January 3, 2009

Tim Leigh’s Weekend Market Report
Hoff & Leigh, Inc.
4445 Northpark Drive, Suite 200
Colorado Springs, CO 80907
January 3, 2009

Attached is our complete listing of all properties for sale in Colorado Springs, based on property type - office, industrial and condo. This is the most complete listing that we are aware of. It’s our goal to provide this information, updated weekly. We develop these lists by basic research and cross-checking data points from the PPCIE, local broker's individual web sites, The Turner Book and any other public information domain we can find.

You are receiving this information because, at some point, you asked or a friend referred your name to be included in our e-mail Insider’s List. If you no longer wish to receive this information, send an e-mail reply to me (tim@hoffleigh.com) and ask to be removed. Alternatively, if you know someone who could benefit from the receipt of this information, forward this e-mail to them, and suggest they contact us, so we can consider adding them to our exclusive list.

All Market Average Office Building Sale Price PSF = $112.59 (UP from $111.20 last week.)
We are currently tracking 104 office buildings for sale.
This is 1,120,142 square feet, which represents a total market value of $126,114,895.

All Market Average Industrial Building Sale Price PSF = $73.82 (DOWN from $74.04 last week.)
We are currently tracking 91 industrial buildings for sale.
This is 1,284,185 square feet, which represents a total market value of $93,803,606.

Somewhat interesting property for sale:

2760 North Academy Boulevard: I’M STILL TRYING TO FIND A QUICK SALE BUYER FOR THIS PROPERTY. I showed it again on Saturday with the Seller. It is very clean. This is the small building at The Offices at the Park. The price was dropped from $750,000 to $540,000 which now makes it for sale at $40.98 per square foot. At this price, it is a great value. The property needs to be re-tenanted. The physical plant it in good condition with no apparent roof or HVAC issues. There is plenty of parking.

3645 Jeannine Drive: WE’RE GETTING CLOSE TO A SALE; PRICED AT $850,000; SOMEBODY, PLEASE, STEP UP AND TAKE THIS AMAZING VALUE. THIS PRICE IS ALL OF THE JUICE THAT I CAN WRING-OUT OF THIS CARROT. This is the best opportunity for a value added investor in the market. At the current list price, $850,000 it’s only $17.90 psf. This property had been listed at $1,650,000; we reduced to $1,100,000 and now we’re really seriously-in-the-game. This property has a firm remodel budget of $415,000 ($8.72 psf), which includes a new roof, new parking lot, new HVAC and lipstick. When it’s all done & said, this all-in investment would be $17.90 + $8.72 = $26.62 psf. You can’t frame a building for that. This deal produces a newly constructed, multi-tenant building with tremendous lease-up & value-added opportunity. When completed, this project, leased-up should generate between $25,000 - $30,000 per month in gross rent. This is a case study where someone buys low, adds value and thereby increases his balance sheet and income.

In case you missed the description over the past few weeks, the building is a 47,596 sf mixed use facility with warehouse on the ground floor and many small offices littered across the top floor. It is located just south of Austin Bluffs, just west of Academy. The warehouse space should lease-up for $5.50 psf modified gross and the offices should lease-up for $9.00 psf modified gross. The presumption is that the Tenants will pay rent plus utilities, snow removal, janitorial and landscaping charges.

905 Motor City Drive: ANOTHER DIAMOND IN THE ROUGH. STORE YOUR TOYS. OPEN AN AUTO SHOP. This is a very clean, auto shop building that sits atop Motor City Drive. The Seller’s very interested in getting this property off their books, now! The original listing price was $375,000. The new price, for a quick sale is $260,000. The property is 2,952 square feet on a 9,700 square foot, fenced lot. There are 2 overhead doors, with 3 service bays. Here’s the value added; buy into Motor City at today’s, currently depressed pricing; lease or use the property for 3 – 5 years and sell for a profit.

13570 Meadowgrass: This is our office condo project. True to market dynamics, and true to the advice I dish-out, as painful as it is, (which goes to show, I share your pain!) I have dropped-my-pants to get a sale. As a percentage, we have reduced our pricing by 20%. For office condos on the north end; with I-25 visibility and unbelievable views of the Air Force Academy & the Front Range, this is the ticket.

