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Classic Cos. of Colorado Springs might be a buyer for stalled Renaissance hotel

January 15, 2014 Updated: January 16, 2014 at 7:40 am
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The Renaissance Hotel near Interquest Parkway and I-25. KEVIN KRECK, THE GAZETTE

Another potential buyer has contracted to purchase the 300-room Renaissance hotel on Colorado Springs' far north side, which was only about half completed when construction stopped more than four years ago.

Hotel owner Flintco of Tulsa, Okla., didn't return telephone calls, but the website of Holliday Fenoglio Fowler, a national real estate firm that's marketing the property, shows the hotel is under contract.

Some members of the local commercial real estate community say Classic Cos. has contracted to buy the hotel and is assembling an investment group. Classic, one of the Springs' largest homebuilders, also has developed the Flying Horse, Indigo Ranch and University Park residential areas, among other projects.

Classic CEO Doug Stimple declined to comment.

Bill Stadler, senior marketing director in Holliday Fenoglio Fowler's Irvine, Calif., office, declined to identify the buyer, citing a confidentiality agreement.

"It's a very capable investor that's in their due diligence period and we hope within the next 30 to 45 days to be able to provide more information," Stadler said Wednesday.

A property under contract signals a buyer is serious, but it doesn't mean a deal will get done. Investors sometimes contract to buy a property, but walk away if their due diligence turns up too many financial, regulatory or logistical hurdles.

Last year, the Holliday Fenoglio Fowler website listed the hotel as under contract, but that designation was later removed.

The 10-story Renaissance, east of Interstate 25 and InterQuest Parkway, was proposed by Missouri developer John Q. Hammons in 2006. Construction began the next year on about 20 acres donated by Classic and Springs' real estate company Nor'wood Development Group.

After the hotel was roughly half finished and Hammons said he had spent $47 million, he failed to obtain additional financing and work stopped in October 2009 in the midst of the economic downturn. Flintco, as the project's general contractor, filed a legal claim against the hotel and bought it for $28.8 million at a foreclosure auction in October 2011. Flintco has been trying to sell the hotel since.

The Holliday Fenoglio Fowler website says the hotel "can be acquired at a significant discount to the original completion estimate" and the "approximate half-constructed hotel can be completed in 10 to 12 months from construction re-start."

The hotel's planned amenities were to include about 46,000 square feet of meeting space, a 191-seat, full-service restaurant, a 100-seat atrium lounge and bar with outdoor seating, a coffee bar, spa, fitness room and heated indoor pool.

The hotel is part of Nor'wood's InterQuest Marketplace mixed-use development, which includes a 14-screen movie theatre complex, a Brunswick Zone XL entertainment center, Cheddar's Casual Cafe, Colorado Mountain Brewery and a Kum & Go store.

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