1259 Lake Plaza

davmmcdonald

OFFERING MEMORANDUM

1259 Lake Plaza Drive, Colorado Springs, CO

1 1

HOFF & LEIGH COMMERCIAL REAL ESTATE


2


This Confidential Offering Memorandum (“Memorandum”) is furnished to

prospective purchasers solely to facilitate the purchaser’s consideration

of 1259 Lake Plaza Drive, Colorado Springs, CO 80906 (“Property”). The

selling entity is Valentia Office LLC (“Owner”). The Memorandum contains

proprietary information and was prepared by Hoff & Lee (“HL”) using

information compiled from sources we consider to be reliable. By receipt of

this Memorandum, you agree that: (a) the Memorandum and its contents

are of a confidential nature and that you will hold and treat it in strictest

confidence in full compliance with the separate confidentiality agreement

you have executed; (b) you will not reproduce, transmit or disseminate the

information contained in the Memorandum through any means, or disclose

this Memorandum or any of its contents to any other entity without the prior

written authorization of HL, nor will you use this Memorandum or any of its

contents in any fashion or manner detrimental to the interests of HL or seller;

and (c) upon request you will return the Memorandum without retaining any

copy or extract of any portion thereof. This Memorandum does not purport to

be all-inclusive or to contain all the information which prospective purchasers

may desire; it is a summary upon which prospective purchasers are not

entitled to rely. Certain documents and materials are described herein in

summary form.

The summaries are not complete descriptions of the documents and

materials. Interested parties are expected to review all such documents

and materials independently. Market financial projections are provided

for reference purposes only and are based on assumptions relating to the

general economy, competition and other factors beyond the control of HL

and are, therefore, subject to material variation. Additional information and

an opportunity to inspect the Property will be made available to qualified

prospective purchasers upon request. Each purchase offer is to be based

strictly and entirely upon the purchaser’s independent investigation, analysis,

appraisal and evaluation of facts and circumstances deemed relevant by the

purchaser. Neither Owner, HL nor any of their respective directors, officers or

affiliates have made any representation or warranty, express or implied, as to

the accuracy or completeness of this Memorandum or any of its contents, and

no legal commitment or obligation shall arise by reason of this Memorandum

or its contents. This offering is submitted and received with the understanding

that all negotiations for the acquisition of the herein described property will

be conducted through HL. The sellers and HL expressly reserve the right, at

their sole discretion, to reject any or all expressions of interest or offers to

purchase the Property and/or terminate discussions with any entity at any

time with or without notice.

3


TABLE OF CONTENTS

5 EXECUTIVE SUMMARY

7 LISTING SUMMARY

8 FLOOR PLANS

10 LOCATION MAPS

Our Network is Your Edge.

12 RENT DETAILS

13 TENANT PROFILES

16 RETURN SUMMARY

Holly Trinidad

719.336.0999

holly@hoffleigh.com

17 COLORADO SPRINGS

22 TRANSPORTATION

23 MAJOR EMPLOYERS

25 SOUTHWEST SUBMARKET

30 COMPARABLE LISTINGS

31 SUBMARKET MAPS

RD Trinidad

719.337.0287

rd@hoffleigh.com

All information is from sources deemed reliable and is subject to errors, omissions,

change of price, rental, prior sale, and withdrawal without notice. Prospect should

carefully verify each item of information contained herein.


Executive Summary

LPD II is equipped with high-end fixtures, wide inviting hallways, high speed fiber optic internet availability, and

modern common areas to provide a truly A class experience. The interior suites are functionally appealing to a

wide variety of office users. Because the property was purchased for just a fraction of replacement cost, the property can be

leased at the asking rates normally associated with class B space ($16/ft) and far less than the $20.63/ft asking rate for class

A offices citywide. With this renovation and lease up strategy, we expect LPD II to provide compelling unleveraged returns

while minimizing long-term risk exposure for investors.

