Castle Rock Commercial

Tracking the Castle Rock commercial real estate market and other local news.

Commercial Sales Data – 2 Yrs thru Q1, 2013

A very interesting and encouraging commercial quarter in Castle Rock.  Not a ton of commercial sales (only 4  commercial buildings were sold in Q1).  But, the sales that did occur were notable… first the chart, then a few notes below:

Castle Rock commercial real estate market sales data

  • Hoff & Leigh Castle Rock was proud to broker a sale of 101 Briscoe to Castle Rock’s newest veterinarian, Dr. Albert Chai. Rock’n Hair will continue as a co-tenant, but look for some big changes to that downtown building over the next few months (just north of Walgreens and west of Wilcox).
  • Freddy’s Steakburgers bought land… in one of the only commercial land sales we’ve seen in the past few years. This is a great sign, as land tends to be the last product to recover after a dip.  AND, trust my firsthand knowledge, anytime Freddy’s comes to your town, life is good.
  • The Castle Rock Marketplace at 200 Perry sold for $172/sf, reflecting the continuing strength of Castle Rock’s retail real estate.
  • 310 Wilcox was sold to be now opened as Tricocci’s, by the previous operators of the previous B&B Café.  I, for one, am looking forward to sampling the menu in the near future.

As I said, exciting times on the Castle Rock commercial scene.  Stay tuned to see what Q2 brings us!

A new resource for our clients…

At Hoff & Leigh, we are traditionally a commercial real estate firm. However, we also recognize the need our commercial investors have for the proven Hoff & Leigh work ethic and systems with their residential real estate transactions.  After all, it’s hard to ignore the benefit of 30 year financing terms when you’re leveraging your investment portfolio.

We have been fortunate to have a residential real estate expert with our corporate team that can assist you with residential needs.  Jenny Madden brings 20+ years of expertise and services to help in all areas of El Paso and Douglas County.

If you would like to just keep a finger on the pulse of the available residential opportunities, simply send a note to Jenny@HoffLeigh.com with your search parameters (area, budget, home specs, etc) and she will be happy to create an automated search for you.  No obligation, no pressure… you can opt out at any time.  See the latest listings as soon as they hit the market!  We highly recommend Jenny and this service.  See her full contact info below:

Jenny Madden residential real estate agent

Investment Property Hotsheet

Over the past several months, we’ve seen some significantly increasing action with our investment properties.  A couple sales and several more offers that we’re working now.  This is the time.  Vacant spaces are filling, and as they do, prices will justifiably rise.

Click for our current “hotsheet”.Castle Rock Colorado Monument investment property commercial real estate

A couple things to note:

185 Caprice Court is JUST LISTED.  Rental history here has been fantastic.  Market rates put pro-forma net operating income at about $22k/year.  Just under an 8% CAP. Also a very inexpensive way to own retail zoned space in Castle Rock

236 Washington in Monument has recently added a couple tenants, but agreed to drop the price to $440k. There are only 3 small offices left vacant in this building, and we are talking with interested parties about 2 of those right now. Buy at this discount, and once the building fills up, a 7.5% CAP makes this a $500k+ asset.

North Meadows Extension Moving Forward

An open house was hosted at Castle View High School last week to give residents a good look at Castle Rock’s biggest ever road project, which is about to get underway.  The $55 million dollar road will provide a 2-lane extension of North Meadows Drive to I25, and hopefully alleviate some serious local congestion.  As residents of the popular Meadows community are well aware, certain times of day can get pretty difficult along the existing entry/exit points from the Founders interchange.  Opinions are generally pretty positive that this will ease those pains.  And in my opinion, really pave (pun intended) the way for home desirability and values to continue their healthy growth.

Click for a link to CRGov’s North Meadows Extension page.

North Meadows Extension Castle Rock construction development

Very Encouraging Market Data

Hi friends,

The Douglas County Econ Summary for Q3 was just released (I know… a tad late, but the data is still very telling about the direction we’re headed). A lot of good information.  Employment and consumer confidence stregthened. Home sales and building permits are up. Foreclosures are down. Money Mag named Castle Rock one of the 20 best places to live. We’ve got primary employers growing here and moving here.

But, as you might guess, what I particularly like to see are the resulting, falling vacancy rates in commercial properties. Less vacancy leads to more quality growth and improvement. Especially with the core entities that make our town tick… town council and staff, EDC, chamber, DDA, DMA and those of us who operate here and love the town. Maybe I’m overly positive, but all indications are that we have really formed a nice base to start building on.

I’ll post the following chart, which tells a pretty good story.  And feel free to send me an email (TOgden@HoffLeigh.com) if you’d like the entire report (I couldn’t find a link, but do have a digital copy):

Douglas County Commercial Vacancy Rates Prices

2 Year Snapshot – Commercial Sales

Once again, as 2013 begins, we’ve attempted to sort through and simplify the commercial sales data for Castle Rock.  As a 2-year rolling window, the following  chart represents sales in the calendar years 2011-2012:

Castle Rock commercial sales data

This latest quarter brought another group of single tenant, owner-user purchases.  Office condos, church, medical, auto.  But a handful of investor purchases as well.  With vacancy as low as it is in our area, we definitely expect to see demand and prices continue to rise.

Be sure to visit (or subscribe to) the rest of our reports and Castle Rock commercial related info at: http://castlerockcommercialrealestate.com/.

And as alway, contact us anytime for no-obligation commercial searches or listing proposals (leasing or sales).  TOgden@HoffLeigh or 303-351-2217

Fiscal “Cliff’s Notes”

Just catching up on some LinkedIn discussions.  And I came across this very simplified, very helpful summary of what the “Fiscal Cliff” means, should we happen to fall off it.

See the newsletter at First American Exchange Company’s website, for full details.  But, I’ll cut-n-paste the main points here, for your convenience:

Long Term Capital Gains – The current maximum rate of 15% is scheduled to expire on January 1st, increasing to 20%.

Medicare Tax – Effective January 1st there will be a new 3.8% tax on investment income for taxpayers earning above $200,000 (filing single).

Estate Taxes – Currently estates are taxed at 35%, with an exemption level of $5,000,000 per person.  If no action is taken, the top rate will increase to 55% and the exemption level will decrease to $1,000,000.

Ordinary Income Tax – If Congress does not act, the current income tax rates will increase for most taxpayers.

Payroll Tax – Taxpayers have enjoyed a 2% cut in the Social Security tax on salaries and self-employment income.

 Ouch.