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Confidential Offering Memorandum
1666 CLINTON STREETAURORA, CO 80010
PRICE REDUCTION
PRICE REDUCTION
Table of Contents
1666 Clinton StreetAurora, CO 80010
Executive Summary
Financial Analysis
Sales Comparables
Location Overview
One Broadway, Suite A300Denver, Colorado 80203303.962.9555www.PinnacleREA.com
Josh [email protected]
Barton ThompsonSenior [email protected]
Jesse AllenAssociate [email protected]
Rachel EdsonTransaction [email protected]
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EXECUTIVE SUMMARY
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1666 Clinton StreetAurora, CO 80010
Units: 12
Year Built: 1960
List Price: $1,500,000 $1,475,000
Price/Unit: $122,917
Price/SF: $160.26
Building Type: Brick
Building Size: 9,204 SF
Lot Size: 0.22 Acres
Roof: Flat
Heating: Hot Water Boiler
Parking: 11 Off-Street Parking Spaces
Current CAP Rate: 6.66%
Cash on Cash Return: 10.46%
Total Return: 16.22%
Property Features
• Current 6.66% CAP Rate
• Add Value Through Implementing Utility Billbacks and
Laundry Machines
• Excellent Unit Mix: (6) 1 Bd/1Ba & (6) 2 Bd/1Ba
• Less Than 2 Miles to Stanley Marketplace and Stapleton
• 1 Mile to Fitzsimons Medical Campus and 1 Mile to the
Lowry Neighborhood
Property Overview
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Property Overview
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FINANCIAL ANALYSIS
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Income & Expense Analysis
Unit Type Rent1 2Bd/1Ba $1,2002 2Bd/1Ba $1,1003 1Bd/1Ba $9004 1Bd/1Ba $9505 2Bd/1Ba $1,2006 2Bd/1Ba $1,2007 1Bd/1Ba $9008 1Bd/1Ba $9009 2Bd/1Ba $1,200
10 2Bd/1Ba $1,20011 1Bd/1Ba $1,00012 1Bd/1Ba $900
Total 12 Units $12,650
UNIT MIX AND AVERAGE RENT SCHEDULE
UNIT TYPENo. of Units
Approx. SF
Current Rent
Monthly Income
Current Rent/SF
Pro Forma Rent
Monthly Income
Pro Forma Rent/SF
1 Bed 1 Bath 6 625 $925 $5,550 $1.48 $950 $5,700 $1.522 Bed 1 Bath 6 750 $1,183 $7,100 $1.58 $1,225 $7,350 $1.63
TOTAL 12 8,250 $12,650 $13,050
INCOME Pro FormaGross Potential Rent $151,800 $156,600Other Income
Utility Reimbursement (Actual - T8 Annualized/Estimated: $50/Unit/Month) $0 $7,200Laundry Income (Actual - T8 Annualized/ Estimated: $7/Unit/Month) $0 $1,008
Total Other Income $0 $8,208Gross Potential Income $151,800 $164,808Vacancy/Collection Loss (Actual - T8 Annualized/ Estimated) 4.32% ($6,557) 5.00% ($8,240)EFFECTIVE GROSS INCOME $145,244 $156,568
EXPENSESTaxes (Actual - 2020) $13,442 $13,442Insurance (Actual - Trailing 8 Months Annualized) $4,961 $4,961Gas & Electric (Actual - Trailing 8 Months Annualized) $11,120 $11,120Water & Sewer (Actual - Trailing 8 Months Annualized) $7,380 $7,380Trash (Actual - Trailing 8 Months Annualized) $1,860 $1,860Maintenance & Repairs (Estimated: $650/Unit/Year) $7,800 $7,800Snow Removal/Landscaping (Actual - Trailing 8 Months Annualized) $488 $488Management Fee (Actual - T8 Annualized/ Estimated: 7%) $0 $10,960TOTAL EXPENSES $47,050 $58,010Expenses per Unit $3,921 $4,834Expenses per SF $5.70 $7.03% OF EGI 32.4% 37.1%NET OPERATING INCOME $98,193 $98,557
Current
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. References to square footage or age are approximate.
