Brickhouse & 10th St. Flats · Brickhouse and 10th Street Flats offers an investor the opportunity...

Brickhouse & 10th St. Flats | OFFERING MEMORANDUM

Unique Properties400 S. Broadway

Denver, Co 80209(P) 303.321.5888(F) 303.321.5889

www.uniqueprop.com

Loveland, Colorado

Offering Memorandum

Brickhouse & 10th St. Flats


PHIL DANKNERDirector

Dir: [email protected]

offering summary:

SALE PRICE: $3,960,000

NUMBER OF BUILDINGS: 2

NUMBER OF UNITS: 24

Brickhouse703-707

SW 16th Street

EARL DUFFYDirector AssociateDir: 303.512.2732

[email protected]

2

contact information:

AUSTIN BERGDirector AssociateDir: 720.881.6344

[email protected]


PHIL DANKNERDirector

Dir: [email protected]

offering summary:

SALE PRICE: $5,500,000

NUMBER OF BUILDINGS: 3

NUMBER OF UNITS: 33

10th Street Flats430-482 10th Street

EARL DUFFYDirector AssociateDir: 303.512.2732

[email protected]

3

contact information:

AUSTIN BERGDirector AssociateDir: 720.881.6344

[email protected]


All materials and information received or derived from Unique Properties its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the

property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither Unique Properties its directors, officers, agents, advisors, nor affiliates make any representation or warranty, express or implied, as to accuracy or completeness of any materials or information provided, derived, or received. Materials and information from any source,

whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Unique Properties will not investigate or verify any such matters or conduct

due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations, including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate

independent professionals. Unique Properties makes no warranties nor representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Unique Properties does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as

market conditions, vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the

condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed

by Unique Properties in compliance with all applicable fair housing and equal opportunity laws.

UNIQUE PROPERTIES, INC. DISCLAIMER & CONFIDENTIALITY

4


COMOPANYPROFILE

5


GREYSTONE UNIQUE APARTMENT GROUP

150 YEARSCOMBINED EXPERIENCE

$5 BILLION INVESTMENT SALES

THE TEAMGreystone Unique Apartment Group is one of the most active and experienced multifamily teams in Colorado and our team is comprised of ten experienced and knowledgeable brokers that solely focus on investment sales and financing of multifamily assets throughout the state. Greystone Unique Apartment Group has over 150 years of combined experience, and have represented in excess of $5 billion in investment sales transactions.

Our deep understanding of the Colorado multifamily market, meaningful relationships, thoughtful marketing and personal engagement throughout the transaction process has given Greystone Unique Apartment Group a clear view of the most active investors. We connect sellers to buyers that provide the best terms and a greatest probability of closing.

Our longstanding relationships and Colorado roots enable Greystone Unique Apartment Group to consistently remain a market leader and deliver the absolute best results to existing and new clientele.

UNPARALLELED CUSTOMER SERVICE

ADDED-VALUE ADVISORY SERVICEGreystone Unique Apartment Group has earned a reputation for professionalism, tenacity, superior client service and execution on consistently exceeding clients’ desired terms. We are committed to these services by utilizing the highest quality marketing materials, best-in-class client service and accountability to drive pricing. Our level of expertise, engagement, involvement and values makes us truly unique.

Greystone Unique Apartment Group provides a seamless solution and process that connects buyers to sellers while offering financing options, making us the complete real estate option. We are client-centric and committed to providing our clients with an outstanding real estate experience whether a seasoned or first-time investor, the directors of Greystone Unique Apartment Group continue to provide superior and unmatched service in the market and industry.

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Greystone, a single point of contact for your multifamily lending, investment and sales advisory needs

* References to the term “Greystone” refer to Greystone & Co., Inc. and/or its affiliated companies as applicable.

GREYSTONE - BEYOND INVESTMENT SALES - REAL ESTATE LENDING, INVESTMENT & ADVISORY

Greystone Unique Apartment Group is part of the Greystone* family, a real estate lending, investment and advisory firm headquartered in New York City with a presence in 37 states, offices in 23 states, and approximately 6,611 employees. Greystone offers you a one-stop-shop for multifamily investment sales and lending. Your dedicated Advisor will help you navigate the specific services and solutions to meet your portfolio goals.

