In February of 2004, 5405 Spine Road was purchased as a joint venture with MP Associates, Inc. (“MPA”), a local credit company based in Boulder. At the time, MPA was in the market to purchase a building to house their company (along with needing to identify an investment vehicle where they could leverage their own tenancy). Without the expertise in the real estate arena, they were seeking a relationship with a real estate professional that had the ability and expertise to appropriately evaluate an opportunity and to facilitate a purchase under the most advantageous terms for both the business and the partnership. We were given the assignment after their evaluation of our abilities (and we had also determined that MPA was a very stable local business that was qualified to be a joint venture partner).
Located in Boulder, Colorado at Spine and Lookout Road, this single story 14,630 square foot building was 65% leased to Dynamic Materials Corporation (“DMC”) on a long term lease at the time of acquisition. MPA was able to occupy the remaining 35% of the building and both tenants successfully operated their businesses in the building until 2007 when DMC determined that they needed additional square footage in order to accommodate their growth (or they would need to vacate the building). Faced with this pending reality, MPA was willing to relocate their business into another building, but wanted to duplicate the real estate venture and find another property in which they could both occupy and invest. We were able to secure a quality asset in the Louisville, Colorado, in which MPA relocated in December of 2007. MPA continues to operate their business in this new property and we still hold the asset in our portfolio today. As a part of the lease extension, DMC required an extensive upgrade to the interior of the building in order to create the corporate feel and environment that they required for their business. We in turn received an additional 7 year lease extension.