Embed Size (px)
Citation preview
Investment Highlights: ■ Sophisticated Modern Design Constructed in
2013
■ Private Balconies and In-Unit Laundry
■ Complete Amenity Package
■ Ideal Location Adjacent to Central Business District
■ Attractive Floor Plans and Unit Mix
■ Additional Income Potential
■ LEED Silver Certification
■ New Financing Available
THE CLARKSON1756 Clarkson St.Denver, CO 80218
Price: $18,300,000Unit Mix: 51 - 1Bd/1Ba
9 - 2Bd/2Ba
Investment Summary:
MADISON COMMERCIAL Greg [email protected]
Kyle [email protected]
MADISON COMMERCIAL
THE CLARKSON
Please note, all information furnished in this presentation regarding this property for sale has been secured from sources we believe to be reliable. However, we accept no responsibility for its correctness and encourage the verification of all numbers prior to making any financial decisions. We owe duties to the Seller, which include utmost good faith. We negotiate on behalf of and act as advocate for the Seller. Please do not tell us any information that you do not want shared with the Seller. You are not legally responsible for our actions. Although we do not represent you, we will disclose to you all adverse material facts about the property actually known to us. We will assist you without regard to race, creed, sex, religion, national origin, familial status or handicap.
# Units Unity Type Avg. SqFt Current Rents Proforma Rents
51 1Br/1Ba 641 $1,275-$1,650 $1,375-$1,775
9 2Br/2Ba 935 $1,600-$2,450 $1,725-$2,650
INCOME Current Year 1
Gross Annual Rent: $1,073,880 $1,170,529
Vacancy Allowance: ($32,216) ($35,116)
Price: $18,300,000 Net Rental Income: $1,041,664 $1,135,413
Price/Unit: $305,000 Utility Income: $21,298 $21,937
Price/SqFt: $373.20 Parking Income: $0 $36,000
Other Income: $37,890 $39,027
Effective Gross Income: $1,100,852 $1,174,440
ESTIMATED EXPENSES Current Year 1
Property Taxes: $73,583 $88,300
Insurance: $13,836 $14,251
Loan Amount: $11,895,000 Utilities: $45,384 $46,745
Down Payment: $6,405,000 Repairs & Maintenance: $33,606 $34,614
Interest Rate: 3.82% Professional Management: $47,144 $61,619
Monthly Payment: $37,866 Office/Admin: $3,326 $3,425
10-Year Fixed Rate Interest Only for 5yrs Leasing & Advertising: $11,447 $11,791Total Expenses: $228,325 $260,745Expense/Unit: $3,805 $4,346
Net Operating Income (NOI) $872,527 $913,696
Units: 60 Current Year 1
Year Built: 2013 NOI: $872,527 $913,696
Building Size (SqFt): 49,035 Projected Debt Service: ($454,389) ($454,389)
Lot Size (SqFt): 18,145 Before Tax Cash Flow: $418,138 $459,307
CAP Rate: 4.77% 5.31%
Cash-on-Cash Return: 6.53% 8.08%
Principle Reduction (yr. 1): $223,081 $223,081
Total Return: 6.53% 8.08%
FINANCIAL ANALYSIS
INVESTMENT SUMMARY
UNIT MIX AND AVERAGE RENT SCHEDULE
FINANCING
OPERATING DATA
PROPERTY DESCRIPTION
Greg [email protected]
Kyle [email protected]
# Units Unity Type Avg. SqFt Current Rents Proforma Rents
51 1Br/1Ba 641 $1,275-$1,650 $1,375-$1,775
9 2Br/2Ba 935 $1,600-$2,450 $1,725-$2,650
INCOME Current Year 1
Gross Annual Rent: $1,073,880 $1,170,529
Vacancy Allowance: ($32,216) ($35,116)
Price: $18,300,000 Net Rental Income: $1,041,664 $1,135,413
Price/Unit: $305,000 Utility Income: $21,298 $21,937