GREYSTONE* HIGHLIGHTS

$9.5B Multifamily, Healthcare & Commercial Loans Originated in 2017

$26.3B Loan Servicing Portfolio

$30B Assets Owned and Managed

$1.4B Multifamily Sales in 2017

$2B Purchased, Redeveloped or Repositioned Real Estate, Including Apartments, Condominiums, Skilled Nursing Facilities & Commercial Space

#1 FHA Multifamily Lender

LEADER Fannie Mae and Freddie Mac, Including Top Multifamily Small Loans Lender

7,681 Multifamily Units Owned or Managed in Multiple States

GREYSTONE REACH

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Brickhouse & 10th St. Flats | OFFERING MEMORANDUM 8

PORTFOLIOOVERVIEW


PROPERTY HIGHLIGHTSBrickhouse and 10th Street Flats offers an investor the opportunity to acquire turn key, well located properties in Loveland, Colorado. Brickhouse,

located just southwest of downtown Loveland, consists of 24 units in 2 buildings that have individual garages for each unit. 10th St Flats is in a well-es-tablished neighborhood just west of downtown Loveland and has 33 units spread across 3 buildings as well as garages with direct access and plenty of parking. Both buildings have had extensive renovations done in recent history, both exterior and interior, that provides tenants with high quality fin-ishes and have justified high demand for the units as well as market rate rents. These properties will offer an investor stable cash flow and low vacancy

rates at two very desirable locations in Loveland.

9


PROPERTY DETAILS:ADDRESS: 703-707 SW 16th Street

Loveland, CO 80537

COUNTY: Larimer

CROSS STREETS: 16th Street SW & S. California Avenue

BRICKHOUSE OVERVIEW

BUILDING DETAILSUNIT COUNT: 24YOC: 1977

ZONING: R3NUMBER OF BLDG: Two (2)STORIES: One (1)EXTERIOR CONSTRUCTION: BrickROOF TYPE: PitchedGROSS BUILDING AREA: 19,494 SFPARKING: Surface/Garage - 24/24 Spaces

UTILITIESAC: WallHEATING: BoilerMETERING (WATER/SEWER): MasterMETERING (ELECTRIC): SeparateMETERING (GAS): Master

UNIT MIX1 BED, 1 BATH: 761 SF2 BED, 1 BATH: 815 SF


PRICING SUMMARY

PRICE: $3,960,000DOWN PAYMENT: $990,000 (25%)LOAN AMOUNT: $2,970,000INTEREST RATE/AMORTIZATION: 4.50% / 30 YearsCURRENT NOI/PRO FORMA NOI: $222,960 / $249,522

CURRENT/PRO FORMA ANALYSIS: DEBT SERVICE: ($180,583)NET CASH FLOW AFTER DEBT SERVICE: $42,377 / $68,939 6.36% / 8.87% PRINCIPAL REDUCTION: $8,394TOTAL RETURN: $17,040 / $20,460

12.53% / 15.04%

CAP RATE: 6.28% / 6.78%GRM: 14.17 / 13.18PRICE/UNIT: $165,000PRICE/SQ FT: $203.14


PROPERTY HIGHLIGHTS

o All soffits replaced and painted o All new windowso All new LVT flooring and carpet o All new exterior handrails and stairso Updated appliances o New Countertopso New Vanities and Tub Surroundso New roofs on garages


The information used herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty, or representation about it.

CURRENT UNIT MIX ANALYSIS

13

4%

96%

Unit Mix

1 Bed, 1 Bath 2 Bed, 1 Bath

1.22

1.22

1.23

1.23

1.24

1.24

1.25

1.25

920

930

940

950

960

970

980

990

1,000

1,010

1 Bed, 1 Bath 2 Bed, 1 Bath

Unit Rent

1 Bed, 1 Bath A 1 950 950 761 1.25 1,095 761 950 950 2 Bed, 1 Bath B 23 23,000 1,000 815 1.23 1,095 18,745 945 1,025

TOTAL 24 23,950 All Units--> 26,280 19,506 x 12 x 12

Annualized Total 287,400 315,360

Monthly Performa Rent / SFAverage SizeAverage RentCurrent Rent Unit Count Description Type Highest Rent Lowest Rent Unit Size

*Average Rent/SF $1.24


MULTIFAMILY FINANCIALS

14

PER UNIT PER UNITINCOME:Scheduled Rent Income 287,400 315,360

See Other Income Detail 26,283 26,283 Miscellaneous - - Scheduled Gross Income 313,683 13,070 341,643 Vacancy Allowance (14,370) (599) (15,768) Effective Gross Income: 299,313 12,471 325,875 13,578

EXPENSES:Taxes, Property: Real 9,190 9,190 383 9,190 9,190 383 Insurance: Property 6,478 6,478 270 6,478 6,478 270 Management: On-Site 15,701 15,701 654 15,701 15,701 654 Utilities: Electric 2,875 2,875 Gas 6,657 6,657 Trash Collection 2,546 2,546 Water & Sewer 8,886 20,964 874 8,886 20,964 874 Repairs & Maintenance: Carpet/Floor Cleaning 75 75 Contract labor 3,493 3,493 Electrical 278 278 Exterminating 399 399 HVAC 1,271 1,271 Lawn & Landscaping 5,365 5,365 Plumbing 2,601 2,601 Snow Removal 1,407 1,407 Supplies: Maintenance 976 976 Supplies: Other 1,701 1,701 General Cleaning 2,900 2,900 turn over 223 20,689 862 223 20,689 862 Marketing & Promotion: Advertising 161 161 Referral Fees 3,170 3,331 139 3,170 3,331 139 General & Administrative: - - - - Other: - - - - - - Total Expenses 76,353 3,181 76,353 3,181 Net Operating Income 222,960 9,290 249,522 10,397

