Quantum Corp. consolidating operations in Boulder

By S. Clayton Moore

BOULDER — Less than a year after its $59 million acquisition of Boulder-based Benchmark Storage Innovations Inc., Quantum Corp., a California-based data storage company, is combining its offices and operations in Boulder.

?Basically, the situation is that they are consolidating over to the old location at 4001 Discovery Drive where Quantum has a lot more space,? said Eric Brynestad of The Staubach Co., who is finalizing a relationship with Quantum to sublease the former Benchmark building in Valmont Industrial Park. ?We’re going to try to sublease the former Benchmark facility for them, which is about 43,000 square feet.?

To make room to move employees from the former Benchmark facility, Quantum subleased an additional 18,847 square feet from BEA Systems among two suites in the Qwest Building at 4001 Discovery Drive. Paige Coker of the Colorado Group handled the transaction.

Janet Bartleson, communications manager for Quantum’s DLT tape group, confirmed that the consolidation of space is under way, but she said the move does not indicate any layoffs or cutbacks.

?We just want everybody who works together to see each other every now and then,? Bartleson said. ?We were required by contract when we acquired Benchmark to stay in a lease for its building, so now we’re looking for someone to sublease it. We actually ended up adding quite a few employees to the Boulder area as a result of the acquisition. It seems uncharacteristic somehow, but we kept something like 80 to 90 percent of the employees and added more on top of that. Our Boulder presence has grown.?

The company did cut 20 workers out of a total 225 in Boulder and 31 in Colorado Springs last September during a layoff in which 1,100 jobs were terminated worldwide, primarily in Malaysia. Its next challenge will be leasing 40,000 square feet of space that is divided between office, flex, research & development and warehouse. It could be a formidable task given the glut of space in the Boulder market.

?I don’t know how soon we’ll lease that building,? Brynestad said of the Valmont location. ?We’re just starting to work on it. It’s basically in, but it’s only come in within the last week or so.?

PT MOVES IN: Cary Gold Physical Therapy took over 2,500 square feet at the Northpoint Office Building recently in a lease agreement with the ownership of the building, located at 3434 47th St. in Boulder. Jason Kruse of the Colorado Group represented the owners while Barb Pozzi of the same firm represented the physical therapy firm. The new tenants took occupancy April 7 following tenant finish and the construction of a new entrance.

?Activity for spaces less than 5,000 square feet has been good. We’re seeing interest from the medical field and start-up companies as well,? said Kruse, who has an additional two suites available in the Northpoint building.SPORTSWARE RELOCATES: Sportsware Inc., which produces ?The Commissioner,? a fantasy sports management system for fans of football, baseball, basketball and hockey, is relocating its offices in Boulder. The firm recently signed a two-year lease on a 712-square-foot office at 6658 Gunpark Drive in Boulder. Audrey Beene and Adam Ranes of The Colorado Group completed the transaction.LOUISVILLERETAIL RENAISSANCE: Retail is making a comeback in downtown Louisville through the efforts of Arlin Lehman, vice president of the Downtown Business Association and owner of the soon-to-be completed Lehman building at 901 Front St.

The new tenants include a European antiques import store, The Knitting Den, and the Rocky Mountain Bear Factory. The building has 32,000 square feet available, and all the spaces are leased.

?It’s probably unusual to lease out that quickly,? Lehman said. ?However, my experience has been that we might have 4 million square feet available in Boulder County, but those spaces are not in downtown Louisville. The people who want to locate here aren’t the kind of businesses that belong in Interlocken and McCaslin and other areas where those big buildings are still sitting empty.?

Lehman made a conscious decision to leave the offices on the first level vacant until he could place retail tenants in them and even provided rent incentives to attract businesses such as the antique shop, whose owners had been looking in Lyons.

?It’s been a real labor trying to draw people into downtown and get our area to be active again,? Lehman explained. ?The life really got sucked out of downtown a few years ago when the big boxes moved in. That’s why I committed to keeping the first level for retail. I still have a waiting list of people who would like that first level for office space, but I was holding out until the last minute. In the last three weeks, it all popped. I leased the space on the first level to five different tenants.?

With the building completion coming to fruition, Lehman did find it hard to maintain his enthusiasm.

?I did say that if I finished the building in June and that space wasn’t leased that it would go to offices. Fortunately, that’s not going to happen. In the long term, it’s just better for downtown Louisville to have those retail shops,? Lehman said.WORLD OF WONDER: It’s a wonderful world for the WOW! Children’s Museum in Boulder, which received a $6,000 general operating support donation from the DellaCava/Tebo Development Co.

?We have made contributions to them fairly regularly over the past five or six years,? said Lou DellaCava. ?They do a lot of good work in the county, and we appreciate the fact that they’re a non-profit doing their work as a labor of love. Steve Tebo and I are just a couple of humble little citizens trying to make a positive contribution to our community.? The new donation will be used primarily for rent of the facility’s location at 1075 South Boulder Road in Louisville.

?General operation expenses have been increasing steadily for WOW! This donation will greatly assist us in our efforts this year to maintain quality, functional exhibits and museum space,? said Lisa Attalah, the museum’s executive director.FREDERICK

BEER WAREHOUSE: Hunt Sales Co. of Longmont, who handles distribution of Anheuser-Busch products in Boulder and the northern suburbs, has selected Sun Construction to build its new 60,000-square-foot sales and distribution facility in Frederick. Upon completion, the company will move from its present location at 1400 Kansas Ave. to the Bear Industrial Park at the intersection of Weld Road and the East I-25 Frontage Road.

?It’s going to be an interesting facility,? said Bill Prout of Sun Construction. ?It’s a temperature-controlled warehouse that will keep all the product at a very carefully controlled temperature, which is one of the more challenging aspects. It’s not rocket science, but it’s not your typical slap-it-up warehouse, either.?

The facility is being designed by Zeiler-Pennock, Inc./OHA Architects-Engineers of Denver. Construction will begin this spring with completion sometime in April 2004.

?It’s going to be an aggressive schedule, but I think we can do it. It will be a very positive addition to the Frederick business community and really, good for this whole area,? Prout said.CHILDREN’S CENTER: Ground was broken April 11 for a child development facility in Frederick. The Creative Years Children’s Center will be a 9,700-square-foot center has a target opening date of mid-September.

?The design is all done, and we’re through the city. We have our footings and foundation permit so we’re working on securing the land and moving forward,? said Doug Wagner, who will be managing the project for Sun Construction and Design Services.BROOMFIELDHERITAGE STALLED: The Heritage Place development, intended to house the corporate headquarters of Heritage Bank as well as a series of luxury condominiums, has been delayed, according to all indications from its owners. Although the project plans are still scheduled to be presented before Broomfield city council May 13, the developers have told participants in the project that it has been put on permanent hold due to the current economy.

The Wells Partnership, the owner’s representative and project managers on Heritage Place, did not return calls. Among the project’s components were The Residences at Heritage Place, which were condos estimated to sell for up to $1 million, as well as supplemental retail and restaurants.LAFAYETTE KING SOOPERS: St. Louis-based developer Quadrant is moving ahead with plans to build a King Soopers grocery store in North Lafayette and is expected to deliver a plan for a new 66,000-square-foot store soon.

While the store would join a host of nearby grocery stores including an improved Albertson’s at U.S. 287 and South Boulder Road, it also fits closely with the company’s location strategy. Cities and municipalities are always pleased with the substantial boost in sales tax that a large-scale facility provides, and Lafayette should be no exception. The project is said by Quadrant to include up to 23,000 square feet of additional retail space and a gas station.

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