Price/SqFt: $373.20 Parking Income: $0 $36,000
Other Income: $37,890 $39,027
Effective Gross Income: $1,100,852 $1,174,440
ESTIMATED EXPENSES Current Year 1
Property Taxes: $73,583 $88,300
Insurance: $13,836 $14,251
Loan Amount: $11,895,000 Utilities: $45,384 $46,745
Down Payment: $6,405,000 Repairs & Maintenance: $33,606 $34,614
Interest Rate: 3.82% Professional Management: $47,144 $61,619
Monthly Payment: $37,866 Office/Admin: $3,326 $3,425
10-Year Fixed Rate Interest Only for 5yrs Leasing & Advertising: $11,447 $11,791Total Expenses: $228,325 $260,745Expense/Unit: $3,805 $4,346
Net Operating Income (NOI) $872,527 $913,696
Units: 60 Current Year 1
Year Built: 2013 NOI: $872,527 $913,696
Building Size (SqFt): 49,035 Projected Debt Service: ($454,389) ($454,389)
Lot Size (SqFt): 18,145 Before Tax Cash Flow: $418,138 $459,307
CAP Rate: 4.77% 5.31%
Cash-on-Cash Return: 6.53% 8.08%
Principle Reduction (yr. 1): $223,081 $223,081
Total Return: 6.53% 8.08%
FINANCIAL ANALYSIS
INVESTMENT SUMMARY
UNIT MIX AND AVERAGE RENT SCHEDULE
FINANCING
OPERATING DATA
PROPERTY DESCRIPTION
# Units Unity Type Avg. SqFt Current Rents Proforma Rents
51 1Br/1Ba 641 $1,275-$1,650 $1,375-$1,775
9 2Br/2Ba 935 $1,600-$2,450 $1,725-$2,650
INCOME Current Year 1
Gross Annual Rent: $1,073,880 $1,170,529
Vacancy Allowance: ($32,216) ($35,116)
Price: $18,300,000 Net Rental Income: $1,041,664 $1,135,413
Price/Unit: $305,000 Utility Income: $21,298 $21,937
Price/SqFt: $373.20 Parking Income: $0 $36,000
Other Income: $37,890 $39,027
Effective Gross Income: $1,100,852 $1,174,440
ESTIMATED EXPENSES Current Year 1
Property Taxes: $73,583 $88,300
Insurance: $13,836 $14,251
Loan Amount: $11,895,000 Utilities: $45,384 $46,745
Down Payment: $6,405,000 Repairs & Maintenance: $33,606 $34,614
Interest Rate: 3.82% Professional Management: $47,144 $61,619
Monthly Payment: $37,866 Office/Admin: $3,326 $3,425
10-Year Fixed Rate Interest Only for 5yrs Leasing & Advertising: $11,447 $11,791Total Expenses: $228,325 $260,745Expense/Unit: $3,805 $4,346
Net Operating Income (NOI) $872,527 $913,696
Units: 60 Current Year 1
Year Built: 2013 NOI: $872,527 $913,696
Building Size (SqFt): 49,035 Projected Debt Service: ($454,389) ($454,389)
Lot Size (SqFt): 18,145 Before Tax Cash Flow: $418,138 $459,307
CAP Rate: 4.77% 5.31%
Cash-on-Cash Return: 6.53% 8.08%
Principle Reduction (yr. 1): $223,081 $223,081
Total Return: 6.53% 8.08%
FINANCIAL ANALYSIS
INVESTMENT SUMMARY
UNIT MIX AND AVERAGE RENT SCHEDULE
FINANCING
OPERATING DATA
PROPERTY DESCRIPTION
# Units Unity Type Avg. SqFt Current Rents Proforma Rents
51 1Br/1Ba 641 $1,275-$1,650 $1,375-$1,775
9 2Br/2Ba 935 $1,600-$2,450 $1,725-$2,650
INCOME Current Year 1
Gross Annual Rent: $1,073,880 $1,170,529
Vacancy Allowance: ($32,216) ($35,116)
Price: $18,300,000 Net Rental Income: $1,041,664 $1,135,413
Price/Unit: $305,000 Utility Income: $21,298 $21,937
Price/SqFt: $373.20 Parking Income: $0 $36,000
Other Income: $37,890 $39,027
Effective Gross Income: $1,100,852 $1,174,440
ESTIMATED EXPENSES Current Year 1
Property Taxes: $73,583 $88,300
Insurance: $13,836 $14,251
Loan Amount: $11,895,000 Utilities: $45,384 $46,745
