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January 7-January 20, 2015 — COLORADO REAL ESTATE JOURNAL — Page 15
Colorado Springs/So. Front Range
by Jennifer Hayes
Colorado Structures Inc. has
broken ground on the second
phase of the Vistas at Jackson
Creek apartment community
in Monument.
CSI is the owner, developer
and contractor for the 90-unit
property at the northwest cor-
ner of Leather Chaps Drive and
Old Forest Point in the mixed-
use Jackson Creek develop-
ment.
The latest phase of the Vis-
tas at Jackson Creek, designed
by Kephart, is targeted for an
October/November comple-
tion.
The challenge in getting the
second phase of development
financed was dealing with
cross easements and recipro-
cal-use agreements allowing
residents of the second phase
and the 177-unit first phase,
which contains all the ame-
nities for the overall project,
such as the clubhouse, to share
amenities and roadways, noted
Peter Wessel of Love Funding.
Wessel of the Denver office
of Love Funding secured the
$11.5 million construction-to-
permanent loan through the
U.S. Department of Housing
and Urban Development’s
221(d)(4) program. The loan
includes a 13-month construc-
tion period, a 40-year perma-
nent loan term and a rate (not
including mortgage insurance
premium) locked below 4 per-
cent.
Riverstone Residential Group
will manage the community.
Other News
n A subsidiary of the Windy
Creek Cos. acquired the Salt-
grass Steak House Restaurant
in Colorado Springs for more
than $261 per square foot.
J.B. Smith Family Enterpris-
es sold the 6,700-sf freestand-
ing restaurant on 1.7 acres at
1415 Jamboree Drive, at the
corner of Jamboree and Acad-
emy Boulevard, for $1.75 mil-
lion.
Saltgrass Steak House is
expected to continue in opera-
tion with no changes at the
property, built in 1993 and sub-
sequently renovated twice.
“This is an outstanding
example of a quality location;
it really is the corner of Main
and Main,” said Jim Schwer-
in, who owns Windy Creek, a
commercial real estate invest-
ment and development firm
based in Colorado Springs for
more than 20 years.
“It’s just off the interstate, on
a corner location with a traffic
light, at the entrance to Cha-
pel Hills Mall and a Wal-Mart
super store.
“We paid a premium com-
pared to our typical projects
but really feel the quality loca-
tion is worth it,” he contin-
ued. “We had been looking for
another real estate investment
for some time and when this
was brought to our attention,
we knew we had to be able to
execute quickly. Fortunately, we
had the cash on hand and were
able to close right away with-
out having to jump through
the usual hoops for financing.
We look forward to a long and
mutually beneficial relationship
with Landry’s (of which Salt-
grass is a subsidiary) and Salt-
grass.”
No brokers were involved in
the transaction.
The Windy Creek Cos. is look-
ing to further grow its portfolio
with acquisitions of value-add
properties.
n The 54-unit Mallard Mead-
ows recently sold in an off-mar-
ket transaction for $2.7 million,
or $50,000 per unit.
Investor Karen Zabcik pur-
chased the community, located
at 3040-3060 Mallard Drive in
Colorado Springs, between two
other multifamily properties
Zabcik owns.
The two-bedroom-unit com-
munity was constructed in 1985
and was 100 percent occupied
at the time of sale. Units average
950 sf and are all electric, noted
Tim Shunta of Unique Proper-
ties LLC-TCN Worldwide, who
represented seller Case Family
Investments LLC.
“It’s a nice investment for the
buyer,” Shunta added.
Jason Koch, also of Unique,
represented the buyer.
n Colorado Springs Com-
mercial, a Cushman & Wake-
field Alliance, recently handled
a pair of large lease renewals in
Colorado Springs.
Armstrong Transportation
Services renewed its lease of
53,200 square feet of industri-
al space at 1460 N. Newport
Drive. Bar Spur Ranches LLC is
the landlord and was represent-
ed by Mike Helwege of COSC.
Peter Scoville and Greg Pha-
neuf, also of COSC, represent-
ed landlord Healthcare Realty
Trust Inc. in the lease renewal
of Kaiser Foundation Health
Plan.
Kaiser, represented in the
renewal by JLL’s David Welker,
leased 20,267 sf of office space
at the building at 4105 Briargate
Parkway.
n Rocky Mountain EMS,
doing business as Rocky
Mountain Mobile Medical and
Beo Mobility, leased 10,200 sf
of office space at 5055 Mark
Dabling Blvd. in Colorado
Springs.
Lester Colodny of NAI High-
land LLC represented the ten-
ant. Russell Stroud and Dale
Stamp of Quantum Commer-
cial Group Inc. was the listing
agent for landlord 5055 Mark
Dabling LLC.s
Colorado Springs is one of
the five most affordable mar-
kets in the United States for
data centers, according to a
recently released research
report by CBRE Group Inc.
For occupiers leasing a data
center, Colorado Springs ranks
among the markets with the
lowest total project cost.
“The winning combination
of both the low cost of power
and affordable rent per kilo-
watt make Colorado Springs
one of the most attractive data
center markets in the U.S. and
essentially negate the more
moderate tax payment relative
to the 23 key markets,” said
Brad Bird, director of broker-
age services for CBRE’s Colo-
rado Springs office.
The report, Leasing a Data
Center: U.S. Market Cost Com-
parison, analyzed a typical
1-megawatt, or 1,000-kilowatt,
data center lease over a seven-
year term across 23 key markets
in the U.S. The report evaluat-
ed total project costs, including
rent, power and taxes.
The five least expensive mar-
kets were Colorado Springs;
Atlanta; northern Virginia;
Portland, Oregon; and Seattle.
Markets identified as moder-
ate in terms of cost segment
were Denver, Las Vegas, Min-
neapolis, Phoenix, Silicon Val-
ley, Southern California and
St. Louis. The markets with the
highest total project cost are
Boston; Chicago; Des Moines,
Iowa; Kansas City; northern
Florida; northern New Jersey;
Omaha, Nebraska; and Phila-
delphia. s
‘The challenge
in getting the
second phase
of development
financed was
dealing with
cross easements
and reciprocal-
use agreements
allowing residents
of the second phase
and the 177-unit
first phase, which
contains all the
amenities for the
overall project, such
as the clubhouse, to
share amenities and
roadways.’
– Jim Schwerin,
Windy Creek Cos.