JLL Secures $75M for Denver-Area JP Morgan Acquisition
- Dec 05, 2017
JLL’s Capital Markets has secured $75.3 million in financing for the acquisition of The Boulder Portfolio, a group of three Class A office buildings in Boulder, Colo., by institutional investors advised by J.P. Morgan Asset Management. Deutsche Bank provided the five-year, floating-rate loan.
Sited only a few blocks from Boulder’s Pearl Street Mall, the three properties are 1050 Walnut St., 1881 9th St. and 1900 15th St. They total about 216,000 square feet. “The combination of well-located assets in a highly desirable market and strong, institutional sponsorship made this an ideal lending opportunity and allowed us to secure the best terms possible for our client,” Managing Director Kellogg Gaines said in a prepared statement.
The seller was Blackstone, on whose behalf JLL Capital Markets had completed the sale. Executive Managing Director Michael Melody and Managing Directors Maggie Coleman, Kellogg Gaines and Baxter Fain led the JLL team on the financing.
The Boulder office market has an all-class inventory of about 6.1 million square feet with a total vacancy rate of 10.4 percent, according to a third-quarter report from JLL. The average asking rent is $32.94. Year-to-date, total net absorption has been only 0.4 percent, and just 183,000 square feet is under construction.
With metro Denver enjoying a mere 2.4 percent unemployment rate, the report said, “user demand could take a hit as fewer people look for work, resulting in reduced tenant demand.”
Photo courtesy of JLL