Down Payment: $6,405,000 Repairs & Maintenance: $33,606 $34,614
Interest Rate: 3.82% Professional Management: $47,144 $61,619
Monthly Payment: $37,866 Office/Admin: $3,326 $3,425
10-Year Fixed Rate Interest Only for 5yrs Leasing & Advertising: $11,447 $11,791Total Expenses: $228,325 $260,745Expense/Unit: $3,805 $4,346
Net Operating Income (NOI) $872,527 $913,696
Units: 60 Current Year 1
Year Built: 2013 NOI: $872,527 $913,696
Building Size (SqFt): 49,035 Projected Debt Service: ($454,389) ($454,389)
Lot Size (SqFt): 18,145 Before Tax Cash Flow: $418,138 $459,307
CAP Rate: 4.77% 5.31%
Cash-on-Cash Return: 6.53% 8.08%
Principle Reduction (yr. 1): $223,081 $223,081
Total Return: 6.53% 8.08%
FINANCIAL ANALYSIS
INVESTMENT SUMMARY
UNIT MIX AND AVERAGE RENT SCHEDULE
FINANCING
OPERATING DATA
PROPERTY DESCRIPTION
MADISON COMMERCIAL
Property Highlights:SMART Features
■ Spacious Floor Plans and Ceiling Heights ■ Individually Metered Utility System ■ Secured Access Building ■ Underground Garage Parking (1:1 ratio) ■ LEED Silver Certification
STYLISH Features ■ Balconies with City & Mountain Views ■ Elegant Wood Cabinetry ■ Granite Counters and Stainless Steel
Appliances ■ Rich Flooring and Finishes ■ Attractive Resident Lounge
MODERN Features ■ Rooftop Deck with Fire Pit ■ In-Unit Washer/Dryer ■ Gourmet Coffee Station ■ Smoke-Free Building ■ Fitness Center with Amazing Views
Greg [email protected]
Kyle [email protected]
THE CLARKSON
MADISON COMMERCIAL
Location Highlights:The Clarkson is located in Uptown, one of Denver’s oldest residential neighborhoods. Sunset Magazine calls Uptown “one of Denver’s hippest ‘hoods, with lively new restaurants, chic shops and a cheery, progressive vibe.”
An ideal location for the Denver urbanite, The Clarkson is:
■ Just steps from Denver’s “Restaurant Row”
■ 6 blocks east of downtown and state capitol
■ 1 mile west of City Park - Denver’s premier park with miles of jogging and biking paths, a golf course and the Museum of Nature and Science
THE CLARKSON
Greg [email protected]
Kyle [email protected]
THE CLARKSON
modern
soph
istica
ted
sleek
MADISON COMMERCIAL Greg [email protected]
Kyle [email protected]
THE CLARKSON
MADISON COMMERCIAL
5 Year Projection:THE CLARKSON
Five-Year Projected Cash FlowsCurrent Year 1 Year 2 Year 3 Year 4 Year 5
IncomeGross Potential Rent 1,073,880 1,170,529 1,217,350 1,266,044 1,316,686 1,369,354 Vacancy (32,216) (35,116) (36,521) (37,981) (39,501) (41,081) Total Operating Income 1,041,664 1,135,413 1,180,830 1,228,063 1,277,186 1,328,273
Utility Reimbursement 21,298 21,937 22,596 23,499 24,439 25,417 Parking - 36,000 37,080 38,192 39,338 40,518 Lease Termination 25,769 26,542 27,338 28,158 29,003 29,873 Other Income 12,121.49 12,485 12,860 13,245 13,643 14,052 Gross Potential Income 59,189 96,965 99,873 103,096 106,424 109,861
Total Income 1,100,852 1,232,378 1,280,703 1,331,159 1,383,609 1,438,134
ExpensesProperty Taxes 73,583 88,300 88,300 90,949 90,949 93,677 Insurance 13,836 14,251 14,679 15,266 15,876 16,511 Utilities 45,384 46,745 48,615 50,074 51,576 53,123 Repairs & Maintenance 33,606 34,614 64,035 66,558 69,180 71,907 Professional Management 47,144 61,619 64,084 66,006 67,986 70,026 Office/Administrative 3,326 3,425 3,562 3,669 3,779 3,893 Leasing/Advertising 11,447 11,791 12,262 12,630 13,009 13,399 Total Expenses 228,325 260,745 295,537 305,151 312,356 322,536
