ORIX, Boulder Take Deed to 300,000-SF Campus

The two buildings on 55 acres are joined by an enclosed atrium and lobby, and have a 10,000-sf cafeteria and 5,000-sf auditorium. The property is at 19845 US 31, and includes two detached maintenance buildings and parking for more than 1,200 vehicles.

The original north building was built in 1981, and the second building was constructed in 1987. Randy Blankstein, president of Boulder, says an earlier version of Verizon has leased the building since 1991.

However, the company now has only five years remaining on its lease. Eric Wollan, SVP-acquisitions with ORIX, says that makes this property a good deal. "Our venture is set up to take advantage of properties that are short-term in nature, a value-add buy," he tells GlobeSt.com. "We can work to retain the tenant. We also have flexibility in the business plan to look at alternatives, there are some good potential alternatives." He says the venture doesn't plan on any excessive capital spending on the property, at least until lease talks start up. Wollan wouldn't comment on the specific lease rate, but said it's lower than the average market rents of $10 to $13 per sf.

Blankstein tells GlobeSt.com that market pressures drove the sellers into their hands. "We pursued this property to a point, and then the credit markets changed a bit, and the seller was a little more aggressive with pricing the second time around," he says. "We won the deal because we're an all-cash buyer, we didn't have to worry about the financing."

He says the property, in Hamilton County, is at the edge of a growth boom. The county is rated as the nation's 18th fastest-growing county based on 2000-05 census figures, the two men said. "You look at the growth path, it's moving north of Carmel. This area isn't as densely populated as where we traditionally buy, but we think the growth will catch up in the next several years," Blankstein says.