Tebo pays $8.1M for office building in downtown Boulder

BOULDER — Developer and real-estate investor Stephen Tebo added to his vast portfolio of downtown Boulder real estate last week with the purchase of a three-story office building at 1900 Ninth St. that is home to a Great Western Bank branch.

Tebo paid $8.1 million to buy the building from 1900 9th Street Associates LLC, an entity formed by Boulder investor Peter Resnick. Built in 1999, the roughly 17,000-square-foot building sits at the northeast corner of Ninth and Walnut streets, across the street from the St Julien Hotel & Spa. Boulder County property records show that the sellers paid $7 million for the building in 2012.

Tebo bought the building using the 1031 exchange process that allows investors to sell one property and reinvest the proceeds in a new property, deferring capital gains taxes on the original property. Tebo said the property he’s selling to purchase 1900 Ninth is a property in Dallas.

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The Boulder building is fully leased, with tenants including Great Western, Maxim Financial Corp., and the law firm of Cordell and Cordell. Tebo, however, said there is some space in the building available for sublease.

Tebo said office space on the west of the Pearl Street Mall is leasing for anywhere from $26 to $35 per square foot triple-net. He said the building was an attractive purchase largely for the location but also for the high-end finishes and construction.

“It has incredible west and south-facing views on all of the floors,” Tebo said. “It was bought at a reasonable cap rate, and I just think it has some upside.”