Colorado’s main North/South traffic artery, Interstate 25 marks the eastern edge of the Southwest submarket and is within 1

mile of LPD II. Other significant employers and/or attractions in the submarket include Atmel (5th largest private employer),

the Broadmoor World Arena (host of more than 250 events a year, with a seating capacity of 9,400), the Cheyenne Mountain

Zoo, Cheyenne Mountain Resort, and The Broadmoor Hotel (3rd largest private employer and Five-Star resort). LPD II is also

within walking distance of major retail developments and several restaurants. The Southwest submarket also boasts the

highest economic demographics in the region, with an average income of $88,640, projected to be $104,742 by the year

2018.

Why Colorado Springs?

Situated at the base of Pikes Peak, one of America’s most famous mountains, Colorado Springs is centrally located within

the state of Colorado. Colorado Springs is a lively and diverse metropolitan area with a population of over 600,000. Because

it’s located within 1 hour of Denver and 30 minutes of Pueblo, Colorado Springs is an easy commute for more than 3 million

people. Along with the stunning physical beauty the region has to offer, Colorado Springs has a dynamic economy. Some of

the Pikes Peak region’s major employment sectors include United States military bases, Aerospace & Defense development,

Clean Technology, and Healthcare. Not only does the region have 3 major military installations, but it is also the home of

the United States Air Force Academy, University of Colorado in Colorado Springs, Colorado College, and the United States

Olympic Committee. The area’s proactive leadership is focused on cultivating an environment where businesses can thrive.

The highly educated workforce, low cost of living, low tax structure, and outstanding quality of life make Colorado Springs a

perfect location for businesses.

5


The Colorado Springs office market has displayed strong recent performance, with overall vacancy rates

decreasing, and lease rates remaining steady during the same period. While absorption has been positive and

vacancy decreasing, new construction has been very limited.

Why Southwest Colorado Springs Submarket?

LPD II is located in the heart of the Southwest submarket. This area is bordered to South by the largest employer in Colorado

Springs, the Army installation known as Ft. Carson. Colorado’s main North/South traffic artery, Interstate 25 marks the

eastern edge of the Southwest submarket and is within 1 mile of LPD II. Other significant employers and/or attractions in

the submarket include Atmel (5th largest private employer), the Broadmoor World Arena (host of more than 250 events a

year, with a seating capacity of 9,400), the Cheyenne Mountain Zoo, Cheyenne Mountain Resort, and The Broadmoor Hotel

(3rd largest private employer and Five-Star resort). LPD II is also within walking distance of major retail developments

and several restaurants. The Southwest submarket also boasts the highest economic demographics in the region, with an

average income of $88,640, projected to be $104,742 by the year 2018.

6


Sale Price:

?

Cap Rate: 8.88%

NOI: $586,000

Available SF: 1,468 - 8,170 SF

Lease Rate: $12.00 - 16.00 SF/yr

(NNN)

Lot Size: 2.11 Acres

Building Size: 44,058 SF

Building Class: A

Year Built: 1985

Renovated: 2015

Zoning: PBC/cr

Market: Colorado Springs

Sub Market: Southwest

OVERVIEW

1259 Lake Plaza Drive, Colorado Springs, CO

Join Colorado Springs Orthopaedic Group, Traverse Marketing, Morrow Engineering,

and Earl & Earl Attorneys in leasing from the premier office building in South Colorado

Springs. 1259 Lake Plaza Drive has undergone major renovations, converting the

building into the a modern, sleek, and professional office complex. With stunning

curb appeal and the most upscale interior finishes, the building offers renovated suites

ranging in size from 1,468 RSF – 11,401 RSF. The building has excellent access to I-25,

the Broadmoor, the World Arena, and many shops and restaurants. Depending on

the level of tenant improvements, lease rates begin at $12.00 - $16.000 NNN. Only

minutes from Downtown, this building is perfect for any professional organization

seeking to make a stylistic statement at an affordable rate.

LOCATION DETAILS

Lake Plaza Drive & Venetucci Boulevard

7


8

Floor Plans

Level 1


9

Floor Plans

Level 2


10


11


Rent Details

SUITE TENANT SF ANNIVERSARY LEASE EXPIRE LEASE TYPE INFO

100 Colorado Springs Orthopedic

Group

20,639 May 1 04/30/25 NNN • $.50/yr escalations

• 3% increases on controllable expenses, based a yr. 1

estimate of $2.94

220 Hoff & Leigh 1,634 October 1 09/30/20 NNN • $.50/yr escalations

230 Earl & Earl, PLLC 2,756 October 1 12/31/25 NNN • $.50/yr escalations

240 Morrow Engineering, Inc. 1,378 September 1 08/31/20 NNN • $14.42; $14.85; $15.30; $15.76 escalations

245 Momentum 2,000 January 1 05/30/21 NNN • Mos 1-5 nets only, then on Jan. 1, $14.00 w/ $.50

bumps each year after that.

