OFFERING MEMORANDUM 7899 YORK STREET DENVER, CO ADAM RIDDLE Co-Founder/Principal. AUSTIN SMITH Investment Advisor

Transcription

1 7899 YORK STREET DENVER, CO For More Information Contact ADAM RIDDLE Co-Founder/Principal AUSTIN SMITH Investment Advisor

2 TABLE OF CONTENTS Property Overview Property Photos Maps Financials Location Overview Demographics The Nexus People

3 PROPERTY OVERVIEW PROPERTY OVERVIEW INVESTMENT HIGHLIGHTS Property Name: York Street Townhomes Townhome Style 4 Plex with Large Units Close Proximity to I-25 and I-76 Address: 7899 York Street Value Add Opportunity to Renovate Two Units 15 Minute Drive to Downtown Denver Denver, C O Large Lot with Ample Off Street Parking Units: Building SF: 4 4,440 SF SYSTEMS Gas/Elec Meters: Separate / Separate INVESTMENT SUMMARY Purchase Price $835,000 Parking: Off Street Water: Master Per Unit $208,750 Land: 13,473 sq-ft Trash: Waste Management Price Per SF $188 Year Built: Year Renovated: Roof: Heating: Cooling: Pitched Furnace Wall Units

4 PROPERTY PHOTOS

5 YORK ST PROPERTY AERIAL CROCE CIRCLE E 78TH AVE

6 INVESTMENT SUMMARY INVESTMENT SUMMARY Purchase Price: Units: Price Per Unit: Total SF: Price Per SF: T12 Cap Rate: Year 1 Cap Rate: Year 1 Cash Flows: 5 Year IRR: $835,000 4 $208,750 4,440 $ % 6.07% $8, % YORK ST DEBT SUMMARY Loan to Value: Loan Amount: Loan Term: Interest Rate: Interest Only Period: Amortization: 20.00% $167, % 0 30

7 RENT ROLL ANALYSIS UNIT SUMMARY: Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF 2bd/1.5ba $1,150 $1.32 $1,250 $1.44 3bd/1.5ba 2 1,305 $1,448 $1.11 $1,550 $1.19 LOSS TO LEASE BURN-OFF Net Loss to Lease Gain to Lease $355 $300 $250 $200 $150 $100 $50 Earlier Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Later LEASE EXPIRATION SCHEDULE 2 Bed 3 Bed 1 # of Units 0 Earlier Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Later

8 FINANCIALS INCOME STATEMENT REVENUE Gross Potential Revenue Vacancy Rental Revenue Expense Reimbursements Other Residential Income Effective Gross Revneue EXPENSES Repairs and Maintenance Utilities Insurance Real Estate Taxes Property Management Admin and Other Total Expenses Expenses Per Unit Net Operating Income Cap Rate Debt Service - Yr 1 Total Cash Flow Cash on Cash Return T12 $63,240 ($3,162) $60,078 $1,500 $61,578 ($4,000) ($4,479) ($2,778) ($2,859) ($500) ($14,616) ($3,654) $46, % ($41,940) $5, % Year 1 $67,200 ($3,360) $63,840 $1,500 $65,340 ($4,000) ($4,479) ($2,778) ($2,859) ($500) ($14,616) ($3,654) $50, % ($41,940) $8, % Year 2 $69,216 ($3,461) $65,755 $1,545 $67,300 ($4,120) ($4,613) ($2,861) ($2,945) ($515) ($15,054) ($3,764) $52, % ($41,940) $10, % Year 3 $71,292 ($3,565) $67,728 $1,591 $69,319 ($4,244) ($4,752) ($2,947) ($3,033) ($530) ($15,506) ($3,877) $53, % ($41,940) $11, % Year 4 $73,431 ($3,672) $69,760 $1,639 $71,399 ($4,371) ($4,894) ($3,036) ($3,124) ($546) ($15,971) ($3,993) $55, % ($41,940) $13, % Year 5 $75,634 ($3,782) $71,852 $1,688 $73,541 ($4,502) ($5,041) ($3,127) ($3,218) ($563) ($16,450) ($4,113) $57, % ($41,940) $15, %

