Real Estate Briefs September 6, 2002

Masterbilt Homes Introduces Fresh Concept

Every once in a while a homebuilder steps outside the box and starts a completely new trend. Jack Weipking, president of Masterbilt Homes, certainly gets credit for taking a very large step in introducing the Pikes Peak region to Traditional Neighborhood Design (TND), which has evolved around the country as an offshoot of New Urbanism. Weipking has finished four models, designed in the Craftsman style – using rectangular window framing, banisters and cabinetry; a raised porch with river rock base and tapering columns, deep-tone exterior colors and a number of 1930s-and 1940s-inspired interior design elements.

Other builders are sure to follow suite including a town home community currently on the drawing board for the Spring Creek area (Earl Robertson’s project). In the meantime, however, Masterbilt’s Village at Monument no doubt drew some excited attention as it launched with the 2002 Parade of Homes in Monument. To date, Weipking has sold his first TND home and has ginned up considerable interest as a result of the Parade of Homes.

eBay Teams with Regus to Lease Office Space

Those of you in the commercial real estate community are no doubt already aware of moves afoot to get property listing information onto the Internet. Still, it came as a surprise to hear that eBay just signed a deal with Regus, the country’s leading provider of outsourced offices with more than 410 business centers around the world, to promote its office space online. In its August 20, 2002 announcement, eBay vice president of real estate, Doug Galen, indicates that Regus “provides cost-effective office space and lease terms, allowing companies to secure office space when they need it for as long [or short a time] as they need it.” Regus is also known for offering fully-equipped office suites, complete with telecommunications/IT services, videoconferencing, meeting and training rooms, desktop publishing and administrative support.

eBay launched its real estate division in August 2000, and so far, operates in five core areas: residential homes, timeshares, foreclosures, land parcels, and now commercial real estate. “As the percentage of small-to-medium businesses continues to grow, services provided by Regus will continue to increase in demand,” Galen said, citing the advantages of requiring tenants no upfront capital requirement, and office space that rents for as little as eight dollars a day. Hmmm…while Colorado Springs does not seem like an immediate candidate for e-leasing, it’s an interesting trend to watch.

1010 Delaware Apartment Sold

Last month, the CSBJ received a transaction report from Denver-based Terrix Corporation regarding the sale of an 18-unit apartment building at 1010 Delaware Street. The property was built in 1970 and was purchased by a local investor, according to Brandon Rogers and Amy Gibson of Terrix Financial. Financing on the $637,500 sale was handled by the company which offered a 75 percent loan with a 25-year amortization and a 10-year term at a fixed rate of 7.25 percent for five years. Keelty Smith and Ryan Smith of Apartment Property Services of Colorado Springs helped facilitate the transaction by providing the lender the information necessary to secure a 10 percent seller carry and to streamline the process.

Palmer-McAllister’s Second Quarter Builds

In his second quarter recap, Gary Hollenbeck cited $40 million in sales and leasing activity, noting that $16 million of that included the sale of 10 office or office/warehouse buildings. He also reports that the two largest office leases completed were for downtown properties – one for 25,000 square feet in the Plaza of the Rockies Building for the GSA and the other for Colorado Springs’ own GE Johnson construction company at 25 North Cascade. The firm’s brokers also completed more than $6 million dollars in retail building sales, more than $ 9 million in land sales, and sold three apartment complexes for $7.3 million. Fortunately, says Hollenbeck, second quarter activity provided some hope for a brighter economic picture ahead. Still, always conservative in his estimates, Hollenbeck is not promising record-breaking activity in third and fourth quarters.

August Office Leases Reported by Palmer-McAllister and Fidelity

A 3,223-square-foot lease at 2630 Tenderfoot Hill Road for Rocky Mountain Neuro Psychiatric Associates (relocating from downtown) was handled by Palmer-McAllister broker, Andy Lindquist who represented the tenant. The office space was sub-leased from Alliance Capital Mortgage Company, which was represented by Fidelity Real Estate.

