On Friday, April 29, Tepuy Properties closed on a 38,638-square-foot, 3-story office building at 5825 Delmonico Drive, the company’s first property purchased in the Colorado Springs area.
“We are excited to diversify our portfolio a bit and find new opportunities outside of our current geographical footprint,” said Brandi Prochazka, Tepuy’s property manager.
The Delmonico building, built in 1985, is located directly off I-25 in an established part of northern Colorado Springs. It has been well-maintained over the years and requires no immediate repairs or improvements, but Tepuy investors are particularly excited by the building’s tenants. Among the property’s eight current occupants is the USA Triathlon, which leases the building’s entire second floor.
“The quality of the tenants is one of the most important aspects,” Prochazka said. “With the building anchored by a large tenant with a 10+ year lease, the guaranteed cash flow is a huge advantage. Investors are excited to add such a quality building to our portfolio.”
Many of the property’s additional tenants also revolve around the industry, including chiropractors, physical therapists, and the Ultimate Players Association. The building has 10 percent vacancy, but Tepuy is in the process of negotiating a lease for the remaining space.
“We are hopeful that this building is just the start of our expansion into other areas of the state and even the country,” said Prochazka.
Tepuy Properties purchased the Delmonico building for $7.95 million via a 1031 exchange from the recent sale of 385 S Pierce Avenue. Eric Rutherford of WK Estate represented Tepuy Properties in the transaction. The seller, DCP Delmonico LLC, was
represented by Matt Call with NavPoint Real Estate Group, LLC.
