Flex Warehouse Condominium
For Sale
$2,550,000
2754 Downhill Drive #A B C, Steamboat Springs, CO 80487
Three condominium units in an Elk River Road Business Park building, currently assembled with connecting doorways.
Property Size7,469 SF
Lot Size0.83 Acres
Price / SF$354.41
Days on Market62
Property Features for 2754 Downhill Drive #A B C
General Information
Standard status
Active
Size
7,469 SF
Lot size
0.83 Acres
Property subtype
Commercial
Additional Details
Road Access
Yes
Office Units
3
Building Details
Building Size
7,469 SF
Year Built
1995
Listing Agency:
Steamboat Sotheby's International Realty
(970) 879-8100
Listed By:
Annamarie Shunny
Source:
Coloradopartners
Added: Jun 23
Changed: Aug 23
Last Checked: Aug 22 at 7:35AM
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 Steamboat Sotheby's International Realty
Investment Insights
Based on property information with market context.
Located in Steamboat Springs’ Elk River Road Business Park, this three-unit commercial condominium comprises Units A, B, and C of the Dover Commercial Building. The property is currently configured as one assembled space with connecting doorways, while original demising walls remain in place for a straightforward conversion back to three separate legally deeded condominiums.
Each unit provides a full main level plus a second-level mezzanine, with bathrooms on every level and in each unit. The concrete block building features a built-up flat roof, stucco exterior, thermal windows, central air, gas heat throughout, and concrete floors. Interior improvements include a practical “vanilla-box” finish that can support a buyer’s preferred build-out.
The Industrial zone district allows live-work use, and past and current uses have included offices, warehouse space, a construction showroom, athletic performance and coaching space, and live-work areas. The site offers corner positioning and street frontage on both Downhill Drive and Jacob Circle, along with ample on-site parking, generous storage, and convenient vehicular circulation.
Each unit provides a full main level plus a second-level mezzanine, with bathrooms on every level and in each unit. The concrete block building features a built-up flat roof, stucco exterior, thermal windows, central air, gas heat throughout, and concrete floors. Interior improvements include a practical “vanilla-box” finish that can support a buyer’s preferred build-out.
The Industrial zone district allows live-work use, and past and current uses have included offices, warehouse space, a construction showroom, athletic performance and coaching space, and live-work areas. The site offers corner positioning and street frontage on both Downhill Drive and Jacob Circle, along with ample on-site parking, generous storage, and convenient vehicular circulation.
Key Highlights
- 7,195 SF three‑unit commercial condominium (Units A, B, and C) in the Dover Commercial Building in Steamboat Springs’ Elk River Road Business Park.
- 0.83‑acre corner lot with street frontage on Downhill Drive and Jacob Circle.
- Currently assembled as one connected space with connecting doorways, while original demising walls remain for potential re‑conversion to three separate condos.
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
$201,438
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
7.90%
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%
$4,028,760
$4.0M
Cap Rate 7%
$2,877,686
$2.9M
Cap Rate 9%
$2,238,200
$2.2M
Market Conditions
NOI Build-Up for 7,195 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
$252.1K $35.04/SF
− Vacancy
−$15.1K −$2.10/SF
EGI
$237.0K $32.94/SF
− OpEx
−$35.5K −$4.94/SF
NOI
$201.4K $28.00/SF
Area
Routt County, CO
Vacancy
6.00%
Lease Rate
$35.04 /SF/Yr
Expense Ratio
15.00%
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%
$4,028,760
Cap Rate 7%
$2,877,686
Cap Rate 9%
$2,238,200
Alternative Uses
Best Use
Warehouse
$2.88M
$2.52M – $3.36M
NOI $201,438 @ 7.0% cap · market cap 7.90%
Second Best
Flex RnD
$1.62M
$1.42M – $1.89M
NOI $113,645 @ 7.0% cap · market cap 4.46%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Office units
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 80487, CO
18,209
Population
13,231
Households
1.4
Avg Household Size
42
Median Age
57%
College-Educated
97%
High-School Grad
795.8 sq mi
ZIP Area
23
Density / Sq Mi
$106,837
Median Household Income
$50,551
Median Earnings
$1,927
Median Rent
$915,900
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Three condominium units in an Elk River Road Business Park building, currently assembled with connecting doorways.
Where is this flex space located?
The property is located at 2754 Downhill Drive #A B C Steamboat Springs, CO.
What is the asking price?
The asking price for this property is $2,550,000.
What are key features of this property?
This property features: 7,195 SF three‑unit commercial condominium (Units A, B, and C) in the Dover Commercial Building in Steamboat Springs’ Elk River Road Business Park.; 0.83‑acre corner lot with street frontage on Downhill Drive and Jacob Circle.; Currently assembled as one connected space with connecting doorways, while original demising walls remain for potential re‑conversion to three separate condos.
