Tenants cut sweeter deals in soft market conditions
BOULDER — Timing Solutions has taken advantage of the area’s generous opportunities in the real estate market to cut a five-year deal on a new building at 4775 Walnut St.
The five-year lease works out to a little more than $9 per square foot, and TWH Partners, which owns the building, also is performing tenant improvements.
Timing Solutions plans to move all operations into the building in October, according to Samuel Stein, the company’s founder, president and chief executive.
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The lease allows the company, a supplier of high-fidelity time recovery, precise time interval measurement, and time and frequency distribution technology, to more than triple its operational space.
“We are going through a pretty big expansion especially in terms of space,” Stein said. “The last time I signed a lease, I was very na?ve about it. It turned out that we started too late to be able to get the additional space that we had forecasted we needed. After signing my last lease three years ago, I resolved not to let that happen again.”
The company’s current headquarters at 5335 Sterling Drive only has 8,000 square feet and is bursting at the seams. In order to resolve the situation, Timing Solutions started working two years ago with Denver’s Liberty Greenfield to represent them in seeking out new space.
Timing Solutions was able to capitalize on the local real estate market and filled a vacancy left by Network Photonics after it shut down operations.
The new building has 24,491 square feet and will allow for expanded space needed for production, systems engineering and systems integration processes conducted by the company, all of which are crowded right now. Additional space will also allow some breathing room for personnel who are doubled and tripled up in their current offices.
Stein says the move is due to a combination of good luck, timing and strategy.
“The market is very much a renter’s market right now in the sense that there is a lot of vacancy out there,” he said. “We identified possible properties and requested proposals from the landlords including the landlords here at our existing facility. We allowed them to compete against each other in order to obtain the best market price, and that’s how we did it,” Stein explained.
Chad Kollar of Liberty Greenfield said the mechanics of the lease are a little different than the standard deals done in the past.
“We got them into a great deal,” Kollar said. “We’re not paying for a full 25,000 square feet to start. We’re paying for less than that and then stepping it up annually. Those types of transactions are being done in today’s market with the nature of the business right now.”
CONDO CONVERSION: Jay Buster of Magpie Properties LLC has moved from leasing into sales of his property at 4735 Walnut St.
Earthnet Inc., a Boulder Internet service provider, has purchased at 6,700-square-foot office condominium in Buster’s building for $155 per square foot.
“They have a data center in the building that they have a lot invested in and recently asked me if it would be possible to purchase their unit as a condo,” Buster related. “I thought about it and crunched some numbers, and I decided it would work for me. We went ahead through the condo process, and they actually bought two units, which is actually now one condo unit. They now own 23 percent of the building.”
Bahman Saless, president of Earthnet, said the company’s monthly payments are now 20 percent lower than when it was renting. Buster is considering moving forward with sales of the remaining units at 4735 Walnut St. The building totals 31,000 square feet.
“Other tenants have heard about it, and there is now another tenant who is looking into buying their unit,” Buster stated. “I have presented them with a purchase contract, and they are doing their due diligence now. We have one empty unit that I would consider selling as well.” The building is office and R&D space. “I’m still amazed at how it works out for the tenant in that they can decrease their rent payment, own the unit, and I am still happy with the price I am getting,” Buster said.
LAFAYETTE
DHARMACON EXPANDS: Chad Kollar and Liberty Greenfield also represented another Boulder company on its recent expansion in Lafayette.
Growing biotech company Dharmacon Research Inc. signed lease on a brand new 40,000-square-foot building in the Lafayette Corporate Campus built by Etkin Johnson.
Dharmacon had outgrown its laboratory off Miner’s Drive in Lafayette.
The company produces an RNA sample that allows researchers to isolate certain proteins used in cancer testing. Dharmacon initially had been in 8,500 square feet and expanded to16,000 square feet before running out of space.
The new facility will be 50 percent office space and 50 percent laboratory space.
“They will be doing everything from research to the manufacturing of their product there,” Kollar said. The lease was finalized in May.
WESTMINSTER
BALL EXPANSION: The city of Westminster recently approved an administrative amendment to the Official Development Plan of the Ball Campus Subdivision to allow a 28,000-square -foot addition to the existing 46,000-square-foot BTC building at 9343 West 108th Circle.
The one-story addition will provide further space for product research and will house 30 additional staff members.
The Edmund F. Ball Technical Center (BTC) is located on a 205-acre Ball-owned site just south of the Jefferson County Airport. The BTC includes a complete research and development lab for investigating advances in Ball’s metal beverage and food container processes. The facility employs approximately 40 people. The facility was dedicated in April of 1985 and was remodeled in 1997 to accommodate Ball’s relocated packaging laboratory services.
BOULDER — Timing Solutions has taken advantage of the area’s generous opportunities in the real estate market to cut a five-year deal on a new building at 4775 Walnut St.
The five-year lease works out to a little more than $9 per square foot, and TWH Partners, which owns the building, also is performing tenant improvements.
Timing Solutions plans to move all operations into the building in October, according to Samuel Stein, the company’s founder, president and chief executive.
The lease allows the company, a supplier of high-fidelity time recovery, precise time interval measurement, and time and frequency distribution technology, to…
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