In 2024, our partnership group needed to identify a 1031 exchange opportunity with a focus on off-market retail assets in the downtown Colorado Springs core. We successfully sourced an 11,000 SF retail center adjacent to Palmer High School and Colorado College by directly engaging the property's owner, the granddaughter of the original developer. Through strategic negotiation, we secured the asset off-market at a purchase price below $130 per square foot—one of the lowest comps in the area—yielding a 7% cap rate at acquisition.

The property, originally developed in 1951, had never been sold and showed significant deferred maintenance despite being fully occupied. Recognizing the value and potential for adaptive reuse, we initiated a comprehensive exterior improvement program and began repositioning the property to better serve local businesses seeking quality, affordable retail space. Our team’s ability to locate, negotiate, and conceptualize the project has been instrumental in breathing new life into this corner of downtown through thoughtful leasing, curated tenant mix, and strategic marketing efforts. We are currently working to establish a dynamic, local anchor concept at the prominent Boulder and Nevada intersection to further enhance the property's long-term value.