Multi-Building Retail and Restaurant
For Sale
$3,154,385
2616 W Colorado Avenue, Colorado Springs, CO 80904
Five buildings with mostly open layouts, private bathrooms, and 43 off-street parking spaces, anchored by established restaurant operators.
Property Size16,413 SF
Lot Size0.69 Acres
Price / SF$192.19
Days on Market55
Property Features for 2616 W Colorado Avenue
General Information
Standard status
Active
Size
16,413 SF
Total Parking Spaces
43
Lot size
0.69 Acres
Property subtype
Commercial
Zoning
MX-M
Taxes and HOA fees
Annual Taxes
$36,546
Amenities
Corporate Owned, Established Rental History
Active
Mixed Use, Office, Restaurant, Street Retail
17338
City/Town Road
Existing
30000
43
Building Details
Year Built
1982
Listing Agency:
Park Avenue Propeties of Colorado Springs
(719) 548-9900
Listed By:
Tanya Stevenson · License #040004755
(719) 548-9900
Source:
Parkavenuepropertiesco.idxbroker
Added: Jun 30
Changed: Aug 14
Last Checked: Aug 23 at 2:22AM
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 Park Avenue Propeties of Colorado Springs
Investment Insights
Based on property information with market context.
This property consists of five retail and restaurant buildings totaling 16,413 square feet, constructed in 1951, 1951, 1975, 1981, and 1982. The space is described as mostly open, and most units include a private bathroom, supporting a range of restaurant, service, and retail concepts that benefit from flexible floor plans.
The site is approximately 30,000 square feet and is zoned Colorado Springs Commercial MX-M. The offering includes 43 off-street parking spaces, with additional parking described as nearby city lot availability.
With anchoring by Jake & Telly’s Greek restaurant and Yellow Mountain Tea House, the center presents an existing restaurant-oriented tenant mix. For buyers evaluating an owner-operator or redevelopment plan, the combination of multiple buildings, mostly open interiors, private bathroom availability in most units, and on-site parking can help streamline tenant fit across varied storefront and dining uses within the MX-M zoning framework.
The site is approximately 30,000 square feet and is zoned Colorado Springs Commercial MX-M. The offering includes 43 off-street parking spaces, with additional parking described as nearby city lot availability.
With anchoring by Jake & Telly’s Greek restaurant and Yellow Mountain Tea House, the center presents an existing restaurant-oriented tenant mix. For buyers evaluating an owner-operator or redevelopment plan, the combination of multiple buildings, mostly open interiors, private bathroom availability in most units, and on-site parking can help streamline tenant fit across varied storefront and dining uses within the MX-M zoning framework.
Key Highlights
- 5‑building commercial property totaling 16,413 SF, built in phases from 1951 to 1982
- Zoned Colorado Springs Commercial MX‑M
- 30,000 SF site with 43 off‑street parking spaces
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
$226,893
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
7.19%
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%
$4,537,860
$4.5M
Cap Rate 7%
$3,241,329
$3.2M
Cap Rate 9%
$2,521,033
$2.5M
Market Conditions
NOI Build-Up for 16,413 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
$315.1K $19.20/SF
− Vacancy
−$12.6K −$0.77/SF
EGI
$302.5K $18.43/SF
− OpEx
−$75.6K −$4.61/SF
NOI
$226.9K $13.82/SF
Area
Colorado Springs, CO
Vacancy
4.00%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$4,537,860
Cap Rate 7%
$3,241,329
Cap Rate 9%
$2,521,033
Alternative Uses
Best Use
Specialty Retail
$3.24M
$2.84M – $3.78M
NOI $226,893 @ 7.0% cap · market cap 7.19%
Second Best
Retail
$2.82M
$2.47M – $3.29M
NOI $197,498 @ 7.0% cap · market cap 6.26%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,347
Businesses Nearby
113k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 74%
Shops & Services 20%
Apparel 6%
Rudy's Country Store & Bar-B-Q
Dining
34,323 visits/mo
0.4 miles
McDonald's
Dining
18,618 visits/mo
0.4 miles
Taco Bell
Dining
11,829 visits/mo
0.4 miles
Wendy's
Dining
9,943 visits/mo
0.5 miles
Conoco
Shops & Services
6,613 visits/mo
0.4 miles
Demographics for 80904, CO
20,986
Population
11,578
Households
1.8
Avg Household Size
47
Median Age
45%
College-Educated
96%
High-School Grad
11.2 sq mi
ZIP Area
1,874
Density / Sq Mi
$69,566
Median Household Income
$44,494
Median Earnings
$1,417
Median Rent
$413,400
Median Home Value
Market
Vacancy Rate% for Retail in Colorado Springs, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - Five buildings with mostly open layouts, private bathrooms, and 43 off-street parking spaces, anchored by established restaurant operators.
Where is this shopping center located?
The property is located at 2616 W Colorado Avenue Colorado Springs, CO.
What is the asking price?
The asking price for this property is $3,154,385.
What are key features of this property?
This property features: 5‑building commercial property totaling 16,413 SF, built in phases from 1951 to 1982; Zoned Colorado Springs Commercial MX‑M; 30,000 SF site with 43 off‑street parking spaces