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Pricing Analysis
Price: $1,475,000 CASH FLOW INDICATORS CASH FLOW INDICATORS
Price/Unit: $122,917 Net Operating Income $98,193 Net Operating Income $98,557
Price/SF: $160.26 Debt Service ($59,611) Debt Service ($59,611)
Current CAP Rate: 6.66% Net Cash Flow 10.46% $38,582 Net Cash Flow 10.56% $38,947
Principal Reduction $21,230 Principal Reduction $21,230
Total Return 16.22% $59,813 Total Return 16.32% $60,177
Loan Amount: $1,106,250
Down Payment: $368,750
Interest: 3.50% CAP Rate 6.66% CAP Rate 6.68%
Amortization: 30 Years Price Per Unit $122,917 Price Per Unit $122,917
Monthly Payment: ($4,968) Price Per Foot $160.26 Price Per Foot $160.26
Proposed Financing
VALUE INDICATORS
Pro FormaInvestment Summary Current
VALUE INDICATORS
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SALES COMPARABLES
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Comparable Sales
Property Address No. Units Unit Type YOC Sale Price Price/Unit Price/SF Sale Date
11948 E 17th AvenueAurora, CO
116
1Bd/1Ba2Bd/1Ba
1971 $2,175,000 $127,941 $167.69 07/09/2019
1389 Quari StreetAurora, CO
125
1Bd/1Ba2Bd/1Ba
1970 $2,210,000 $130,000 $169.39 10/07/2019
1377-1397 Lansing StAurora, CO
84
1Bd/1Ba2Bd/1Ba
1955 $1,610,000 $134,167 $185.14 02/11/2020
1
2
3
1389 Quari Street
2
11948 E 17th Avenue
1
1377 Lansing Street
3
1666 Clinton StreetS
COLFAX AVENUECOLFAX AVENUE
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LOCATION OVERVIEWLOCATION OVERVIEW
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POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 10,853
3 mile 60,112
5 mile 170,266
HOUSEHOLDSPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $72,789
3 mile $77,991
5 mile $77,381
AVERAGE HH INCOMEPOPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 34,673
3 mile 161,403
5 mile 420,951
POPULATION
Location Overview
COLFAX AVENUECOLFAX AVENUE
322 Single-Family322 Single-FamilyHousingHousing
Development Development
338 Units With 338 Units With 13,000SF of Retail13,000SF of Retail
Proposed RezoneProposed Rezone For Redevelopment For Redevelopment
168 Units 168 Units With RetailWith Retail
Fitzsimons & CU Fitzsimons & CU Medical CampusMedical Campus
Fitzsimons Fitzsimons Innovation Innovation CommunityCommunity
E 11TH AVENUEE 11TH AVENUE
PE
OR
IA S
TR
EE
TP
EO
RIA
ST
RE
ET
1666 Clinton Street
Westerly CreekWesterly Creekand Montview Park and Montview Park
RenovationsRenovations
Multi-fieldMulti-fieldPark DevelopmentPark Development
STAPLETONSTAPLETON
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AURORA, CO
Source: © DataUSA
POPULATION MEDIAN AGE MEDIAN HH INCOME
NUMBER OF EMPLOYEES MEDIAN PROPERTY VALUE
1.70% GROWTH 0.116%% GROWTH
3.65% GROWTH 8.98% GROWTH
373,487 35.2 $63,128
202,045 $326,500
ABOUT Aurora is a Home Rule Municipality in the U.S. state of Colorado, spanning Arapahoe and Adams counties, with the extreme southeastern portion of the city extending into Douglas County. Aurora is one of the principal cities of the Denver-Aurora-Lakewood, CO Metropolitan Statistical Area (Metro Denver). The city’s population is 373,487, which made it the third most populous city in the state of Colorado and the 54th most populous city in the United States.
ECONOMY The economy of Aurora, CO employs 195k people. The largest industries in Aurora, CO are Health Care & Social Assistance (23,954 people), Retail Trade (22,094 people), and Accommodation & Food Services (18,720 people), and the highest paying industries are Public Administration ($62,384), Professional, Scientific, & Technical Services ($60,961), and Utilities ($58,168).
Median household income in Aurora, CO is $63,055.