260 Turner, Roepke & Mueller, LLC 2,918 June 1 12/31/22 NNN • $.50/yr escalations

• 3% increases on controllable expenses, based a yr. 1

estimate of $2.94

12


Tenant Profiles

Colorado Springs Orthopedic Group

Orthopedic Surgeon

Colorado Springs Orthopaedic Group is the largest

orthopedic practice in Southern Colorado and has been

providing care to the Pikes Peak region for more than 50

years. All of their orthopedic physicians are board-certified

and fellowship trained in the orthopedic sub-specialties

of sports medicine; spine; trauma; total joint replacement

of the hip, knee, and shoulder; foot and ankle; hand and

upper extremity; hip and knee; and pediatric surgery. Whit

this breadth of expertise, they are the one-stop-shop for

comprehensive orthopedic care in Southern Colorado.

Hoff & Leigh

Commercial Real Estate Agency

Hoff & Leigh is a full service Commercial Real Estate

Brokerage. We specialize in Landlord and Seller

Representation. Our goal is to maximize property value

through commercial real estate brokerage services. We are

dedicated to superior communication, exceptional market

knowledge, and efficient systems. Our daily business

and strategic vision is powered by our culture- Family,

Loyalty, Entrepreneurship, Communication, Courage, and

Stewardship.

13


Earl & Earl, PLLC

Law Firm

Earl & Earl is a family owned and operated law firm that

proudly serves clients in Colorado Springs, CO. Their goal is

to make competent legal representation more accessible

and affordable in our community. Their practice focuses

on family law issues like divorce and legal separation, child

custody and support & adoption. The law firm of Earl &

Earl is here to offer local representation and support in the

Colorado Springs community.

Morrow Engineering, Inc.

Electrical Engineering Firm

Founded in 1986, Morrow Engineering provides

engineering for stand-alone power projects, stand-alone

automated control projects, or combinations of both.

They have an experienced staff of licensed professional

engineers, programmers, technicians, designers and CAD

operators to make each project a reality. They are “handson,

on-site” engineers.

14

Momentum

Advertising Agency

Whether you need a complete brand identity for a

new business, an integrated marketing strategy with

a comprehensive multi-tiered advertising campaign,

a public relations initiative, or want to boost the costeffectiveness

of your marketing budget, Momentum can


make it happen. Developing a strategic plan is the first

step to your success. We have the resources and expertise

in all marketing media—from broadcast, outdoor, print,

corporate collateral, to on-line and social media. If you

have a passion to grow your business we’re here to provide

the Momentum.

Turner, Roepke & Mueller, LLC

Law Firm

Turner, Roepke & Mueller is a law firm with locations

in Denver, Colorado Springs & Pueblo. They are an

experianced group specializing in representing claimants

in Workers’ Compensation and Social Security Disability.

15


Colorado Springs

Attractive Employment Performance

Colorado Springs, a thriving community rich in business experience, boasts

a strong pro-business environment. The area offers cost advantages, easy

access to both coasts, and a low incidence of natural disasters. Major

companies such as Progressive Insurance, FedEx Services Corporation,

Hewlett Packard, Lockheed Martin and Verizon have chosen Colorado Springs

for a variety of reasons – our friendly business climate tops the list. The area’s

proactive leadership is focused on creating and maintaining an environment

where business can thrive. Combine that with our highly educated workforce,

low cost of living, low tax structure, and outstanding quality of life and the

Pikes Peak region becomes the perfect location for business.

Key Colorado Springs Employment Sectors

Aerospace & Defense > Because Colorado Springs is home to the

United States Air Force Academy, NORAD/Northcom, Air Force Space

Command and Fort Carson, the Aerospace and Defense industry is

the leading economic engine in the region. Colorado Springs is an

important hub for military technology and support for some of the

Department of Defense’s top strategic missions. Several hundred

defense contractors, employing more than 10,000 highly skilled

engineers and technicians, support the military missions.

