the shops at gateway park

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1 the shops at gateway park net leased retail strip center fully leased retail strip center located minutes from the denver international airport E 40th Avenue, Denver, CO Click for Map [ ]

2 investment highlights retail strip center located in the affluent northeast quadrant of denver, co PRICE: $4,562,000 CAP: 6.50% noi: $296,328 Rentable SF...10,015 SF Price per SF...$456 occupancy % year built land area AC avg current rent.... $29.59 parking spaces * parking ratio /1000* *estimated The subject property is located within the prestigious Gateway Park, a mixed-use development that encompasses over 1,200 acres on the border of Aurora and Denver. The park is located just minutes from the Denver International Airport. The subject property is 100% leased to three attractive local restaurant operations: Urban Sombrero, Anthony s Pizza, and Thai Chili & Sushi and a liquor store. The tenants benefit from the traffic of the airport targeted hotels in the immediate area and mass transit within walking distance. There are also numerous casual dining restaurants in the immediate area servicing the hotels and visitiors to DIA, including Outback Steakhouse, Applebee s, and Uno Pizzeria. The center presents the opportunity for an investor to acquire a stabilized, retail strip center in a high demand, affluent area of Denver, CO. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. Listing Team Contact Info dave lucas dlucas@capitalpacific.com (415) CA BRE# Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. joe caccamo jcaccamo@capitalpacific.com (415) CA BRE# Listed in conjunction with CO Licensed Broker: David Leuthold, Leuthold Commercial Properties david@leutholdcommercial.com gateway center 2

3 core characteristics 100% LEASED RETAIL STRIP CENTER The subject property is fully occupied with strong, long-term tenants on NNN leases, with all tenants reimbursing for operating expenses associated with the shopping center. located on route to denver airport The subject property is strategically located at the convergence of I-70 and Peña Boulevard. Peña Boulevard is the main thoroughfare going to Denver International Airport and has average daily traffic counts in excess of 65,200. Strategic location in denver The subject property is strategically located equidistant between Denver International Airport and downtown Denver. The site is within walking distance to 40th Avenue and Airport Boulevard - Gateway Park, a publictransit light rail providing direct access to Denver International Airport. affluent demographics The subject property boasts strong, affluent demographics of 58,700+ people within a three-mile radius with an average household income exceeding $109,000. There are 112,000+ people within a five-mile radius with an average household income in excess of $113, ,000 Residents within a 5-mile radius with AN average household income of $133k located in the gateway park of denver Gateway Park is a well-known 1,200-acre mixed-use development located minutes from Denver International Airport. The park has very successful multi-family, office, retail and industrial projects. Gateway Park includes over 600,000 SF of office space, over 2,200,000 SF of industrial space, over 580,000 SF of retail buildings, 918 residential units, and 12 hotels. Kärcher North America, a manufacturer of commercial, industrial, and consumer cleaning equipment, relocated their North American headquarters to the Gateway Park. Other notable tenants within the park include Lockheed Martin, Billtrust, FedEx, Trad Networks, and Paychex North America. nearby lodging The subject property is surrounded by 12 hotels including the Hilton Garden Inn, Denver Airport Marriott, Aloft Denver International Airport, Cambria Hotel & Suites, and Hampton Inn Suites. The tenants in the subject property benefit from the hotel patrons in the immediate area. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. gateway center 3

4 subject property fully-leased retail strip center gateway center 4

5 close proximity to airport if you are staying at an airport hotel in denver, you will be staying in the gateway development. denver international airport (11 miles, 10 min) Green valley middle school, Elvie Dennis Elementary school, vista academy, z place early education, & SOAR elementary charter school 1,500 scheduled commercial flights daily 2,688 hotel rooms currently & 144 hotel rooms under construction peña boulevard 65,200 daily Subject property 94,000 SF office complex to be built 70 68,000 daily gateway center 5 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

6 denver international airport At 33,531 acres, Denver International Airport is the largest airport in the United States by total land area. Runway 16R/34L, with a length of 16,000 feet, is the longest public use runway in the United States. As of 2016, DIA was the 18th busiest airport in the world and the 6th busiest in the United States by passenger traffic with over 58 million passengers. It also has the third largest domestic connection network in the country. The airport features 133 gates spread out over three detached, yet internally connected, linear concourses (A, B & C). DIA has non-stop service to destinations throughout North America, Latin America, Europe, and Asia serving 187 destinations in The airport is in northeastern Denver and is operated by the City & County of Denver Department of Aviation. DIA was voted as the Best Airport in North America by readers of Business Traveler Magazine for six years in a row and was named America s Best Run Airport by Time Magazine. As of 2017, Denver International Airport has been rated by Skytrax as the 28th Best Airport in the World, falling to second place in the United States behind only Cincinnati/Northern Kentucky International Airport. Skytrax also named DIA as the second Best Regional Airport in North America for 2017, and the fourth Best Regional Airport in the World. The airport is the main hub for Frontier Airlines and Great Lakes Airlines. It is also the fourth-largest hub for United Airlines with 375 daily departures to 141 destinations. The airport is Southwest Airlines fourth most utilized airport and fastest-growing market, with 190 daily departures to nearly 60 destinations non-stop service destinations 58 Million Passengers using dia annually 6th Busiest airport in the U.s. 18th Busiest airport in the world $26 Billion revenue generated for the region annually readers of business traveler magazine voted dia as Best airport in north america 2017 skytrax world airport awards No. 3 Best Airport Serving million passengers per year 2017 skytrax world airport awards No. 4 World s Best Regional Airport gateway center 6

