site is used and paid for by multiple independent companies. The real estate broker cannot
require you as a prospective buyer to pre-qualify with or utilize the services of either of the mortgage loan originators. Nor can either of the mortgage load originators require you as a prospective buyer to utilize the services of the real estate broker.