Real Estate Briefs July 26, 2002

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According to UCCS College of Business and Administration’s Southern Colorado Economic Forum Senior Economist Fred Crowley, Colorado Springs has begun to recover from a brief recession, but is trailing the national recovery by several months. He arrives at this conclusion in the Forum’s Quarterly Updates and Estimates. His analysis is based on measuring several key indexes of the local and national economy, including a national Information Technology Index and Colorado Springs’ own Business Conditions Index (BCI) which incorporates El Paso County data from:

* Single-family housing permits

* Colorado Springs sales and use tax collections

* New car sales

* Employment rate

* Colorado purchasing managers index

* National consumer sentiment index

Crowley also uses data from the Lodging and Auto Rental Tax (LART) to determine the local economic health. It’s too bad that he doesn’t have access to a 401(k) database – that would be an eye-opener after last week’s stock market slide.

The first meaty QUE provides a wealth of information on everything from monthly and quarterly national data to state and local economic indicators. My guess is that no residential or commercial real estate company will want to miss Crowley’s expert review – especially his national inflation, GDP, unemployment and medical/benefits predictions (he calls them “expectations”) for 2002 and 2003. The medical/benefits sector, he says, will see 20-50 percent increases over the next year – sad but true.

Ken Greene Sees Long Year For Multi-Family Brokers

With recent Worldcom layoffs already impacting area landlords, the Colorado Springs multi-family sector continues to encounter blows dealt by a stumbling economy and by low mortgage rates responsible for luring former renters into the single-family home category. Jobs (or a lack thereof) will determine the fate of this year’s multi-family property sales, Greene says. He believes the 500 to 1,000 jobs created by the Northern Command will help stabilize the local rental market. He also says that post-September 11 volatility and a sliding stock market may delay a recovery until early 2003

Another Multi-Family Perspective From Doug Carter

While preparing for a review of the first six months of 2002 transactions, Doug Carter, local multi-family researcher and broker, discovered a significant difference between this year’s market and the two years previous. “In the first six months of 2002, Colorado Springs saw 15 deals completed for a total of $20.8 million. For the same period in 2001, the numbers were 13 sales for a total of $30.9 million. The big news is that in 2000, 14 sales were completed for a total of $98 million. “Our number of sales are pretty consistent,” said Carter. “They’re just much smaller transactions.”

Transaction Report

As local Worldcom and other layoffs ripple through the local economy, residential and commercial realtors expect some contraction in the market. Reports of a spike in fresh resale listings from local realtors last week are sobering. Still, as Fred Turner, Colorado Springs’ source for commercial real estate market analysis says, a “down” market represents opportunity for many. Experienced investors will wait, however, until the market bottoms out. Judging from building and land sales coming across the CSBJ real estate desk, however, plenty of buyers are seizing the moment.

Benet Hill Lease Extended by Grubb & Ellis

Jerry Knauf and Mary Francis Cowan of Grubb & Ellis/Quantum Commercial Group report that CIVA Charter School has leased the 50,707-square-foot Benet Hill Academy at 2555 N. Chelton Rd. for the 2002-2003 school year.

In other Grubb & Ellis/Quantum news, Jerry Knauf also facilitated a lease at the Broadmoor Executive Suites at 1257 Lake Plaza Drive. The 2,069-square-foot space will be converted to general offices for Wintronix, Inc., an Internet company. Andy Oyler, also of Grubb & Ellis/Quantum, represented the owner on the lease of 450 square feet of office space to Leadership Pikes Peak in the Pueblo Bank and Trust Building. Julie Strodtman of Fountain Colony represented the tenant on the transaction.

Hoff & Leigh Brokers Close Five Sales

Properties sold by Hoff & Leigh last month include four office buildings and one industrial facility on Garden of the Gods Rd. Among office/commercial transactions, John Callahan purchased the 2180 sq. ft. residential/office building at 1912 West Colorado Avenue from Julian and Linda Drummond. Sale price was $250,000. Joan Overby of Rusinak represented the buyer and Terry Vice of Hoff & Leigh represented the seller. Vice also teamed with Tim Leigh of Hoff & Leigh on the sale of an 8252 sq. ft. office building located at 315 East Costilla Street to Malin and Melahn. Carlene Walker was the seller and the sales price was $700,000. Leigh and Vice facilitated both sides of the transaction.

