Vol. 37, No. 9 - The Group, Inc.

REAL ESTATE
Insider
A Publication Of
The Group, Inc.
Vol. 37, No. 9
October 2013
Development hot spots: Loveland more than an East Side Story
While Centerra and the Interstate 25 corridor in east Loveland continue to be a magnet
for commercial activity, new construction and re-development possibilities are evident
in ample amounts across the city.
The Eisenhower Boulevard (U.S. Highway 34) corridor—the primary connection
between the city’s east and west sides—is attracting re-development interest to
some of its empty spaces. The former MetroLux theater complex at the northwest
corner of Eisenhower and Denver Avenue has been vacant since October 2005.
But the 44,772-square-foot building is in the hands of investors who purchased in
2011. Foundations Church has expressed interest in the building. Nearby, the former
Albertson’s building at 1325 E. Eisenhower has been vacant since 2006. Albertson’s
still holds the lease, but is now actively looking for another business to take over the
50,000-square-foot site. Farther west, FirstBank recently razed and restored its
building at 1352 W. Eisenhower Blvd, at the southeast corner of Eisenhower and
Taft Avenue.
Downtown Loveland is experiencing its own surge of development. Construction
crews broke ground in May on the 70-unit, 66,000-square-foot Gallery Flats project
at 541 N. Lincoln Ave. The multi-family project is due for completion next summer,
and city officials project that it will help to create demand for even more commercial
interest in the central business district.
A Closer Look
at Loveland
Development
Home Prices
Percolating
Jumbo Mortgages
The Group Difference
A Numbers Game
Real Estate
by the Numbers
More online, visit
www.thegroupinc.com
Business expansions and residential communities characterize the latest wave of
construction at Centerra and the surrounding vicinity near I-25. Centerra developers
have recently announced plans for The Lakes at Centerra, a 770-lot single-family home,
patio home and townhome development located north of Hwy 34 and east of Boyd Lake
Avenue. A grand opening for the project is planned for next summer. North of Centerra,
Food Services of America is in the midst of an 86,000-square-foot expansion of its
distribution facility close to the Loveland-Fort Collins Municipal Airport.
A CLOSER LOOK AT LOVELAND DEVELOPMENT
See the Insider map on page 2 for a bird’s eye view of development activity across Loveland.
Editor’s note: This is the second in a series of Insider stories to highlight development hot
spots in Northern Colorado cities.
A CLOSER LOOK AT LOVELAND DEVELOPMENT
14
Horseshoe Lake
4
15 16
18
LOVELAND
Lake Loveland
1
W 1st Street
Houts
Reservoir
5
3
6
Equalizer
Lake
11
8
19
17
Boyd Lake
2
E Eisenhower BLVD
N Denver Avenue
N Madison Avenue
W 29th Street
Boedecker Lake
N Boyd Lake Avenue
N Garfield Avenue
12
N Taft Avenue
N Wilson Avenue
W 57th Street
13
7
E 1st Street
JOHNSTOWN
9
14th Street SW
10
20
402
RECENTLY COMPLETED
PROJECTS IN PROGRESS
1. FirstBank, 1352 W. Eisenhower Blvd.
12. Woodward, 3800 N. Wilson Avenue, industrial addition,
10,450 square feet
2. Kum & Go convenience store, 1600 E. Eisenhower Blvd.
3. Mercedes Benz of Loveland (former Ferraro Chrysler),
4040 Byrd Drive
4. Ranch-Way Feeds Exhibition Center, The RanchLarimer County Fairgrounds, 5280 Arena Circle
5. VanDyne SuperTurbo, 3755 Precision Drive
6. Hyundai at the Motorplex at Centerra (former L2
dealership), 3870 Byrd Drive
FUTURE DEVELOPMENT SITES
7. Foundations Church (former multi-screen movie
theater) SE corner of Denver Avenue. and Highway 34.
8. Albertson’s, 1325 E. Eisenhower Blvd.
9. Agilent, 900 S. Taft Avenue
10. Schmidt’s Bakery, 808 14th Street SW.
11. The Lakes at Centerra, 2235 Rocky Mountain Avenue
Map data courtesy City of Loveland and
The Group, Inc. Real Estate research.