CURRENT PROFORMA


PROPERTY DETAILS:ADDRESS: 430-482 10th Street

Loveland, CO 80537

COUNTY: Larimer

CROSS STREETS: W 10th Street & Colorado Avenue

10th STREET FLATS OVERVIEW

BUILDING DETAILSUNIT COUNT: 33YOC: 1968

ZONING: R3NUMBER OF BLDG: Three (3)STORIES: Two (2)EXTERIOR CONSTRUCTION: BrickROOF TYPE: PitchedGROSS BUILDING AREA: 27,870 SFPARKING: Surface - 48 Spaces

UTILITIESAC: WallHEATING: BoilerMETERING (WATER/SEWER): MasterMETERING (ELECTRIC): SeparateMETERING (GAS): Master

UNIT MIX2 BED, 1 BATH: 756-872 SF2 BED, 2 BATH: 940 SF4 BED, 2 BATH: 1,000 SF


PRICING SUMMARY

PRICE: $5,500,000DOWN PAYMENT: $1,375,000 (25%)LOAN AMOUNT: $4,125,000INTEREST RATE/AMORTIZATION: 4.50% / 30 YearsCURRENT NOI/PRO FORMA NOI: $323,732 / $349,553

CURRENT/PRO FORMA ANALYSIS: DEBT SERVICE: ($250,809)NET CASH FLOW AFTER DEBT SERVICE: $72,923 / $98,744 5.30% / 7.18% PRINCIPAL REDUCTION: $66,546TOTAL RETURN: $139,468 / $165,289

10.14% / 12.02%

CAP RATE: 5.89% / 6.36%GRM: 13.18 / 12.38PRICE/UNIT: $166,667PRICE/SQ FT: $197.34


PROPERTY HIGHLIGHTS

o 25 garages totalo 3 units with attached garageso Fully renovatedo All exteriors repaintedo All new windowso All new LVT flooring and carpet o All new exterior walkways and stairso Updated appliances o New Countertopso New Vanities and Tub Surroundso New roofs on garages


The information used herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty, or representation about it.

19

CURRENT UNIT MIX ANALYSIS

24%30%

37%

6% 3%

Unit Mix

2 Bed, 1 Bath 2 Bed, 1 Bath 2 Bed, 1 Bath 2 Bed, 2 Bath 4 Bed, 2 Bath

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2 Bed, 1 Bath 2 Bed, 1 Bath 2 Bed, 1 Bath 2 Bed, 2 Bath 4 Bed, 2 Bath

Unit Rent

2 Bed, 1 Bath A 8 8,325 1,041 756 1.38 1,095 6,048 1,025 1,100 2 Bed, 1 Bath B 10 10,265 1,027 840 1.22 1,095 8,400 995 1,050 2 Bed, 1 Bath C 12 12,265 1,022 872 1.17 1,095 10,464 995 1,050 2 Bed, 2 Bath D 2 2,390 1,195 940 1.27 1,295 1,880 1,195 1,195 4 Bed, 2 Bath 1 1,525 1,525 1,000 1.53 1,595 1,000 1,525 1,525

TOTAL 33 34,770 All Units--> 37,035 27,792 x 12 x 12

Annualized Total 417,240 444,420

Monthly Performa Rent / SFAverage SizeAverage RentCurrent Rent Unit Count Description Type Highest Rent Lowest Rent Unit Size

*Average Rents/SF $1.31


MULTIFAMILY FINANCIALS

20

PER UNIT PER UNITINCOME:Scheduled Rent Income 417,240 444,420

See Other Income Detail 40,220 40,220 Miscellaneous - - Scheduled Gross Income 457,460 13,862 484,640 Vacancy Allowance (20,862) (632) (22,221) Effective Gross Income: 436,598 13,230 462,419 14,013