Schendt Properties, LLC purchased the 2982 sq. ft. office building at 2910-2912 Beacon Street from Beacon Investments. Sale price was $315,000. Tim Leigh of Hoff & Leigh represented the seller, and Dick Liccardi of Hoff & Leigh represented the buyer. Liccardi also represented the buyer, R. Hart Properties, on the purchase of a 5025 sq. ft. office building at 4795 Granby Circle from Clem Hausman. Sale price was $400,000. Barry Boals of Re/Max represented the seller.

As reported by listing broker, NAI Highland Commercial last week, Bob Hoff represented the buyer, Delphi Investments, LLC in the purchase of a 24,644 sq. ft. industrial building at 720 Garden of the Gods Road from RBM Precision Metal Products. Sale price was $1,200,000.

Due to space constraints, half of Hoff & Leigh’s lease transactions will be published in the August 2 column.

Earth Engineering Consultants, Inc. leased 4029 sq. ft. of industrial space at 1036 Elkton Drive form John J. Gogian Revocable Trust. Steve Bach of Bach Commercial represented the owner and Terry Vice of Hoff & Leigh represented the tenant.

Tim Leigh facilitated the following transactions

* Ace Transmission Factory leased 3600 sq. ft. of industrial space at 616 Arrawanna from Hoff & Leigh Management.

* The Blade Shoppe renewed the lease for the 1503 sq. ft. retail space at 22 & 24 East Bijou Street from Vista Montana, LLC.

* David Petrouske renewed the lease for the 1200 sq. ft. industrial space at 3470 Chelton Loop, Unit A from NS Properties.

* Maritta Goodman renewed the lease for the office space at 815 North Nevada Avenue, Suite 200E from Hoff & Leigh Management.

* Sandra L. Hernandez renewed the lease for the carriage house (office space) at 815 North Nevada Avenue from Hoff & Leigh Management.

* E. Cherie Rayburn leased the office space at 815 North Nevada Avenue, Suite 200A from Hoff & Leigh Management.

* Dr. Frederick Taylor leased 1018 sq. ft. of office space at 5585 Erindale Drive, Suite 102 from Erinbrooke II. Dave Ankeney of Metro Brokers represented the tenant.

* ProCom Services , Inc. leased 3075 sq. ft. of office space at 3415 Van Teylingen, Suite A1 from the Liccardi Family Partnership. Charlie Madson of Hoff & Leigh represented the tenant.

* Larry and Kim Fierro leased 1250 sq. ft. of industrial space at 3415 Van Teylingen, Suite G from the Liccardi Family Partnership. JB Isaac of Coldwell Banker Front Range Commercial represented the tenant.

Dick Liccardi also facilitated several leases, representing the owner (the Liccardi Family Partnership) and the tenant including:

* Planet Educate leased 1018 sq. ft. of office space at 5555 Erindale Drive, Suite 202

* Colorado Appraisal Advantage leased 450 sq. ft. of office space at 5555 Erindale Drive, Suite. 206

* Fountain Reptile leased 1250 sq. ft. of warehouse space at 3415 Van Teylingen, Suite F.

Elite Home Tour:

Upscale Homes Get Aggressive Marketing

In an attempt to move luxury home sales through a sluggish market, Colorado Springs high-end realtors are getting creative. You may have seen the recent flyer promoting the Elite 25 Home Tour, coordinated by Bill McAfee and Michele Shannon. Big names in pricey
residential real estate like Becky Gloriod, Trish Ingels and Joe Clement have listed properties for the July17 tour from 4-7 p.m. Homes are priced from $525,000 to $1,130,000 and will be open to the public as well as to agents.