OFFERING MEMORANDUM - LoopNet · 2020-03-16 · 3 Bastien’s Restaurant 4 Annie’s Cafe and Bar 5...

BRANDON KAUFMANSr. Investment Advisor

[email protected]

OFFERINGMEMORANDUMBLACK SWAN & WHITE SWAN1380 STEELE ST & 1300 ADAMS ST

DENVER, CO 80206

NIK MACCARTERSr. Investment Advisor

[email protected]

TABLE OF CONTENTS

• EXECUTIVE SUMMARY

• PROPERTY OVERVIEW

• FINANCIAL OVERVIEW

• LOCATION OVERVIEW

01EXECUTIVE

SUMMARY

Ideally located in the heart of Congress Park with no surrounding new construction, these art masterpieces live as the only Class A apartments

in the neighborhood.

Originally constructed by renowned Denver builder, Rowan Wilson, in the 1960’s these two properties underwent an unbelievable

transformation after trading hands for the first time in their history.

The appealing twin T construction was conducive for major mechanical, interior, and exterior renovations. All plumbing, electrical,

pool systems, and elevator mechanics were replaced and brought to current City of Denver

code.

These units are truly one of a kind boasting fireplaces, balconies, distinct floor plans, and

art instillations throughout.

02PROPERTY

OVERVIEW

Great in place and proforma cash flow.

Class A renovations completed in 2019.

Ability to substantially increase rental income.

Fully Amenitized with Pool, Elevator, Business Center,

Club Room, Leasing office, Laundry, and Gym.

Each unit and common area was individually designed

by a professional interior designer and artist.

Located in the heart of Congress Park with no

surrounding A Class or new construction.

PROPERTYHIGHLIGHTS

PROPERTYOVERVIEW

BUILDING DETAILS

Units: 52

Building SF: 36,705

Parking: 44

Land: 29,112

Zoning: U-RH-3A

Year Built: 1963, 1960

Year Renovated: 2019

SYSTEMS

Gas / Elec Meters: Separate / Separate

Water: Master

Trash: Waste Management

Roof: Flat

Heating: Boiler

Cooling: Wall A/C

AMENITIES

AMENITIES LOCATION

Pool: Black Swan

Elevator: Black Swan

Social Room: White Swan

Gym: White Swan

Laundry: Both

Parking: Both

Onsite Manager’sOffice

Black Swan

Business Center Black Swan

AREA STREET MAP STEELE ST.

STEELE ST.

ADAMS ST.

ADAMS ST.

BLACK SWAN1380 STEELE ST.

W H I T E S W A N 1300 A D A M S S T .

LOCATION MAP

W H I T E S W A N1300 A D A M S S T .

B L A C K S W A N1380 S T E E L E S T .

