Skip to Content.

Multi-Tenant Office Building in Vail Valley for Sale

Thursday, August 17, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing Evans Chaffee Commerce Center for sale. The property is a 15,297-square-foot multi-tenant office building in Avon, Colorado. This partial sale-leaseback investment opportunity is a 96.7-percent-leased property and is located in the Vail Valley micro market, which is experiencing growth through the addition of numerous resorts, housing communities, employment hubs and improved accessibility throughout Eagle County.

office building for sale in avon, coloradoLocated at 77 Metcalf Road along Interstate 70 at the gateway to the country’s most popular ski and summer recreational resorts, the three-story office property is currently leased to six tenants. The largest tenant accounts for 37 percent of the property and is affiliated with current ownership, who plans to continue business operations at the property on a long-term lease, providing immediate stability to an investor.

The strategic location of the building along with its service-oriented rent roll allows Evans Chaffee Commerce Center to benefit from a growing suburban area near the Beaver Creek Resort coupled with large regional employment centers. The property’s location also offers tenants a lifestyle-oriented work environment. Evans Chaffee Commerce Center offers pride of ownership and a rare opportunity to own an important local office asset with stable cash flows in extremely close proximity to the internationally renowned ski resort areas Beaver Creek and Vail.

Due to a scarcity of trades in the Vail Valley market where many owners hold assets for long-term investment, the property presents a rare opportunity to purchase a stabilized asset in the most renowned ski resort area in the country. Further, the office property for sale is located among the most expensive land in all of Colorado – the median price of single-family residences sold in the past year within Vail Valley was $815,000 – and surrounded by some of the most affluent residential communities in Colorado. Eagle County was rated the second-most affluent “small town” in the U.S. by Bloomberg Business, which includes “micropolitan” areas of 10,000 to 60,000 people. Median housing value within a three-mile radius of the property is $550,938, and average household income is $122,689, 75 percent higher than the Denver-Boulder MSA average and 133 percent higher than the national average. Although constrained to new developments, the trade area experienced 11.7 percent growth in new household formation within three miles of the property since 2010.

Office Building for Sale Investment Highlights

  • Stable Income Characteristics:  Currently 96.7 percent occupied, the Evans Chaffee Commerce Center has a weighted average tenant tenure of more than 12 years, demonstrating long-term commitment to the property and stable cash flow to new ownership. Additionally, Mountain Montessori, a tenant for 13 years, has recently executed a lease extension for an additional seven years.
  • Evans ChaffeeExcellent Location Proximate to Vail Valley Ski Resorts:  Evans Chaffee Commerce Center benefits from its proximity to Vail Valley ski resorts, including Beaver Creek and Vail, where an estimated 2.5 million people visit per year. The commercial property is less than one mile from the gateway to Beaver Creek resort and is only eight miles from world-famous Vail ski resort. Many people have second homes and vacation at these world-class areas, providing year-round residents and vacationers who act as the main economic drivers of the area by supporting resort tourism, a booming construction market and local business. Furthermore, the property’s location along Interstate 70, known as the gateway to the Rocky Mountains, allows ease of access to the property from Denver, which is under two hours to the east.
  • Below Replacement Cost:  Current ownership has spent more than $1.4 million ($91.52 per square foot) at the office building for sale to add a third level, enlarge the parking lot and provide high-end interior finishes. The Evans Chaffee Construction Group suite, the largest tenant, won the Eagle Valley Home Builders Association Gold, Silver and Bronze awards in 2006 for Tenant Finish, Overall Building and Best Overall Interior Design, respectively. Additionally, recent capital improvements include LED lighting upgrades, resealing and restriping the parking lot, common area carpet replacement and newly painted interior hallways. As a result of the extensive capital improvements completed a new investor will have a lower cost of ownership moving forward. 
  • Located in a Development-Constrained Market:  With virtually no new office deliveries in recent years or office developments currently under construction, Vail Valley is one of the most development constrained markets in Colorado. The current restriction on commercial development has created an artificial limit on supply in the market leading to an extremely low office vacancy rate of 3.1 percent in Vail Valley. Due to constraints on growth, limited developable land, and the desirable attributes of the area, the variables impacting real estate values should continue to produce positive growth. Additionally, tenants of the property have limited options for new office space in Vail Valley that is well-located and as accessible as Evans Chaffee Commerce Center.

Evans Chaffee Commerce Center is a multi-tenant office building in the development-constrained Vail Valley micro market in Avon. For more information on this commercial property for sale or other retail properties for sale in Colorado, please contact Jules Sherwood in HFF’s Denver office. For information on financing this acquisition, please contact Kristian Lichtenfels. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

 





Comments (0)
Back
Post has no comments.
Post a Comment
Captcha Image



Search HFF Advisor

Recent Posts

By Topics

Archive

Back to top.