EXPENSES:Taxes, Property: Real 14,304 14,304 433 14,304 14,304 433 Insurance: Property 9,650 9,650 292 9,650 9,650 292 Management: On-Site 22,717 22,717 688 22,717 22,717 688 Utilities: Electric 5,021 5,021 Gas 9,351 9,351 Trash Collection 4,003 4,003 Water & Sewer 12,927 31,302 949 12,927 31,302 949 Repairs & Maintenance: Carpet/Floor Cleaning 414 414 Contract labor 5,759 5,759 Electrical 99 99 Exterminating 149 149 HVAC 2,904 2,904 Lawn & Landscaping 3,629 3,629 Other 1,432 1,432 Plumbing 3,753 3,753 Snow Removal 1,377 1,377 Supplies: Other 2,484 2,484 General Cleaning 3,610 3,610 Turn Over 2,438 28,048 850 2,438 28,048 850 Marketing & Promotion: Advertising 311 311 Referral Fees 6,370 6,681 202 6,370 6,681 202 General & Administrative: Legal & Accounting 164 164 5 164 164 5 Other: - - - - - - Total Expenses 112,866 3,420 112,866 3,420 Net Operating Income 323,732 9,810 349,553 10,593

CURRENT PROFORMA


COMPANALYSIS


Property Name Property Address Property City Sale Price Number Of Units

Actual Cap Rate Bldg SF Price Per

SFPrice Per

Unit Sale Date Year Built

Village Gardens Apartments 1025 Oxford Ln Fort Collins 26,600,000$ 141 5.10% 116,795 227.75$ 188,652$ 10/26/2017 1974Franklin Flats 3208 W 7th St Greeley 15,400,000$ 108 6.72% 93,528 164.66$ 142,593$ 12/27/2017 1977Le Deauville Apartments 2201 14th Ave Longmont 15,000,000$ 100 111,458 134.58$ 150,000$ 4/26/2018 1972Multi-Property Sale 513 & 521 Terry St Longmont 3,200,000$ 18 5.50% 13,957 229.28$ 177,778$ 8/21/2017 1960/1926Glenmoor Apartments 3 Ash Court Longmont 2,700,000$ 16 5.14% 14,000 192.86$ 168,750$ 12/27/2017 1977Non-Weighted Averages 5.62% 69,948 189.82$ 165,555$

SALE COMPARABLES

23

5


Name Address SF Rent Rent/SFThompson Valley 1415 10th SW 833 $1,080 $1.30Loch Lon Townhomes 701 s Tyler 1,020 $1,350 $1.32Peakview by Horshoe Lake 341 Knobcone Dr. 1,050 $1,399 $1.33

Non-Weighted Averages 968 $1,276 $1.32

REN

T C

OM

PS

MA

P

RENT COMPS

1 2

3

24

LOVELAND ECONOMIC PROFILE

A P A R T M E N T G R O U P

INTRODUCTIONLoveland is located in the emerging and dynamic Northern Colorado region, sharing strong

economic ties to other Northern Colorado cities such as Greeley and Fort Collins. With a population

of 74,385 within a 35-square mile area, Loveland has enjoyed steady population growth of

approximately 2% annually over many years and is the second-largest city in Larimer County and the

14th most populous city in Colorado. Larimer County, with a population of nearly 351,000 residents,

comprises the Fort Collins, CO Metropolitan Statistical Area, of which Fort Collins is the county seat

and the largest city of the metro area.

Loveland is located 46 miles north of downtown Denver on the I-25 Corridor. Nestled in a valley at

the entrance to the Big Thompson Canyon with a short ride to the Rocky Mountain National Park,

Loveland is known as the Gateway to the Rockies.

Loveland is the basecamp of northern Colorado anchored by Northern Colorado’s largest retail

shopping center, The Shops at Foothills, and near natural outdoor areas, nationally-recognized art

and sculpture parks, a growing craft beer and distillery market and more.

LOVELAND ECONOMIC PROFILE

#1Boomtown

- SmartAsset, 2015

Best Places to Live in the West

- Sunset Magazine, 2014

#15Best National Park, Rocky Mountain National Park

- Thrillist, 2015

24 LOVELAND ECONOMIC PROFILE

DEMOGRAPHICS

POPULATION

Loveland ranks as the #4 fastest growing community in Colorado by population growth, with #3 being Greeley and

#5 being Fort Collins.

Loveland continues to grow robustly, having added over 9,000 residents since the 2010 Census, as population

increased from 67,742 to an estimated 79,388, equivalent to a 1.7% annual growth rate and well-above the

national average of 0.7% annually. As the city has grown, it’s population has become older overall. The number

of school-aged children (under 19) fell by 16% over the past decade, while at the opposite end of the spectrum,

the age groups over 45 experienced the sharpest growth rate. The median age, meanwhile, went from 36 to 38. This gives

evidence to Loveland’s popularity among baby boomers and retirees, according to the city. Nevertheless, the number

of those between ages 20-34 grew by 6%, which may suggest that Loveland is attracting more millennials as well. Local

demographers predict that the city’s population will grow to 88,424 by 2025, and to 95,276 by 2030.

Their long-range forecast foresees a population exceeding 114,400 by 2045.