In other news, Palmer-McAllister’s Mark Useman and Greg Kaufman handled both sides of a 2,560-square-foot lease for tenant, Ofelia’s Salon & Spa, at 4730 Centennial Blvd. The landlord is Wind River Holdings, LLC. According to the brokers, this is the first location for the beauty salon and spa.

Kent Mau and Greg Phaneuf, also of Palmer-McAllister, teamed on the lease renewal of 4,427 square feet to Mission Research. The company is located in the Alamo Corporate Center at 102 S. Tejon St., Suites 200 and 460. The landlord, Utah State Retirement Fund out of Salt Lake, was also represented by Mau and Phaneuf.

Commercial construction manager, Project Solutions, LLC, recently relocated to a 2,227-square-foot office at 926 Elkton Drive in the Grand Garden Center. Palmer-McAllister brokers, Paul Engel represented the landlord, MTM Grand Properties, LLC, and Mark Useman represented the tenant in the transaction.

Moving now to several Fidelity leases completed by Ted Link, the office specialist represented the landlord at Bethesda Management Company in a lease to Fortis Health Insurance for 1300 square feet at 1465 Kelly Johnson Blvd. Link says Fortis will occupy the space in October 2002. The Fidelity broker also represented building owner, Homburg Realty, Inc. in the lease of 1,642 square feet at 545 East Pikes Peak Ave. to Nursefinders, Inc. The company is expanding its space in the facility.

Two more transactions reported by Link include the renewal of 2,604 square feet by Hildebrandt & Associates at 455 Center City Plaza. Both sides of the transaction were facilitated by the broker, who also represented the landlord on an office lease with Farmers Insurance Group in the Alamo Corporate Center at 128 S. Tejon. Carla Davies of Heritage Realtors, Inc. represented the tenant.

More Retail Lease Reports

Scott Gray of Olive Real Estate’s Retail Group facilitated both sides of a transaction for retail space at 7814 N. Academy Blvd. The tenant, Personal Service Center, is a business designed to meet “the personal assistant needs of busy individuals.” Sounds like a winner – particularly for those who need packing and shipping help, movie rental or pick-up, airline reservations, special event or movie ticket purchases, appointment scheduling and more. The new owner promises to make a “burdensome to-do list a thing of the past.” The lease is for 847 square feet.

From Grubb & Ellis/Quantum’s Cameron Mogadam comes word that he represented the tenant, Subway, Inc. in a new 1,200-square-foot retail lease in Union Town Shopping Center at the northwest corner of Union and Research Parkway. Representing the landlord, W.S. Briargate Associates, LLC, was John Winsor of the Olive Retail Group.

Palmer-McAllister’s retail team is certainly hustling these days. The brokerage reports four new retail leases including the lease of 1,200 square feet to Great Clips for a shop in the Union Town Center. Tenant’s broker, Steve Hunsinger, notes that the center is under construction but is filling rapidly. The listing broker, as noted above, is John Winsor of Olive.

Hunsinger also logged a second retail lease at 7816 N. Academy Blvd. representing the tenant, TheReturnSite.com on an 847-square-foot lease. Eggs El Paso Inc., the landlord, was represented by The Olive Real Estate Group. Adjacent to the Personal Services Center, this professional/personal security provider is opening its first Colorado Springs outl
et.

Mark Useman and Greg Kaufman of Palmer-McAllister also teamed up on two new retail leases. On the first, a 1,280-square-foot lease to All State Insurance, at 4750 Centennial Blvd., Useman and Kaufman represented both the landlord and the tenant. On the second, the pair represented the tenant, Doug Pua and Aileen Ting, who plan to open an Asian restaurant. The landlord, represented by Olive Real Estate Group, is W.S. Briargate Associates of Denver.

Next week: More information on August’s land and industrial transactions. Have a great week!