Developer adds to land holdings

Longtime real estate developer Buck Blessing is adding to his already extensive holdings on the southern fringes of downtown Colorado Springs.

In the past few months, Blessing, chief executive of Griffis/Blessing Inc., the city's largest manager of commercial space and apartments, has acquired about 2 acres of properties on South Tejon Street, south of the railroad underpass. But he's not saying what, if any, redevelopment he's planning.

"We think it's a neat location - it makes a lot of sense to see growth south of downtown," Blessing said.

He recently bought land and buildings that formerly housed Nemeth's El Tejon Restaurant and Old Heidelberg Pastry Shop and Cafe, plus Grindelwald German Delicatessen, which owner Connie Pauley is closing Monday.

According to El Paso County land records, Blessing paid $875,000 for Old Heidelberg and Grindelwald. He bought the Nemeth's business and land for an undisclosed amount.

The Nemeth's property is being renovated into a retail complex with one tenant confirmed, Blessing said. The Player's Bench LLC, a sporting goods store that specializes in hockey and lacrosse equipment and repairs, will move from 1716 S. Circle Drive to the old restaurant at 1005 S. Tejon St., manager Tyler Head said.

"It's a better location for us, more centralized to the hockey rinks and right off the highway," he said.

Blessing said the store will occupy one-third of the renovated building, with other tenants being sought. The Old Heidelberg and Grindelwald buildings are for lease, he said.

Blessing and Tim Leigh, president of Hoff & Leigh, purchased in December two parcels of vacant land on the northwest corner of South Tejon and Mill streets and a building that used to be the Antique Mall of Colorado Springs at 1024 S. Tejon St. They paid about $1 million for the properties, according to county records.

"We're very bullish on commercial real estate right now," Leigh said. "We're seeing historically low interest rates, and people are afraid with what's going to happen with the capital markets in disarray. So we're buying hard assets at huge discounts."

Leigh said they plan to find new tenants for the antique mall building and sit on the vacant land.

"You have to be a cautious visionary to be a developer," Leigh said, "and I think this area has great long-term potential because it's one of the gateways to downtown off the interstate."

South Tejon Street has been anchored for decades by family-owned businesses, which in addition to Nemeth's, Old Heidelberg and Grindelwald have included Luigi's Restaurant, Black & White Auto Shop and Salims Silver Star Automotive.

Blessing said other cities have developed downtown fringes into mixeduse buildings where residents can live, work and find entertainment and cultural diversions.

"It seems like a natural for that South Tejon area," he said, "but these gentrification things take a long time. So we're not buying there with the idea that we'll be building new buildings in the short term."

Blessing, who founded his company in 1985, said the South Tejon Street area is just one area in or near downtown that he's invested in. He also owns a half block of vacant land on Cascade Avenue near Shuga's, development parcels near The Blue Star restaurant on South Tejon Street, the 12-acre proposed CityGate development near the Cimarron Street bridge and a vacant half block across from the Antler's Hilton hotel.

Griffis/Blessing manages 3,843 apartments and 3.8 million square feet of commercial space with a combined value of $650 million.

The South Tejon Street acquisition has been tough on Pauley, who has owned and operated Grindelwald at 1105 S. Tejon St. for 22 years. She was unable to find another suitable location for the small shop, which sells imported German lunchmeats, cheeses, bratwurst made by a Denver butcher, nonperishable foods, gifts, clothes and candy.

"I've looked for three months, but everything is so expensive," said Pauley, originally from Mannheim, Germany. "I can't afford to stay in business, so I'm retiring."

CONTACT THE WRITER: 636-0235 or debbie.kelley@gazette.com