Building Details

Building Size 2,181 SF

Year Built 1900

Units 2

Listing Agency: Main Street Brokers t***@msn.com Show Phone

Listed By: Tricia Flake · License #40031240 Show Phone

Source: Coloradopartners

Added: Aug 24 Changed: Aug 28 Last Checked: Aug 28 at 11:31AM

Report an Issue

Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Main Street Brokers

Investment Insights

Based on property information with market context.

Built in 1900, this mixed-use property occupies a 1/2-acre parcel with three potential rental units: an updated two-bedroom, two-bath cottage, a carriage garage suited to workshop use, and a bunkhouse or studio with a 3/4 bath and kitchenette. Gardens, patios, a water feature, horseshoe pits, firepit, covered swing, and on-site parking are included. The parcel may be divided without a formal subdivision action.

Zoned CC, the property supports a range of stated permitted and conditional uses, including residential-commercial mixed use, multi-family, boutique retail, liquor store, restaurant, office, and bed-and-breakfast applications. It has 175 feet of frontage on a state highway and sits directly across from the lake and Palmer Lake Recreation Area, where overflow parking and year-round events are available. Nearby recreational activities include fishing, paddleboarding, kayaking, biking, disc golf, hiking, and ice skating.

Key Highlights

• Three potential rental units: a 2‑bed/2‑bath cottage, carriage garage, and bunkhouse/studio
• 1/2‑acre CC‑zoned parcel with 175 feet of state highway frontage
• 1900‑built property with gardens, patios, water feature, and outdoor gathering features

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$27,677

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

3.82%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$553,540 $553.5K

Cap Rate 7%

$395,386 $395.4K

Cap Rate 9%

$307,522 $307.5K

Market Conditions

NOI Build-Up for 2,181 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$47.1K $21.60/SF

− Vacancy

−$2.8K −$1.30/SF

EGI

$44.3K $20.30/SF

− OpEx

−$16.6K −$7.61/SF

NOI

$27.7K $12.69/SF

Area

El Paso County, CO

Vacancy

6.00%

Lease Rate

$21.60 /SF/Yr

Expense Ratio

37.50%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$553,540

Cap Rate 7%

$395,386

Cap Rate 9%

$307,522

Alternative Uses

Best Use

Apartment 5plus

$25.86M

$22.63M – $30.17M (±1% cap)

NOI $1,810,346 @ 7.0% cap · market cap 249.70%

Second Best

Mixed Use

$395.4K

$346.0K – $461.3K (±1% cap)

NOI $27,677 @ 7.0% cap · market cap 3.82%

Theoretical Best

Multifamily LT 5

$29.08M

$25.45M – $33.93M (±1% cap)

NOI $2,035,811 @ 7.0% cap · market cap 280.80%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Mixed-use properties

Suggested Use

Top Pick HVAC Service Electrical Service Catering Service Big Box & Wholesale Store Tanning Salon Plumbing Service

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

Yes

Highway access

Yes

Paved road access

Location Intelligence

Trade Area within ½ mile

194

Businesses Nearby

Explore this area Business Placement

Demographics for 80133, CO

2,520

Population

1,065

Households

2.4

Avg Household Size

44

Median Age

44%

College-Educated

97%

High-School Grad

3.0 sq mi

ZIP Area

840

Density / Sq Mi

$122,941

Median Household Income

$50,429

Median Earnings

$1,913

Median Rent

$452,500

Median Home Value

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties located? What is the asking price? Find similar properties ... What are key features of this property?

Ask Rey about this property ...

Frequently Asked Questions

What type of property is this?

Mixed-use property - CC-zoned parcel includes a cottage, carriage garage, and studio with shared outdoor improvements.

Where is this mixed-use property located?

The property is located at 224 Highway 105 Palmer Lake, CO.

What is the asking price?

The asking price for this property is $725,000.

What are key features of this property?

This property features: Three potential rental units: a 2‑bed/2‑bath cottage, carriage garage, and bunkhouse/studio; 1/2‑acre CC‑zoned parcel with 175 feet of state highway frontage; 1900‑built property with gardens, patios, water feature, and outdoor gathering features