16

Clean Technology > Colorado is one of the leading states for clean

technology innovation and is ranked 5th in the country for clean tech

employment and 10th in fossil fuel energy jobs. With its abundant

energy resources ranging from traditional fossil fuels to solar, wind,

United States Air

Force Academy


geothermal and biomass, Colorado is a focal point for clean technology opportunities. There are several

companies in Colorado Springs and the Pikes Peak region that develop and manufacture new energy

and water efficiency products. The U.S. Department of Energy’s National Renewable Energy Lab (NREL)

in Golden, Colorado is just over an hour drive north of Colorado Springs. This is the nation’s primary

laboratory for renewable energy and energy efficiency R&D.

Healthcare > The dynamic healthcare industry has made a substantial impact in Colorado Springs. Synergies

between employers, biotech, technology, and healthcare businesses have already yielded exciting results and have

barely tapped the great potential. The Pikes Peak region has a culture of fitness and good health that is reinforced by

our, outdoor-friendly climate, and amateur sports capital designation. This culture, combined with our entrepreneurial

passions and recent expansion in health and wellness research and education, has fostered growth of the healthcare

industry here. The institutions of higher education have raised the standard of training and enhanced curriculum to

address the needs of the industry.

Higher Education > Many locally based colleges and universities, both private and state-supported, provide

high quality academic and professional programs.The local population takes full advantage of the opportunity to

learn new skills, expand their knowledge and prepare for new careers. Locally, many students don’t fit the typical

“college student” profile and programs often cater to the needs of adults working full time. “Lifelong learning”

characterizes the involvement of the local community with the region’s institutions of higher learning. Colorado ranks

fourth among the 50 states in the percentage of citizens with college degrees. As of 2010, more than one-third of

Coloradoans 25 and older had a degree. Each year more than 30,000 people graduate from Colorado colleges and

universities.

Information Technology > A large and growing number of companies in the Pikes Peak region develop software as

their primary business. Several large employers have major in-house software development and systems engineering

divisions. Products include software for e-business, aerospace and defense systems; financial accounting and

inventory control systems; entertainment, games and virtual reality products; and telecommunications services.

Because of the number of defense installations, Colorado Springs has one of the most sophisticated communications

networks in the nation. This network helps support research firms that require state-of-the-art communications

capabilities.

17


Manufacturing > Colorado Springs is a growing hub for data center

activity and is consistently ranked as one of the top 10 best cities for a

data center for the past several years. With our low seismic activity, low

utility costs, extremely reliable power capabilities and more than 8,000

hours a year of free cooling by using outside air – the numbers make

total sense. Some of the major companies with a corporate data center

presence in Colorado Springs include FedEx Services Corporation,

Progressive Insurance, Hewlett Packard and Walmart.

More than 100 manufacturers are located in the Colorado Springs

area, making a variety of products ranging from aerospace equipment

to medical devices to semiconductors. Locally based manufacturers

thrive because of a positive, strong business climate, favorable workers’

compensation rates, low taxes, low cost utilities, and an exceptional

workforce. Regional educational institutions, such as Pikes Peak

Community College, the University of Colorado Colorado Springs,

Colorado Technical University, and Pueblo Community College are

responsive to manufacturers, tailoring their training to workforce

requirements. A plentiful supply of trained military retirees are work

ready to fill jobs at every level in a manufacturing environment.

Medical Innovation > Approximately 40 medical device

manufacturers and life science companies are here, drawn by the

highly skilled workforce, low taxes, strong business climate and

low utility costs. Some of our better-known companies include

Spectranetics, Synthes (a Johnson & Johnson company), Bal Seal

Engineering, CEA Medical Manufacturing and dpiX. The University

of Colorado Colorado Springs (UCCS) offers engineering degrees

in health, mechanical engineering, biochemistry and electrical

engineering. The City of Colorado Springs recently leased the Memorial

Hospital System to the University of Colorado Health System. Part of

Memorial Hospital

18


19

the agreement includes a branch medical school campus and research opportunities in Colorado Springs,

which will lead to more innovation, and investment in the community. UCCS also houses Mind Studios, a

development lab that specializes in medical device prototypes.

