Colo. Springs Real Estate Briefs April 18, 2003

Colorado Springs Business Journal, Apr 18, 2003 by Becky Hurley

Commercial and residential real estate depend, to a large degree, on the overall health of the U.S. economy. Two key economic reports out last week could be of special interest to the local brokerage community. While predicted economic improvements may not hit home in the Pikes Peak region right away, they do signal the early signs that a recovery will eventually ripple our way.

Consumers Respond with Confidence

Friday, April 11, 2003 proved a red-letter day for economy- watchers. According to a report by Kenneth Gilpin in the Saturday, April 12 New York Times, for the first time in months, U.S. consumers expressed measurable confidence about the future and a willingness to spend money.

From the Commerce Department came news that retail sales, which slid 1.3 percent in February, rose 2.1 percent in March.

Gilpin notes that in a separate report, the University of Michigan's preliminary index of consumer sentiment jumped to a reading of 83.2 from a nine-year low of 77.6 in March. That bodes well for April's retail sales. "Analysts said the improved mood of consumers stemmed from the successes in the war in Iraq as well as a sharp decline in energy prices," he said.

Loan Program Finances Affordable Housing

In an announcement last month, Colorado Housing Enterprises, a nonprofit lending corporation, says it is offering interest rates 1 percent below market rates on 15- and 30-year mortgages through the new Home Assist Mortgage Program. Requirements are that the borrower comes up with a 3 percent down payment and that new homes and resales be priced at $180,000 or less. Sylvia Scalabrini at Colorado Housing Enterprises can provide more information at 577-4998.

Transaction Report

Doug Carter Sells Apartment Complex

In an April 7, 2003 report, Carter notes that sales of apartment complexes through first quarter 2003 slowed to three closings, compared to seven closings for the same period last year. Total sales volume this quarter is $6.6 million, compared to first quarter sales of almost $11 million in 2002 and $14.6 million in 2001. The good news is the average price per unit remains at $40,000 - and is up from $35,000 two years ago.

Olive's Riphenburg Nets Sales

Lloyd Riphenburg is having one heck of a month. The Olive Real Estate Group industrial broker closed two sizeable building sales - and several leases.

CGW Group, LLC is moving its law practice to 2519 West Pikes Peak after purchasing a 4,000-square-foot building for $380,000. Riphenburg represented the buyer and Hoff & Leigh the seller in the April 2003 transaction. In addition, the busy commercial/industrial broker facilitated the sale of two buildings totaling 3,200 square feet for $200,000. The Winston Law Firm expects to move its law practice (pending the completion of renovation) by August 1, 2003.

With the new lease of 2,500 square feet to Super Bowl Portable Restrooms, Inc. at 8025 Industry Rd., at lease one partially leased office/warehouse building is now 100 percent occupied. Riphenburg once again facilitated both sides of the transaction. The new tenant has operated in Denver and Ft. Collins prior to opening its new Pikes Peak region headquarters.

In Other Olive News

Charley Conrad, CCIM, of the Olive Real Estate Group, also represented the landlord in the lease of 2,000 square feet of office/ warehouse space to Quinby's, LLC at 4320-A Northpark Drive.

Radiologists Occupy New Building

April 3, 2003 was the official closing date on the sale of a 13,100-square-foot office building at 1390 Kelly Johnson Blvd., near Chapel Hills Mall. According to owners' representatives, Andy Lindquist and Kent Mau of Palmer McAllister, State Farm Insurance is moving its consolidated headquarters to Prime Center at Briargate. This will allow the company to combine its area claims and field offices into a single location. Hoff & Leigh represented the new owners, Colorado Springs Radiologists Investments, LLC, in the $1.1 million purchase.

Office, Retail Lease from Palmer McAllister

Palmer McAllister's brokers completed four new leases so far in April. One included a retail space for SQV Technologies, Inc., which operates a United Financial Services storefront location. Mark Useman and Greg Kaufman, who facilitated the transaction, reported the 1,050- square-foot lease at 1501 North Academy Blvd. in the Rustic Hills Shopping Center.

Kent Mau and Greg Phaneuf hit the jackpot, representing building owners in three separate office leases. Two were renewals, including a 7,565-square-foot lease for Executive Systems, Inc. in the Presidio at 1155 Kelly Johnson Blvd. and a 1,165-square-foot lease for JDI, a financial consultant at 1755 Telstar Dr. in the Briargate Office Center. The third was a new lease at 102 S. Tejon St. in the Alamo Corporate Center with Apollo Communications. The telecommunications company leased 4,838 square feet and was represented by Grubb & Ellis/ Quantum.

Hoff & Leigh Report - Part I

Bob Hoff, partner and colorful co-founder of Hoff & Leigh, recently represented the buyer, Chelton Loop North, LLC, in the purchase of a warehouse building at 3315-3315 Chelton Loop from NS Properties. Co-owner Tim Leigh represented the seller who sold the building for $1,350,000. Not bad for a couple of upstarts.