Showing posts with label CSBJ. Show all posts
Showing posts with label CSBJ. Show all posts

Monday, December 31, 2012

Developers to Bring on New Lots in 2013 in The Pikes Peak Region


Published by The Colorado Springs Business Journal | December 27 2012 | Written by Amanda Miller

New home construction heated up in 2012 and most in the industry expect that the building will continue into 2013.

The Pikes Peak Regional Building Department issued 2,022 single-family building permits in the first 10 months of the year. There were more single-family permits issued in El Paso County this year than in any other county in the state, according to a report from the Colorado Division of Housing. El Paso and Douglas counties accounted for a third of the 9,261 single-family building permits issued in the state through October.

It was a great year for Colorado Springs homebuilders, said John Bissett, CEO of JM Weston Homes and new president of the Colorado Springs Housing and Building Association.

“It was about 50 percent better than 2011,” Bissett said.

New home construction has been up across the country, he said, and it seems like the increased activity will continue, though 2013 is unlikely to climb another 50 percent ahead of 2012.

“The buying public has been sitting on the sidelines long enough,” Bissett said.

He said there has been pent-up demand and people are now coming out to buy new homes. Bissett said most of the activity has been in the lower and mid-range homes priced less than $300,000. That’s likely to continue, though Bissett said there could be increased interest in higher-priced homes as the market continues to improve.

“What you’ll see in 2013 that you haven’t seen for years will be developers working on bringing more lots online,” Bissett said.

He says it will start with Cordera, a luxury development on the northeast end of town, which is preparing to bring new lots online early in the new year. While developers will be finishing more lots, Bissett said he doesn’t expect to see developers breaking ground on any new communities in 2013.

“Developers are still pretty constrained in terms of obtaining financing,” Bissett said.


Thursday, November 15, 2012

CSBJ: 1st-Floor Retail and Upper-Floor Apartments Planned for Downtown Colo Spgs

Published by The Colorado Springs Business Journal | Nov 15 2012 | Written by Amanda Miller

Apartments are planned at the corner of Cimarron and Costilla

Plans are afoot to replace aging storefronts along the 400-block of South Nevada Avenue with a mixed-use development of apartments and retail.

Bob and Karen Elliott, through their company, Downtown Development Group, bought four lots, 408, 410, 412 and 414 S. Nevada Ave. during the El Paso County Public Trustee’s foreclosure auction Oct. 31.
They paid $335,150.

“I was surprised the bank didn’t bid it up from there,” Bob said. “They were owed more than $800,000.”
Downtown Development Group is best known for building the Two Eight West luxury condominiums along Monument Valley Park at the north end of downtown. That development is still under construction and houses 16 units, all over 2,000 square feet with private garages and priced between $700,000 and $1.4 million.

Bob said his latest plan is to build on Nevada using the new form-based code, retail on the first floor and four stories of apartments above. That would allow for a masonry first floor and wood construction above, which would keep costs down.

The lot is situated so there could also be ground-level parking behind the building so he wouldn’t have to build a parking structure, he said.

He’s been on the lookout for downtown property at a good price for more than a year, he said, because apartments have been a good idea that long.

As discussions about downtown revitalization have hit a fever pitch, the need for residential development has been a common theme.

“I couldn’t be more sincere in saying that I believe residential development is the No. 1 need downtown,” said Hannah Parsons, interim director of the Colorado Springs Downtown Partnership and a Realtor who focuses primarily on downtown properties. “It’s absolutely essential for a downtown renaissance.”

Downtown advocates commissioned the Urban Land Institute to send an advisory panel to review past reports, visit the city and interview more than 100 residents about how they would improve downtown earlier this year. The panel, which visited during the week of the Waldo Canyon fire in June, recently released its final report on a downtown Colorado Springs renaissance. One of its top recommendations was for 300 residential units priced around $1,200 a month. The report said the city could certainly support more residential development than that in the long run, but it would be a good start.

The Downtown Development Group project likely isn’t the only apartment development on the drawing board. Chris Jenkins, president of Nor’Wood Development Group said earlier this year that he hoped to be able to announce apartment projects before next fall. Griffis Blessing also owns property and had plans for a mixed-use development near America the Beautiful Park that it put on hold when the economy sank.
The time has come for some action, Bob said.

“I usually fly under the radar,” he said. “But I wanted to speak publicly about this because I think it gives legitimacy to building downtown.”

Bob said he believes he has a reputation in town for following through on plans. Certainty that there will be residential development downtown might be enough for others to take action and announce projects that could spur economic development, he said.

