Colorado Real Estate Journal - April 20, 2016
Upside was key to the sale of a Colorado Springs office/warehouse/manufacturing building. Inspiration Holdings recently paid $5.5 million for the 131,875-square-foot property at 3505 and 3525 N. Stone Ave., where Diamond Materials Technology has a lease on the entire property but is offering space for sublease. Outreach Inc., which is effectively 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 immediate usable space,” said Michael Helwege of Colorado Springs Commercial, a Cushman & Wakefield Alliance, who represented seller Comcor Foundation. “I think the most significant aspect of the deal is that the property offered the buyer 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 loading 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 community corrections operations, added Helwege. “And since the financial performance of the property was so stellar for the eight years they owned it, they were willing to pass along some additional upside to the buyer.” Sam Cameron and Kevin Butcher of Cameron Butcher represented the buyer. Other News The Shops at Austin Bluffs Marketplace recently sold to a Denver-based buyer for $2.69 million. The buyer, Corbin & Associates 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,” Kevin Matthews and Troy Meyer of SVN/Denver Commercial said in a statement. SVN/Denver Commercial listed the property – the fourth grocery shadow-anchored strip center the SVN/Denver Commercial team of Matthews and Meyer 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 involvement,” said Lewallen. Meyer and Matthews also recently sold Woodland Park’s only Class A office 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 thoroughfare 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. 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 contract period was 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 transaction. 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. Wilderness Treasures recently 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 represented the landlord. All Phase Restoration expanded its operations to serve Colorado Springs and the surrounding area. As part of its expansion, it leased approximately 5,000 sf at 740 Wooten Road, Unit 106, in Colorado Springs. The firm is a leader in the insurance restoration industry, specializing in residential and commercial property restoration damage from fire, water, weather and other catastrophic events. It will provide 24/7 emergency services, full reconstruction and capital improvement services from Monument to Walsenburg and Woodland Park to Ellicott. Richard Asher will lead the team as general manager. Kid’s Resource Network of Colorado Springs Inc., a foster care, adoption and therapy services 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 Commercial Real Estate was the listing agent.