10-Year Lease Baits Purchase of 107,760-SF Building

DENVER-Two California buyers are paying $7.3 million for an office building that is 100% occupied by Jeppesen-Sanderson Co., the world’s largest supplier of aeronautical information to pilots.

Lomita Boulevard No. 1 LLC and Don Wilson Builders Inc. has bought the one-story, 107,760-sf building at 6961 S. Quentin St. from California developer, Panattoni Investments. Broker Richard Sampson of Richard Sampson & Co. told GlobeSt.com that the two buyers, through their attorneys, had been looking for a building with a long-term lease with a strong tenant. Jeppesen has a 10-year lease in the new building, he says.

“While Jeppesen has its world headquarters here, this building is used for the production of maps,” says Sampson. “I think the buyers got an excellent value. Other developers are selling buildings in the $85 to $120 per sf range. These buyers paid $68 per sf for the building.”

Jeppesen-Sanderson, founded in 1930 by Elray Jeppesen, has been recently acquired by Boeing Aircraft Co. as a wholly owned subsidiary. Boeing, the world’s largest maker of commercial aircraft, has paid $1.5 billion to the Tribune Co. for Arapahoe County-based Jeppesen, which had been spun off from the Times Mirror after it was bought by Tribune.”I think it really makes a world of sense for Boeing to own Jeppesen,” Sampson adds.Panattoni Development Co., based in Sacramento, has built more than 40 million sf of properties, valued at more than $1.2 billion, across the country.