Colorado Springs Real Estate Briefs May 28, 2004

Discerning real estate brokers might want to catch hold of a new publication that dissects 331 U.S. cities called Cities Ranked and Rated by Bert Sperling and Peter Sander. Stuff like this can counter any shopper's objections, analyzing nine factors such as economy and jobs, cost of living, climate, education, health and healthcare, crime, transportation, leisure activities, arts, culture and quality of life.

According to Bob Bruss, one of the real estate gurus at Inman Real Estate News, this book takes cold, hard facts and ends up with some wildly varying results. Bruss calls this a monumental new book that's priceless, with brutally honest evaluations. It's available at booksellers for $24.99. Whether residential or commercial real estate is on the block, this book would be helpful. Wonder if Uncle Wilbur's statue got in.

Hotel-affiliated units

Site work has begun on 19 residential units unlike any other in Colorado Springs for The Broadmoor Brownstones, and Roger Huckle, director of residential marketing at Broadmoor Development Co. said reservations are being opened to the public this week. These stucco and stone units, at 4,582 sq. ft. with 500 sq. ft. balconies, are prime examples of a new type of home - deluxe hotel-affiliated. Huckle has made private offerings to date and response has been good. He reports reservations break down to 60 percent local buyers. The homes, designed by Boulder architect OZ Architecture, sell for $1.3 million and up, and offer resort-type services, such as housekeeping, concierge, pet care, laundry pick up and more. Each unit includes a three-car garage, two bedroom suites, a home office, lots of built- ins and a family room with full bath and balcony.

Huckle cites a study by Delta Associates, a consultant from Alexandria, Va., that looked at deluxe hotel-affiliated housing in four major U.S. markets and determined that units appreciate on average 22 percent faster than traditional units of same price. In this price range people can live anywhere they want to, Huckle said. They want it to be fun, interesting, and a good investment.

Add room service to other new homes in the final design phase for The Broadmoor West Residence. This project features a six-story condominium building with 33 dwellings overlooking the first hole of the Broadmoor West golf course. These one-level units by the same architect feature underground parking and 2,500 to 6,000 square feet, including six penthouses. The projected average price for the homes is $1.5 million, according to Huckle, who said he's ready to use an interpreter when he needs to, because interest in these kinds of homes also comes from international sources. One buyer from Poland told Huckle, through his interpreter, You don't know what you have here.

Commercial ownership

Another unusual type of ownership, this time for commercial space users, came into the spotlight at the recent meeting of Realtors Commercial Industrial Society as Steve Bach, Bach Commercial Brokerage Co., presented two projects - Centennial Tech Center's Building C at 4870 Centennial Blvd., and Town Center Business Park, near Platte Avenue and Wooten Road. The Centennial building is up and partially occupied, and Town Center will complete construction for move-in by August. The concept is two-fold, according to Bach. Space can be leased, but also purchased, to allow business owners to build equity with their office/warehouse space and take advantage of tax deductions and savings. Buyers can purchase spaces priced from $4.32 per square foot/annual effective rate for Town Center and $4.80 per square foot at Centennial Tech.

Suite ownership is growing in mature markets, Bach said. In Atlanta, it makes up 7 percent of the multi-tenant office market. Kicking off two projects simultaneously for owner Southwest Holdings of Colorado Springs LLC is an advantage because they're hitting two different markets, he said. We see versatility to the different parts of the community, both to the military markets and high tech users. Small business loan funding requires only a 10 percent down payment with an interest rate of prime plus 1.5 percent, so it works for a small business owner. The projects include an owners' association to protect long-term property values.

Recent lease

Charley Conrad, an industrial property specialist with Olive Real Estate Group recently represented the landlord in the lease of 2,000 square feet at 4320-C Northpark Drive to Walker High-Tech Inc.

Affordability issue

The National Association of Realtors has released a survey that shows affordable housing is an important election issue, according to Inman News. Survey participants, 1,000 adults in urban or suburban areas, expressed concerns about affordability in general, with 81 saying a lack of affordable housing in their areas was a problem. Eighty-one percent also said that they would support new development if homes were built in such a way that they fit with the area and were pleasant to look at. About 70 percent said they would like to see government place a higher priority on making housing more affordable for renters and owners, with 75 percent saying they were concerned about affordability for teachers, firefighters and police officers. Public Opinion Strategies conducted the survey.

Also last week Fannie Mae announced that its MyCommunity Mortgage program is available. The program allows for financing flexibility, such as a contribution as low as $500 from the borrower, loan-to- value ratios of up to 100 percent, flexible income sources and nontraditional credit histories. The program is available through DesktopUnderwriter, Fannie Mae's automated underwriting system.

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