20,000

40,000

60,000

80,000

100,000

120,000

2000 2005 2010 2015 2020* 2025* 2030* 2035* 2040* 2045*

LOVELAND POPULATION

*Projected. Source: U.S. Census, City of Loveland

LOVELAND ECONOMIC PROFILE 25

MEDIAN HOUSEHOLD INCOME

The Census ACS 1-year survey reports that the median

household income for the Fort Collins-Loveland Colorado

metro area was $66,469 in 2016, the latest figures available.

Fort Collins median household income is $784 higher than the

median Colorado household income and $8,852 greater than

the U.S. median household income.

Based on recent growth patterns, an estimate for 2018 places

the metro area’s median household income at $70,516 for 2018.

COST OF LIVING

Cost of living indices are based on a U.S. average of 100. An

amount below 100 means the subject is cheaper than the U.S.

average. A cost of living index above 100 means the subject is

more expensive.

■ Loveland cost of living is 116.2

■ Fort Collins cost of living is 124.2

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1980 1990 2000 2010 2018*

FORT COLLINS METRO POPULATION

*Projected. Source: U.S. Census, Greystone Research

The metro area population is growing annually at three times the U.S. pace of 0.7% annually


$1,101

$1,139

$1,188

$1,218

$1,211

$1,261

$1,310

$1,350

$1,373

$1,380

$1,398

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

$900

$1,000

$1,100

$1,200

$1,300

$1,400

2012 2013 2014 2015 2016 2017 2018* 2019* 2020* 2021* 2022*

FORT COLLINS METRO AREA APARTMENT MARKETAVERAGE RENT / VACANCY

Average Rent Average VacancySource: CoStar, *Projected

SINGLE-FAMILY / CONDO

According to the Fort Collins Board of REALTORS® by IRES, LLC, new for-sale

listings were down 11.9% in July 2018 year-over-year for detached single-family

homes but increased 25.0% for townhouse-condo properties. The median sales

price was up 10.0% to $415,955 for detached single-family homes and 11.2% to

$308,406 for townhouse-condo properties over the same period.

Days on market decreased 12.1% for single-family homes but increased 37.8%

for townhouse-condo properties. The months supply of inventory was a

mere 2.1 for single-family homes, and only 1.8 months for townhouse-condo

properties, despite the increased inventory. A supply of four months

is considered balanced.


Oil Industry, Northern Colorado

APARTMENT MARKET

Fort Collins has just over 12,000 conventional market-rate units, and almost

2,500 student housing units, or one student housing unit for every five market

rate units. Nationally, the ratio is closer to one-in-forty. In those student

housing units, there are a total of about 6,000 beds, reinforcing the significance

of Colorado State University to the metro area. In Loveland, the professional

grade apartment market comprises 3,041 units in 56 apartment communities,

representing 25% of the metro area market, according to CoStar.

Loveland-Fort Collins’ steady influx of new residents has been a major

contributor to demand, with renter households comprising more than one-

third of the metro’s population. Colorado State University (CSU), with an

enrollment of 32,000, also wields significant influence over demand. An

estimated 80% of students at CSU live off campus. In general, net migration

has been a key demand driver. From 2011-2016, net migration comprised 75%

of the metro’s population growth, the highest percentage in the front range

according to CoStar.

Following a reprieve from substantial supply additions in 2016, development


rebounded in 2017, and is poised for unprecedented growth over the next several years as

over 2,000 units were underway at the 2018 midpoint, representing an inventory expansion

of nearly 20%.

The region has economic and demographic trends that warrant outsized development

with employment growing at a rate of 3% or higher throughout the recovery, and

population gaining by nearly three times the national average over the last ten years. Still,

the metro will face a supply test, and the leasing environment (especially for higher-end

properties) will become more competitive in the coming quarters.

■ Milestone Development’s 274-unit Vibe Apartments development in Fort Collins broke

ground in the second half of 2016, and the first units are expected to be ready in 3Q 2018.

■ The 310-unit Crowne at Timberline Townhomes development in Fort Collins had its

first move-ins in August 2016, and stabilized at a 90% occupancy rate in September

2017, representing an absorption rate just shy of 22-units per month. The property

generally offered concessions of a half-month’s free rent during its lease up, and

occasionally offered a full month free.

■ The 70-unit Wellington Downs apartments in Wellington delivered around the start

of the third quarter 2017, and was fully leased by October 2017 (without any rent

specials), and has reported a 100% occupancy rate since, according to CoStar.

■ The 61-unit Apex apartments (in immediate proximity to CSU, but not strictly reserved

for students) had its first move-ins around the start of September 2017, and was fully

leased in about two months. The property offered no, or

virtually negligible concessions, during its brisk lease-up.

■ The 166-unit Pinyon Pointe apartments in Loveland

opened up its first 30-unit building in December 2017, and

construction on all of the units wrapped up in May 2018.

