Real Estate Briefs September 13, 2002

Aloha…A Post- Vacation Perspective

Just when you thought Colorado Springs was the only locality faced with environmental challenges (e.g., the Preble mouse), consider Kailua-Kona, Hawaii. The “Big Island” relies heavily on Highway 19 (which loops the entire island). Unfortunately, some parts of the highway narrow to two slow lanes near the coffee plantations.

In an August 25 letter to the local newspaper, West Hawaii Today, Kona area resident, James Seymour, expressed frustration. “Opposition to development is not the answer to our road and traffic situation here…I understand that there is a new road…that is being put in with the financial assistance of a private developer. However, it appears that this project is constantly being delayed by the discovery of graves and quasi-historical sites in its right-of-way. My question is why haven’t our politicians stepped into this morass and worked out a plan to take care of these instances expeditiously, so that the road can be constructed without these unnecessary delays and put into service as soon as possible?…This situation should not be tolerated by the taxpayer, and it is the duty of our politicians to step into these matters and work out equitable solutions…” I suddenly felt right at home.

Fair Housing

Conference

From Valerie Jordan and Carla Wilson in the city’s Neighborhood Services department comes word that John Carson, regional director of Housing & Urban Development (HUD) for Region VIII will head the list of speakers at an event set for Wednesday, October 16 at the DoubleTree Hotel-World Arena. In addition to providing information on available resources and promoting equal opportunities in housing, the event will offer three hours of continuing education credit for real estate licensees. The city recently received a $7,000 grant from the Colorado Coalition for the Homeless through HUD – and is looking for matching sponsorships and grants from the local community. Topics to be discussed include predatory lending, universal design and accessibility, civil rights, property management issues, credit reporting and more.

Transaction Report

Two weeks out of town and I came back to a number of closed sales and leases. Guess the market, though slower than last year, is still perking. The big deals, however, are few and far between.

Chuck Schoninger

Reports $2 Million Building Sale

A group of investors assembled by Chuck Schoninger of the Zephyr Real Estate Company recently purchased the Community Doctors Building at 3910 South Carefree Circle. Lonnie Wagner of NAI Highland Commercial represented the sellers, Community Doctors Building Partnership. The 16,000-square-foot facility, a Class A medical building, was purchased in August for $2,180,674 – and is fully leased to Mountain View Obstetrics and Gynecology, The Children’s Eyecenter, Oak Springs Family Medicine, Joe V. Kilpatrick, M.D., W. Dale Anderson, M.D. and J. Lewis Romett. Sounds like Schoninger is actively seeking investment opportunities all over the Pikes Peak region.

Palmer-McAllister

Finalizes Lease Deals

Mark Useman represented the buyer on the purchase of the 49,983-square-foot parcel sold to Woodmen Wine & Liquor for expansion of their existing liquor store in the Union Town Center at Union and Research Parkway (just completed in July). The seller, WS Briargate Associates, LLC was represented by John Winsor of the Olive Real Estate Group. Sale price for the pad site was $600,000.

In leasing news, a couple of industrial leases from Paul Engel highlight the Palmer-McAllister report. In the first, Engel handled both sides of the lease renewal on 1,150 square feet to The Billing Company in the Elkton Trade Center at 636 Elkton Drive.

The second transaction was a new lease in the Garden of the Gods Commerce Center to Ransomed Heart Ministries for their expanded book and tape fulfillment center. The owner was represented by the Olive Real Estate Group.

Finally, Kent Mau and Greg Phaneuf represented Alamo Corporate Center owner, the Utah State Retirement Fund, on the lease of 2,716 square feet of office space to Aegis Mortgage Company. Denver firm, Liberty-Greenfield, LLP represented the tenant.

Tenant Comes to Harrison Business Park

Jerry Knauf, office/industrial specialist with Grubb & Ellis/Quantum represented the tenant, Schlage Lock, on the lease of 15,000 square feet of industrial space to be used for storage and distribution at 2188 Executive Circle in southeast Colorado Springs. The owner, MRS Connection, was represented by John Onstott of NAI Highland Commercial.

Commercial Real

Estate Expo/DU

Economic Forecast

Plans are well underway for the statewide commercial real estate expo, set for November 13 at the DU Colorado Convention Center in downtown Denver. Event coordinator, Olivia Carroll, says that the meeting draws more than 1,000 industry representatives annually. Sounds like a good way to earn some continuing education credits as well as to get a sense of Colorado’s economic climate ahead. To register, call 303/871-2145 or go to www.dmcar.com/duexpo/.

EDC Facts

My thanks to the EDC team for providing the following statistical insights:

n The financial, insurance and real estate industries contributed more than $130 million to the local economy in 2001.

n According to Colorado Springs Utilities’ research, the average residential monthly utility bill in 2001 was $141.82 (likely calculated pre-drought).

n In 2001, of the 542,915 people living in Colorado Springs, 331,858 of them were under 64 years of age. That means 211,057 residents were 65 years of age or older – accounting for development of the region’s 56 assisted living communities.

n Average Class A office lease rates range from $13 to $18 per square foot while Class B offices lease for $9 to $12 per square foot – and industrial space is bringing an average of $5 to $12 per square foot. Wonder how those numbers are holding up…