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9 1 5 C A R R S T R E E T Lakewood, CO 80214
Jeff Johnson, Co-Founder, PrincipalMatt Ritter, Co-Founder, PrincipalCody Stambaugh, AdvisorPeter Sengelmann, AdvisorAndrew Monette, Associate AdvisorCorey Sandberg, Associate AdvisorNghi Nguyen, Senior Financial AnalystBriana Masullo, Transaction ManagerDallas Sandberg, Transaction Associate
One Broadway Suite A300 | Denver, CO 80203303.962.9555 | www.PinnacleREA.com
Executive Summary
Property Overview
Location Overview
Comparables
Investment Analysis
TA B L E O F C O N T E N T S
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Qualified investors have the opportunity to acquire this highly
sought after 24 unit Lakewood Apartment complex. Built in
1968, 915 Carr Street is in a very strong location in the heart
of Lakewood just eight blocks away from the Wadsworth
Light Rail Station. Offering a desirable, diverse, and large unit
mix consisting of 3 - 1 br/1 ba, 20 - 2 br/1 ba and 1 - 3 br/2 ba,
units. 915 Carr Street is accompanied with ample off-street
parking and attractive landscaping. The current ownership
has kept this property in excellent condition. With a total
land area of 47,740 SF and a total building size of 20,592
SF, this unique deal offers the potential development of
the unused land. With below market rents, this deal offers a
stable return with an as is Cap Rate of 5.26%, and a Proforma
Cap Rate at 6.19%.
E X E C U T I V E S U M M A R Y INVESTMENT CONTACTS
JEFF JOHNSONCo-Founder, Principal303.962.9556 | [email protected]
MATT RITTERCo-Founder, Principal303.962.9550 | [email protected]
CODY STAMBAUGHAdvisor303.962.9530 | [email protected]
PETER SENGELMANNAdvisor303.962.9552 | [email protected]
ANDREW MONETTEAssociate Advisor303.962.9554 | [email protected]
COREY SANDBERGAssociate Advisor303.407.9784 | [email protected]
NGHI NGUYENSenior Financial Analyst303.407.9783 | [email protected]
BRIANA MASULLOTransaction Manager720.638.5410 | [email protected]
DALLAS SANDBERGTransaction Associate303.407.9781 | [email protected]
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P R O P E R T Y O V E R V I E W
915 CARR STREET Lakewood, CO 80214
L IST PRICE: $4,000,000
Property Type: Multifamily
Building Type: Masonry
Year Built: 1968
Total Building: 20,592 SF
Total Lot Area: 47,740 SF
Units 24
County: Jefferson
HIGHLIGHTS
• Good location
• Excellent unit mix
• Large units
• Rental income upside
• Attractive landscaping
• Ample off-street parking
• Unused land-development potential
• 8 blocks from Wadsworth Light Rail Station
4
P R O P E R T Y O V E R V I E W
5
P R O P E R T Y O V E R V I E W
6
L O C AT I O N O V E R V I E W
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 5,659
3 mile 55,455
5 mile 147,090
HOUSEHOLDS
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $66,605
3 mile $67,960
5 mile $75,361
AVERAGE HH INCOME
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 13,224
3 mile 132,312
5 mile 358,606
POPULATION
915 Carr Street
JEFFERSON COUNTY OPEN
SCHOOL
6TH AVE
WA
DS
WO
RT
H B
LV
D
W COLFAX AVE
LIGHT RAIL
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L O C AT I O N O V E R V I E WAbout LakewoodThe City of Lakewood is the fifth-largest city in the state of Colorado. Home to the nearly completed West Corridor Light Rail Line, Lakewood offers numerous opportunities for commercial and residential development with easy access to Interstates 25 and 70, Colorado 470, U.S. 6, and Denver International Airport. Lakewood is located 10 minutes west of downtown Denver, 10 minutes east of the foothills and right next to the region’s major educational and research institutions. About Jefferson CountyLakewood is the largest city in Jefferson County. Jefferson County is on the west side of the Denver metro area and the county seat is Golden. Jefferson County is part of the Denver-Aurora-Boulder Combined Statistical Area. Outdoor RecreationParks and Trails abound in Lakewood. Some popular trails include the Green Mountain Loop, Bear Creek Trail Loop, Apex Gulch Loop and Belmar Park.
