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March 18-March 31, 2015 — COLORADO REAL ESTATE JOURNAL — Page 17
Colorado Springs/So. Front Range
by Jennifer Hayes
A Colorado Springs-based
investment group purchased
an apartment community in the
Broadmoor area with significant
upside and a significant number
of suitors.
The unidentified group paid
$12.16 million, according to
public records, for Skyway Vil-
lage, a 148-unit community at
864 Oxford Lane in Colorado
Springs.
“We had a double-digit num-
ber of offers, which shows both
the strength of the property
and investors’ confidence in the
Colorado Springs market,” said
Kevin McK-
enna of ARA
C o l o r a d o ,
who repre-
sented the
out-of-state
seller with
ARA Colo-
rado’s Saul
Levy.
“It’s rare
when a
property in the Broadmoor
area comes on the market. The
demographics, home prices and
school district are second to
none in Colorado Springs,” con-
tinued McKenna. “The south-
western submarket also has
some of the highest rents, lowest
vacancies and largest barriers to
new construction in the metro
area. There are zero properties
under construction there.”
While the location helped
drive a lot of the interest in Sky-
way Village, the upside the 1970
community offers was key. Mar-
ket rents in the city’s southwest
submarket during the fourth
quarter of 2014 averaged $1.05
per square foot – above the 93
cents per sf Skyway Village was
asking at its time of sale, accord-
ing to ARA Colorado.
The new owner, who owns
additional assets in the Colora-
do Springs and Denver markets,
can capitalize on the value-add
potential not only by raising
rents but also through capital
improvements, noted McKenna.
The seller had renovated the
office/leasing center and updat-
ed hallways with vinyl faux-
wood flooring and new paint,
but additional opportunities are
available.
“Skyway really has some
unique features for a proper-
ty built in 1970. All the two-
bedroom floor plans have two
baths, central AC and a large
balcony or patio. There’s ample
value-add potential to renovate
the interiors and amenities such
as a fitness center, dog park and
playground.”
Skyway Village, comprising
one- and two-bedroom units,
was 98 percent occupied at the
time of sale.
Other News
n A six-unit apartment prop-
erty in Colorado Springs recent-
ly sold for $10,000 below list
price and
is another
example of
the current
strength of
the apart-
ment market,
noted ARA
Co l or ado ’s
Saul Levy,
who handled
the trans-
action with ARA Colorado’s
Kevin McKenna.
The property at 725 N. Cas-
cade Ave. sold to an undisclosed
buyer for $585,000.
The buyer, Levy noted, was
able to purchase a building that
had received substantial capi-
tal improvements just months
before being brought to market.
Improvements to the renovated
19th century home included
new exterior paint, new roof
and gutters, and the second and
third floors feature new double-
pane vinyl windows.
The seller had owned the
property for more than 30 years.
Units at the building, directly
adjacent to Colorado College,
average 767 square feet.
n Commercial real estate bro-
kers and Realtors in Colorado
Springs and Southern Colorado
have formed a new nonprofit
professional organization, the
Southern Colorado Commer-
cial Brokers.
The group replaces RCIS, a
subsidiary of Pikes Peak Asso-
ciation of Realtors.
SCCB’s mission is to provide
commercial real estate brokers,
Realtors and business affiliate
organizations in the Southern
Colorado region a profession-
al organization that promotes
business integrity, ethical prac-
tices, education/networking
opportunities and an accurate
shared database of commercial
properties.
More information about SCCB
is available at .
com.s
A double-digit number of offers was received on Skyway Village, a 148-unit community located in the Broadmoor area of Colorado Springs.
Kevin McKenna
Saul Levy
by Jennifer Hayes
A new use is brewing for the
former Sealy logistics facility in
Colorado Springs.
Baseline Beverage Properties
LLC, which does business as
Rocky Mountain Coors Distrib-
uting Co., a Southern Colorado
beer distributor, recently paid
$5.58 million for the approxi-
mately 126,000-square-foot
facility on 13 acres at 1525
Newport Road.
The buyer had been looking
for a long time in the market
for build-to-suit opportunities
but reconsidered the Newport
property after Sealy was sold
to TemperPedic and opted not
to maintain its logistics opera-
tions there.
“I suggested that they take
a fresh look at the building, in
which they could save millions
in buying an existing building
versus new construction,” said
NAI Highland LLC’s Randy
Dowis, who handled the trans-
action.
Rocky Mountain Coors will
occupy the building in mid-
to late 2016. In the meantime,
Leggett and Platt, which
acquired TemperPedic, will
occupy 87,500 sf there with its
recent lease at the building.
The buyer also is anticipated to
add around 20,000 sf of office
space to the building, which
features 28-foot ceilings, ESFR
sprinklers throughout, 7,000
sf of office space, 15 dock-
high doors and one oversized
ground door. It was built in
1999-2000 as a build to suit for
Entertainment Publications.
Foster Associates LLC was
the seller.
Other News
n An investor acquired a
pair of high-credit, net-lease
assets in the northwest Colorado
Springs submarket late last year.
The buyer 5010 Centennial
Blvd LLC and 5030 Centennial
Blvd LLC paid $2.85 million for
each building at the Piñon Val-
ley Industrial Park, located at
5010 and 5030 Centennial Blvd.
The fully leased buildings in
the Garden of the Gods corri-
dor were built in 1983 and 1987
and are leased to Aeroflex and
FedEx, which recently signed a
new lease at the property.
The buildings comprise
69,720 square feet.
Jason Schmidt and Patrick
Devereaux of JLL and Michael
Palmer of Quantum Commer-
cial Group handled the trans-
action.
New Piñon LLC was the sell-
er. s
Rocky Mountain Coors Distributing Co. will occupy the building mid- to
late 2016.
The approximately 126,000-square-foot building includes 15 dock-high
doors and 28-foot ceilings.