13. Bass Pro Shops, I-25 and U.S. Highway 34, new retail,
117,000 square feet
14. Biolife Plasma Services, NW corner of N. Garfield Street
and W. 65th Street 16,692 square feet
15. Leed Fabrication, 5100-5120 N. Boyd Lake Avenue, new
industrial, 28,100 square feet and industrial addition,
42,000 square feet
16. Food Services of America (former Yancey’s) 5820 Piper
Drive, industrial addition, 86,200 square feet
17. Gallery Flats, 541 N. Lincoln Avenue, 70 multi-family
units, 63,886 square feet
18. O’Reilly Auto Parts, SE corner of Knobcone Dr. and
N. Garfield Avenue. 10,000 square feet
19.House of Neighborly Services (former Super Vac
facility), 1511 11th Street, 60,000 square feet
20. Waterford Place Apartments, SW corner of 14th Street
and Lincoln Avenue, 166 multi-family units on 13 acres
Home prices percolating in Northern Colorado
This is still a very good time to buy real estate in Northern Colorado. Those who wait will see prices
edging up, both in the resale and new home markets. The evidence keeps pouring in from a variety of
sources: the value of residential real estate in Northern Colorado is surging. Among the notable reports,
the latest Federal Housing Finance Agency Home Price Index shows the Greeley area gained 5.96% in
average price appreciation over the 12-month period ending June 30. The Fort Collins-Loveland area
registered a similar increase of 5.39%. Among nearly 300 metro areas surveyed, Greeley ranked No. 64
and Fort Collins-Loveland and came in at No. 72.
A big occasion for ‘jumbo’ mortgages
Interest rates for “jumbo” mortgages—those loans that are typically for high-end properties and
considered too hefty to be backed by the government—hit a milestone in September. For the first
time ever according to the Mortgage Bankers Association, rates for jumbo loans have dropped below
the rate for conventional 30-year mortgages.
As of September 18, published rates from major lenders on jumbo loans for a 30-year fixed rate
could be found for as low as 4.25%, compared to conventional loan rates typically in the range
of 4.5%-4.7%.
Observers say a principal cause for the decline in jumbo rates is an improving economy. As more
would-be buyers are in the market for jumbo loans (above $417,000), more lenders are competing
for this well-to-do pool of borrowers. Competition up, rates down.
We are your source of information about new homes in
Northern Colorado:
The Group is currently marketing 34 new home communities
in Northern Colorado. Our vast knowledge of the various new
home developments in the area can help you choose the perfect
location and plan for you.
Our New Homes map provides information about
those neighborhoods, making your search for
a new home easier. Stop by my office or call
me for a copy.
Additional information about the new home
market in Northern Colorado can also be found
at www.NorthernColoradoNewHomes.com.
Fall 2013
www.North
ernColoradoN
ewHomes.co
m
NORTHERN
COL
ORADO
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A number’s game: many New York condo buildings skip the 13th floor
Apparently New York City developers don’t like to take chances. According to a recent Wall Street Journal
article, only 5% of mid- and high-rise residential condominium buildings in Manhattan and Brooklyn
include a designated 13th floor.
Respect for the traditional superstition about the number 13 is apparently just good business.
“If there’s even a 1% risk that someone won’t like it, then why would you do it?” said one developer.
Real estate by the numbers
• $1.2 billion – Total home sales in Fort Collins, Loveland and Greeley areas year-to-date as of
September 1. This is an increase of 22% from the 2012 sales levels, which were just over $972
million through the first eight months of the year.
• 29.4% – Increase in the number of listings in Greeley-Evans sold year-to-date when compared
to last August. Loveland and Berthoud saw an increase of 26.4 % when compared to 2012.
Fort Collins’ increase was 16.7 percent in the same period.
• 23% – Percentage increase in Greeley-Evans median homes prices, increasing to $129,900 in
August. Loveland’s median price increased by 16 % to $255,100, and Fort Collins’ went up by
3.4 % to $266,900.
• $7.137 billion – Assessed value of Weld County’s property for 2013, with 55 % of the county’s
property taxes paid for by the oil and gas industry.
• 4,200 – Number of new jobs added in Northern Colorado in the first quarter of 2013.
• $2.3 billion – Economic impact of the state’s federally funded laboratories. In these labs,
8,000 people were directly employed in 2012.
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