The Elliotts say they aren’t just interested in building apartments. They aim to build community.
They were trying to retire when they moved to Florida in the early 2000s and ended up building a development there. After a lot of good timing, business sense and luck in the Colorado Springs and Florida, they returned to build Two Eight West Monument.

“We wanted to do something more meaningful,” Karen said.

Their interest now is in building something that will create a stronger Colorado Springs, Karen said. With that, comes a desire to include other players in their potential mixed-use project.

“Bob is all about turning it over,” Karen said. “He wants to turn it over to the younger generation. We want to get young people involved wherever we can.”

Because of that, Bob is working closely with Darsey Nicklasson, who owns DHN Planning and Development. She comes from a commercial real estate background and lived and worked for several years in Washington, D.C.

Now, the young mother wants to be a developer. She looks at cities and infrastructure more than the sights when she goes on vacation, she said. And she’s passionate about making downtown Colorado Springs more vibrant. “Across the nation, starting in 2002, there has been a movement of people wanting to get back into an urban environment,” Nicklasson said. “And there is no reason that movement wouldn’t happen here in Colorado Springs.”

She’s been looking for land and investors for a downtown apartment project she could lead for more than a year. That’s how she found the Elliotts. She went to them to learn about their Two Eight West project.
“I’m absolutely excited and completely thrilled to be involved in this with Bob and Karen,” Nicklasson said.
She has gone with Bob to look at the property on South Nevada, which used to belong to Rickie Nelson, with Bob.

There are a lot of unknowns about the property, Bob said. And it will take some time and study to understand what the pitfalls could be. But the lots are well-situated for redevelopment.

Nicklasson said she expects rent for the property could start around $850 and go up from there. It’s hard to say how many units would fit on the 28,000 square foot lot until they plan the project out.
“We’re still very much in the early stages of this,” she said.


Read more on CSBJ.com: http://csbj.com/2012/11/15/apartments-planned-for-south-nevada-ave/

Thursday, November 8, 2012

CSBJ: Denver Investment Company Buys COSprings Apartment Buildings

Published by the Colorado Springs Business Journal | November 8 2012 | Written by Amanda Miller



Denver-based BMC Investments recently bought two Colorado Springs apartment properties.

BMC paid $4.2 million for 148-unit Timberlane Apartments at 3985 E. Bijou St. and $3.175 million for 95-unit Ashelyn Court at 930 N. Murray Blvd.

Both complexes are about 90 percent occupied, according to a release from FirstBank, which financed the purchases.

BMC plans to invest about $500,000 in enhancing curb appeal at Timberlane and completing some deferred maintenance projects. The company will spend another $250,000 improving Ashelyn Court, which company principals hope will add value to the property and allow them to increase rents.

“Our goal is to complete the renovations quickly, stabilize the assets and refinance in 12 months with a long-term loan from Fannie Mae or Freddie Mac,” managing partner of BMC Matt Joblon said in a statement.
BMC purchased the properties from investors who bought the bank notes and foreclosed on the properties, according to the release

FirstBank financed 70 percent of the total capitalization, including purchase price, renovation and closing costs. The first year’s interest, property taxes and insurance also are capitalized into the three-year loan, which is fixed at 4.5 percent. The first year is interest only and then roles into a 25-year amortization period if BMC has not refinanced by then.

Friday, October 26, 2012

CSBJ: Apartment Market Returning to "Normal" in 2012

Published by The Colorado Springs Business Journal | October 26 2012 | Written by Amanda Miller

Many older apartment communities are now
being bought and flipped for resale.

Colorado Springs’ apartment sales market seems like it’s hot right now, but the numbers suggest it’s just getting back to “normal” after a sleepy few years.

There have been announcements about big sales, institutional investors and properties selling here and selling there. Vacancy has dropped to 5.8 percent in the third quarter of this year, and rents have climbed 3 percent from 2011 highs to an average $757 a month.

Developers are even building again.

To look at it from the outside in, it seems like the apartment market is on fire. And maybe it will get there, said Doug Carter, an apartment broker with Sperry Van Ness and author of the quarterly Apartment Insights report.

But, so far, 2012 is shaping up to be an average year for apartment sales. There have been 21 sales so far adding up to $130 million. That’s ahead of 2011 year-to-date when there were 16 sales in the first nine months of the year totaling $55 million. Last year ended with 22 total sales.

But through most of the past decade, there has been an average of about two sales a month — 19 to 26 sales a year, Carter said.

In 2008, the last “normal” year for apartment sales in Colorado Springs, there were 18 closings in the first three quarters totaling $155 million. The average sale was $8.6 million for a 120-unit complex. This year the average is $6.1 million for a 120-unit building.