Source: https://www.datausa.io/
Location Overview
14 http://www.rtd-denver.com/east-colfax.shtml
East Colfax Avenue serves as the main gateway into downtown Aurora and surrounding areas. In recent years, development in Aurora has reached unprecedented levels, prompting the need for increased accessibility and mobility to and from the area. RTD (Regional Transportation District) has responded by implementing a plan to upgrade all 15L bus stops between Broadway and I-225. This transit improvement plan will become a key driver for further development in the area, particularly in the multi-family investment space. Major development projects in Aurora such as the Gaylord Rockies Resort, the VA Hospital, and the Fitzsimmons Innovation Community will bring thousands of jobs and investment to the area. Of particular interest to multi-family investors is the Fitzsimmons Innovation Community, a thriving biotech hub currently home to more than 70 companies and 750 employees, with an additional 125 acres of land ready for development.
As development in Denver and Aurora continues to occur at a record pace, opportunites for multi-family investors will be abundant. It is certainly an exciting time for investors and developers alike.
https://fitzsimonsinnovation.com/leasing/#development
Location Overview
East Colfax Avenue
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$3.5BGENERATED BY FITZSIMONS DEVELOPMENT FOR THE COLORADO ECONOMY
Located in northwest Aurora, on what was the former Fitzsimons Army Medical Center, is a one square mile area that has been rapidly developing as a pre-eminent medical education, hospital and research center. The army base was decommissioned in 1999, and since that time the Fitzsimons area has become one of the largest medically-related redevelopment projects in the United States. This area is quickly transforming into a vibrant urban district with a distinct research and educational character, unique in the region.
In 2008, the redeveloped Fitzsimons campus created 16,000 jobs and generated roughly $3.5 billion for the state’s economy. Aurora has designated the land around Fitzsimons as an urban renewal area targeted for mixed-use commercial, retail, and residential developments in order to support the medical campus. Once the Fitzsimons Innovation Campus and the University of Colorado Anschutz Medical Campus are completely built, the area is projected to have 46,000 employees.
9# BEST PEDIATRIC HOSPITALIN THE NATION
Located on 48 acres of land on the southern edge of the Fitzsimons campus, is the Children’s Hospital Colorado on Anschutz Medical Campus.
The $450 million, nine-story facility of approximately 900,000 square feet opened its doors in September 2007.
106 CHILDREN’S COLORADO PHYSICIANS RANKED
TOP DOCS
46KTOTAL EMPLOYEES AT COMPLETION OF DEVELOPMENT
16KNEW JOBS CREATED TO DATE WITH A PROJECTED
Location Overview
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NEW BUSINESSES
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Located near Stanley Marketplace, a 140,000 SF community-focused marketplace featuring 50+ independently owned Colorado businesses under one fantastic roof and outdoor event venue in Northwest Aurora.
Built in 1954, the Stanley Aviation building that manufactured airplane ejector seats has been transformed into a marketplace that features a number of restaurants, a beer garden, community park, office spaces and a variety of dining, shopping and recreational options. The $30 million redevelopment includes locally,
independently owned businesses that are not found anywhere else in Aurora.
The Stanley Marketplace has also encouraged additional development in the immediate area. Notable development projects include a $9 million renovation of Westerly Creek, 322 single family homes, and a 200 unit apartment building.
The future is bright for the Stanley Marketplace and the imminent surrounding redevelopment, future tenant and investor demands have proved to be very strong.
PROJECT SIZE
140,000 SFNEW JOBS CREATED
500
STANLEY MARKETPLACE
Location Overview
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Disclaimer
This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC (“Pinnacle REA”) 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. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property located at 1666 Clinton Street in Aurora, Colorado (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 by Pinnacle REA or its brokers.
Pinnacle REA 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. Pinnacle REA 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 Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors 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, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA 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. Pinnacle REA 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 of Pinnacle REA. 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 Pinnacle REA at your earliest convenience.
Investment Contacts:
Josh Newell, Principal303.962.9559 | [email protected]
Bart Thompson, Senior Advisor303.407.9789 | [email protected]
Jesse Allen, Associate Advisor720.487.9007 | [email protected]
Rachel Edson, Transaction Manager720.638.5415 | [email protected]
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Confidential Offering Memorandum
1666 CLINTON STREETAURORA, CO 80010
PRICE REDUCTION
PRICE REDUCTION