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CITY PARKGOLF COURSE

CHEESMANPARK

CONGRESSPARK

DENVER MUSEUM OF NATURE & SCIENCE

DENVER ZOO

LINDSLEYPARK

AREA MAP

1380 STEELE ST

1300 ADAMS ST

NEIGHBORHOOD MAPDINING

1 TAG Burger Bar

2 Mezcal

3 Bastien’s Restaurant

4 Annie’s Cafe and Bar

5 Denver Biscuit Company

6Sweet Cooie’s Ice Cream and Confectionery

7 Shells & Sauce

8 Blue Pan Pizza Congress Park

RETAIL

9 Sprouts Farmers Market

10 Trader Joe’s

11 King Soopers

12 Petco

13 Dollar Tree

14 Safeway

15 Marczyk Fine Foods

LIFESTYLE

16 Denver East High School

17 City Park

18Denver Museum of Nature & Science

19 Denver Zoo

20 National Jewish Health

21 Rose Medical Center

22 Congress Park

23 Denver Botanic Gardens

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1380 STEELE ST1300 ADAMS ST

PHOTOSBLACK SWAN | 1380 STEELE ST

PHOTOSWHITE SWAN | 1300 ADAMS ST

Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF

Studio 6 518 $1,239 $2.39 $1,295 $2.50

1 Bed / 1 Bath 11 586 $1,535 $2.62 $1,709 $2.92

2 Bed / 1 Bath 5 700 $1,882 $2.69 $2,200 $3.14

2 Bed / 2 Bath 12 925 $1,951 $2.11 $2,554 $2.76

Total / Average 34 710 $1,681 $2.41 $2,006 $2.82

UNIT MIX & CURRENT RENTS

BLACK SWAN1380 STEELE ST

Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF

1 Bed / 1 Bath 6 550 $1,507 $2.74 $1,700 $3.09

2 Bed / 1 Bath 12 750 $1,908 $2.54 $2,200 $2.93

Total / Average 18 683 $1,774 $2.61 $2,033 $2.99

UNIT MIX & CURRENT RENTS

WHITE SWAN1300 ADAMS ST

03FINANCIALOVERVIEW

INVESTMENT SUMMARY

Purchase Price: $18,500,000

Units: 52

Price Per Unit: $355,769

Total SF: 36,705

Price Per SF: $504

T12 Cap Rate: 4.67%

Year 1 Cap Rate: 5.65%

Year 1 Cash Flows: $352,875

5 Year IRR: 29.25%

DEBT SUMMARY

Loan to Value: 75.00%

Loan Amount: $13,875,000

Loan Term: 60 Months

Interest Rate: 2.90%

Interest Only Period: 12 Months

Amortization: 30 Years

T12 Year 1 Year 2 Year 3 Year 4 Year 5

REVENUE

Gross Potential Revenue $1,068,804 $1,257,840 $1,295,575 $1,334,442 $1,374,476 $1,415,710

Vacancy ($53,440) ($62,892) ($64,779) ($66,722) ($68,724) ($70,786)

Rental Revenue $1,015,364 $1,194,948 $1,230,796 $1,267,720 $1,305,752 $1,344,925

Expense Reimbursements $47,250 $47,250 $48,667 $50,127 $51,631 $53,180

Other Residential Income $67,916 $70,916 $76,643 $78,943 $81,311 $83,750

Effective Gross Revenue $1,130,530 $1,313,114 $1,356,107 $1,396,790 $1,438,694 $1,481,855

EXPENSES

Repairs and Maintenance ($65,484) ($65,484) ($67,449) ($69,472) ($71,556) ($73,703)

Utilities ($38,160) ($38,160) ($39,305) ($40,484) ($41,698) ($42,949)

Insurance ($19,760) ($19,760) ($20,353) ($20,963) ($21,592) ($22,240)

Real Estate Taxes ($59,584) ($59,584) ($61,372) ($63,213) ($65,109) ($67,062)

Property Management ($61,500) ($61,500) ($63,345) ($65,245) ($67,203) ($69,219)

Admin and Other ($22,478) ($22,478) ($23,152) ($23,847) ($24,562) ($25,299)

Total Expenses ($266,966) ($266,966) ($274,975) ($283,224) ($291,721) ($300,473)

Expenses Per Unit ($5,134) ($5,134) ($5,288) ($5,447) ($5,610) ($5,778)

Net Operating Income $863,564 $1,046,148 $1,081,132 $1,113,566 $1,146,973 $1,181,382

Cap Rate 4.67% 5.65% 5.84% 6.02% 6.20% 6.39%

Debt Service - Yr 1 ($402,520) ($693,273) ($693,273) ($693,273) ($693,273) ($693,273)

Total Cash Flow $461,044 $352,875 $387,859 $420,293 $453,700 $488,109

Cash on Cash Return 9.97% 7.63% 8.39% 9.09% 9.81% 10.55%

CASH FLOWPROJECTIONS

HISTORICALANALYSIS

T12

REVENUE

Gross Potential Revenue $1,068,804

Vacancy ($53,440)

Rental Revenue $1,015,364

Expense Reimbursements $47,250

Other Residential Income $67,916

Effective Gross Revneue $1,130,530

EXPENSES

Repairs and Maintenance ($65,484)

Utilities ($38,160)

Insurance ($19,760)

Real Estate Taxes ($59,584)

Property Management ($61,500)

Admin and Other ($22,478)

Total Expenses ($266,966)

Expenses Per Unit ($5,134)

Net Operating Income $863,564

Cap Rate 4.67%

SOLD COMPS

Property Address Units SF Price Per Unit Price Per Unit Price Per Foot Cap Rate

(subject) 1380 Steele St & 1300 Adams St 52 36,705 $18,500,000 $355,769 $504 5.65%

