In an effort to make Redtail Ridge more attractive to potential biotech tenants, the Denver-based Louisville project developer brought in two partners this year. One of those partners formalized the relationship late last month with a nine-figure investment.
Chicago-based Sterling Bay LLC, in a real estate deal led by a series of holding companies, paid Redtail Ridge developer Brue Baukol Capital Partners LLC just under $128 million, according to deeds of guarantee of Boulder County.
Brue Baukol officials, through a spokesperson, declined to provide further details on the structure of this transaction or the overall investment in Redtail Ridge by Sterling Bay.
However, the spokesperson said the deal represents seed funding by Sterling Bay for vertical development on the former, approximately 400-acre, long-vacant Phillips 66 (NYSE:PSX) site. The overall investment could eventually exceed $1 billion, and Brue Baukol will remain a central player in the project.
Brue Baukol bought the site in 2020 for $34.93 million.
After a special election in April that pitted Brue Baukol and overturned previously approved development plans for Redtail Ridge, Sterling Bay and Harrison Street LLC were brought in to pivot Redtail to a 2.6 million commercial-only development. of square feet with a focus on biotechnology facilities.
Brue Baukol senior vice president Jay Hardy told BizWest last month that Brue Baukol estimates there is a deficit of 1.5 million square feet of life science facilities in the region.
According to Rodney Richerson, managing director of Sterling Bay, Brue Baukol’s new development partners “have (developed or purchased) nearly 7 million square feet of life science products across the country,” including the portfolio of 292,000 square feet of the Lafayette corporate campus, which he purchased last September from Etkin Johnson Real Estate Partners.
With its new partners in place, Brue Baukol expects horizontal works on the site to begin in late 2022 and vertical construction in mid-2023.
While the COVID-19 pandemic has forced commercial real estate developers and owners to reconsider their strategies for owning office space, the biotechnology industry has remained incredibly strong in the Boulder Valley area, and promoters take advantage of opportunities.
Maryland-based St. John Properties Inc. is building the 14-building Simms Technology Park on about 80 acres of land in Broomfield near the Rocky Mountain Metro Airport, which is expected to house biotech tenants.
Dallas developer Lincoln Property Co. and investor Federal Capital Partners are developing CoRE – Colorado Research Exchange in the Interlocken business park. The project will include 450,000 square feet in four buildings, with the aim of attracting life science tenants.
California office and industrial real estate investor SteelWave LLC, which purchased the Medtronic Inc. campus in Boulder’s Gunbarrel neighborhood in early 2022, once again dove into Boulder’s biotech real estate scene this month with the purchase of a three-building Wilderness Place campus that is home to disease diagnostics company Biodesix Inc. (Nasdaq: BDSX).
Representing the largest single-asset transaction in Colorado history, BioMed Realty LLC in April purchased a 22-building portfolio of approximately 1,000,000 square feet in Flatiron Park from Crescent Real Estate LLC for $625 million. , with the aim of attracting more biotech tenants.
This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.