9 THE CITY OF DENVER S NOTABLE RANKINGS #1 BEST PLACES TO LIVE (U.S. NEWS & WORLD REPORT, 2016) #1 IN ECONOMIC & JOB GORWTH (AREA DEVELOPMENT, 2015) AMERICA S BEST PLACE FOR BUSINESS & CAREERS 2ND BEST BEER CITY IN AMERICA (LIVIABILITY, 2014) 7TH BEST STATE IN WHICH TO MAKE A LIVING (FORBES, 2015 & 2016) (FORBES 2015) 3RD BEST CITY FOR COLLEGE GRADS (RENT.COM, 2015) 6TH FASTEST GROWING METRO AREA IN THE U.S. 2ND BEST TECH STATE (THE MILKEN INSTITUTE, 2016) 4TH BEST CITY FOR BIKE RIDING IN THE U.S. (FORBES, 2016) (WALK SCORE, 2015) 3RD HEALTHIST CITY IN THE NATION (FORBES, 2016) #1 IN THE NATION FOR LARGEST INCREASE IN RESIDENTS WITH COLLEGE DEGREES (U.S. CENSUS BUREAU, 2014) TOP 10 PLACES IN THE U.S. TO TRAVEL (LONELY PLANET, 2016) PROPOSAL TO MARKET

10 DENVER GROWTH Ranked as the top place to live in the U.S. by U.S. News & World Report, the city of Denver is home to over 693,000 residents (as of July 2016). An estimated 2.9 million people live in the Denver Metro as a whole, with more people moving to the area each year, as this number is expected to grow by 12.6 percent over the next five years, compared to 3.7 percent nationally. Currently 100+ people are immigrating to the city each day. The Denver Metro accounts for over half of the population in the entire state of Colorado, which is home to an estimated 5.5 million people. Construction As one of the fastest-growing metros in the nation, Denver is thriving with new construction. This new construction will help accommodate the population growth throughout the metro. Some current projects include: 17th & Curtis Street, 360-unit apartment building linked to a 9-story office building and 6 story parking structure. Skyhouse Denver, a 354-unit apartment with street level retail. Block 162, a full block project that included a 606,500-sq. ft. office tower and a separate hotel tower. Tabor Center Tower Two, a 31 story 700,000 sq. ft. office tower would be the largest developed in Denver since Fifteenth St, a 40-story office tower with street level retail. *Some of this information is sourced from denverpost.com OFFERING MEMORANDUM PROPOSAL TO MARKET

11 DENVER INTERNATIONAL AIRPORT Denver International Airport (DEN), also known as DIA, opened to the public on February 28, 1995 and at 34,000 acres, remains the largest and newest commercial airport in the United States. It s known around the world for its striking tented roof structure and technologically advanced operations. Over the past twenty years, DIA has established itself as the primary employer and economic driver in the Denver metro, supporting nearly 190,000 jobs and generating more than $26 billion in annual revenue. Served a record setting 58 Million passengers in The airport serves over 170 destinations including 20 international cities in nine countries. DIA is just 30 minutes from Union Station via the East Rail line. DIA has room to double its current capacity to remain competitive in the growing global aviation marketplace. The Denver City Council recently approved a $1.8 billion set of contracts for gate expansion at DIA. The project will add 39 gates across all three concourses in the next four years. The expansion will utilize the airport s original telescoping design by expanding eastward and westward at the ends. DIA is among the first airports in North America to secure internationally recognized accreditation for measuring and reducing carbon emissions. *Some of this information was sourced from Denver Post. OFFERING MEMORANDUM PROPOSAL TO MARKET

12 DENVER METRO Located on the front range of the Rocky Mountains, the Denver Metro is a thriving urban epicenter famous for its breathtaking views, world-class dining, champion sports teams, exhilarating recreation, and eclectic arts and entertainment. It s no wonder this metropolis is one of the biggest in the nation! Attractions: Denver Art Museum Denver Museum of Nature and Science Denver Zoo Denver Aquarium Six-Flags Elitch Gardens Hyland Hills Water World Denver Aquarium SPORTS Basketball: Denver Nuggets Hockey: Colorado Avalanche Football: Denver Broncos Baseball: Colorado Rockies Soccer: Colorado Rapids PROPOSAL TO MARKET

