Real Estate: ‘Stable’ market conditions limit chances for bargains

For real estate investors such as Dave Veldman, things could be better.

Which means, they could be worse.

Let me explain.

Veldman and partner Mitch Morgan, owners of Veldman Morgan Commercial in Fort Collins, have made their mark along the Front Range by picking up distressed commercial real estate and turning it into healthy income-producing property.

A notable example of the Veldman-Morgan touch is the once dilapidated Linden Hotel building in Fort Collins.

It would seem that the sluggish economy of the past two years, highlighted by rising vacancies in office and apartment properties, would give the partners a fresh round of opportunities.

Not so.

“It’s interesting to me with the short-term and long-term (interest) rates both staying pretty low, we haven’t seen really any fallout in commercial real estate in Fort Collins, despite the slower economy than we’re used to,” Veldman said.

“I would have thought there would be some fallout — be it in foreclosures with banks taking over properties, or some distress sales. There’s really been none of that. Owners have had the benefit of low interest rates, and they’ve been able to hang on to their properties, whether or not leasing has been that great.”

Lest he sound like the grim reaper, Veldman knows the interest-rate scenario has been good for the overall economy in Northern Colorado.

“The last property I purchased was in the Central Platte Valley in Denver,” he said. “I’d sure prefer to invest in real estate in Fort Collins. I just haven’t had the opportunity here. That says great things about our market.”

Although he doesn’t see the economy reviving as quickly as some others might predict, he thinks the state of commercial real estate has bottomed out.

“I don’t think it’s going to get a lot worse,” Veldman said. “They’ve (investors) kind of dug in ? I think that will continue. I think we’ll see a nice stability in the market,” he said.

Nichols Street on the map

FORT COLLINS — In the past, Re/Max International has been known to grant some of its brokers marketing latitude.

Proven producers can operate a “team” or “group” of brokers within the framework of a larger Re/Max franchise. In essence, the format allows a brokerage within a brokerage.

Eric Nichols, a broker with Re/Max First Associates in Fort Collins, decided to take advantage of the marketing possibilities, but figured neither The Nichols Team nor The Nichols Group made the grade as a brand.

Instead, Nichols has launched Nichols Street — a four-person operation under the Re/Max First banner that includes Sandy Coalson, Misty Ingalsbe and Todd Spiller.

“I’m not going near the word ?group’ for good reason,” he said, referring to The Group Inc. “Some of my best friends are ?groupies’. And the word ?team’ is so trite. It’s so overused in the market, it’s lost any effectiveness in the marketplace whatsoever. We struggled to find something different — to make us stand out, to reflect the highly superior service we intend to offer.”

What Nichols Street intends to offer is development consulting services for new-home projects, as well as conventional real estate marketing and sales.

“Ideally, we’ll work with them (developers) from almost square one, doing demographics research,” Nichols said.

His office already represents about $30 million worth of new-home construction in the pipeline, which would result in about 160 units. In the near future, Nichols Street expects to introduce loft-apartment projects to its client list.

“There’s a whole new demographic hitting the market in Fort Collins,” he said. “I think we’re going to see a lot (of lofts) over the next decade or so. We are right on the tip of it.”

Arbor Plaza changes hands

FORT COLLINS — Matmar Fort Collins Partnership, owners of the Wal-Mart-anchored Arbor Plaza shopping center since 1987, recently sold the 61,669-square-foot property for $9.5 million. The deal, which closed in October, does not include the 81,000-square-foot Wal-Mart Discount City store, 4625 S. Mason St., which is owned separately by Wal-Mart Inc.

Matmar, a New York-based investment venture, sold the property to WS Arbor Plaza Associates, a group headed by Brian Thorsen and Richard Marcus. Thorsen and Marcus are principals in Denver-based Western Skies.

Bob Baun can be reached at (970) 221-5400, (970) 356-1683 or via e-mail at bbaun@ncbr.com. His fax number is (970) 221-5432.

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