Sources: 2010 U.S. Census; American Community Survey 2006-2010
CITY OF LAKEWOOD POPULATION ................................................................................................................................. 142,980
POPULATION BY AGE UNDER 5 YEARS............................................................................................................ 8,622 6.0% 5 – 9 YEARS............................................................................................................ 8,234 5.8% 10 – 14 YEARS............................................................................................................ 7,860 5.5% 15 – 21 YEARS.......................................................................................................... 12,450 8.7% 22 – 34 YEARS.......................................................................................................... 26,905 18.8% 35 – 49 YEARS.......................................................................................................... 28,859 20.2% 50 – 64 YEARS.......................................................................................................... 29,301 20.5% 65 – 84 YEARS.......................................................................................................... 17,706 12.4% 85 YEARS & OVER............................................................................................................ 3,043 2.1%
MEDIAN AGE ........................................................................................................................................ 39.2
RACE AND HISPANIC ORIGIN RACE WHITE ...................................................... 118,487 82.9% BLACK OR AFRICAN AMERICAN ....................... 2,231 1.6% AMERICAN INDIAN OR ALASKA NATIVE ............ 1,974 1.4% ASIAN ........................................................... 4,493 3.1% NATIVE HAWAIIAN OR PACIFIC ISLANDER ........... 164 0.1% OTHER RACE .............................................. 10,949 7.7% TWO OR MORE RACES ................................... 4,682 3.3%
HISPANIC ORIGIN (ALL RACES) ........................... 31,467 22.0%
AVERAGE HOUSEHOLD SIZE ........................... 2.27
HOUSHOLD STATUS OWNER OCCUPIED POPULATION .................. 84,726 60.2% RENTER OCCUPIED POPULATION ................. 56,083 39.8%
TOTAL NUMBER OF HOUSING UNITS ..... 65,758 SINGLE FAMILY HOUSEHOLDS ...................... 38,853 59.1 % MULTI-FAMILY HOUSEHOLDS ....................... 26,905 40.9 %TOTAL NUMBER OF OCCUPIED UNITS .... 61,986 VACANT ........................................................ 3,772 5.7 %
MEDIAN HOUSEHOLD INCOME ................. $52,960
POVERTY STATUS PERSONS BELOW POVERTY LEVEL............... 16,729 11.7%
MEDIAN RENT OF HOUSING UNITS ............. $876
MEDIAN VALUE OWNER OCCUPIED HOUSING UNITS .......................................... $237,300
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TheWest Light Rail Line• The W Line— is the first light rail line to open under
the FasTracks program.• The 12.1-mile light rail transit system extends from
Denver’s Union Station to• Jefferson County Government Center, traversing
through Denver, Lakewood and Golden.
There are 11 stations along the line: Six stations along the line with parking• Decatur• Federal• Sheridan• Lakewood• Wadsworth• Oak• Federal Center• Jefferson County Government Center-Golden
Six with walkup/Kiss-n-Ride stations• Auraria West• Knox• Perry• Lamar• Garrison• Red Rocks College
L O C AT I O N O V E R V I E W
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S A L E S C O M PA R A B L E SCOMPARABLES
Sales
Number of Units: 8 Number of Units: 18 Number of Units: 16 Number of Units: 8 Number of Units: 22
