Macfarlan Hot for Single Tenants
Macfarlan Capital Partners closed on an unusual property this week: the 171k SF 6340 Spine Rd in Boulder, a highly classified defense asset that’s 100% leased to Lockheed Martin. “We’re looking for single-tenant facilities with five years or less remaining term in Denver, Boulder, and Colorado Springs, which are three of our targeted markets,” Macfarlan partner Mac Macfarlan tells us (center, with colleagues Dean Macfarlan and Bryan Larson). He adds the company is also looking for single-story and suburban office products in these markets and has bought suburban properties in Colorado Springs over the last year and a half.
Mac says Dallas-based Macfarlan thinks this particular investment was attractive because of the market’s historically low vacancy rate, the tenant’s long-term commitment, and fact that it came at a considerable discount to replacement cost. The facility houses classified functions of the US Air Force’s Space Based Infrared Systems program, which is the country’s future missile alert system. Lockheed recently won a $1.8B contract for production of the fifth and sixth satellites of the program.