1 1177 Race St 88 162,325 $30,000,000 $340,909 $185 2.50%

2 4390 Tennyson St 47 30,995 $19,150,000 $407,447 $618 4.16%

3 2350 S University Blvd 18 12,906 $5,490,000 $305,000 $425 5.25%

4 820 Sherman St 64 50,000 $25,250,000 $394,531 $505 N/A

5 3860 Tennyson St 49 69,500 $19,350,000 $394,898 $278 N/A

6 821 Corona St 30 23,909 $12,000,000 $400,000 $502 4.90%

Averages $18,540,000 $373,798 $419 4.20%

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04LOCATION OVERVIEW

DEMOGRAPHICS

Census 2019 Summary .25m .5m .75m

Population 1,113 4,567 11,376

Households 451 1,977 5,256

Families 248 1,104 2,504

Average Household Size 2.42 2.26 2.14

Owner Occupied Housing Units 354 1,567 2,832

Renter Occupied Housing Units 97 410 2,424

Median Age 41.2 41.9 39.4

Median Household Income $116,433 $122,133 $88,728

Average Household Income $173,661 $179,510 $142,250

Census 2024 Summary .25m .5m .75m

Population 1,170 4,792 12,118

Households 468 2,051 5,550

Families 259 1,151 2,647

Average Household Size 2.46 2.29 2.16

Owner Occupied Housing Units 375 1,655 3,006

Renter Occupied Housing Units 94 397 2,544

Median Age 42.6 43.1 40.7

Median Household Income $132,678 $138,061 $97,612

Average Household Income $194,398 $199,479 $158,370

.25 MILE

.5 MILE

.75 MILE

Capitol Hill is Denver’s most densely populated neighborhood, located

just half of a mile away from the Colorado State Capitol building with the

famed “Mile High” marker on the 13th step, and two miles southeast of

Downtown Denver’s Union Station. It is approximately one square mile in

size and is home to more than 37,660 residents. This historic

neighborhood is more than 150 years old and is ranked as one of the top

10 most beautiful neighborhoods in the United States. Capitol Hill was

once home to some of Denver’s wealthiest residents and is now an

exuberant residential, governmental, and commercial center. The

neighborhood continues to be highly desirable due its location and

amenities.

• Night Clubs

• Coffee Houses

• Bistros

• Concert Venues

• 50+ galleries

• Fine-art studios

• Museums

• Specialty stores

• Restaurants

It is near Civic Center Park, which features live music and food trucks,

Nearby museums include the Kirkland Museum of Fine and Decorative

Art and the Molly Brown House. Popular music venues include The

Fillmore Auditorium, Ogden Theatre, and the Bluebird Theater. East

Colfax Avenue is the heart of Capitol Hill and serves as the

neighborhood’s main commercial area.

CAPITOL HILL

CHEESMAN PARK

Cheesman Park is bounded by Colfax to the north, Eighth Avenue to the

South, York Street to the east Downing Street to the west, and right

between Capitol Hill and Congress Park. Cheesman Park is a tranquil

residential area that centers on its namesake green space, with expansive

lawns, shady jogging trails, a dramatic neoclassical pavilion. With one of

the best green spaces Denver has to offer, it is also within biking distance

to City Park and Congress Park. Just east of the park, Denver Botanic

Gardens features themed areas and an amphitheater for popular summer

concerts.

Casual pizzerias, relaxed coffeehouses, and hip craft-cocktail bars dot the

streets around the park, including:

• Marion Street Tavern

• Pete's Kitchen

• Voodoo Doughnut

• Lik's Ice Cream

• Illegal Pete's

• Tacos Tequilla Whiskey

You can find a variety of housing options in Cheesman Park, though this

highly sought-after neighborhood is mostly known for its mansions and

luxury high-rise towers. The median price per square foot in Cheesman

Park is $374, which is higher than the Denver average of $345.

CONGRESS PARK

Congress Park is an old-school Denver neighborhood with a small town atmosphere. Its west end starts about 5 blocks from Cheesman Park. Congress Park is bordered by York Street on the west, East Colfax Avenue on the north, Colorado Boulevard on the east and East 6th Avenue on the south.

Just about one-square-mile in size, the neighborhood has a population of about 11,250. It features easy access to Cherry Creek and downtown, and is within walking distance of public amenities including playground and swimming pool.

The median home price in Congress Park is 522,500, versus the Denver median price of $470,000. Homes along Seventh Avenue Parkway, in particular, are beautifully maintained and much sought after. This primarily residential neighborhood features a scattering of retail areas with cozy shops and eateries. Many of these shops sit in

decades-old buildings along former trolley lines through the old Capitol Heights.

Some of the main attractions are:

• TAG Burger Bar

• Shells & Sauce

• Under the Umbrella Café & Bakery

Congress Park is considered one of Denver’s more bike-able neighborhoods, ranking 14th in the city. And its residents enjoy top-speed internet access, as it was one of CenturyLink’s original Gig City neighborhoods, where the telecom company offered 1-gigabit internet service.

