The building at 10170 Church Ranch Way was about 60% occupied at the time of sale.
A local investment group acquired an approximately 126,000-square-foot value-add office building along the U.S. Highway 36 corridor for $14.98 million.
Potens Partners LLC bought the multitenant building at 10170 Church Ranch Way in Westminster from Waterfall Asset Management/CWCapital. The sellers are “clearly savvy investors” that sold the building at a profit, but with occupancy at 60 percent, there’s an opportunity to enhance value through lease-up, said Scott Pudalov, a Boulder investor who manages the new ownership group.
“We’ve been very active from Fort Collins to Denver. This deal came to us, and it fits our criteria in terms of being a value-add property,” said Pudalov. The building is just off the U.S. Highway 36 Bikeway between Boulder and Denver. Potens Partners plans to create enclosed bicycle parking, renovate the showers, spruce up the lobby and make additional investments in the property, Pudalov said. “We’re trying to move to a very user-friendly employee environment there,” he said.
Among the building’s existing tenants is Elixinol, which produces and sells CBD products. Pudalov said some tenants are looking to expand in the building, which saw “substantial activity during the contract phase.” “We’ve owned it for a week and we already have two leases out, so we’re very excited about the acquisition,” he said.
Built in 2001, 10170 Church Ranch Way is located within Church Ranch Corporate Center, near numerous restaurants and retail options in the Shops at Walnut Creek and Westminster Promenade. The four-story building has both covered and surface parking.
Jules Sherwood of Kenai Capital Advisors represented the seller.
Pudalov manages investment groups that have acquired a number of office buildings and shopping centers along the Front Range. He recently acquired 1551 Professional Lane in Longmont, a 104,850-sf value-add office building, with the intent of boosting occupancy through a capital infusion.
