OFFERING MEMORANDUM - LoopNet...Average Household Size 2.16 2.07 2.11 Owner Occupied Housing Units...
Transcript of OFFERING MEMORANDUM - LoopNet...Average Household Size 2.16 2.07 2.11 Owner Occupied Housing Units...
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OFFERINGMEMORANDUMPARK AVENUE APARTMENTS1550 LAFAYETTE STDENVER, CO 80206
GUNNAR WILSONInvestment Advisor
NIK MACCARATERSr. Investment Advisor
BRANDON KAUFMANSr. Investment Advisor
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TABLE OF CONTENTS
• EXECUTIVE SUMMARY
• PROPERTY OVERVIEW
• FINANCIAL OVERVIEW
• LOCATION OVERVIEW
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01EXECUTIVE SUMMARY
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PROPERTY HIGHLIGHTS
28 unit property with diverse unit mix.
Opportunity to own one of a kind, iconic Denver
property.
Excellent location, three blocks north of Cheesman
Park.
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PROPERTYOVERVIEW
BUILDING DETAILS
Units: 28
Building SF: 16,705
Parking: N/A
Land: 12,490
Zoning: G-RO-3
Year Built: 1907
SYSTEMS
Gas / Elec Meters: Master / Individual
Water: Master
Trash: Waste Management
Roof: Pitched
Heating: Boiler
Cooling: None
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AREA STREET MAP
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LOCATION MAP
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DENVER ZOODENVER ZOOST. JOSEPHST. JOSEPHHOSPITALHOSPITAL
CHEESEMAN PARKCHEESEMAN PARK
CONGRESS PARKCONGRESS PARK
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AREA MAP
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NEIGHBORHOOD MAPDINING
1 Taco Bell
2 Burger King
3 Pete’s Kitchen
4 Chipotle Mexican Grill
5 Las Margs Tavern
6 Papa John’s Pizza
RETAIL
7 Marczyk Fine Foods
8 Argonaut Wine & Liquor
9 Natural Grocers
10 Walgreens
11 Family Dollar
12 Tattered Cover Book Store Colfax
LIFESTYLE
13 Cheesman Park
14 Denver Zoo
15 Denver East High School
16 DC-21
17 Saint Joseph Hospital
18 Rocky Mountain Hospital forChildren
19 Ramada by Wyndham Denver Downtown
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02PROPERTY OVERVIEW
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PHOTOS1550 LAFAYETTE ST
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PHOTOS1550 LAFAYETTE ST
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UNIT MIX & CURRENT RENTS
Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF
Studio 3 250 $833 $3.33 $1,050 $4.20
1 Bed / 1 Bath 2 350 $975 $2.79 $1,150 $3.29
Medium 1 Bed / 1 Bath 4 425 $873 $2.05 $1,225 $2.88
Large 1 Bed / 1 Bath 7 546 $1,189 $2.18 $1,392 $2.55
Attic 1 Bed / 1 Bath 2 525 $1,037 $1.98 $1,150 $2.19
1 Bed / 1 Bath + Loft 2 550 $1,387 $2.52 $1,550 $2.82
2 Bed / 1 Bath 6 600 $1,516 $2.53 $1,675 $2.79
Carriage House 3 Bed / 2.5 Bath
1 1,800 $2,100 $1.44 $2,600 $1.44
Carriage House 1 Bed / 1 Bath
1 1,100 $1,350 $1.64 $1,800 $1.64
Total / Average 28 558 $1,202 $2.34 $1,427 $2.80
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03FINANCIAL OVERVIEW
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INVESTMENT SUMMARYPurchase Price: $5,850,000
Units: 28
Price Per Unit: $208,929
Total SF: 16,705
Price Per SF: $350
T12 Cap Rate: 5.00%
Year 1 Cap Rate: 6.06%
Year 1 Cash Flows: $133,766
5 Year IRR: 24.14%
DEBT SUMMARYLoan to Value: 70.00%
Loan Amount: $4,095,000
Loan Term: 60 Months
Interest Rate: 3.50%
Interest Only Period: 12 Months
Amortization: 30 Years
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CASH FLOWPROJECTIONS
T12 Year 1 Year 2 Year 3 Year 4 Year 5
REVENUE
Gross Potential Revenue $405,540 $479,400 $493,782 $508,595 $523,853 $539,569
Vacancy ($12,166) ($23,970) ($24,689) ($25,430) ($26,193) ($26,978)
Rental Revenue $393,374 $455,430 $469,093 $483,166 $497,661 $512,590
Other Residential Income $6,240 $6,240 $6,427 $6,620 $6,819 $7,023
Effective Gross Revneue $399,614 $461,670 $475,520 $489,786 $504,479 $519,614
EXPENSES
Repairs and Maintenance ($22,036) ($22,036) ($25,272) ($26,030) ($26,811) ($27,615)
Utilities ($26,678) ($26,678) ($27,478) ($28,303) ($29,152) ($30,026)
Insurance ($8,826) ($8,826) ($9,091) ($9,364) ($9,644) ($9,934)
Real Estate Taxes ($28,262) ($28,262) ($29,110) ($29,983) ($30,883) ($31,809)
Property Management ($21,172) ($21,172) ($21,807) ($22,461) ($23,135) ($23,829)
Total Expenses ($106,974) ($106,974) ($112,758) ($116,141) ($119,625) ($123,214)
Expenses Per Unit ($3,821) ($3,821) ($4,027) ($4,148) ($4,272) ($4,400)
Net Operating Income $292,640 $354,696 $362,762 $373,645 $384,854 $396,400
Cap Rate 5.00% 6.06% 6.20% 6.39% 6.58% 6.78%
Debt Service - Yr 1 ($143,500) ($220,930) ($220,930) ($220,930) ($220,930) ($220,930)
Total Cash Flow $149,140 $133,766 $141,832 $152,715 $163,924 $175,470
Cash on Cash Return 8.50% 7.62% 8.08% 8.70% 9.34% 10.00%
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HISTORICALANALYSIS
T12
REVENUE
Gross Potential Revenue $405,540
Vacancy ($12,166)
