Multifunctional Property Near Citadel
For Sale
$1,699,000
2850 W Serendipity Circle, Colorado Springs, CO 80917
Adaptable units suitable for clinics, offices, or schools.
Property Size9,552 SF
Price / SF$177.87
Days on Market457
Property Features for 2850 W Serendipity Circle
General Information
Standard status
Active
Size
9,552 SF
Taxes and HOA fees
Annual Taxes
$13,598
Building Details
Year Built
1974
Listing Agency:
RE/MAX PROFESSIONALS
(303) 985-4555
Listed By:
LINDA TRAN
Source:
Corcoran
Added: May 30, 2025
Changed: Mar 16
Last Checked: Mar 16 at 9:09AM
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 RE/MAX PROFESSIONALS
Investment Insights
Based on property information with market context.
This property features a total of eight units, each offering a variety of room configurations, ranging from single rooms to units with eight rooms plus a kitchen. These units can be customized to accommodate various uses, including clinics, office spaces, and school spaces. The property benefits from a convenient location with easy access to the highway. It is situated just minutes away from the Citadel Mall and local grocery stores. Located off Academy Boulevard, the property occupies a large and multifunctional lot with a total size of 9552 square feet.
Key Highlights
- Multifunctional lot suitable for clinics, offices, schools, etc.
- Eight customizable units ranging from 1 to 8 rooms + kitchen.
- Convenient location off Academy Blvd.
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
$107,563
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
6.33%
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%
$2,151,260
$2.2M
Cap Rate 7%
$1,536,614
$1.5M
Cap Rate 9%
$1,195,144
$1.2M
Market Conditions
NOI Build-Up for 9,552 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
$194.9K $20.40/SF
− Vacancy
−$15.6K −$1.63/SF
EGI
$179.3K $18.77/SF
− OpEx
−$71.7K −$7.51/SF
NOI
$107.6K $11.26/SF
Area
Colorado Springs, CO
Vacancy
8.00%
Lease Rate
$20.40 /SF/Yr
Expense Ratio
40.00%
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%
$2,151,260
Cap Rate 7%
$1,536,614
Cap Rate 9%
$1,195,144
Alternative Uses
Best Use
Healthcare Medical
$1.54M
$1.34M – $1.79M
NOI $107,563 @ 7.0% cap · market cap 6.33%
Second Best
Office B
$1.34M
$1.18M – $1.57M
NOI $94,028 @ 7.0% cap · market cap 5.53%
Theoretical Best
Specialty Retail
$1.89M
$1.65M – $2.20M
NOI $132,047 @ 7.0% cap · market cap 7.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,405
Businesses Nearby
Explore this area
Business Placement
Demographics for 80917, CO
30,513
Population
13,656
Households
2.2
Avg Household Size
37
Median Age
35%
College-Educated
94%
High-School Grad
5.6 sq mi
ZIP Area
5,449
Density / Sq Mi
$72,805
Median Household Income
$39,973
Median Earnings
$1,435
Median Rent
$353,100
Median Home Value
Market
Vacancy Rate% for Office in Colorado Springs, CO
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office units - Adaptable units suitable for clinics, offices, or schools.
Where is this office units located?
The property is located at 2850 W Serendipity Circle Colorado Springs, CO.
What is the asking price?
The asking price for this property is $1,699,000.
What are key features of this property?
This property features: Multifunctional lot suitable for clinics, offices, schools, etc.; Eight customizable units ranging from 1 to 8 rooms + kitchen.; Convenient location off Academy Blvd.