7 income & expense Current Current Price: $4,562,000 Proposed Loan Amount $3,193,400 Capitalization Rate: 6.50% Loan to Value 70% Price Per Square Foot: $ Interest Rate 4.75% Down Payment 30% $1,368,600 Amortization 25 Year Loan Amount 70% $3,193,400 Term 10 Year Total Leased (SF): % 10,015 Lender Type Bank Total Vacant (SF): 0.00% 0 Net Operating Income $296,328 Total Rentable Area (SF): % 10,015 Debt Service ($218,474) INCOME Per Square Foot Pre-Tax Cash Flow $77,854 Scheduled Rent* $29.59 $296,328 Debt Coverage Ratio 1.36 Estimated Recovery $6.75 $67,622 Cash-on-cash Return 5.69% CAM Admin Fee $0.21 $2,095 Principal Pay down (Year 1) $68,260 EFFECTIVE GROSS INCOME $366,045 Total Return $146,115 Yield 10.68% ADJUSTED GROSS INCOME $366,045 EXPENSEs (2017 Projections) Property taxes (NNN) ($3.99) ($40,000) Insurance (NNN) ($0.67) ($6,670) Building Maintenance ($0.15) ($1,500) Signage/Light ($0.18) ($1,767) Site Maintenance ($1.29) ($12,870) Utilities - Lights/Parking ($0.16) ($1,615) Fire Alarm/Security ($0.32) ($3,200) Management Fee ($0.21) ($2,095) TOTAL OPERATING EXPENSES ($6.96) ($69,717) NET OPERATING INCOME $296,328 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. gateway center 7

8 rent roll Tenant Info Lease Terms Unit Tenant Sq. Ft. Percent of Lot Start End Monthly Rent RENTal Rates A Urban Sombrero 4, % 7/1/2009 6/30/2024 $9, $116, $29.00 Annual Rent Rent/FT/YR Increase 7/1/2019 6/30/2024 $10, $128, $32.00 B Anthony's Pizza 2, % 7/15/2006 7/31/2018 $4, $58, $29.25 Option 1 8/1/2018 7/31/2023 FMV FMV FMV Option 2 8/1/2023 7/31/2028 FMV FMV FMV C Thai Chili 2, % 5/8/2014 5/31/2019 $4, $55, $27.80 Increase 6/1/2018 5/31/2019 $4, $56, $28.42 Option 1 6/1/2019 5/31/2024 FMV FMV FMV D DNC Liquors, LLC 2, % 8/1/2013 7/31/2018 $5, $66, $32.87 Option 1 8/1/2018 7/31/2023 $5, $67, $33.52 Option shall have 2% annual increase Current Totals: 10, % Occupied 10, % Monthly Rent: $24, Vacant % Annual Rent: $296, This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. gateway center 8 [ REPRESENTATIVE PHOTO ]

9 site plan Site Plan Key Parcel outline: Rentable Area: 10,000 sf Ingress/Egress: Andrews Way Memphis Court DNC Liquors Thai chili & sushi Anthony s pizza Airport Way MONUMENT SIGN E 40th Avenue 13,900 DAILY This site plan is a rendering that has been created based on sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the rendering. Buyer must verify the information and bears all risk for any inaccuracies. gateway center 9

10 ZOOMED-IN aerial 94,000 sf office complex to be built 22,597 DAILY DNC liquors 70 65,200 DAILY GATEWAY STRIP CENTER PUSH Academy Best western hotel currently under construction 13,900 DAILY E 40th Avenue Peña Boulevard Peña Boulevard Chambers Road benefitting from high traffic counts due to surrounding hotel accomadations DENVER CITY CENTER housing (58,754 residents within 3 miles) E 40th Avenue 36 Pe ña Peña B oulevar d Bo ule 70 va rd 36 68, DAILY Chambers Road gateway center 10 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

11 ZOOMED-OUT aerial located along the main thoroughfare servicing the denver airport Turnberry Elementary 85 denver international airport (11 miles, 10 min) Stuart Middle School 76 Tower Road Second Creek Elementary 2 Adams City High School GATEWAY STRIP CENTER Peña Boulevard High Point Academy Northfield High School High Tech Elementary 270 Peña Boulevard DNC liquors Change Christian Academy John Amesse Elementary Noel Middle School Montbello High School 36 Highline Academy Northeast E 56th Avenue McGlone Academy 70 Tower Road The Shops at Northfield Stapleton Omar D. Blair Charter School Green Valley Ranch Middle School E 56th Avenue GREEN VALLEY RANCH GOLF CLUB housing Maxwell Elementary Farrell B. Howell Ece-8 E 40th Avenue (112,795 residents within 5 miles) 225 Chambers Road Quebec Square DENVER CITY CENTER gateway center 11 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

