Colorado Springs-based Morley Cos. shift focus to commercial

The single-family housing crunch has at least one Colorado Springs developer with a penchant for taking calculated risks saying that he's ready to face a new, more conservative real estate reality.

"This slowdown has lasted longer than I honestly expected," said Jim Morley, president of Morley Cos. "Do you realize what it costs to get lots ready for the market? Banning Lewis Ranch spent close to $65 million -- maybe more -- just to sell its first lot."

And with only 2,800 new home permits in El Paso County likely to be allocated this year, Morley said he realizes that commercial development is one of the keys to surviving a shifting market.

"You can't put all your eggs in one basket in this market. Most of the national builders I worked with left town six or eight months ago," he said. "We're still developing 15 lots a week down in the Fountain area, but that's off from 50 or 60 a year ago."

Last year, the developer and his brother, Mark Morley, partnered with Ray O'Sullivan to sell four buildings and two land parcels at Ridgeview Market Place, between Stetson Hills Road and Dublin Boulevard, for more than $16 million.

Morley said he also is considering a new commercial development on Powers Boulevard at Dublin Boulevard with O'Sullivan and is marketing a 45-acre Woodmen Heights business park and a 5-acre Monument Ridge commercial development.

He expects the Monument Ridge development, near the southwest corner of Jackson Creek Parkway and Baptist Road, to support two hotels, a fast-food restaurant, a bank and other services.

"He understands that this is one of northeast Colorado Springs' only new office/light industrial sites," said John Rodgers of Grubb and Ellis Quantum Commercial.

Morley and his brother also have met with state officials and are also exploring development of a hydropower plant south of Colorado Springs near Brush Hollow Reservoir.

Narrowing the field

To maintain his company's profitability and focus, Morley has taken steps to streamline his operation. Not only did he sell his interest in the Big House sports complex, but he also encouraged two employees to launch an engineering business.

M&S Civil Consultants, owned by Tim McConnell and Virgil Sanchez, remained at the Morley Cos.' former location at 15 N. Nevada Ave. last spring when the parent company returned to its former headquarters at 20 Boulder Crescent.

In addition to a number of commercial projects, the 17-person firm continues to handle residential development work for Morley.

McConnell said his former boss has a knack for identifying a good deal.

"Jim knows how to pick 'em and is always thinking long range," McConnell said. "He's also easy to get along with. In the various jurisdictions where we've worked with him, if what they want is realistic, he steps up and gets it done."

That was evident earlier this year at Monument Ridge, which was under scrutiny by the Town of Monument's planners and the Town Council.

Planner Tom Kassawara has worked with the company's engineers, land planners and contractors for more than a year. He sees Monument Ridge a key gateway to the community, and admits that the town has pressed Morley to create an upscale look and feel for the development

"We just couldn't get anywhere with his team -- we all had a different idea of how to proceed," Kassawara said. "Finally we had a meeting with Jim and his consultants in one room. He said 'Tom, what do you want?' I told him that wasn't up to me -- and I didn't want to tell him how to build his project. Again he said, 'Tom, what do you want?' So I gave him the specs and the vocabulary for the materials we'd like to see used -- a concrete base with brick, stone or stucco finishes and pitched rather than flat commercial roofs -- and nice monument signage."

Morley's response: "OK, that's what we'll do.'"

Copyright 2007 Dolan Media Newswires
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