Colorado Springs Real Estate Briefs May 16, 2003

Colorado Springs Business Journal, May 16, 2003 by Becky Hurley

As you may have noticed, during the second week of the month, the Colorado Springs Business Journal features its "Blueprints" section in place of the weekly real estate column. As a result, the third and fourth weeks of the month are brimming with transactions to report. Here are highlights from the past few weeks of commercial and residential activity with dozens more slated for next week's column.

Transaction Report

Westech Homes Leases Building Near Sky Sox

Lloyd Riphenburg of the Olive Real Estate Group facilitated the recent lease of 5,850 square feet for Westech Homes' new headquarters at 5850 Championship View, near Sky Sox Stadium. Plugging its great location, he also says the office/warehouse facility still has space available and can accommodate another 4,700- to 15,200-square-foot user.

Conrad Places DoD Company

In more news from Olive, Charley Conrad leased 1,635 square feet in the Colorado Springs Business Park at 770 Wooten Rd, Unit 112 to Vanguard Research, Inc. The company is a new Department of Defense contractor in the area.

Three G & E/Quantum Deals Closed

Count on George Swintz of Grubb & Ellis/Quantum Commercial to lead Bethesda's leasing charge. Defense contractor Northrup Grumman just leased a 25,445-square-foot space at 985 Space Center Dr. from the Bethesda Management Company.

Jerry Knauf, retail specialist, also represented Old Colorado City landlord Grether Family Trust on the lease of 2,800 square feet. New tenant From the Heart has opened at 2506 W. Colorado Ave., just in time for Mother's Day and graduations.

Joining the new Starbucks in the Cheyenne Meadows Shopping Center is $1.89 Super Quality Cleaners, thanks to Cameron Mogadam of Grubb & Ellis/Quantum. The new tenant will occupy 1,425 square feet at 819 Cheyenne Meadows Boulevard. Sounds like owner Regency Centers is nearing full occupancy.

Ankeney Deals: Bargain Mart, Magnisight

Bargain Mart, a locally-owned discount grocer, will open a second Colorado Springs location in the Venetian Village Shopping Center, according to Dave Ankeney, CCIM and RE/MAX broker. The broker facilitated the transaction for the owner and tenant. He also reports two spaces are still available - one at 1,260 and another at 2,400 square feet at the North Hancock location.

The broker also assisted Brian and Renata Smith in the purchase of the former Foster Electric property at 3190 North Stone Ave. Dan Rundgren of Wachovia helped the couple obtain SBA financing. The new Magnisight headquarters includes a 7,000-square-foot office/ warehouse facility on approximately one acre of ground and includes 3,000 square feet of office and 4,000 square feet of clean warehouse.

Ankeny, who says he is known as the "church broker," also works with corporate and nonprofit clients. Even during the challenges of today's economy, the veteran remains optimistic. "In spite of a few bumps in the road due to a slow economy, Colorado Springs is a great place to live, and we will continue to grow," he declares. "As the national economy recovers, we will also." Interesting comments from the commercial real estate front lines...

First Quarter Retrospective

Apartment specialist Doug Carter of Doug Carter, LLC just closed on the sale of the 39-unit Americana Apartments in late April 2003. He points out that the 7.2 percent CAP rate reflects the premium prices buyers are still willing to pay in the Colorado Springs market.

"That said," he continues, "the first quarter sales market was quiet compared to past years. Three apartment complexes sold this quarter compared to seven closings during the first three months each of 2002 and 2001." His March rental survey reported a citywide average occupancy of 87.5 percent prior to the April troop deployments - representing nearly 24,000 units.

Interestingly, Carter remains optimistic in the face of increasing vacancy rates and stalled rents."Hang in there," he says,"Our market is adjusting to an oversupply of new apartments and to the deployment of 11,000 Fort Carson troops. Both problems are temporary, and apartment advisors remain very confident of the future for Colorado Springs."

SpittlerRepresents Gunther Toody's

NAI Highland Commercial's Jim Spittlerfound a new location for Gunther Toody's in the Crossing at Palmer Park and facilitated both sides of the transaction.The popular nostalgia-theme eatery has been looking for additional locations, says Spittler, and "feel that the booming Powers corridor would be the best area for expansion." The site on the northwest corner of Palmer Park and Powers was selected in part because of its proximity to the new Wal-Mart across the street. It will likely be "standing room only" like the many other Chilis, Applebee's, Golden Corral, etc. along Powers. Buyers Kim and Rhonda Hopfenspirger paid $617,962 for the 49,437-square-foot parcel.

Leigh Brokers

Apartments & More

This week, Tim Leigh, co-owner of Hoff & Leigh, reports a number of deals and offers insight on a couple of his most interesting transactions.