Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3180 Sterling Circle in Boulder, Colorado, anchored by Dahl Plumbing (a subsidiary of Hajoca Corporation). The subject property consists of approximately 19,001 square feet of flex showroom space and is situated on 1.29 acres of land. Delivered in 1997, the multi-tenant asset features three units, a clear height of 24’, one dock-high door, two grade-level doors, and 56 parking spaces. Located only two miles from U.S. Route 36, the asset sits only one mile from the Boulder Municipal Airport. With 3,777 square feet of available office space , this sale offers buyers a partial owner-user opportunity in addition to a lease-up investment. Leased by its parent company, Hajoca Corporation, Dahl Plumbing now occupies 80 percent of the subject property after recently extending its original lease for suite 100 and expanding into suite 200, showing its commitment to the property. Founded in 1858, Hajoca is one of the country’s largest privately-held wholesale distributors of plumbing, heating & cooling, pool, and industrial supplies that operates through over 60 local entities, including Dahl Plumbing, with over 400 locations in total (Hajoca). The subject property is well positioned in the Boulder submarket with 11.1 million square feet of industrial space. In 2023, net absorption contracted by 361,000 square feet, pushing the vacancy rate up to a 13-year high of 7.9 percent. Despite the uptick in availability, asking rents increased by 4.1 percent last year, keeping pace with the Consumer Price Index. At. $16.20 per square foot, asking rents in the Boulder submarket provides local landlords with a 11 percent premium over the market average. At the start of 2024, new supply remained subdued with only 25,000 square feet of industrial space under construction (CoStar). While industrial demand has weakened in Boulder, the lack of new supply will help keep vacancies in check. Nestled 35 miles northwest of Denver, Boulder, Colorado is a picturesque haven with a robust socio-economic landscape. Boasting a population of 331,000 (including 104,000 within city limits), metro Boulder combines stunning scenery with diverse recreational activities. The region thrives on research and technology, particularly in software-related jobs, contributing to an above-average median income. The area stands out for its highly-educated workforce, with 60 percent holding bachelor’s degrees, and a significant 27 percent holding graduate or professional degrees. With federal research facilities, the University of Colorado, and a focus on technology, bioscience, and outdoor products, Boulder remains a high-tech hub and a magnet for venture capital. Beyond the economic dynamics, the region’s allure extends to tourism, benefiting from its proximity to Rocky Mountain National Park and ski slopes.