Nonprofit > Colorado Springs has 2,000 nonprofit organizations and several hundred of these are national

or international in scope and have headquarters here. More than 80 percent of all revenue received by the 1,200 noncongregational

organizations comes from outside the region. The nonprofit sector’s total net economic benefit to the

regional economy is $1.7 billion per year. National and international nonprofits headquartered in Colorado Springs

include the Center for Creative Leadership, Compassion International, Focus on the Family, Junior Achievement,

Navigators, the Professional Rodeo Cowboys Association, and the United States Olympic Committee.

Sport Economy > Colorado Springs is the hub for amateur sports with more than 57 national and international

sports organizations based in the region. Led by the United States Olympic Committee, the sports organizations,

manufacturers and companies based here generate more than $400 million of economic activity to the region each

year. Many national governing bodies are headquartered here, such as USA Basketball, U.S. Figure Skating, USA

Hockey, USA Swimming, and USA Volleyball. Other leading sports organizations include the National Strength and

Conditioning Association, the Mountain West Conference, the Professional Rodeo Cowboys Association, and the

Women’s Professional Rodeo Association.

Leading sports manufacturers and innovators are also based here due to the excellent workforce, exceptional outdoor

lifestyle and great business climate. Cycling manufacturers include The Fat Bike Company, SRAM, SRM, Rotor and

Koobi Saddles, plus a number of fitness and training companies such as Carmichael Training Systems.

Colorado Springs Office Market

The Colorado Springs Office market ended the first quarter 2016 with a vacancy rate of 11.0%. The vacancy rate was down

over the previous quarter, with net absorption totaling positive 119,532 square feet in the first quarter. Vacant sublease

space increased in the quarter, ending the quarter at 44,132 square feet. Rental rates ended the first quarter at $16.54, a

decrease over the previous quarter. There was 20,000 square feet still under construction at the end of the quarter.

Vacancy > The office vacancy rate in the Colorado Springs market area decreased to 11.0% at the end of the first


quarter 2016. The vacancy rate was 11.6% at the end of the fourth

quarter 2015, 11.6% at the end of the third quarter 2015, and 11.5% at

the end of the second quarter 2015.

Rental Rates > The average quoted asking rental rate for available

office space, all classes, was $16.54 per square foot per year at the end

of the first quarter 2016 in the Colorado Springs market area.

20

Olympic Training

Center


Transportation

Colorado Springs Airport

A city-owned public civil-military airport 6 miles, COS is located southeast of

Colorado Springs, in El Paso County, Colorado. It can be found conveniently

near I-25 with 4 lane access. It is the second busiest airport in the state. The

airport covers 7,200 acres and has three paved runways. The airport is colocated

with Peterson Air Force Base which is on the north side of runway

13/31. Easy to navigate, the farthest gate is less than 1,000 feet walking

distance from ticket counters or baggage carousel. Since September 2011

the airport terminal has been under renovation, that includes reconstruction

of the TSA checkpoint to support full body scanners, expansion of office

space behind the ticket counters, and new facilities for automated baggage

screening.

Denver International Airport

21

DEN is located about an hour and a half away from LPD II. As of 2015, DEN

was the 18th-busiest airport in the world and the 6th busiest in the United

States by passenger traffic with over 54 million passengers. It also has the

third largest domestic connection network in the country. The airport

features 133 gates spread out over three detached, yet internally connected,

linear concourses (A, B & C). DEN has non-stop service to destinations

throughout North America, Latin America, Europe and Asia serving 187

destinations in 2015. The airport is in northeastern Denver and is operated

by the City & County of Denver Department of Aviation. DEN was voted Best

Airport in North America by readers of Business Traveler Magazine six years

in a row (2005–2010) and was named “America’s Best Run Airport” by Time

Magazine in 2002.

