Houston firm pays MAVDevelopment $53.2M for Rally Software HQ

BOULDER — A real estate investment firm from Houston has bought Rally Software Development Corp.’s headquarters at 3333 Walnut St. in Boulder for $53.2 million.

Lionstone Investments bought the property from Ann Arbor, Mich.-based MAVDevelopment, which has a sizable portfolio in Colorado that includes land and buildings in the Harmony Technology Park in Fort Collins.

Rally (NYSE: RALY), which is in the process of being acquired by CA Technologies (Nasdaq: CA), is expected to maintain its presence in Boulder after the merger is finalized. A Rally spokeswoman said the company’s lease in Boulder runs “for the next 10 years or so.”

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Rally employs close to 300 people in Colorado between its Boulder and Denver locations. But the Boulder site has room for roughly 1,200 after an 89,000-square-foot addition was completed in late April.

Rally’s headquarters building now includes roughly 154,000 square feet on about 8 acres at the northeast corner of Walnut and 33rd streets.

MAVD had purchased the property in 2012 for $15.8 million and started in on the addition in 2013. MAVD president Rob Aldrich said in a phone interview Thursday that he couldn’t say how much the expansion cost to build.

Aldrich said the decision to sell the property was made with the company’s investors after it became clear that it was “the right time.”

“We diversified into Colorado about 10 years ago,” Aldrich said. “We’ve been active out there in Boulder. We still continue to like the market, and we’ll see growth in our portfolio there for the next several years.”

In addition to holdings in Denver, where the company has an office, MAVD still owns the office building at 2525 28th St. in Boulder. In Fort Collins, the company recently completed a 50,000 square-foot office building in the Harmony Technology Park, and is planning an identical one across the street.

In downtown Fort Collins, meanwhile, the company is hoping to break ground later this year or early next year on a four-story, 65,000-square-foot building at 221 E. Mountain Ave. near Old Town Square that would include retail space on the ground level and offices above.

Officials for Lionstone Investments couldn’t be reached for comment Thursday.