Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
OFFERING MEMORANDUM9900 E FLORIDA AVEDenver, CO 80247
For More Information Contact
JASON KOCHCo-Founder/Principal
303.918.8909 | [email protected] |
ADAM RIDDLECo-Founder/Principal
303.257.7627 | [email protected] |
Property Overview
Property Photos
Maps
Financials
Location Overview
Demographics
The Nexus People
TABLE OFCONTENTS
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
PROPERTYOVERVIEW
PROPERTY OVERVIEWProperty Name: Cherry Creek Square
Address: 9900 E Florida Ave
Denver, CO 80247
Units: 56
Building SF: 39,600 SF
Parking: 75 Spaces
Land: 2.58 AC
Zoning: R3
Year Built: 1957
SYSTEMSGas/Elec Meters: Separate/SeparateWater: MasterTrash: Waste Magament Roof: Pitched Heating: FurnaceCooling: Walls Units
Purchase Price
Per Unit
Price Per SF
$8,200,000
$151,786
$215
Turnkey asset located in Cherry Creek School District.
Property has newer windows, new exterior paint, pitched roofs, and an updated boiler system.
Built in BBQ's and picnic tables in gazebo area.
INVESTMENT HIGHLIGHTS Turned & updated 50 of the units that includes upgrades to the floorings, kitchens, baths, lighting, and more!
New dog park.
Bocce ball play area.
Laundry room renovations.
INVESTMENT SUMMARY
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
PROPERTYPHOTOS
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
PROPERTYPHOTOS
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
PROPERTYPHOTOS
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
S D
AYTO
N S
T
E FLORIDA AVE
N
PROPERTYAERIAL
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
CHERRY CREEK STATE PARK
DENVERSUBMARKET
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
9900 EAST FLORIDA AVE
ALAMEDA AVE
Dowtown Denver15 Minutes
LEETSDALE DR
GLENDALE
LOWRY
S HAVA
NA ST
Purchase Price:
Units:
Price Per Unit:
Total SF:
Price Per SF:
T6 Cap Rate:
Year 1 Cap Rate:
Year 1 Cash Flows:
$8,200,000
56
$146,429
39,600
$207
5.77%
5.99%
$179,702
INVESTMENT SUMMARY
Loan to Value:
Loan Amount:
Loan Term:
Interest Rate:
Interest Only Period:
Amortization:
80.00%
$6,560,000
30
4.75%
12 Months
30 Years
DEBT SUMMARY
INVESTMENTSUMMARY
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
RENT ROLLANALYSIS
Unit Type
1 Bed / 1 Bath
2 Bed / 1 Bath
Total / Average
Unit Amount
40
16
56
Unit SF
527
806
1,333
Current Ave. Rent
$930
$1,141
$2,071
Current Rent / SF
$1.77
$1.42
$3.18
Market Rent
$952
$1,169
$2,121
Market Rent / SF
$1.81
$1.45
$3.26
UNIT SUMMARY:
$1,359$1,200
$1,000
$800
$600
$400
$200
$0 Earlier May-19Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Later
LOSS TO LEASE BURN-OFF
1 Bed 2 Bed
Net Loss to Lease Gain to Lease
LEASE EXPIRATION SCHEDULE
1514
12
10
8
6
4
2
0Earlier May-19Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Later
# of
Uni
ts
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
FINANCIALS
REVENUE
Gross Potential Revenue
(Vacancy)
Rental Revenue
Expense Reimbursement
Other Income
Effective Gross Revenue
EXPENSES
Repairs and Maintenance
Utilities
Insurance
Real Estate Taxes
Property Management
Admin and Other
Total Expenses
Expenses Per Unit
Net Operating Income
Cap Rate
Debt Service - Yr 1
Total Cash Flow
Cash on Cash Return
T12
$664,348
($45,508)
$618,840
$31,912
$99,628
$750,380
($95,205)
($67,137)
($16,800)
($37,296)
($48,460)
($12,486)
($277,384)
($4,953)
$472,996
5.77%
($311,600)
$161,396
9.84%
Year 1
$681,480
($34,074)
$647,406
$32,026
$90,000
$769,432
($95,951)
($67,137)
($16,800)
($37,296)
($48,460)
($12,486)
($278,130)
($4,967)
$491,302
5.99%
($311,600)
$179,702
10.96%
Year 2
$701,924
($35,096)
$666,828
$32,987
$92,700
$792,515
($98,830)
($69,151)
($17,304)
($38,415)
($49,914)
($12,861)
($286,474)
($5,116)
$506,041
6.17%
($410,641)
$95,400
5.82%
Year 3
$722,982
($36,149)
$686,833
$33,977
$95,481
$816,291
($101,794)
($71,226)
($17,823)
($39,567)
($51,411)
($13,246)
($295,068)
($5,269)
$521,223
6.36%
($410,641)
$110,582
6.74%INC
OM
E
ST
AT
EM
EN
T
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
Denver, officially the City and County of Denver, is the capital and most populous municipality of the U.S. state of Colorado. Denver is in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains. The Denver downtown district is immediately east of the confluence of Cherry Creek with the South Platte River, approximately 12 mi east of the foothills of the Rocky Mountains. Denver is nicknamed the Mile-High City because its official elevation is exactly one mile above sea level, making it the highest major city in the United States.