Denver International

Airport


Colorado Springs Major Employers

Private

COMPANY

DESCRIPTION

United Services Automobile Association

Regional policy service

Progressive Insurance Company

Insurance customer support; data center

The Broadmoor Hotel

Hotel / Resort

Lockheed Martin Corporation

Advanced technology systems integrator

Atmel Corporation

Design and manufacture digital memory

Northrop Grumman Corporation

Marketing for government contracts

Comcast

Cable television; digital cable and voice service

Xerox

Customer service

Compassion International

Christian child advocacy ministry

Hewlett Packard Enterprise

Storage engineering; sales / marketing; data center

DePuy Synths Companies of Johnson & Johnson Manufacture orthopedic implants

Verizon Enterprise Solutions

Software campus

T. Rowe Price Associates, Inc. Financial services-customer support center

Wells Fargo

Financial services

Time Warner Cable

Customer service

Alorica

Customer service

Colomex, Inc.

Restaurant services (Taco Bell)

Harris Corporation

Information technology

Oracle America, Inc.

Customer support center

Colorado College

Higher education – 4 year

22


Colorado Springs Major Employers

Public

COMPANY

DESCRIPTION

Fort Carson

Military Installation

Peterson Air Force Base

Military Installation

United States Air Force Academy

Higher education – 4 year (Military Academy)

School District # 11 – Colorado Springs Public education K – 12

Memorial Hospital-UCHealth

Hospital / Healthcare

School District # 20 – Air Academy Public education K – 12

Penrose-St. Francis Health Services

Hospital / Healthcare

Schriever Air Force Base

Military Installation

City of Colorado Springs

City Government

Colorado Springs Utilities

Four Service Utility Provider

El Paso County

County Government

University of Colorado Springs

Higher education – 4 year

School District # 49 – Falcon Public Education K – 12

School District # 2 – Harrison Public Education K – 12

Beth-El College of Nursing

Higher Education – 4 year (Nursing / Health Sciences)

School District # 3 – Widefield Public Education K – 12

Pikes Peak Community College

Higher Education – 2 year

School District # 8 – Fountain / Ft. Carson Public Education K – 12

School District # 12 – Cheyenne Mountain Public Education K – 12

Cheyenne Mountain Air Force Station

Military Installation

23


Southwest Submarket

Why Invest in This Location?

Close proximity to the major employment centers in Colorado Springs,

adjacent newer retail development and recreational amenities make LPD II

perfectly located to attract the professionals and businesses that focus on

life/work balance in Colorado Springs. Couple these locational advantages

with lack of upgraded space in the submarket, and natural barriers to new

development including highways, limited vacant lots, Fort Carson, and the

proximity to mountain range, LPD II is poised for success in providing a rental

option that is currently not available in the southwest submarket of Colorado

Springs.

Proximity to Major Employment Areas

The LPD II is distinct for being within close proximity to many of Colorado

Springs’ largest and most prestigious employers. LPD II is within walking

distance to the Broadmoor World Arena which currently holds on average

250 events a year with a max capacity of 9,400. This location is also within 2.5

miles of The Broadmoor Hotel and Resort, the only five star and five diamond

Resort in Colorado. The Broadmoor employs more than 1,800 staff members

from 23 countries. Of those, over 120 employees are members of the revered

Pioneer Club, which means they have been part of The Broadmoor family

for over 25 years. The surrounding area includes many national and local

businesses, with 13.3% of the neighborhood population working from

home. Colorado’s largest military installation, Fort Carson, the Mountain

Post, is within 5 miles and is Colorado Springs’ largest employer with 20,000

employees. Less than 4 miles away downtown holds 3,500 businesses,

everything from non-profit to publicly traded fortune 400 companies. The

The Broadmoor

24


25

downtown area employs approximately 21,384 individuals in a 1 mile radius, 61,561 in 3 miles, and 118,751 in 5

miles. Downtown businesses generate about $5.5 billion in annual revenue and represents more than 6% of the

regional business all within 2% of the city’s landmass.

LPD II will offer the only open-concept fully upgraded office building with “built-to-suite” options and Class A

upgrades at Class B prices in this submarket with proximity to major employers, retail, entertainment, and local

focal points.

Located near the Broadmoor Neighborhood

Colorado’s most prestigious 5 Star resort, the Broadmoor, is located just over 2 miles from LPD II. The Broadmoor area

is known for beautiful homes, amazing golf courses, award winning schools, and entrepreneurial business owners. The

average household income for the 80906 zip code is currently $88,640 and it’s expected to be $104,742 by 2018, as

compared to the current average household income city wide of $71,129. 13% of all the households in this area of town

have an individual who operates their business from home. As these businesses grow, the executives will want to remain

conveniently located in a quality building near their house, and LPD II will meet that need.

