Colorado Real Estate Journal - September 21, 2016
A Class A medical office building in Colorado Springs recently traded at just over $190 per square foot. The buyer, Bellevue You-StoreIt LLC, paid $6.76 million for 6160 Tutt Blvd., a 35,500-sf “gem” built in 2005. “It was a gem of a medical 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 represented the landlord for all of the leases in the building. The buyer represented itself in the transaction. Additionally, Cascade Commercial also recently represented Ocean Blue Equities LLC in its $2.55 million sale of 155 Printers Parkway, a 30,000-sf medical office building in the Printers Park submarket in Colorado Springs. Other News A Pueblo retail building 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 Newmark Grubb Knight Frank represented the buyer. A portion of Austin Bluffs Plaza in Colorado Springs traded for $1.88 million. Sunrise Management LLC purchased 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 Cushman & Wakefield Alliance represented the buyer. Interest in investment real estate in Colorado Springs remains strong as regional and national investors/developers continue to view the market as a lower-cost alternative to Denver and other primary markets, according to a recent second-quarter investment market report by Quantum Commercial Group. The report noted that two properties 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 value with improving market fundamentals, upgrades to the property and stabilized tenancy. DPC Development Co. purchased the Rocky Mountain Coors Distributing facility and Westside Investment Partners purchased One Gateway Plaza. The city’s multifamily market continues to flourish, added Quantum, noting that record-setting sales of multifamily assets in both price and volume are occurring as national and regional companies acquire local apartment complexes. Additionally, the development of apartment complexes continues at a “rapid” pace, as both local and national development companies proceed with new apartment 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 virtually no new construction of office product in the local market, rental rates will begin to gradually escalate 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 continue 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 conditions stabilize,” according to the report.