12 tenants urban sombrero Lease is signed by MG Services, Inc, and is personally guaranteed by tenant. Urban Sombrero Bar & Grill is a Mexican Restaurant that also serves as a sports bar for Denver residents and visitors. The menu includes a wide variety of new and traditional Mexican fare, including Burritos, Chimichangas, Carnitas, and more. Their burger selection features 1/2 lb grass fed beef, paired with high quality ingredients. They have a solid selection of Mexican food, beer and Margaritas, and large TV s. anthony s pizza & pasta Lease is signed by J. ALEXANDER INVESTMENT, INC., a Colorado corporation, and is personally guaranteed by tenant. Anthony s Pizza has its humble beginnings in a small storefront location in downtown Denver, just off the 16th Street Mall. Today there are 24 Anthony s locations across the city. Anthony s has expanded to serve fresh-cooked pastas, salads, and appetizers, but still retains an intimate, casual family atmosphere. They use only the highest quality ingredients - like their pure Italian-imported olive oil, premium pizza dough, and blocks of 100% whole milk mozzarella cheese shredded by hand to create pizzas from their original Anthony s recipe. thai chili & sushi Lease is signed by HAPPY ENDING, LLC, and is personally guaranteed by tenant. Thai Chili & Sushi Restaurant offers delicious tasting Thai and Japanese Cuisine as well as some Asian specialties. Thai Chili & Sushi s convenient location and affordable prices make the restaurant a natural choice for dine-in, take-out meals in the Denver community. The restaurant is known for its variety in taste and high quality fresh sushi. dnc liquors Lease is signed by D.N.C. Liquors, LLC, and is personally guaranteed by tenant. DNC Liquors is a family owned business in the Denver area. DNC Liquors has a wide selection of liquor, beer, and wine. gateway center 12 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

13 surrounding retail subject property is surrounded by 12 hotel accomadations with a total of 2,688 rooms gateway center 13

14 subject property market location demographics & map Population 1-Mile 3-Mile 5-Mile ,111 52,127 98, ,616 58, , ,152 64, ,208 subject property 13,900 DAILY E 40th Ave 2017 Household incomes 1-Mile 3-Mile 5-Mile Average $92,313 $109,659 $113,488 Median $77,649 $97,477 $95,062 regional map Top Employers in denver, co Employer # of Employees* Denver International Airport 35,000 Denver Health 5,418 Century Link 4,000 Colorado State University 4, MIN 13 MILES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. denver subject property gateway center 14

15 denver connection: connecting the airport with the city The Denver Connection is a 400-acre master planned, mixed-use development surrounded by the fast growing Green Valley Ranch Community. It is envisioned to provide high and low rise office, retail, hospitality, research and development, industrial, and residential space at the confluence of I-70 and Pena Boulevard near Denver International Airport. With easy access to I-70, multiple modes of transportation, and just 3,000 feet to the 40th Avenue Commuter Rail Transit Station, which connects to downtown Denver and DIA, Denver Connection offers a unique location and connectivity unparalleled in the area. Quality architecture, high development standards, and great visibility will be the draw for strong tenants interested in Denver and access to Denver International Airport. The property is surrounded by commercial, residential, and transit oriented construction exceeding $2 billion as well as top national and multinational companies. [ ] Click for Info GATEWAY STRIP CENTER GATEWAY STRIP CENTER GATEWAY STRIP CENTER gateway center 15

16 denver, co Denver, known as the Mile High City, rests on the eastern edge of the Rocky Mountains at 5,278 feet in elevation. It is the state capital and most populous city in Colorado with a population of 682,545 within the city and 3 million within the MSA. The Denver MSA had a gross metropolitan product of $178 billion in 2016, making it the 18th largest metropolitan area economy in the United States. The city s relatively central location makes it a natural location as a distribution hub for the American west, while also supporting a number of growing industries in technology, telecommunications, and energy. The city is home to many nationally recognized museums, the second largest performing arts center in the nation, and three downtown stadiums hosting the city s football, baseball, basketball, and hockey teams. Denver has gained a reputation as being a very active, outdoor oriented city because of its proximity to the mountains and generally sunny weather. Denver has been ranked the #1 Best Place to Live in 2016 by U.S. News & World Report, and #1 on Forbes 2016 List of Best Places for Business and Careers. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. gateway center 16

17 A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ ] dave lucas dlucas@capitalpacific.com (415) CA BRE# joe caccamo jcaccamo@capitalpacific.com (415) CA BRE# Listed in conjunction with CO Licensed Broker: David Leuthold, Leuthold Commercial Properties david@leutholdcommercial.com Capital Pacific collaborates. Click Here to meet the rest of our San Francisco team. chris kostanecki chris peters dave lucas zandy smith jack navarra zeb ripple john andreini joe caccamo [ Copyright 2017 Capital Pacific ]