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COLORADO REAL ESTATE JOURNAL
— September 21-October 4, 2016
by Jennifer Hayes
A Class A medical office build-
ing in Colorado Springs recent-
ly traded at just over $190 per
square foot.
The buyer, Bellevue You-Store-
It LLC, paid $6.76 million for 6160
Tutt Blvd., a 35,500-sf “gem” built
in 2005.
“It was a gemof amedical office
building,” Ted Link of Cascade
Commercial Group said of the
facility, 98 percent leased at the
time of sale. Link, along with
David Schroeder II of Cascade
Commercial Group and Dean
Corey, Troy Meyer and Kevin
Matthews of Sperry Van Ness/
Denver Commercial, represented
seller Bethesda Real Estate in the
sale.
“The buyer is getting a great
property in a growing market as
part of a 1031 exchange,” added
Schroeder.
A number of long-term leases
are in place at the building, where
Cascade Commercial Group rep-
resented the landlord for all of the
leases in the building.
The buyer represented itself in
the transaction.
Additionally, Cascade Com-
mercial also recently represented
Ocean Blue Equities LLC in its
$2.55 million sale of 155 Print-
ers Parkway, a 30,000-sf medical
office building in the Printers Park
submarket in Colorado Springs.
Other News
n
A Pueblo retail build-
ing recently traded hands for
$800,000.
Sydney Charles LLC
purchased
the 6,733-square-foot building at
5700 N. Elizabeth St. from
AEI
Income & Growth Fund 25 LLC.
The former Johnny Carino’s
building was constructed in 2005
and is located off Elizabeth and
Dillon Drive, right off Interstate
25.
Ian Elfner
of
NavPoint Real
Estate Group
represented the
seller.
Brian Wagner
of
New-
mark Grubb Knight Frank
repre-
sented the buyer.
n
A portion of Austin Bluffs
Plaza in Colorado Springs traded
for $1.88 million.
SunriseManagement LLC
pur-
chased the 7,138-sf property at
4108-4118 Austin Bluffs Parkway.
Academy Austin Bluffs Ltd.
was
the seller.
Greg Kaufman
of
Colorado
Springs Commercial, a Cush-
man & Wakefield Alliance
rep-
resented the buyer.
n
Interest in investment real
estate in Colorado Springs
remains strong as regional and
national
investors/develop-
ers continue to view the mar-
ket as a lower-cost alternative to
Denver and other primary mar-
kets, according to a recent sec-
ond-quarter investment market
report by
Quantum Commercial
Group.
The report noted that two prop-
erties were acquired by Denver-
based investment/development
groups in the second quarter
– both at a significant discount
to replacement costs and each
offered opportunity for increased
valuewith improvingmarket fun-
damentals, upgrades to the prop-
erty and stabilized tenancy. DPC
Development Co. purchased the
Rocky Mountain Coors Distribut-
ing facility and Westside Invest-
ment Partners purchased One
Gateway Plaza.
The city’s multifamily mar-
ket continues to flourish, added
Quantum, noting that record-set-
ting sales of multifamily assets
in both price and volume are
occurring as national and region-
al companies acquire local apart-
ment complexes. Additionally,
the development of apartment
complexes continues at a “rapid”
pace, as both local and national
development companies proceed
withnewapartment construction.
Quantum noted that strong
local economic news is fueling
new development of retail and
multifamily projects – a trend
that will continue through the
balance of the year and into 2017.
It also anticipates that with virtu-
ally no new construction of office
product in the local market, rental
rates will begin to gradually esca-
late in some submarkets. Further,
the development and expansion
of health care facilities in the
northeast area by both hospitals
is providing a boost to the office
market, another trend that will
continue.
“Colorado Springs will con-
tinue to be viewed by investors
as a great alternative to primary
markets such as Denver with the
potential for higher returns and
increasing values as market con-
ditions stabilize,” according to the
report.
s
The medical office building at 6160 Tutt Blvd. sold as part of a 1031 exchange.
Colorado Springs/So. Front Range
