North 4th Building

512 North 4th Street, Longmont, CO

Property Description

In January of 2007, we invested in a building located at 512 North 4th Street, which is just off of Main Street in the downtown district of Longmont, Colorado. It was purchased for $1.1 million, which was an estimated 9.1% Cap Rate at the time of acquisition. The opportunity was syndicated by Jason Kruse (a local real estate professional) and Bruce Dierking (a local real estate attorney). We were comfortable with this investment due to our long term working relationship with both partners as they have the expertise to effectively own and operate the investment. It was purchased as a stabilized asset with the intent of a long-term hold and the investment made sense for our portfolio because it was 100% leased to a well established local insurance brokerage company by the name of First MainStreet Insurance. This was a “sale-leaseback” opportunity as the Sellers chose to focus 100% on their insurance business and step away from real estate ownership.

The building is a single story 6,050 square foot building, which is easily divisible into two to three units for future tenancies (if / when the current tenant vacates). The building historically was made up of three separate spaces that were combined over time as the business grew. During the investment cycle, the property has met the investment objectives of the investors and the needs of the tenant.