BOULDER — Real estate investor and developer Lou DellaCava has purchased a two-story manufacturing/office flex building in east Boulder for $12.1 million.
Through his company, DellaCava Development Co. LLC, DellaCava purchased the 60,000-square-foot building at 5395 Pearl Parkway from 5395 Pearl Parkway LLC, a locally owned entity managed by Crestone Real Estate LLC.
DellaCava said he purchased the building through a 1031 exchange after the sale last year of 25,000 square feet of retail space in Longmont. A 1031 exchange allows an investor to sell a property and reinvest the proceeds in a new property, deferring all capital-gain taxes.
“We bought the building to be part of our portfolio because it is adjacent to other parcels we own,” DellaCava said.
DellaCava speculated that because Boulder is in need of more housing, that the properties his company owns in the Pearl Parkway area could someday be redeveloped into 300 to 400 housing units.
“That’s purely speculation,” DellaCava said. “Right now, the building is occupied by two well-structured companies, and we plan to keep it in our portfolio for a long time.”
The building, constructed in 1994, is fully leased by tenants Freewave Technologies Inc., and Sklar Exploration Co.
Crestone Real Estate purchased the building in 2008 for $6.1 million.
The seller was represented by Geoffrey Keys and Ronan Truesdale of Keys Commercial Real Estate in Boulder.