Flywheel to start spec office development

The first speculative office development in nearly a decade in Colorado Springs is set to break ground in January.

Flywheel Capital plans to break ground on Peak Technology Campus, a 210,000-square foot, Class A project in Peak Innovation Park, the 900-acre master-planned business park at the entrance of the Colorado Springs Airport.

The spec development will deliver secure, ready sites for the aerospace and defense industry, and represents the largest spec office development in the Springs since 2001 and the first significant spec project to break ground in the city in more than 10 years.

“Peak Technology Campus is the first speculative office development in Colorado Springs in nearly a decade. The development of Peak Technology Campus addresses the market’s demand for dedicated and secure space in the technology and/or defense sectors during an opportune time of growth in the Colorado Springs market,” said Newmark’s Brian Wagner. “For employers looking to attract top talent – an educated and ambitious workforce – as well as the combination of amenities, access and residential offerings within minutes from a property, Peak Technology Campus delivers.”

Wagner and Newmark’s Kent Mau and Mark O’Donnell are exclusive leasing agents for Peak Technology Campus.

The campus will comprise four single-story buildings featuring full-floor and multitenant configurations, secure ready sites with dedicated entries, building signage, loading docks, a 4.5:1,000 parking ratio, which could be as high as 5.9 spaces per 1,000 sf, and a secured satellite area.

Building 1 will comprise 50,000 sf and available for tenants from 20,000 to 50,000 sf. It will offer a dock-high and drive-in door for deliveries or accommodating a small area of shipping/receiving. However, if a tenant had more of a flex requirement, it could provide input to Flywheel on subsequent buildings in order to accommodate its specific needs, noted John Fefley, senior director of Flywheel Capital.

Building 2 will comprise 40,000 sf and buildings 3 and 4 will each be 60,000 sf in size.

Located within the Colorado Springs Region Opportunity Zone, Pikes Peak Enterprise Zone and Commercial Aeronautical Zone, Peak Technology Campus can provide companies with various tax incentives. Peak Innovation Park also is home to Northrop Grumman , undergoing a $100 million expansion, and Amazon, which is under construction on a 4-million-sf facility.

The site also is proximate to multimodal transportation and near Peterson and Schriever Air Force Bases and Interstate 25.

“We see strong demand coming from Department of Defense contracting companies that have contracts with the military and need to be within close proximity to both Peterson and/ or Schriever Air Force Base,” added Fefley, citing additional interest in the park has come from other tech-oriented companies and higher-end call centers.

Lease rates are $25 per sf triple net.

Peak Technology’s first building is slated for delivery in third quarter 2021. Alcorn Construction is the contractor while Intergroup Architects is the architect.

“Flywheel is excited to grow our presence within the Colorado Springs market,” said Fefley. “We have been successful with our current Colorado Springs properties and look to continue this trajectory with the new Peak Technology Campus Class A development.”

In addition to Peak Technology Campus, Flywheel also owns a number of other assets in Colorado Springs, including 3535 Northrop Grumman Point in Colorado Springs, a two-building office property in Interquest and 1670 N. Newport Road.

Featured in the December 2-15, 2020, issue of CREJ