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Office Warehouse

The Chidlaw Building

2221 E Bijou St, Colorado Springs, CO 80909

Listing Price: $40,000,000

Cap Rate
6.54%
Gross SF
281,144
Price/Gross SF
$142.28
Lot Size
13.70 acres
Year Built
1962
Rentable SF
281,144

Investment Overview

Originally constructed as the headquarters for the North American Air Defense (NORAD) in 1963, the Chidlaw building was the largest and most secured structure in Colorado Springs at the time. The building was constructed from reinforced concrete footings and a concrete slab foundation with a steel frame and steel beams and also has seven-inch thick concrete tilt-up exterior walls. During its military days, the Chidlaw Building welcomed many prominent leaders and dignitaries including Presidents John F. Kennedy and Lyndon B. Johnson as well as several four-star generals. The site saw a complete overhaul renovation in the early-mid 1990’s to be repurposed into a multi-tenant office/flex facility. 2221 East Bijou Street is a two story, 281,144 square foot flex property that is situated on a 13.70-acre lot with C6 CU zoning and resides at a premier infill location within minutes of Downtown Colorado Springs, between I-25 and the Colorado Springs Airport. The entire parking lot was remilled and replaced with a fresh asphalt coating in summer and fall of 2021 and now has a total of 1,057 paved parking spaces (25 handicapped) for a fantastic parking ratio of 3.76 / 1,000 SF. There have been several other large-scale capital improvements made to the property in recent years as well which include: a gym and café buildout, replaced/repositioned concrete staircases, enhanced drainage pipes, installment of drain pans in the parking lot, renovated suites, upgraded lighting and more. These improvements that have been made since 2018 has an estimated cost total of over two million dollars. The property is also ESFR sprinklered, has one dock and one drive in door, two original 5,000,000 BTU/hour input hot water boilers (one used as a backup), two Trane 300-ton Centravac water-cooled chillers (one used as a backup), six transformers with 480/277 volt service, twenty-three air handlers, and six mechanical & fan rooms. The building also has one hydraulic elevator and five interior stair wells. Being located only minutes away from the core Colorado Springs Downtown District, the Chidlaw Building offers an appealing and economical option for large companies wanting to be in the fast growing, Colorado Springs market. With very limited available land in an infill location like this coupled with rising construction costs, the Chidlaw Building is priced below replacement costs, which are estimated to be over $200/square foot with the amount of infrastructure involved. The Chidlaw Building is currently 74 percent occupied across four national and local credit tenants in the technological field, two of which are publicly traded, Fortune 225 companies. All four tenants are on NNN leases with average in-place rents of $13.73/sf and with a weighted average of six plus years remaining on current lease terms. Spectrum (NYSE: CHTR), is the building’s anchor and longest tenured tenant, occupying 93,077 square feet and has a remained a tenant at the property since 1997. Jacob’s Engineering Group, Inc (NYSE: J), the building’s second largest tenant, occupies a total of 63,814 square feet and has only expanded on space in the building since their term commenced in 2020. Hero Practice Services, a national healthcare company, has a lease term that is extended through 2029 and occupies 47,483 square feet. PCI Broadband, one of the oldest interest service providers in Colorado, occupies the smallest amount of space, being 2,471 square feet. There is plenty of upside for additional rental income as well with 26 percent of the property still vacant. There is also additional income from a portion of the parking lot being leased through 2024.

Investment Highlights

  • 281,144 Square Foot Flex Property, Situated on a 13.70 Acre Lot
  • Fantastic Infill Location Minutes from Downtown Colorado Springs
  • Close Proximity to I-25 and the Colorado Springs Airport
  • Originally Constructed as the NORAD Headquarters in 1963
  • Concrete Slab Foundation with Reinforced Concrete Footings

Exclusively Listed By

Financing By

Office Warehouse

The Chidlaw Building

Listing Price: $40,000,000

Cap Rate
6.54%
Gross SF
281,144
Price/Gross SF
$142.28
Lot Size
13.70 acres
Year Built
1962
Rentable SF
281,144

Investment Highlights

  • 281,144 Square Foot Flex Property, Situated on a 13.70 Acre Lot
  • Fantastic Infill Location Minutes from Downtown Colorado Springs
  • Close Proximity to I-25 and the Colorado Springs Airport
  • Originally Constructed as the NORAD Headquarters in 1963
  • Concrete Slab Foundation with Reinforced Concrete Footings

Investment Overview

Originally constructed as the headquarters for the North American Air Defense (NORAD) in 1963, the Chidlaw building was the largest and most secured structure in Colorado Springs at the time. The building was constructed from reinforced concrete footings and a concrete slab foundation with a steel frame and steel beams and also has seven-inch thick concrete tilt-up exterior walls. During its military days, the Chidlaw Building welcomed many prominent leaders and dignitaries including Presidents John F. Kennedy and Lyndon B. Johnson as well as several four-star generals. The site saw a complete overhaul renovation in the early-mid 1990’s to be repurposed into a multi-tenant office/flex facility. 2221 East Bijou Street is a two story, 281,144 square foot flex property that is situated on a 13.70-acre lot with C6 CU zoning and resides at a premier infill location within minutes of Downtown Colorado Springs, between I-25 and the Colorado Springs Airport. The entire parking lot was remilled and replaced with a fresh asphalt coating in summer and fall of 2021 and now has a total of 1,057 paved parking spaces (25 handicapped) for a fantastic parking ratio of 3.76 / 1,000 SF. There have been several other large-scale capital improvements made to the property in recent years as well which include: a gym and café buildout, replaced/repositioned concrete staircases, enhanced drainage pipes, installment of drain pans in the parking lot, renovated suites, upgraded lighting and more. These improvements that have been made since 2018 has an estimated cost total of over two million dollars. The property is also ESFR sprinklered, has one dock and one drive in door, two original 5,000,000 BTU/hour input hot water boilers (one used as a backup), two Trane 300-ton Centravac water-cooled chillers (one used as a backup), six transformers with 480/277 volt service, twenty-three air handlers, and six mechanical & fan rooms. The building also has one hydraulic elevator and five interior stair wells. Being located only minutes away from the core Colorado Springs Downtown District, the Chidlaw Building offers an appealing and economical option for large companies wanting to be in the fast growing, Colorado Springs market. With very limited available land in an infill location like this coupled with rising construction costs, the Chidlaw Building is priced below replacement costs, which are estimated to be over $200/square foot with the amount of infrastructure involved. The Chidlaw Building is currently 74 percent occupied across four national and local credit tenants in the technological field, two of which are publicly traded, Fortune 225 companies. All four tenants are on NNN leases with average in-place rents of $13.73/sf and with a weighted average of six plus years remaining on current lease terms. Spectrum (NYSE: CHTR), is the building’s anchor and longest tenured tenant, occupying 93,077 square feet and has a remained a tenant at the property since 1997. Jacob’s Engineering Group, Inc (NYSE: J), the building’s second largest tenant, occupies a total of 63,814 square feet and has only expanded on space in the building since their term commenced in 2020. Hero Practice Services, a national healthcare company, has a lease term that is extended through 2029 and occupies 47,483 square feet. PCI Broadband, one of the oldest interest service providers in Colorado, occupies the smallest amount of space, being 2,471 square feet. There is plenty of upside for additional rental income as well with 26 percent of the property still vacant. There is also additional income from a portion of the parking lot being leased through 2024.

Exclusively Listed By

Financing By

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