Rental Revenue $393,374
Other Residential Income $6,240
Effective Gross Revneue $399,614
EXPENSES
Repairs and Maintenance ($22,036)
Utilities ($26,678)
Insurance ($8,826)
Real Estate Taxes ($28,262)
Property Management ($21,172)
Total Expenses ($106,974)
Expenses Per Unit ($3,821)
Net Operating Income $292,640
Cap Rate 5.00%
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SOLD COMPS
Property Address Units SF Price $Price Per
UnitPrice Per
Foot
(subject) 28 16,705 $5,850,000 $208,929 $350
1 12 11,417 $3,195,000 $266,250 $280
2 25 13,870 $5,200,000 $208,000 $375
3 14 13,455 $3,525,000 $251,786 $262
4 16 12,056 $3,800,000 $237,500 $315
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1550 Lafayette St
1100 E 10th Ave
1114 Acoma St
1165 Columbine St
1435-1445 Jersey St
1575 Lafayette St 41 23,600 $9,525,000 $232,317 $404
Averages $5,049,000 $239,171 $327
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04LOCATION OVERVIEW
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DEMOGRAPHICS
Census 2019 Summary .25m .5m .75m
Population 859 4,369 11,138
Households 400 1,945 4,847
Families 185 827 2,128
Average Household Size 2.15 2.06 2.09
Owner Occupied Housing Units 267 1,167 2,968
Renter Occupied Housing Units 133 778 1,879
Median Age 36.3 33.3 33.6
Median Household Income $105,481 $98,241 $103,941
Average Household Income $129,071 $125,154 $138,063
Census 2024 Summary .25m .5m .75m
Population 910 4,598 11,815
Households 421 2,042 5,131
Families 195 871 2,259
Average Household Size 2.16 2.07 2.11
Owner Occupied Housing Units 287 1,247 3,156
Renter Occupied Housing Units 134 795 1,976
Median Age 38.5 34.9 34.6
Median Household Income $117,494 $110,960 $117,408
Average Household Income $149,738 $144,008 $157,142
.25 MILE
.5 MILE
.75 MILE
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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.
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Denver Zoo
Denver Museum of Nature and Science
Fillmore Auditorium.
LTO
UPTOWN DENVER
Uptown Denver is a hip district located just three miles southeast of
Downtown Denver. Uptown is Denver’s oldest residential neighborhood
and is bounded by Broadway to the west, 23rd Avenue to the north, Park
Avenue and Downing to the east, and Colfax Avenue to the south. Uptown
includes Colfax Avenue, where renovations and new retail, residential, and
office development is changing the landscape and revitalizing the area.
Major employers in the area include St. Joseph Hospital, Presbyterian/St.
Luke’s Medical Center, and Kaiser Permanente, which together employ
more than 10,000 people. Uptown’s convenient location and ample
amenities make it a highly desirable neighborhood, attracting young
professionals, active singles, and urbanites alike.
This highly walkable neighborhood is characterized by an eclectic mix of
old and new, including older brick rowhouses and new upscale condos, as
well as picturesque places of worship, trendy eateries, popular watering
holes, and lots of patios. Anchoring the neighborhood is Restaurant Row,
which runs along 17th Avenue from Broadway to City Park. Restaurant Row
is lined with cafes, bistros, pubs, and fine dining establishments.
Other attractions in the area include:
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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)
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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
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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.
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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·
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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
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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
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JASON KOCHCo-Founder/Principal
ADAM RIDDLECo-Founder/Principal
303.257.7627 [email protected]
BRANDON KAUFMANSr. Investment Advisor
SEAN HOLAMONSr. Investment Advisor
303.588.2119 [email protected]
NIK MACCARTERSr. Investment Advisor
ANTHONY BOBAYInvestment Advisor
JEFF DIMMENInvestment AdvisorColorado Springs
PAT KNOWLTONInvestment AdvisorColorado Springs
AUSTIN SMITHSr. Investment Advisor
303.868.9096 [email protected]
LEE WAGNERInvestment Advisor
Colorado Springs
417.459.2155 [email protected]
TRAVIS HODGESr. Investment Advisor
404.459.5756 [email protected]
GUNNAR WILSONInvestment Advisor
970.306.3787 [email protected]
NEXUS BROKERS
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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.
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PARK AVENUE APARTMENTS1550 LAFAYETTE ST DENVER, CO 80206
GUNNAR WILSONInvestment Advisor
BRANDON KAUFMANSr. Investment Advisor
NIK MACCARTERSr. Investment Advisor