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ConocoPhillips Pays $58.5M for StorageTek Campus

Sun Microsystems Agrees to Sale-Leaseback of 432-Acre Site in Denver Area
February 29, 2008
Energy company ConocoPhillips purchased the 432-acre StorageTek site in Louisville, CO, from Sun Microsystems for approximately $58.5 million, or about $34 per square foot. Sun originally purchased the 1.7 million-square-foot Denver-area campus when it acquired Storage Technology in 2005. It was sold due to Sun's overall real estate consolidation efforts in order to restructure operations in the area without disrupting the business. For the remainder of the year, Sun will continue to lease back the campus from ConocoPhillips as it moves local operations to its Broomfield location.

Jones Lang La Salle's managing directors Kenneth Rudy and Michel Seifer negotiated the transaction on behalf of Sun Microsystems, a long-term strategic alliance client. Fuller Real Estate's Stew Mosko was brought in to assist with local marketing. ConocoPhillips plans to add a global technology center and learning center on the campus to use as the company's worldwide training center.

"The sale of this facility allows Sun to redeploy capital out of render-utilized real estate holdings and into its core technology business, while relocating the remainder of the Storage Technology campus employees over to Sun's campus across the highway in Broomfield," said Rudy.

"This transaction is win-win for the city and state as it introduces a new occupier that will bring a great deal of economic development and activity to the area, which was one of Sun's primary concerns," said Seifer.

Jones Lang LaSalle developed Sun Microsystems’ original Broomfield office of seven buildings and 1.7 million square feet of space delivered over a period from 1998 to present. Further, Jones Lang LaSalle is currently involved in 140,000 square feet of development projects for Sun Microsystems as it relocates from its previous StorageTek facility.

Please refer to CoStar COMPS #1476335 for more information on this transaction.
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