Building Details

Year Built 1928

Stories 1

Tenancy Single

Listing Agency: Evergreen Commercial Group, LLC b***@evergreencommercial.net Show Phone

Listed By: William Downes · License #CO FA40043918

Source: Crexi

Added: Jul 10, 2024 Changed: Aug 14 Last Checked: Aug 13 at 2:10PM

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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 Evergreen Commercial Group, LLC

Investment Insights

Based on property information with market context.

This 2,918 SF retail building, constructed in 1928, is located in Indian Hills, Colorado. Zoned C1, the property is suitable for a variety of retail concepts. This one-unit retail space is suited for a street retail investor and offers historic allure and distinctive character.

Key Highlights

• Prime retail investment opportunity in Indian Hills, Colorado.
• 2,918 SF building** suitable for a street retail investor.
• Zoned C1, offering versatility for various retail concepts.

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

$46,607

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

5.86%

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%

$932,140 $932.1K

Cap Rate 7%

$665,814 $665.8K

Cap Rate 9%

$517,856 $517.9K

Market Conditions

NOI Build-Up for 2,918 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

$70.4K $24.12/SF

− Vacancy

−$3.8K −$1.30/SF

EGI

$66.6K $22.82/SF

− OpEx

−$20.0K −$6.85/SF

NOI

$46.6K $15.97/SF

Area

Jefferson County, CO

Vacancy

5.40%

Lease Rate

$24.12 /SF/Yr

Expense Ratio

30.00%

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%

$932,140

Cap Rate 7%

$665,814

Cap Rate 9%

$517,856

Alternative Uses

Best Use

Retail

$665.8K

$582.6K – $776.8K (±1% cap)

NOI $46,607 @ 7.0% cap · market cap 5.86%

Second Best

—

—

no second resolved use

Theoretical Best

Multifamily LT 5

$6.49M

$5.68M – $7.58M (±1% cap)

NOI $454,552 @ 7.0% cap · market cap 57.18%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Council of Academic Programs ... Vocational School JMS Association Management ... Association / Organization The Meeting Sanctuary Hotel & Motel Colorado Space Business ... Association Or Organization Gorm International Logistics Company

Suggested Use

Top Pick Parking Lot & Garage HVAC Service Furniture & Home Goods Bakery (Bike/Boat/Book/etc) Store Home Appliance Store

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

Location Intelligence

Trade Area within ½ mile

36

Businesses Nearby

Explore this area Business Placement

Demographics for 80454, CO

1,437

Population

576

Households

2.5

Avg Household Size

50

Median Age

51%

College-Educated

100%

High-School Grad

5.0 sq mi

ZIP Area

287

Density / Sq Mi

$173,125

Median Household Income

$72,375

Median Earnings

$757,400

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 2025

Questions? Ask Rey

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What type of property is this? Where is this retail space located? What is the asking price? Find similar properties ... What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Retail space - 2,918 SF retail space in Indian Hills, Colorado.

Where is this retail space located?

The property is located at 5490 Parmalee Gulch Rd Indian Hills, CO.

What is the asking price?

The asking price for this property is $795,000.

What are key features of this property?

This property features: Prime retail investment opportunity in Indian Hills, Colorado.; 2,918 SF building** suitable for a street retail investor.; Zoned C1, offering versatility for various retail concepts.