Bldg Square Feet: 8,072 Bldg Square Feet: 15,975 Bldg Square Feet: 14,225 Bldg Square Feet: 6,632 Bldg Square Feet: 16,300
Year Built: 1951 Year Built: 1959 Year Built: 1970 Year Built: 1959 Year Built: 1970
Sale Price: $1,350,000 Sale Price: $2,700,000 Sale Price: $2,600,000 Sale Price: $1,300,000 Sale Price: $3,300,000
Bldg Price/SF: $167.24 Bldg Price/SF: $169.01 Bldg Price/SF: $182.78 Bldg Price/SF: $196.02 Bldg Price/SF: $202.45
Price/Unit $168,750 Price/Unit $150,000 Price/Unit $162,500 Price/Unit $162,500 Price/Unit $150,000
Cap Rate: 5.98% Cap Rate: 5.62% Cap Rate: 5.94% Cap Rate: 5.75% Cap Rate: 5.67%
Date Sold: 1/9/2017 Date Sold: 2/2/2017 Date Sold: 7/29/2016 Date Sold: 5/30/2017 Date Sold: 12/15/2016
Number of Units: Unit Type: Number of Units: Unit Type: Number of Units: Unit Type: Number of Units: Unit Type: Number of Units: Unit Type:
2 1Br/1Ba 3 1Br/1Ba 16 2Br/1Ba 8 2Br/1Ba 22 2Br/1Ba
2 2Br/1Ba 15 2Br/1Ba
4 3Br/1Ba
Average Price/SF: $183.50
Average Price/Unit: $158,750
Average Cap Rate: 5.79%
1320-1330 Zephyr St
Photo
1320-1330 Zephyr StLakewood, CO 80215
Comps Summary:
1475 S Pierce St
Photo
1475 S Pierce StArvada, CO 80004Lakewood, CO 8021410165 W 59th Ave8220 W 16th Pl
PhotoPhoto
Avenue 59 ApartmentsCottonwood Place Apts
Lakewood, CO 80232
La Nila Apartments
Photo
2561-2575 Jellison StLakewood, CO 80215
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R E N T C O M PA R A B L E S 1 B D / 1 B ARENT COMPARABLES: 1 Bedroom / 1 Bath
Location Distancefrom Subject Units YOC Unit Type Asking
Rent SF Rent PSF
Photo 915 Carr StLakewood, CO 80124 Subject 24 1968 1Br/1Ba $783 700 $1.12
PhotoVilla Grande
7920-7930 W 10th AveLakewood, CO 80214
0.4 miles 25 1970 1Br/1Ba $865 665 $1.30
PhotoCottonwood Place Apartments
8220 W 16th PlLakewood, CO 80214
0.9 miles 18 1959 1Br/1Ba $975 825 $1.18
PhotoAdrienne Townhomes and Apts
1945 Vance StLakewood, CO 80214
1.8 miles 41 1973 1Br/1Ba $950 580 $1.64
PhotoGreenway Apartments
10626 W 7th AveLakewood, CO 80215
2.2 miles 32 1971 1Br/1Ba $1,050 610 $1.72
Comps Average: 1Br/1Ba $960 670 $1.46
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R E N T C O M PA R A B L E S 2 B D / 1 B ARENT COMPARABLES: 2 Bedroom / 1 Bath
Location Distancefrom Subject Units YOC Unit Type Asking
Rent SF Rent PSF
ADD SUBJECT PROPERTY 915 Carr StLakewood, CO 80124 Subject 24 1968 2Br/1Ba $995 850 $1.17
PhotoThree Spruce Apartments
7830 W 10th AveLakewood, CO 80214
0.4 miles 20 1969 2Br/1Ba $1,150 882 $1.30
PhotoCottonwood Place Apartments
8220 W 16th PlLakewood, CO 80214
0.9 miles 18 1959 2Br/1Ba $1,275 900 $1.42
PhotoOff Belmar Apartments
550-552 Webster StLakewood, CO 80226
1.2 miles 35 1961 2Br/1Ba $1,145 855 $1.34
PhotoSilver Leaf Apartments8120-8190 W 26th StLakewood, CO 80214
1.7 miles 19 1969 2Br/1Ba $1,350 900 $1.50
Comps Average: 2Br/1Ba $1,230 884 $1.39
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R E N T C O M PA R A B L E S 3 B D / 1 B ARENT COMPARABLES: 3 Bedroom / 1 Bath
Location Distancefrom Subject Units YOC Unit Type Asking
Rent SF Rent PSF
ADD SUBJECT PROPERTY 915 Carr StLakewood, CO 80124 Subject 24 1968 3Br/1Ba $1,450 1,100 $1.32
PhotoSquire Apartments6900 W 25th Ave
Edgewater, CO 802142.7 miles 62 1972 3Br/1Ba $1,400 860 $1.63
PhotoYukon Court Apartments
4585 Yukon CtWheat Ridge, CO 80033
4.1 miles 96 1960 3Br/1Ba $1,640 1,025 $1.60
PhotoFalls at Lakewood
12144-12146 W Nevada DrLakewood, CO 80228
4.3 miles 96 1974 3Br/1Ba $1,485 1,050 $1.41
Average: 3Br/1Ba $1,508 978 $1.55
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CONFIDENTIAL
Acquisition Price: $4,000,000
Unit Type Units Avg SF Avg Rent/Unit Unit Type Rent/SF Total Avg Rent/Unit Unit Type Rent/SF Total Price Per Unit: $166,667