As of June 2018, roughly 60 units were occupied, and the

property was offering one-month discounts across the

board. Two-thirds of the units at Pinyon will be studios or

one-bedrooms.

The largest development of this cycle to-date is now in the

midst of its lease-up.

The first 18-unit building at the Cycle Apartments in Fort

Collins delivered in November 2017, and 206 out of 404

total were completed by June 2018. As of June, roughly

140 units were occupied, representing an absorption rate

of 20 units per month. The property has been offering

one-month discounts on most floor plans throughout

its lease-up. The property is located adjacent to the

redeveloped Foothills Mall, and within walking distance of

the Swallow Road MAX Line bus stop.


Manufacturing, 8%

Trade, Trans., Util., 16%

Mining, Logging,

Construction, 7%

Information, 2%

Finance, 4%

Prof. & Business Svc. ,

12%Other Services,

4%

Leisure & Hospitality,

13%

Government, 24%

Education & Health Svc. ,

11%

FORT COLLINS METRO AREAEMPLOYMENT SECTORS (U.S. BUREAU OF LABOR)

Source: U.S. Bureau of Labor

ECONOMYThe Fort Collins metro economy has a strong government sector, equating

to almost 25% of the region’s nonfarm payrolls. Over the last three years, the

government sector has added 3,000 jobs, or roughly 20% of the metrowide

employment increase.

Colorado State University (CSU) is the metro’s largest employer (over 7,800

jobs) and its world class research center is enticing for tech companies looking

to make use of the university’s facilities, and steady flow of about 8,000 new

graduates per year. Consequently, the information sector has added about

400 jobs over the last three years, representing a 14% increase in jobs, more

than twice the national average. The university brings in around $300 million

in research funding and the CSU Research Foundation established CSU

Ventures to promote innovations in the tech sector. To boost its competitive

profile, CSU invested $700 million in 12 projects expected to wrap up in 2018.

Because of the university’s resources and research facilities, as well as constant

supply of educated graduates, a number of tech companies, and more than

20 Fortune 500 companies, are located in the metro, including Hewlett-

Packard, AMD, and Intel.

Northern Colorado’s economy is multifaceted, and the region is home to

primary industries in the following clusters:


Northern Colorado drives innovation with nine federal research labs. Two major public research universities – Colorado State University and the University of Northern Colorado – are idea incubators and produce a robust, highly educated workforce. Local community colleges are actively engaged with the region’s primary employers and entrepreneurs.

Supporting the innovation and technology transfer are regional organizations like Powerhouse Energy Institute, the Colorado Seed Lab, the Centers for Disease Control, Innosphere, a science and technology incubator, and The Warehouse, focused on second stage assistance for technology and manufacturing companies. The Northern Colorado region produces 89% of Colorado’s oil. As of 2016, there were more than 76 producing oil and gas operators in Northern Colorado, and nearly 17,000 producing wells. Fort Collins is home to FortZed, a testing ground for cutting-edge sustainable energy innovation, and the region is showing its leadership in this field:

Foothills Solar – Located in Loveland, this solar project is able to produce enough energy to power 574 Colorado homes each year. Foothills Solar has more than 10,000 solar panels installed and their testing was completed in November 2017. The 3.5-megawatt solar farm exceeds by three times the local Idylewilde Dam’s 900-kilowatt generation capacity.

Rush Creek Wind Project – On a much larger scale, and located southeast of Denver, construction is underway at Xcel Energy’s 600-MW Rush Creek Wind Project and 83-mile transmission line. The $1.1 billion project will include 300 Vestas wind turbines and would be the state’s largest wind farm, and is slated for completion in late 2018. The project will power 325,000 homes, inject $1 billion into the region’s economy, support energy innovation in Colorado, and eliminate one million tons of carbon each year.

The Loveland region also produces 70% of Colorado’s craft beer. Colorado craft beer has grown to a $3 billion industry, nearly tripling its economic impact since 2014. Colorado craft beer has the highest economic impact per capita of any state. The metro area has developed a significant craft beer industry and is home to a number of notable brewers, including New Belgium, Odell, and Black Bottle, as well as behemoth Anheuser-Busch. The industry has a more than $1 billion economic impact on Larimer County, with almost 3,000 jobs and in the neighborhood of $175 million in wages supported annually.

Foothills Solar

Rush Creek Wind Project (Power Technology)


FORT COLLINS METRO AREA LARGEST EMPLOYERS

EMPLOYER # EMPLOYEES

UCHealth: Poudre Valley Hospital 7,890

Colorado State University 7,829

Poudre R-1 School District 4,394

City of Fort Collins 1,992

Larimer County 1,855

Broadcom Inc. 1,600

Woodward Inc. 1,500

Banner Health: McKee Medical Center 1,390

Hewlett Packard 1,130

Qualfon 870

Employment Solutions Personnel 868

Hach Company 840

Department of Agriculture 789

Anheuser-Busch Fort Collins Brewery 760

Tolmar, Inc. 650

Otter Products 560

Source: Metro Denver Economic Development Division, U.S.