The Broadmoor > The longest-running consecutive winner of both the AAA Five-Diamond and Forbes Travel Guild

Five-Star Awards. With 779 guest rooms, suites, cottages, brownstone and ranch accommodations, this resort has

been a distinctive destination for nearly 100 years. This hotel includes a Five-Star day spa, restaurants, 54 holes of

championship golf, tennis courts, pools, retail shops, and 185,000 sf of meeting space. On-site are 10 restaurants. The

plush furnishings and modern amenities make this the ideal location for leisure or business travel.

Cheyenne Mountain Zoo > America’s ONLY mountain zoo with 800+ animals, representing over 200 species,

more than 30 of which are endangered. Of the 224 zoos and aquariums accredited by the Association of Zoos and

Aquariums (AZA), Cheyenne Mountain Zoo is one of just nine operating without government support. Currently,

16,798 households support the Zoo by becoming new or renewing members, an increase of 1,432 members from

2012 to 2013.

Visited by 577,505 (63% local) guests in 2013, the Cheyenne Mountain Zoo offers Beastly Birthday Party (attended by

3,800 guests last year), the Explore and Learn Program for Boy and Girl Scouts (1,620 badges were pinned this year),

and education programs (53,011 children and adults enrolled this year), all powered by over 75+ employees, 38,761


26

volunteer hours, and 141 Zoo docents.

Cheyenne Mountain Resort > AAA Four Diamond resort, employs

over 400 people and offers 316 beautifully appointed guest rooms and

suites housed in eight residential lodges set throughout the resort. This

resort offers, three dining venues: Mountain View Restaurant, The Will

Rogers Lounge, The Pineview Grille at the Country Club. Also on site is

a wide choice of wedding venues, fully equipped fitness center and an

aquatic center, 18 holes of championship golf, extensive racquet sports

facilities, and a private 35-acre lake. This resort offers 40,000+ square

feet of meeting space certified by the International Association of

Conference Centers (IAAC), including 38 conference rooms and a tiered

amphitheater.

Ivywild > Originally an elementary school built in 1916, closed in 2009.

Soon after, Joe Coleman and Mike Bristol devised an idea to move

the 18-year old Bristol Brewery to the old school, along with other

local vendors and businesses. In 2012, with the local architect Jim

Fennell’s vision of building sustainable facilities, neighborhoods, and

communities, this location was purchased and renovated as a multiuse

district that links commerce and community.

Anchored by Bristol Brewery & Pub, this location houses a tasting room,

360-degree bar, brew house, and fermentation room. The flourishing

communal atmosphere provides 5 market places (The Principal’s Office,

The Meat Locker, Old School Bakery, Hunt or Gather, Fennell Group,

MODBOCO), a community garden, concerts and films in the former

gym, multiple patios, and hosted farmer’s markets and festivals.

Broadmoor World Arena and Ice Hall > The Complex boasts

multipurpose Broadmoor World Arena with a concert capacity of

Cheyenne Mountain

Zoo


approximately 9,400 and the Ice Hall which features both Olympic and NHL size ice sheets. The World

Arena hosts 250 events on average, with 22 of those being CC hockey games. The Broadmoor World Arena

is home to the Division I Colorado College Men’s Hockey team, the Broadmoor Skating Club and numerous

world-class figure skaters.

Fort Carson > The Mountain Post is Colorado’s largest military installation and the second largest employer in the

state of Colorado. Fort Carson has over 20,000 employees and is home to the 7th Infantry Division Headquarters. A

premier war fighting preparation center, Fort Carson’s 377,000 acres of training area is second only to the National

Training Center in size, is used by all the Services for realistic combined arms training. Fort Carson is also home to the

4th Infantry Division, known as the Ivy Division. Its mission is to “train, deploy, and sustain units and teams for combat,

and on order, to conduct decisive full-spectrum operations in order to accomplish Combatant commander objectives.”