CITY OF DENVERNOTABLE RANKINGS

#2 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT 2019)

#1 IN ECONOMIC& JOB GROWTH

(AREA DEVELOPMENT, 2015)

4th BEST PLACE IN AMERICA FOR

BUSINESS & CAREERS(FORBES, 2019)

(LONELY PLANET, 2016)

TOP 10 PLACESIN THE U.S. TO TRAVEL

6TH FASTEST GROWING METROAREA IN THE U.S.

(FORBES, 2016)

3RD BEST CITY FOR COLLEGE GRADS

(RENT.COM, 2015)

3RD HEALTHIEST CITYIN THE NATION

(FORBES, 2016)

#1 IN THE NATION FOR LARGEST INCREASE IN

RESIDENTS WITH COLLEGE DEGREES

(U.S. CENSUS BUREAU, 2014)

4TH BEST CITYFOR BIKE RIDING

IN THE U.S.(WALK SCORE, 2015)

7TH BEST STATEIN WHICH TO

MAKE A LIVING(FORBES, 2016)

#1 IN ECONOMIC RANKING

(USNEWS.COM, 2019)

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

*Some of this information sourced from denverpost.com

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 705,439 residents (as of May 2019). An

estimated 2.9 million people live in 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 & Peal Apartments, a 315-unit apartment with 9,000 sq. ft. of

retail.

Alexan 20th St Station, a 358-unit apartment with street level retail.

Block 162, a full block project that included a 680,000 sq. ft. office

tower and separate tower hotel.

Tabor Center Tower Two, a 33 story 700,000 sq. ft. office tower

would be the largest development in Denver since 1985.

1144 Fifteenth St, a 40 story office tower with

street level retail.

EMPLOYERS IN THEDENVER METROThe 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:

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.

Many companies choose to relocate to or expand in the Denver Metro, especially tech

and startup companies. Between 2007-2015, 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. 5000 list of the nation’s fastest-growing private

companies for the year 2017.

*Some information was sourced from: https://choosecolorado.com/

• Kaiser Permanente

• Liberty Tax Service

• Western Union

• University of Colorado

• Children’s Hospital

• Wells Fargo.

• Denver International Airport

• Lockheed Martin

• Health ONE Corporation

• Centura Health

• SCL Health Systems

• Comcast

• CenturyLink·

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.

LIGHT RAIL

DENVERINTERNATIONAL AIRPORT (DIA)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, and the 2nd largest airport in the world by size and the

20th busiest airport in the world. 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 64.5 Million passengers in 2018.

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. DIA broke ground in May of 2018 on a $2.0 billion gate expansion

project. The project will add 39 gates across all three concourses in the next four

years, bringing the total to 150.

The expansion will utilize the airport’s original “telescoping” design by expanding

eastward and westward at the ends. The expansion is

expected to be completed by the end of 2022.

DIA is among the first airports in North America to secure

internationally recognized accreditation for measuring and

reducing carbon emissions.

*Some of this information sourced from denverpost.com

JASON KOCHCo-Founder/Principal

[email protected]

ADAM RIDDLECo-Founder/Principal

303.257.7627 [email protected]


[email protected]

SEAN HOLAMONSr. Investment Advisor



[email protected]

ANTHONY BOBAYInvestment Advisor

[email protected]

JEFF DIMMENInvestment AdvisorColorado Springs

[email protected]

PAT KNOWLTONInvestment AdvisorColorado Springs

[email protected]

AUSTIN SMITHSr. Investment Advisor


LEE WAGNERInvestment Advisor

Colorado Springs


TRAVIS HODGESr. Investment Advisor


GUNNAR WILSONInvestment Advisor


NEXUS BROKERS

CONFIDENTIALITY DISCLAIMERThis confidential Offering Memorandum, has been prepared by Nexus Commercial Realty for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Nexus Commercial Realty recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided Nexus Commercial Realty or its brokers.

Nexus Commercial Realty makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Nexus Commercial Realty has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Nexus Commercial Realty and the Owner of the Property. Nexus Commercial Realty make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Nexus Commercial Realty and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further Nexus Commercial Realty and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Nexus Commercial Realty shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.

This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization Nexus Commercial Realty. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Nexus Commercial Realty at your earliest convenience.


[email protected]


[email protected]

BLACK SWAN & WHITE SWAN1380 STEELE ST & 1300 ADAMS ST

DENVER, CO 80206

OFFERING MEMORANDUM - LoopNet · 2020-03-16 · 3 Bastien’s Restaurant 4 Annie’s Cafe and Bar 5...

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Transcript of OFFERING MEMORANDUM - LoopNet · 2020-03-16 · 3 Bastien’s Restaurant 4 Annie’s Cafe and Bar 5...