1Br/1Ba 3 700 $783 1Br/1Ba $1.12 28,200$ $950 1Br/1Ba $1.36 34,200$ Price Per SF: $194.25
2Br/1Ba 20 850 $995 2Br/1Ba $1.17 238,740$ $1,175 2Br/1Ba $1.38 282,000$
3Br/1Ba 1 1100 $1,450 3Br/1Ba $1.32 17,400$ $1,550 3Br/1Ba $1.41 18,600$
Total Units 24 284,340$ 334,800$
Loan Amount (70%): $2,800,000
Down Payment (30%): $1,200,000
Total Units: 275,810$ 324,756$ Interest Rate: 4.00%
Year Built: RUBS: 15,100$ RUBS: 21,000$ Amortization Years: 30
Building GSF: Garage/Parking: -$ Garage/Parking: -$ Annual Debt Service: ($160,412)
Land SF: Laundry: 5,716$ Laundry: 5,716$ Principal Reduction: $49,309
Miscellaneous: 7,935$ Miscellaneous: 7,935$
304,561$ 359,407$
EXPENSES: % of ERI Per Unit Total EXPENSES: % of ERI Per Unit Total Before Tax Cash Flow: $49,833
Property Tax: 5.23% 601$ 14,416$ Property Tax: 4.57% 619$ 14,849$ Debt Coverage Ratio: 1.31
Insurance: 2.87% 330$ 7,924$ Insurance: 2.51% 340$ 8,162$ Cash-on-Cash Return: 4.15%
Utilities: 7.82% 899$ 21,566$ Utilities: 6.84% 926$ 22,213$ Total Return: 8.26%
Trash: 1.97% 226$ 5,425$ Trash: 1.72% 233$ 5,588$ Cap Rate: 5.26%
Management Fee: 8.00% 919$ 22,065$ Management Fee: 8.00% 1,083$ 25,980$
Administration: 1.78% 205$ 4,919$ Administration: 1.56% 211$ 5,067$
Repairs & Maint.: 6.53% 750$ 18,000$ Repairs & Maint.: 5.54% 750$ 18,000$
Total Expenses: 34% 94,316$ Total Expenses: 31% 99,859$ Before Tax Cash Flow: $99,136
3,930$ 4,161$ Debt Coverage Ratio: 1.62
4.58$ 4.85$ Cash-on-Cash Return: 8.26%
Total Return: 12.37%
Cap Rate: 6.49%
INCOME:
New Estimated Loan
As-Is NOI: $210,245
Proforma NOI: $259,548
3.00%General Vacancy: (10,044)$
Wednesday, August 23, 2017
915 Carr Street Proforma
Multifamily Investment AnalysisPRICING ANALYSIS
Gross Rental Income: Gross Rental Income:
Estimated As-IsINCOME:
Effective Rental Income:
259,548
Gross Operating Income:
Expenses Per Unit:
Expenses Per SF:
Net Operating Income:
24
Unit Breakdown
47,740 SF
1968
Underwriting Assumptions:
• Building GSF and Land SF based on Jefferson County Assessor.• "As-Is" Rental Income based on annualizing Rent Roll dated 6/30/17; "Proforma" based on market rate assumptions.• Miscellaneous Income includes these categories are itemized on the T12 P&L: Move Out, Late Fee, Applications, Other and Prepaid Income.• "Proforma" assumes RUBs are $50/month for 1BR units, $75/month for 2BR units and $100/month for 3BR unit.• "As-Is" and "Proforma" assume Management Fee of 8.0% of Effective Rental Income, and R&M of $750/unit/year.• "As-Is" Property Taxes based on 2017 Payable 2018 Jefferson County assessment.• "Proforma" Expenses are 3.0% increases over "As-Is".
20,592 SF
Property Description3.00% (8,530)$
Effective Rental Income:
General Vacancy:
Expenses Per Unit:
Gross Operating Income:
Expenses Per SF:
Net Operating Income: 210,245
Information contained in this analysis has been obtained from sources believed to be reliable, however we accept no responsibility for its correctness, and encourage the verification of all information. 8/23/2017
I N V E S T M E N T A N A LY S I S
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D I S C L O S U R E 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 described herein as 915 Carr Street located in Lakewood, 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.
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Jeff Johnson, Co-Founder, PrincipalMatt Ritter, Co-Founder, PrincipalCody Stambaugh, AdvisorPeter Sengelmann, AdvisorAndrew Monette, Associate AdvisorCorey Sandberg, Associate AdvisorNghi Nguyen, Senior Financial AnalystBriana Masullo, Transaction ManagerDallas Sandberg, Transaction Associate
One Broadway Suite A300 | Denver, CO 80203303.962.9555 | www.PinnacleREA.com
