Colorado Real Estate Journal – by Jill Jamieson-Nichols
May 23, 2011
A long-vacant manufacturing facility in Boulder is back in play under new ownership.
Matrix Group, Inc., a Denver-based commercial real estate firm, paid $1.5 million cash for the former Micro Motion buildings at 7084 and 7088 Winchester Circle. The property includes a 75,000-square-foot assembly/manufacturing building and 30,000-sf, three-story engineering laboratory.
“We were looking for a value-add situation in Boulder, and the price was right. We figured we could spend about a million dollars on it and really make the buildings reusable. They were in pretty bad shape because of the vacancy,” said John Webb, Matrix Group president.
“Boulder is a strong market with a lot of great, growing companies. We feel comfortable that Boulder’s a tight market with supply constraints,” Webb said. When improvements are completed four to six months from now, “There will be some tenants interested in this property,” he said.
Built for Micro Motion in 1982 and 1984, the buildings have been vacant for six years. Their wood exteriors will be upgraded with exterior metal material and new paint; the roofs and windows will be replaced; and there will be major repairs to the HVAC systems. New landscaping also is in store.
While the company bought the buildings at a price that was substantially below replacement cost, “We have a lot of work to bring the property up,” said Webb.
Micro Motion vacated the property following the company’s acquisition by Emerson Electric, which built a facility across the street.
The improved space will be offered at a first-year rate of $3.95 per sf triple net, which is very low for the Boulder market, Webb noted. The buildings also will be offered for sale.
Tom Myers of Unique Properties LLC-TCN Worldwide represented Matrix Group in the acquisition, which brings the company’s portfolio of office, industrial and retail properties to approximately 1.25 million sf. The company has purchased more than 400,000 sf in the last 10 months and continues to seek opportunities.