129,900

129,600

129,100

132,000

134,000

134,800

138,000

139,900

134,700

135,700

137,900

142,400

147,600

152,400

157,900

160,900

165,900

171,900

2.0%

4.0%

6.0%

8.0%

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

FORT COLLINS METRO AREAEMPLOYMENT / UNEMPLOYMENT

Total Employed Unemployment Rate

Source: Bureau of Labor. All annual figures through June.

Loveland is home to major employers such as the Hach Company (840 employees), a manufacturer of water analysis instruments, and Banner Health – McKee Medical Center (1,390 employees), both two of the largest employers in the entire metro area. Other Loveland employers with 250+ employees include the Thompson School District, University Colorado Hospital Authority, City of Loveland, Walmart, U S Engineering Co., King Soopers, Aerotek, Inc., Skybeam, Inc., Constant Contact, Inc., Food Services of America, Inc., and Agrium, a global leader in agricultural products and services. Heska Corporation, a veterinary pharmaceutical company, Agilent Technologies, Constant Contact, and GE Energy Control Systems are also based in the city.


DEVELOPMENT / INVESTMENT

The largest current development in Loveland is The Brands West at

The Ranch, a $500 million multi-use retail, residential, entertainment,

office, and hotel complex spanning Interstate 25 north of Crossroads

Boulevard and adjacent to the county fairgrounds. The development,

which is partially financed by the city, is moving quickly with

groundbreaking scheduled for January 2019. Plans call for built space

of more than 2.1 million square feet that would include:

■ 1 million square feet of retail

space.

■ 580 luxury apartment units

(east).

■ 160,000 square feet of Class

A office.

■ 200-room full-service hotel

(east).

■ Two limited-service hotels

totaling 200 rooms (west).

■ Light industrial space totaling

222,000 square feet (west).

In addition, the developer is planning a network of gondolas with a

two-mile radius that will transport 4,500 people per hour between the

Northern Colorado Regional Airport, The Ranch, and The Brands West.

Another Loveland development, The Foundry, is a $75 million project

that will see completion by mid-2019. The project is a two-block

redevelopment in the downtown core. Elements include a 108-room

Marriott TownPlace Suites hotel, a public plaza, a seven-screen, dine-

in, 550-seat movie theater, 155 residential units, 14,000 square feet of

new retail, and a five-level parking garage.

The Heartland Corner is a $10.5 million mixed-use project that is

scheduled to break ground in the third quarter of 2018. The project

will feature about 50 residential units and more than 5,000 square feet

of retail space at the northeast corner of Fourth Street and Lincoln

Avenue in downtown Loveland.

New theater rendering as part of The Foundry

The Heartland Corner rendering


MEDICAL McKee Medical Center – McKee Medical Center operates under the Banner Health umbrella, is located in Loveland, and is a 115-bed, acute-care hospital that has served the community for more than 30 years. The center offers emergency services, cancer care, and services specializing in heart, nutrition, maternity, neurosciences, diabetes, infectious disease, women’s health, and more.

UCHealth Medical Center of the Rockies (MCR) – Located in Loveland, MCR is a 166-bed regional medical center with a full spectrum of services and specializing in heart and trauma care. MCR has two intensive care units, a birthing center and a special care nursery, a medical nursing unit, a surgical nursing unit, and full-service radiology and laboratory departments. The hospital also is home to Air Link, which is UCHealth’s emergency medical, critical care air transportation program. Surgical services include general surgery, cardiothoracic, orthopedic trauma and neurological trauma. MCR also includes an acute dialysis unit.

UCHealth Poudre Valley Hospital – Poudre Valley Hospital is a 270-bed regional medical center offering a wide array of treatments, surgeries, and diagnostic tests in more than three dozen medical specialties. Poudre Valley Hospital specializes in orthopedic surgery, neuroscience, cancer, bariatric weight-loss surgery, and women and family services for residents of northern Colorado, southern Wyoming and western Nebraska. The hospital has a team of more than 2,000 health care professional and also offers a wide range of primary and specialized health services, from birthing and neonatal intensive care to hyperbaric oxygen and wound care.

McKee Medical Center

Poudre Valley Hospital


HIGHER EDUCATIONColorado is the second-most highly educated state in the country, with nearly 38% of Colorado’s adult population holding a bachelor’s or higher-level degree.

