Real Estate Briefs August 2, 2002

Congratulations this week to the City of Fountain for its 2002 designations as one of the country’s top ten “All American Cities.” Mayor Ken Barela and City Manager, Greg Nyhoff, along with the Fountain City Council definitely get credit for raising the awareness, the commitment and the money (the national competition requires that a city comes up with considerable cash and documentation). With an eye toward the future, Fountain has been addressing utilities and development issues head-on – and is experiencing some of the area’s fastest residential and retail growth.

Security Survey Highlights

In a July 2002 update from the Urban Land Institute (ULI) come the results of a joint BOMA-ULI survey on security measures implemented prior to and post-September 11, 2001. The WTC tragedy caused building owners to tighten sector systems, but few have made radical changes to their operations, and wide-ranging emergency plans were largely in place prior to those events, according to a report from BOMA. Here are a few highlights:

Based on a joint BOMA-ULI survey, security measures used prior to Sept. 11 included:

* Building alarm monitors (80.2 percent)

* Lobby security controls (74.3 percent)

* Surveillance cameras (64.9 percent)

* Employee background checks (60.9 percent)

Least common practices were perimeter barriers (14.9 percent had them). Fewer than 6 percent of survey respondents reported adding barriers after the attack. The single security upgrade most frequently used following Sept. 11 was tighter vendor security, including vendor ID, and vendor check-in.

Survey respondents cited far more concern with emergency preparedness than with terrorism. Thus:

* 56.9 percent were concerned over fire safety.

* 34.7 percent worried over civil unrest.

* 32.7 percent identified power disruptions as their major concern.

* 11.9 percent acknowledged terrorist attacks as a potential threat.

* 6.9 percent had misgivings over biohazards.

“Being prepared in general…appears to be more important than concern over ‘one-time’ or ‘unlikely’ events,” says the survey. None of these measures would have prevented or mitigated the attacks on Sept. 11 in any substantive way. Additionally, more specific anti-terrorist steps have been proposed.

What we are seeing, according to ULI President Richard Rosan, is “…a tendency by owners and managers not to overreact, but to act sensibly in providing a safe working environment in our urban areas. The response is appropriate to the level of risk involved.”

Palmer McAllister’s Engel and Wheeler Close $8 Million Sale

About the time the commercial real estate market looks as dry as the Colorado landscape, a deal comes along that renews one’s faith in brighter (and rainier) days ahead. On July 17, Paul Engel and Dale Wheeler reported the sale of their M/A-COM listing at 1110 Bayfield Drive (the former Cray Computer headquarters). Co-listers on the sale were Todd Wheeler and Ned Leeming of Cushman Wakefield, Denver. Engel described the deal as “very complicated” due to the number of parties involved, but the challenge of putting the sale together proved ultimately worthwhile. No kidding. Fortunately the seller, M/A-COM was motivated; Atmel (who was subleasing 90,000 square feet for three more years) was willing to move out and absorb its employees into existing space; Honeywell will gain a 168,000-square-foot Class A office and R&D building that accommodates up to 700 employees who are working on a DoD contract; and the investor, C-L Colorado Springs Associates, owns an appreciating property, fully-leased for the foreseeable future. As Engel says, this was a win-win-win transaction.

More Updates from Hoff & Leigh

Presidential Brokerage leased office space at 7035 Campus Drive, Suite 807 ABC, from Bill Muhr. Bill Perry of Hoff & Leigh facilitated the transaction.

Homeowner’s Direct, LLC leased 3924 sq. ft. of retail space at 5631 North Academy Boulevard from Erindale Centre, LLC. Julie Strodtman of Fountain Colony represented the owner, and Bob Telmosse of Hoff & Leigh represented the tenant.

C.I.R.I., LLC leased the 2.06-acre lot adjacent to 2720 East Las Vegas from Red Pech Properties. Mike McDowell of Hoff & Leigh facilitated the transaction.

Graystone Mortgage Corporation leased 420 sq. ft. of office space at 225 South Academy, Suite 202, from 225 South Academy, LLC. Tim Leigh of Hoff & Leigh facilitated the transaction.

