Colorado Springs Real Estate Briefs Oct. 17, 2003

Colorado Springs Business Journal, Oct 17, 2003 by Becky Hurley

For local real estate and construction-related companies October turns out to be the month for kudos, recognition and awards.

The Pikes Peak Association of Realtors just announced its new executive slate, headed by longtime PPAR member Skip Howes of RE/MAX Performance Group, president, and Randy Reynolds of Prudential Professional Realtors, vice president. Here are a few more headliners - and some are absolutely amazing.

Homebuilder Accolade

Shea Homes just won recognition from J.D. Powers and Associates as the new home builder (in Colorado Springs and Denver) with the most improved customer satisfaction marks in the region - up 20 percent over last year.

Three Colorado Springs Buildings Win Praise

In the October issue of Colorado Construction Magazine, three Colorado Springs projects were cited for excellence.

Memorial Hospital won a Gold Hat Award for its new 1,500-car parking garage. The entry was submitted by Charles L.T. Smith & Associates Architects. Other companies recognized include: JE Dunn Construction, Leigh Whitehead & Associates, RE Monks Construction, Stresscon, Baker Concrete Construction, Commercial Design Engineering, Olson Plumbing & Heating, and Berwick Electric.

The $17.3 million seven-story garage faced some water issues below grade. JE Dunn's challenge was to de-water the site and to do a complete excavation and manage a winter construction project. Even subcontractor Stresscon faced challenges as it poured more than 2,000 concrete sections of the building through the coldest months of the year.

Another Gold Hat Award went to the new Space Command Headquarters at Peterson Air Force Base, submitted by Swinerton Builders. According to the judges, excavation was already underway when two major structural changes were required. First, the Department of Defense asked to add an additional 25,000 square feet to the original floor plate. That was followed by events of 9/11 and a decision to change the occupant of the new building from U.S. Space Command to the newly-created U.S. Northern Command. Today, NorthCom shares its 158,000-square-foot headquarters with the North American Aerospace Defense Command, and a second 100,000-square-foot building is home to the North American Aerospace Defense Command (NORAD).

Finally, the Pikes Peak Library District's Carnegie Library Restoration won a Silver Hard Hat award. Submitted by GE Johnson Construction of Colorado Springs (which also received Silver honors for the elaborate $13 million Sanctuary Golf Clubhouse), the Carnegie, first constructed in 1905, was in danger of dilapidation. GE Johnson, with the help of the architects and subcontractors, APS Porter Lath & Plaster, Concepts in Millwork, Encompass Electrical Technologies, Leiser Painting, Olson Plumbing and Heating, Rocky Mountain Building Restoration, Stone Tec and Transit Mix Door and Hardware, completed the $3.4 million project in April 2003.

One major challenge on the library restoration was finding the craftsmen and materials needed to replicate the building's original woodwork and finish. The only assistance available came from old photographs and drawings.

BBB Update

The Colorado Springs Better Business Bureau has been approached by the Colorado Mortgage Lender's Association, says Jenna Davis, BBB communications director. Both organizations see the need for closer review of the industry. Colorado is one of only four states in the U.S. that does not regulate mortgage lending, she states.

My advice is to contact us at 636-1155 to get a company report on your mortgage company. If there's no report on file, they're brand new and have just opened. It's better to be cautious than sorry. Davis also notes the FTC does not currently offer any clear guidelines on how consumers can protect themselves from poor mortgage advice. The consumer really does need to do his or her homework - especially before treating a mortgage broker as your agent, she says.

Rising Interest Rates

Slow Refinancing

In the August 17, 2003, New York Times article, Navigating the New Mortgages, lending experts agreed creativity will be needed to keep payments low for buyers.

Joseph T. Javitz, a New York-based director of residential loan operations for Astoria Federal Savings, notes for the past two years, nearly 75 percent of mortgage loans have been refinancing of existing mortgages. He sees a downward trend beginning and advises lenders to find new strategies to entice borrowers.

Lori Collins, senior vice president for Lending Tree, agreed. We are definitely seeing that trend, Collins said. As a result, we expect consumers to become more payment-focused.

Alternatives to traditional 30-year or 15-year fixed-rate mortgages, according to Javitz and Collins, include negative amortization loans (workable in an appreciating market, but devastating if home prices decline), flat-rate closing costs which eliminates the potential for sticker shock at the closing table when numerous add-ons can overwhelm, and interest-only adjustable-rate mortgages for the first 10 years that allow buyers to qualify for more house - and to defer interest payment.