April 20-May 3, 2016 —
COLORADO REAL ESTATE JOURNAL
— Page 19
Colorado Springs/So. Front Range
by Jennifer Hayes
Upside was key to the sale of
a Colorado Springs office/ware-
house/manufacturing building.
Inspiration Holdings recent-
ly paid $5.5 million for the
131,875-square-foot property
at 3505 and 3525 N. Stone Ave.,
where Diamond Materials Tech-
nology has a lease on the entire
property but is offering space for
sublease.
Outreach Inc., which is effec-
tively a related entity to the buyer,
subleased 30,000 sf of warehouse
space as part of the transaction.
“The property offers the buyer
both investment value and imme-
diate usable space,” said Michael
Helwege of Colorado Springs
Commercial, a Cushman&Wake-
field Alliance, who represented
seller Comcor Foundation.
“I think the most significant
aspect of the deal is that the prop-
ertyoffered thebuyer usable space
at a bargain lease rate through the
sublease arrangement but it also
offers investment value,” added
Helwege. “The purchase price
represented a cap rate above 10
percent on current NOI.”
Originally built in the late 1960s
and expanded in several phases
over the next decade or so, the
building features various office,
manufacturing/production,
assembly and warehouse areas.
The property also includes up
to 22-foot ceiling heights, heavy
power, is fully sprinklered, and
has dock-high and drive-in load-
ing doors.
The building also was the only
investment property owned by
the seller and it opted to dispose
of it to focus solely on its commu-
nity corrections operations, added
Helwege. “And since the finan-
cial performance of the property
was so stellar for the eight years
they owned it, they were will-
ing to pass along some additional
upside to the buyer.”
SamCameron andKevinButch-
er of Cameron Butcher represent-
ed the buyer.
Other News
n
The Shops at Austin Bluffs
Marketplace recently sold to a
Denver-based buyer for $2.69 mil-
lion.
The buyer,
Corbin & Associ-
ates LLC,
purchased the grocery
shadow-anchored strip center at
4290-4296 N. Academy Blvd. in
Colorado Springs from
Zephyr
Enterprises LLC.
The 7,185-square-foot property
is fully leased to tenants including
Jimmy John’s, Weight Watchers
and Scooter’s Coffee.
“With strong and even still-
increasing demand for stabilized
grocery-anchored properties,
the subject property was highly
sought after and had multiple
offers from qualified investors,”
KevinMatthews
and
TroyMeyer
of
SVN/Denver Commercial
said
in a statement.
SVN/Denver Commercial list-
ed the property – the fourth gro-
cery shadow-anchored strip cen-
ter the SVN/Denver Commercial
teamofMatthews andMeyer sold
in the past 12 months.
Matt Lewallen
of
Pinnacle
Real Estate Advisors
represented
the buyer of the center, shadow
anchored by King Soopers and
renovated in 2011.
“The buyers were excited to
trade out of multifamily and
into this asset where they would
increase their cash flow while
greatly diminishing their involve-
ment,” said Lewallen.
n
Meyer and Matthews also
recently sold Woodland Park’s
only Class Aoffice building.
The Coldwell Banker Building
was purchased by
Arts Factory
LLC
out of Northern Colorado for
$1.75 million.
The 18,000-sf building is located
at 18401 U.S. Highway 24 with
direct access to the major thor-
oughfare in town and features
staggered lease expirations. It was
98 percent occupied at the time of
closing.
Karrie Clark
of
Resident Realty
represented the buyer.
The property received a half-
dozen offers and traded close to
the asking price, selling far below
replacement cost of the building,
added SVN/Denver Commercial.
n
JE Dunn’s
former campus in
Colorado Springs recently traded
for $1.49 million.
An investor purchased the two-
building property at 1120-1140
W. Moreno St., which comprises
a 10,200-sf office building with
Class A finishes and a 3,200-sf
industrial building on a 2.17-acre
fenced site. The property also
includes two drive-in doors.
The total marketing and con-
tract periodwas approximately 75
days – a quick turnaround, noted
Randy Dowis
of
NAI Highland.
He and
Bob Garner,
also of NAI
Highland, represented both the
buyer and seller in the transac-
tion. They expected the unique
infill site near the Broadmoor as
well as the quality of the buildings
would be a draw for potential
buyers but were surprised by the
level of interest and speed of the
transaction.
The pair are marketing the
property, constructed in 2001, for
sale or lease on behalf of the new
owner.
n
Wilderness Treasures
recent-
ly leased 12,985 sf of retail space.
It leased the space at 5881-5975
N. Academy Blvd. in Colorado
Springs from
New Erindale LLC.
Greg Kaufman
of
Colorado
Springs Commercial, a Cushman
& Wakefield Alliance
represent-
ed the landlord.
n
All Phase Restoration
expanded its operations to serve
Colorado Springs and the sur-
rounding area. As part of its
expansion, it leased approximate-
ly 5,000 sf at 740 Wooten Road,
Unit 106, in Colorado Springs.
The firm is a leader in the insur-
ance restoration industry, special-
izing in residential and commer-
cial property restoration damage
from fire, water, weather and
other catastrophic events. It will
provide 24/7 emergency services,
full reconstruction and capital
improvement services fromMon-
ument to Walsenburg and Wood-
land Park to Ellicott.
Richard Asher
will lead the
team as general manager.
n
Kid’s Resource Network of
Colorado Springs Inc.,
a foster
care, adoption and therapy servic-
es business, recently leased 4,512
sf of space.
It leased the space at Time
Square at 5360 N. Academy Blvd.
in Colorado Springs from
R. Jay
Deserpa Ltd.
Gosia Bikker
of
MC Commer-
cial Real Estate
was the listing
agent.
s
The 131,875-square-foot property offered the buyer usable space at a “bargain” lease rate.