Denver is ranked as a Beta- world city by the Globalization and World Cities Research Network. With an estimated population of 693,060 in 2016, Denver is the 19th-mostpopulous U.S. city, and with a 15.48% increase since the 2010 United States Census, it has been one of the fastest-growing major cities in the United States. The 10-countyDenver-Aurora-Lakewood, CO Metropolitan Statistical Area had an estimated 2016 population of 2,853,077 and is the 19th most populous U.S. metropolitan statistical area. The 12-city Denver-Aurora, CO Combined Statistical Area had an estimated 2016 population of 3,470,235 and is the 16th most populous U.S. metropolitan area. Denver is the most populous city of the 18-county Front Range Urban Corridor, an oblong urban region stretching across two states with an estimated 2016 population of 4,833,260. Denver is the most populous city within a 500-mile radius and the second-most populous city in the Mountain West after Phoenix, Arizona. In 2016, Denver was named the best place to live in the USA by U.S. News & World Report.
The Denver MSA has a gross metropolitan product of $157.6 billion in 2010, making it the 18th largest metro economy in the United States. Denver's economy is basedpartially on its geographic position and its connection to some of the country's major transportation systems. Because Denver is the largest city within 500 miles, it hasbecome a natural location for storage and distribution of goods and services to the Mountain States, Southwest states, as well as all western states. Another benefit fordistribution is that Denver is nearly equidistant from large cities of the Midwest, such as Chicago and St. Louis and some large cities of the West Coast, such as Los Angeles.
LOCATION OVERVIEW
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
PROPOSAL TO MARKET
THE CITY OF DENVER’S NOTABLE RANKINGS
#1 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT, 2016)
#1 IN ECONOMIC & JOB GORWTH
(AREA DEVELOPMENT, 2015)
AMERICA’S BEST PLACE FOR
BUSINESS & CAREERS (FORBES, 2015 & 2016)
2ND BEST BEER CITY IN AMERICA
(LIVIABILITY, 2014)
7TH BEST STATE IN WHICH TO
MAKE A LIVING (FORBES 2015)
3RD BEST CITY FOR COLLEGE GRADS
(RENT.COM, 2015)
6TH FASTEST GROWING METRO
AREA IN THE U.S. (FORBES, 2016)
2ND BEST TECH STATE
(THE MILKEN INSTITUTE, 2016)
4TH BEST CITYFOR BIKE RIDING
IN THE U.S. (WALK SCORE, 2015)
3RD HEALTHIST CITYIN THE NATION
(FORBES, 2016)
#1 IN THE NATION FOR LARGEST INCREASE IN
RESIDENTS WITH COLLEGE DEGREES
(U.S. CENSUS BUREAU, 2014)
TOP 10 PLACESIN THE U.S. TO TRAVEL
(LONELY PLANET, 2016)
ADAM RIDDLECo-Founder/Principal
| 303.257.7627| 303.257.7627 AAA| [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
DENVER GROWTH
PROPOSAL TO MARKET
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 693,000 residents (as of July 2016). An estimated 2.9 million people live in the 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.
ConstructionAs 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 & Curtis Street, 360-unit apartment building linked to a 9-story office building and 6 story parking structure.Skyhouse Denver, a 354-unit apartment with street level retail.Block 162, a full block project that included a 606,500-sq. ft. officetower and a separate hotel tower.Tabor Center Tower Two, a 31 story 700,000 sq. ft. office towerwould be the largest developed in Denver since 1985.1144 Fifteenth St, a 40-story office tower with street level retail.
*Some of this information is sourced from denverpost.com
ADAM RIDDLECo-Founder/Principal
| 303.257.7627| 303.257.7627 AAA| [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
DENVER INTERNATIONAL AIRPORT
PROPOSAL TO MARKET
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. 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 58 Million passengers in 2016.
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. The Denver City Council recently approved a $1.8 billion set of contracts for gate expansion at DIA. The project will add 39 gates across all three concourses in the next four years. The expansion will utilize the airport’s original “telescoping” design by expanding eastward and westward at the ends.
DIA is among the first airports in North America to secure internationally recognized accreditation for measuring and reducing carbon emissions.
*Some of this information was sourced from Denver Post.
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
LIGHT RAIL
PROPOSAL TO MARKET
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 revitalizingneighborhoods across the Denver metro, including Five Points and WestColfax. An average of 64,000 people utilize the light rail each day, making iteighth-largest system in the country, even though Denver is 21st in the nationin terms of population.