13 EMPLOYERS IN THE DENVER METRO The Denver metro is a hub for various industries, including aviation, health, business, finance, and technology. Outside of city, state, and school services, major employers in the Denver metro area include Denver International Airport, Lockheed Martin, Health ONE Corporation, Centura Health, SCL Health Systems, Comcast, CenturyLink, Kaiser Permanente, Liberty Tax Service, Western Union, University of Colorado, Children s Hospital, and Wells Fargo. In 2017, Amazon opened up a 1 million sq. ft. fulfillment center in Aurora, creating nearly 1,000 full-time jobs. Google is building a $131 million, four-acre, state-of-the art facility in Boulder, potentially bringing more jobs to the area Several Fortune 500 companies with headquarters in the Denver metro including: Many companies choose to relocate to or expand in the Denver Metro, especially tech and startup companies. Between , approximately 9,000 companies chose to relocate from California to Denver. These employers are attracted to the innovative culture, economic environment, exceptional talent, and deep sense of social responsibility that characterizes the Denver Metro. Forbes ranks Denver as #1 in the nation for business and careers, and Area Development ranks Denver as #1 in the nation for economic and job growth. Denver metro is home to many fast-growing startups, with 113 local companies making the Inc list of the nation's fastest-growing private companies for the year PROPOSAL TO MARKET *Some information was sourced from:

14 LIGHT RAIL The Regional Transportation District (RTD) operates 365 days a year to quickly connect travelers to their destination. As part of RTD, the 58-mile rail system features nine rail lines servicing 62 stations along the Denver metro s North, East, Southeast, Southwest, and West rail corridors. Popular destinations include: Denver International Airport (DIA) Theatre District Convention Center Sports Authority Field at Mile High Pepsi Center 16th Street Mall Park Meadows Mall. RTD s rail system has transformed people s commutes and the communities they live in. The 23-mile stretch from Downtown Denver to DIA is now just a 30-minute ride via light rail. The light rail is also attributed with revitalizing neighborhoods across the Denver metro, including Five Points and West Colfax. An average of 64,000 people utilize the light rail each day, making it eighth-largest system in the country, even though Denver is 21st in the nation in terms of population. OFFERING MEMORANDUM PROPOSAL TO MARKET

15 DEMOGRAPHICS 2017 Summary 1 Mile 3 Miles 5 Miles Population 11, , ,090 Households 3,903 34,914 96,174 Families 2,651 24,556 64,710 Average Household Size Owner Occupied Housing Units 2,294 19,120 52,814 Renter Occupied Housing Units 1,609 15,794 43,360 Median Age Median Household Income $46,070 $49,340 $52,197 Average Household Income $55,625 $59,383 $64, Summary 1 Mile 3 Miles 5 Miles 1 MILE Population Households 11,692 4, ,150 36, , ,945 3 MILES Families Average Household Size 2, , , Owner Occupied Housing Units 2,371 19,623 54,883 5 MILES Renter Occupied Housing Units Median Age 1, , , Median Household Income $50,281 $53,103 $56,494 Average Household Income $63,137 $67,699 $73,597

16 THE NEXUS PEOPLE Not your average brokers. As a team, we might not appear as your typical brokerage - and that s by design. Even though we ve been in the industry for more than two decades, we are as enthusiastic, energetic and collaborative as when we first started. At Nexus, there is no internal competition because our purpose is aligned. This reduces internal competition and makes us more productive on a per broker/agent basis. We love coming to work everyday because we love helping our clients achieve their goals. You might find us in jeans instead of slacks, outside meeting people instead of in our office. We do things differently because we are different. ADAM RIDDLE Co-Founder Principal ariddle@nexus-cr.com JASON KOCH Co-Founder Principal jkoch@nexus-cr.com WALLIS HUTCHENS Office Manager whutchens@nexus-cr.com KIM ROY Sales & Operations Manager kroy@nexus-cr.com SHANNON LACKEY Executive Assistant/ Transaction Coordinator slackey@nexus-cr.com SEAN HOLAMON Investment Advisor sholamon@nexus-cr.com AUSTIN SMITH Investment Advisor asmith@nexus-cr.com ROBERT GRAY Investment Advisor rgray@nexus-cr.com Colorado Springs Office KEVIN WOOLSEY Investment Advisor kwoolsey@nexus-cr.com

17 7899 YORK STREET DENVER, CO For More Information Contact ADAM RIDDLE Co-Founder/Principal AUSTIN SMITH Investment Advisor