BOULDER - Boulder-based investors have purchased two warehouses in the Transit Village area in Boulder for $16.6 million and have long-term plans to redevelop the site.

Flax Pond LLC bought the properties at 3550 and 3850 Frontier Ave. from New Frontier Warehouse LLC in a deal that closed Dec. 28, said Eli Feldman, president of Conscience Bay Co., the Boulder private equity firm that owns Flax Pond.

The warehouses total 188,000 square feet, and the land is about 11 acres.

Feldman said the property is well positioned to take advantage of long-term growth in the Transit Village area and will eventually be redeveloped.

"When that is, I couldn't say ... but it's not going to be an industrial property forever," Feldman said.

The property, which is near the Foothills Parkway-Pearl Street interchange, could be rezoned for a mixed-use development, and Boulder's long-term plan for the area envisions four-story buildings and a parking structure, according to Feldman. The 3100 Pearl apartments, a 319-unit complex, is being built near the warehouses, and the Regional Transportation District is building a transit hub across Pearl Street.

Conscience Bay plans to make additional investments in the neighborhood. The company is working to acquire an adjoining lot, Feldman said.

Tenants, which include a number of outdoor recreation companies such as MontBell Co. Ltd., will remain in the buildings in the near term. The buildings are 87 percent occupied.

Flax Pond worked directly with the prior owner to negotiate the purchase, Feldman said.