Mark and Elizabeth Hernandez leased a 915 sq. ft. office space at 1826 East Platte Avenue, #203, from E & W Investments. Charlie Madson of Hoff & Leigh represented the owner, and Terry Vice of Hoff & Leigh represented the tenant.

Renae Dellacroce leased 650 sq. ft. of office space at 223 North Wahsatch Avenue, Suite 204, from E & W Investments. Charlie Madson of Hoff & Leigh facilitated the transaction.

Carter & Burgess, Inc. leased 3200 sq. ft. of warehouse space at 930 Elkton Drive from Larry & Penny Dyer. John Onstott of NAI Highland Commercial represented the tenant, and Charlie Madson of Hoff & Leigh represented the owner.

The Education Center leased 4874 sq. ft. of office space at 2934 East Fountain Boulevard from Beckett Development. Charlie Madson of Hoff & Leigh represented the owner, and Chuck Armstrong of Hoff & Leigh represented the tenant.

Spoolin’ Around leased 3700 sq. ft. of retail space at 5751 North Academy Boulevard from Erindale Center, LLC. Julie Strodtman of Fountain Colony represented the owner, and Dick Liccardi of Hoff & Leigh represented the tenant.

Franklin D. Azar & Associates leased 1700 sq. ft. of office space at 6035 Erin Park Drive from Professional Associates Properties. Andrew Oyler of Grubb & Ellis represented the owner, and Chuck Armstrong of Hoff & Leigh represented the tenant.

Kay Williams leased 225 sq. ft. of office space at 815 North Nevada, Suite 200C, from Erewhon, LLC. Tim Leigh of Hoff & Leigh facilitated the transaction.

Justin Blatter leased 1,000 sq. ft. of office space at 1826 East Platte Avenue, Suite 200, from E & W Investments. Charlie Madson of Hoff & Leigh represented the owner, and Terry Vice of Hoff & Leigh represented the tenant.

Allergy and Asthma leased 2437 sq. ft. of office space at 2925 Professional Place, Suite 103, from Sullivan Communities Kissing Camels Office Park. Scott Benson of Benson-Price Commercial represented the owner, and Tim Leigh of Hoff & Leigh represented the tenant.

Dennis Richard McDowell leased 135 sq. ft. of office space at 815 North Nevada, Suite 200D, from Erewhon, LLC. Tim Leigh of Hoff & Leigh facilitated the transaction.

Bryan’s Ltd. dba Classic Diamonds leased 2636 sq. ft. of retail space at 202 North Tejon Street from Vista Montana, LLC. Tim Leigh of Hoff & Leigh facilitated the transaction.

Colorado Appraisal Advantage leased 450 sq. ft. of office space at 5555 Erindale Drive, Suite 206, from the Liccardi Family Partnership. Dick Liccardi of Hoff & Leigh facilitated the transaction.

Fountain Reptile leased 1250 sq. ft. of warehouse space at 3415 Van Teylingen, Suite F, from the Liccardi Family Partnership. Dick Liccardi of Hoff & Leigh facilitated the transaction.

Conous Technology, Inc. leased 768 sq. ft. of office space at 5555 Erindale Drive, Suite 201, from the Liccardi Family Partnership. Dick Liccardi of Hoff & Leigh facilitated the transaction.

Homeowner’s Direct, LLC leased 2850 sq. ft. of warehouse space at 4710 North Chestnut from Catalano Family, LLLP. Bob Telmosse of Hoff & Leigh represented the tenant. Curt Stearns of Hoff & Leigh represented the owner.

Nurse’s Profit, Inc. leased 1319 sq. ft. of office space at 915 East Fillmore from Point Aerie, Ltd. Jessica Lee of Hoff & Leigh represented the owner, and Charlie Madson of Hoff & Leigh represented the tenant.

That’s all we have room for this week, but we’ll be back with additional updates from Grubb & Ellis/Quantum Commercial, Palmer—McAllister, The Olive Group and much more.