Fort Carson is also the first military installation to privatize its base housing, a 50 year three billion dollar contract.

Ready Access to Retail

LPD II is also located within walking distance of retail and restaurant amenities providing a walkable live‐work‐play

opportunity. The interchange of Lake Ave/Circle Drive and I‐25 has had major commercial growth in recent years with major

retailers such as Cinemark Tinseltown Theatre, Target, OfficeMax, and PETCO located on Venetucci Boulevard long with

restaurants such as Chili’s, Carrabba’s, Outback, Buffalo Wild Wings, Culver’s and Flatiron’s to name a few.

Under a mile up the road there is a second shopping center development located at the intersection of highway 115 and

Lake Avenue. The Broadmoor Town Center has numerous major retailers including Home Depot, Bed Bath and Beyond,

Office Depot, 24 hour fitness, and Sears.This center also holds major restaurants including On the Boarder, Red Robins, IHOP,

Panera, Qdoba, Starbucks, etc.

Not only does the site offer proximity to some of the largest employers in Colorado Springs, but it also offers proximity to

one of the area’s largest park systems. Located within 5 miles, Bear Creek Regional Park is one of the most frequently used

parks in Colorado Springs, covering a total of 575 acres. This park includes, a garden, pavilion, playground, tennis courts, a

dog park, archery range, a horseshoe pit, and a volleyball court.

27


Southwest Colorado Springs Office Market

The Southwest Colorado Springs market has seen as steady decline in

vacancy rates over the past year, from 9.60% in Q1 2015 to 7.80% in Q1 of

2016. Along with a decrease in vacancy rates, the Southwest market has seen

a significant rise in quoted rental rates over the same period from $11.93/sf to

$12.68/sf. (Quoted rental rates in Q1 2014 were $10.57/sf)

Inventory and Completions > Total Class A and B office inventory over

20,000 SF in the Northwest Colorado Springs office market comprises

3,880,939 SF located within 48 buildings, as reported in Q1 2016.

Within the office sector, non-owner occupied, multi-tenant space

represents 82.4% of the total office square footage or 3,199,337 SF. No

buildings have been delivered to the market

since 2009, and there are currently no buildings proposed or under

construction.

Vacancy and Leasing Activity > The vacancy rate in the Northwest

Colorado Springs office market in Q1 2016 was 15.8%. Vacancy peaked

during the recession in 2009 Q3 at 31.8%. Since the peak, vacancy

levels have continued to drop significantly, but still have a lot of room

to improve to reach prerecession vacancy levels of 9.3%.

Rental Rates > The average quoted asking rental rate for available

office space in Northwest Colorado Springs was $11.53 NNN, as

reported in Q1 2016. This represents a 2.3% increase in quoted asking

rental rates from Q1 2015. Asking rates for office space in this market

were once as high as $14.22 NNN in Q3 2008, showing the potential of

the Colorado Springs office market.

Ivywild

28


Comparable Listings

2335 Robinson Street

Colorado Springs, CO 80904

Class: B

YOC: 1971

Size: 14,344 SF

Vacant SF: 14,344

% Leased: 0.00%

Stories: 1

Parking Ratio: 3.43

Asking Price: $995,000

640 Southpointe Court

Colorado Springs, CO 80906

Class: A

YOC: 2005

Size: 11,880 SF

Vacant SF: 6311

% Leased: 54.24 %

Stories: 2

Parking Ratio: 6.00

Lease Rate: $10.50/SF/YR (NNN) -

$19.00/SF/YR (MG)

2620 Tenderfoot Hill Street

Colorado Springs, CO 80906

Class: B

YOC: 2004

Size: 11,437 SF

Vacant SF: 4,970 SF

% Leased: 57.55%

Stories: 2

Parking Ratio: 5.00

Lease Rate: $12.00 - $16.00/SF/YR

(NNN)

29


30


31


Our Network is Your Edge.

HOLLY TRINIDAD

719.336.0999

holly@hoffleigh.com

RD TRINIDAD

719.337.0287

rd@hoffleigh.com

32

1259 LAKE PLAZA DRIVE | SUITE 200 | COLORADO SPRINGS, CO | 80906 | 719.955.0527 | www.hoffleigh.com/colorado-springs

Similar magazines