Real Estate Briefs June 14, 2002

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It’s been interesting to hear about some of the recent “transactions in the works” – deals that are almost there, but pending signatures or contract acceptance. One that comes to mind is Pikes Peak Mental Health’s pending purchase of the former K-Mart and Youth Outreach facility at South Circle Drive and Airport Rd. The 100,000+ square foot building was once under consideration as a prospective home for the Regional Building Department (prior to their acquisition of the former Wards building) — and appears ideally suited for use by a large organization or business in need of convenient access and plentiful parking. According to Ken Barela, executive director of Aspen Diversified Industries (ADI), PPMH’s vocational training and facilities management company, though larger than ADI’s operations currently require, the single level structure might eventually accommodate other Pikes Peak Mental Health programs and administrative offices. Stan Kensinger of The Olive Real Estate Group has worked with PPMH and Aspen Diversified Industries for the last three years and says an offer on the building has been submitted. Will report any updates as they are confirmed.
By the way, Barela, who also serves as Fountain’s volunteer mayor and chief promoter, says that his home community was just announced as a finalist for “All American City.” “We’re one of 30 communities selected as a finalist, and I think we have an excellent chance to be named one of the ten top cities in the country.” The announcement of the top ten will be announced on June 15. Hats off to the visionary team in Fountain (including City Manager Greg Nyhoff and Barela) who are working to bring smart economic development and enhanced infrastructure to their community.

Canon City Inn, Neighboring Retail Centers Sold
Though it’s not a Colorado Springs sale, longtime Grubb & Ellis vice president and Multi-Housing Team broker, Ken Greene, sees his group’s recent sale of a prime Canon City mixed use portfolio as a major coup. The properties, located on Highway 50 at the eastern entrance to Canon City, were sold for $10,500,000. Not bad! The new owner is First Pacific Investments of Denver.
Included in the transaction is the 152-unit Canon Inn, built in 1973 with an addition in 1992. According to Greene, it is the largest full-service hotel in Canon City and includes a restaurant, café, outdoor pool and a number of other amenities. In addition, the deal included the sale of Country Green Apartments, a 17- building, 136-unit apartment complex built in 1975 – always near 100 percent occupied according to Greene due to its market rents and popular amenities. As part of the transaction, two retail centers were also sold. The first is a Texaco Kwik Stop with a car wash on Highway 50; the second is a 11,300-square-foot shopette, divided into eight retail spaces.
Greene says that a partner in First Pacific, Bob Nicolls, also owns the Monarch Ski Area and sees the Canon City property as a seasonal complement to the winter ski resort. The properties were all in excellent condition, so no renovation is planned at this time.
As far as future multifamily development potential in the Canon City area, Greene says that there may be room for “market rent communities.” He also mentioned his current Colorado Springs apartment listings at Western Hills near Peterson AFB and The Village at Westmeadow, just north of Ft. Carson – and both are maintaining low vacancy rates. With few other apartments on the market, landlords appear to be holding on to their investments.

Transaction Reports

Professional Office Leases Reported by Link
Ted Link at Fidelity Real Estate, Inc. has stayed in town (unlike Kevin Kratt, Buck Blessing, and a host of others headed out on vacation). The result: Link has finalized two more office leases for Rothberg, Tamburini, & Winsor, Inc. and for the New Look Clinic – both located at 455 East Pikes Peak in the City Center Plaza. He represented the owner, Center City Development, LLC and the tenant on the 2,350-square-foot law firm expansion and represented New Look on its 2,871-square-foot renewal.

Palmer McAllister Closes on Land Sale, Retail & Office Leases
Just when the market seems to be quieting down, more deals start popping up. Take Mark Useman and Greg Kaufman, retail specialists for Palmer-McAllister, for example. The two brokers represented the owner, Nor’Wood Development (represented by Bob Crisp), on the lease of 4,010 square feet of retail space to Countrywide Home Loans at 5931 Constitution Avenue in the Constitution Place Shopping Center.
Useman also must be celebrating the closing on a 2.04-acre parcel of land located at Stetson Hills and Charlotte Parkway. The Olive Company represented the owner, Tutt & Barnes 2 Acre Tract, LLC out of Texas. The buyers, represented by Useman, will open the Hope Education & Research Center, a Montessori School and Daycare Center. Purchase price was $635,000.
Finally, from the Palmer-McAllister group comes news of a 5,364-square-foot lease, facilitated by office/commercial brokers, Kent Mau and Greg Phaneuf at 5475 Mark Dabling Boulevard. The tenant, Capstone Solutions, specializes in conference administration.

More News From Grubb & Ellis Quantum Commercial Group
Hermann Speilkamp, CCIM, announces the sale of 1.77 acres of land at 3100 N. Chestnut to a Limited Partnership interested in expanding its hotel property. The parcel sold for $350,000 and was listed by David Ankeney of Metro Brokers.
Familiar with The Well in Penrose, CO? If so, the following update may come as a surprise. The well-known local hot springs facility has been sold to The Morley Companies for future development. Herman Spielkamp also listed the property which included 154 acres and water rights. Hmm…Jim Morley and company seem to be picking up a lot of parcels around town. Should be interesting to see the master plan for this popular property to the south.
Two other leases reported by Grubb & Ellis include two new offices. Andrew Oyler leased a 2,860-square-foot space for owner, OC International at 5801 N. Union Blvd. Oyler doesn’t say who leased the space so check with him for details. The second lease was completed by Leigh Steinert who represents Brent Hawker & Company at Offices at the Park. The 1,284-square-foot office will be used by tenant, Sherry Romero Realty.