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
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
PROPOSAL TO MARKET
ADAM RIDDLECo-Founder/Principal
| 303.257.7627| 303.257.7627 AAA| [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
EMPLOYERS IN THE DENVER METRO
The 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 Denver International Airport, Lockheed Martin,
Health ONE Corporation, Centura Health, SCL Health Systems, Comcast,
CenturyLink, Kaiser Permanente, Liberty Tax Service, Western Union, University of
Colorado, Children’s Hospital, and Wells Fargo. 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
Several Fortune 500 companies with headquarters in the Denver metro including:
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/
PROPOSAL TO MARKET
ADAM RIDDLECo-Founder/Principal
| 303.257.7627| 303.257.7627 AAA| [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
LOWRY
Lowry is a newer eastern Denver neighborhood located on the site of the former Lowry Air Force Base, just 10 minutes away from Downtown Denver. Lowry is ranked by 5280 Magazine as one of the top 5 neighborhoods in the Denver Metro. Average home value in Lowry is $610,000, up 8.9% from the previous year.
Lowry Town Center offers a wide variety of shopping, restaurants, and fitness facilities. This shopping hub features stylish fashion, affordable jewelry, unique gifts, locally made toys, and more. Dining experiences range from ethnic to casual, with the Lowry Beer Garden being a neighborhood favorite. Lowry is also home to 17 parks and open spaces, including:
City of Ulaanbaatar Park Lowry Sports Complex Lowry Dog Park Reading Garden
Wings Over the Rockies Air and Space Museum, is a local landmark in Lowry. It is also the site of the Colorado Aviation Historical Society's Colorado Aviation Hall of Fame. The museum includes more than 182,000 square feet of hangar space and 50 iconic aircraft dating from 1939 to 1990. In addition to viewing iconic aircraft, space vehicles, artifacts, military uniforms, and more, visitors can experience thrilling flight simulators, discover the learning center, and participate in dozens of exciting museum sponsored events. The Hangar can also be rented out for private events for an unforgettable experience.
*Some information sourced from wingsmuseum.org
PROPOSAL TO MARKET
ADAM RIDDLECo-Founder/Principal
| 303.257.7627| 303.257.7627 AAA| [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
2017 Summary
Population
Households
Families
Average Household Size
Owner Occupied Housing Units
Renter Occupied Housing Units
Median Age
Median Household Income
Average Household Income
2022 Summary
Population
Households
Families
Average Household Size
Owner Occupied Housing Units
Renter Occupied Housing Units
Median Age
Median Household Income
Average Household Income
1 Mile
25,034
12,017
5,600
2.08
4,050
7,967
36.0
$49,343
$67,818
1 Mile
27,272
12,985
6,059
2.10
4,417
8,568
36.0
$55,087
$79,088
3 Miles
188,745
86,181
42,978
2.17
37,735
48,447
36.6
$48,933
$68,461
3 Miles
204,354
92,984
46,160
2.18
40,662
52,322
36.9
$54,764
$79,264
5 Miles
477,176
206,458
107,639
2.27
96,581
109,877
35.8
$53,650
$82,494
5 Miles
517,025
223,448
115,785
2.28
104,171
119,278
36.2
$60,761
$94,931
5 MILES
3 MILES
1 MILE
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
DEMOGRAPHICS
ADAM RIDDLECo-Founder/Principal
| 303.257.7627 | [email protected]
JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]
The Nexus People
ADAM [email protected]
KIM ROYSales & Operations [email protected]
AUSTIN SMITH Investment Advisor303.868.9096 [email protected]
WALLIS HUTCHENS Office Manager 828.850.9033 [email protected]
SEAN HOLAMON InvestmentAdvisor806.789.9799 [email protected]
KEVIN WOOLSEYAnalyst [email protected]
Not your average brokers.As a team, we might not appear as your typical brokerage - and that’s by design. Even though we’ve been in the industry for more
than two decades, we are as enthusiastic, energetic and collaborative as when we first started. At Nexus, there is no internal competition because our purpose is aligned. This reduces internal competition and makes us more productive on a per
broker/agent basis. We love coming to work everyday because we love helping our clients achieve their goals. You might find us in jeans instead of slacks, outside meeting people instead of in our office. We do things differently because we are different.
JASON KOCH Co-FounderPrincipal 303.918.8909 [email protected]
SHANNON LACKEYExecutive Assistant/Transaction Coordinator 707.332.5907 [email protected]
ROBERT GRAYInvestmentAdvisor713.857.3054 [email protected] Springs Office
9900 E FLORIDA AVEDENVER, CO
For More Information Contact
JASON KOCHCo-Founder/Principal
303.918.8909 | [email protected] |
ADAM RIDDLECo-Founder/Principal
303.257.7627 | [email protected] |