1521 Pearl Building
1521 Pearl Street, Boulder CO

In December of 2009 this 6,000 square foot retail building (located in the heart of downtown Boulder) was purchased for $1.7M. The building is one half block East of Boulder’s popular and world renowned Pearl Street pedestrian mall. The Building is located on the preferred side of the street allowing for southern exposure to maximize foot traffic. The building consists of two retail units, one 2,600 square feet and the other 3,400 square feet. Although fully leased at the time of acquisition the property was underutilized and presented an opportunity for new ownership to add value and streamline the management.

The building has remained fully occupied since acquisition, and new management has taken steps to improve the asset and increase the income. The building has a new facade and new triple net leases have replaced the gross leases that were in place at the time of acquisition. The tenant in the eastern 2,600 square foot space is “The Cup” (one of Boulder’s most popular coffee shops). They recently signed a long term lease to continue operations into the foreseeable future. The 3,400 square foot Western space is currently occupied by an arts and crafts retail operation, which is a perfect temporary tenancy to occupy the space until a long term user can be identified. To achieve the highest and best use for the building, we are seeking a restaurant type tenant, which we anticipate a new long term lease to be signed in the coming year. The current vision for the restaurant operations would include a second level with outdoor dining seating. These changes are expected to fully stabilize the property, and substantially increase equity and cash on cash performance of the investment.