Colorado State University (CSU) – CSU is a public research university located in Fort Collins. The university is the state’s land grant university, and the flagship university of the Colorado State University System. The current enrollment is approximately 33,058 students, including resident and non-resident instruction students. CSU has approximately 2,000 faculty in eight colleges and 55 academic departments, and combined with its administrative staff, makes CSU the second-largest employer in the Fort Collins metro area. Bachelor’s degrees are offered in 65 fields of study, with master’s degrees in 55 fields. Colorado State University confers doctoral degrees in 40 fields of study, in addition to a professional degree in veterinary medicine.

University of Northern Colorado (UNC) – UNC is a public baccalaureate and graduate research university with approximately 12,000 students and six colleges. Founded in 1889, the university’s main campus is located in Greeley, with extended campus locations in Loveland, Denver, and Colorado Springs. By connecting teaching and research, UNC offers students 200 undergraduate and graduate programs on-campus, off-campus and online. In addition to education awards and rankings, UNC has nationally ranked programs in business, performing and visual arts, nursing, and sports and exercise science. UNC’s 19 athletic teams compete in NCAA Division I athletics.

University of Northern Colorado


INFRASTRUCTURE / TRAVEL Loveland occupies 35.47 square miles at the heart of the

emerging and dynamic Northern Colorado Region. The city

is centered near highway, railway and airport transportation

options.

The city is located along I-25, leading to Denver and Fort

Collins, and State Highways US 34 and US 287.

Loveland provides public transportation via COLT, its flagship

bus system. There are three bus routes in Loveland to connect

residents to city services, shopping, and recreational venues.

COLT also connects to FLEX, which provides regional service to

Fort Collins and Boulder.

Loveland is just 45 minutes from Denver International Airport

and within five minutes of the Northern Colorado Regional

Airport home of the first FAA approved remote tower.

Denver International Airport (DEN) provides a central location

to serve the entire metro area. DEN is the only major airport

built in the United States in the past 27 years. The $4.2 billion

facility encompasses 53 square miles and the airport system

has a regional impact of nearly $28 billion, supporting more

than 195,750 jobs in all industries. Denver International Airport

is one of the world’s busiest hubs and in 2017, set its fourth-

consecutive record-year for passenger traffic, topping 61

million passengers.

BNSF freight rail lines run through Loveland to Denver and

into Wyoming with stations in Berthoud and Fort Collins.

Denver International Airport

Rocky Mountain National Park


TOURISM / RECREATION Loveland’s high quality of life can be found throughout the city. With an average of 300 days of sunshine per year and low humidity, Loveland experiences pleasant weather year-round.

The city is home to:

■ Three golf courses ■ Over 180 restaurants ■ Four lakes ■ Over 150 retail stores ■ Eight breweries ■ Two distilleries ■ 18 miles of hiking and biking trails

■ More than 31 recreational parks and easy access to Rocky Mountain National Park located less than an hour away

■ Over 380 public works of art and home to one of the top international outdoor sculpture shows

Rocky Mountain National Park – Located just a one-hour drive from Loveland along US Route

34, the park spans the Continental Divide and encompasses protected mountains, forests

and alpine tundra. It’s known for the Trail Ridge Road and the Old Fall River Road, drives that

pass aspen trees and rivers. The Keyhole Route, a climb crossing vertical rock, leads up Longs

Peak, the park’s tallest mountain. A trail surrounding Bear Lake offers views of the peaks.

Within the boundaries of Rocky Mountain National Park, more than 100 peaks rise above

11,000 feet in altitude, including Longs Peak at 14,259 feet. Rocky Mountain National Park is

one of the most visited parks in the country.

Outlets of Loveland – Located in Loveland, the Outlets at Loveland is located between

Fort Collins and Greeley, along Interstate 25, and is the largest outlet mall in the region.

The outlets feature over 40 brand name outlet stores such as Ann Taylor, Under Armour, Nike,

J. Crew, Gymboree, and many more, with prices 30-70% below full retail prices, making it a

popular destination within the city.

Foothills – This regional mall located in Fort Collins began a redevelopment in 2015 and was

one of the largest retail construction projects in the country. The redevelopment continues,

and new tenants, such as Dick’s Sporting Goods, have just opened in 2018. The mall is

transforming into a modern retail destination, and features Nordstrom Rack, H&M, ROSS,

Cinemark, Bar Louie, Bad Daddy’s Burger Bar, and dozens more retail and dining options.

Outlets of Loveland

Foothills Mall

Sources: Greystone Research, CoStar, Wikipedia, U.S. Bureau

of Labor, U.S. Census, USA Today, The Coloradoan, Northern

Colorado Economic Alliance, City of Loveland, City of Fort



FOR MORE INFORMATION, PLEASE CONTACT OUR EXCLUSIVE AGENTS:

The information contained herein was obtained from sources believed reliable; however, Unique Properties makes no guarantees,warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice.

PHIL DANKNERDirectorDir: [email protected]

EARL DUFFYDirector AssociateDir: [email protected]

AUSTIN BERGDirector AssociateDir: [email protected]

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