5030 Boardwalk: THE SELLER IS MOTIVATED. MAKE AN OFFER. This is an exceptional deal because of the financing. The Seller will carry the mortgage on soft terms. Also, this is a USER SALE. The property is a good example where there has been a diminution of value because of a waning trade area. The building is clean and doesn’t need modification. Typically, a user/purchaser would utilize 1 of the 4 rental units and lease-out the other 3. The building is 6,383 square feet and priced at $84.60 per square foot ($540,000). The Seller would guarantee that vacant space leases.

Want to know more? Contact me Tim@HoffLeigh.com
View 100’s of listings on our web site, www.HoffLeigh.com.
719-630-2277

Tim’s Market Notes:

Happy New Year! I am continually asked “How are you doing?” and my pat answer is, “We’re doing amazing!” Of course that can be good or bad. But, truthfully, we’re doing OK. We’ve actually seen leasing & sales activity pick-up a little bit over the past few months. And, contrary to what you may think, in spite of the short, dark, cold days, January is not the worst business month of the year.

The time between the holidays is a good time for reflection; how did we do last year? What are the realistic expectations for the New Year? Where will we find the golden opportunities? Now is the time to start basic goal setting. Goals - you know; the measurable dreams with a time line for accomplishment. Our 2009 plan at Hoff & Leigh is to grow our property management business; increase our leasing & sale output; and my staff’s plan is to get me out of the office (and out of their hair) more often!

I have been saying that the easiest solution to the current housing funk was to drop long-term mortgage rates to 3.5%. This is what Bob Hoff lobbied congress for in 1972. While the markets & government will not allow them to drop that low, rates are dropping & creating a refinancing boom. We’re already seeing rates drop below 5% and I expect them to be lower over the next several months. If your home mortgage financing is ugly, now is the time to take corrective action!

Personally, I’m in the process of refinancing 2 of my houses. I’m placing twice as much debt on one and using the cash-out to pay-off the debt on the other. In the process, I’ll drop my combined monthly mortgage payment by over $250.

When the general market catches on to this trend, the rush to refinance will be so severe that you could get caught in the logger-jam. So, it’s good to stay ahead of the trend. In my case, I was told it would take nearly 3 months from start-to-finish. The good news is that the rate is locked at 4.87%. Here is a short list of competent mortgage people. I have had good dealings with each of them.

Rebekah Radice
Waterstone Mortgage Company
719-638-9840
Rebekah@front-range.net

Lisa Rushmer
First Mortgage Company
719-531-5311
lrushmer@firstmortgageco.com

Sandy Egging
Compass Bank
719-229-9425
Sandy.egging@compassbank.com

Suzannah Mattson
Wells Fargo Bank
719-381-1110
Suzannah.mattson@wellsfargo.com

Low rates will create new cash flow for Joe the Plumber. Hopefully, Joe will start spending and in the process, jump-start the system. Recall that our economic system is 70% consumption. Without consumption, we’ll continue to rock in the deep-blue-funk. And, actually, (Holly) if you want to be a true Patriot, you’d go on a spending spree! When you combine this potential cash flow created by low interest rates with the $1T in new spending promised by Obama, we should start looking better by mid-year.

Happy New Year!

Want to know more? Contact me at Tim@HoffLeigh.com

Focus on Charity

What: The Salvation Army
When: 52,000 meals per year
Where: The New Hope Center
Why: People are cold & hungry and not able to care for themselves
How: Contact The Salvation Army and make a donation

Want to know more? Contact me at Tim@HoffLeigh.com

I hope you had a profitable week and next week is better!

Sincerely,

TJL
Tim Leigh
719-337-9551
Tim@HoffLeigh.com


To view our Office Matrix List please click below
http://hoffleigh.com/OfficeInsider.aspx

To view our Industrial Matrix List please click below
http://hoffleigh.com/IndustrialInsider.aspx