Net Operating Income 872,527 971,633 985,166 1,026,007 1,071,253 1,115,597
Five-Year IRR AnalysisYear 1 Year 2 Year 3 Year 4 Year 5
Acquisition Cost (18,300,000) Reversion Proceeds 21,036,978 Cash Flow Before Debt (18,300,000) 971,633 985,166 1,026,007 1,071,253 22,152,576 Unleveraged 5 yr. IRR 8.16%Annual CAP rate 5.31% 5.38% 5.61% 5.85% 6.10%
New Loan 11,895,000 New Loan Fee (118,950) Debt Service (454,389) (454,389) (454,389) (454,389) (454,389) Cash Flow After Debt (6,523,950) 517,244 530,777 571,618 616,864 10,971,040 Leveraged 5yr. IRR 16.98%Annual Cash-on-cash - 8.08% 8.29% 8.92% 9.63% 10.32%
Projection AssumptionsYear 1 Year 2 Year 3 Year 4 Year 5
Market Rent - Annual Increases 9.0% 4.0% 4.0% 4.0% 4.0%Vacancy rate 3.0% 3.0% 3.0% 3.0% 3.0%Utility Income - Annual Increases 3.0% 3.0% 4.0% 4.0% 4.0%Other Income - Annual Increases 3.0% 3.0% 3.0% 3.0% 3.0%Property Tax - Annual Increases 20.0% 0.0% 3.0% 0.0% 3.0%Operating Expenses - Annual Increases 3.0% 4.0% 3.0% 3.0% 3.0%Utility Expense - Annual Increases 3.0% 3.0% 4.0% 4.0% 4.0%Management Fee (% of Income) 5.0% 5.0% 5.0% 5.0% 5.0%
Reversion Assumptions5-Year Hold
Exit CAP Rate 5.25%NOI in year of sale 1,115,597$ Exit Price 21,249,473$ per Unit 354,158$ per gross SqFt 561$ Sales Costs 212,495$ Sale Proceeds 21,036,978$ Loan Balance 10,727,147$ Net Proceeds 10,309,831$
Greg [email protected]
Kyle [email protected]
MADISON COMMERCIAL Greg [email protected]
Kyle [email protected]
THE CLARKSON
Ten-Year Projected Cash FlowsYear 6 Year 7 Year 8 Year 9 Year 10
IncomeGross Potential Rent 1,410,434 1,452,747 1,496,330 1,541,220 1,587,456 Vacancy (42,313) (50,846) (59,853) (61,649) (63,498) Total Operating Income 1,368,121 1,401,901 1,436,476 1,479,571 1,523,958
Utility Reimbursement 26,434 27,491 28,591 29,734 30,924 Parking 41,734 42,986 44,275 45,604 46,972 Lease Termination 30,769 31,693 32,643 33,623 34,631 Other Income 14,474 14,908 15,355 15,816 16,290 Gross Potential Income 113,411 117,077 120,864 124,776 128,817
Total Income 1,481,532 1,518,978 1,557,341 1,604,347 1,652,775
ExpensesProperty Taxes 93,677 96,487 96,487 99,382 99,382 Insurance 17,172 17,859 18,573 19,316 20,089 Utilities 54,717 56,358 58,049 59,790 61,584 Repairs & Maintenance 74,077 75,949 77,867 80,217 82,639 Professional Management 72,127 74,291 76,519 78,815 81,179 Office/Administrative 4,009 4,130 4,254 4,381 4,513 Leasing/Advertising 13,801 14,216 14,642 15,081 15,534 Total Expenses 329,580 339,289 346,391 356,983 364,919
Net Operating Income 1,151,952 1,179,689 1,210,950 1,247,364 1,287,856
Ten-Year IRR AnalysisYear 6 Year 7 Year 8 Year 9 Year 10
Acquisition Cost (18,300,000) Reversion Proceeds 23,181,402 Cash Flow Before Debt (18,300,000) 1,151,952 1,179,689 1,210,950 1,247,364 24,469,258 Unleveraged 10 yr. IRR 7.88%Annual CAP rate - 6.29% 6.45% 6.62% 6.82% 7.04%
New Loan 11,895,000 New Loan Fee (118,950) Debt Service (666,734) (666,734) (666,734) (666,734) (666,734) Cash Flow After Debt (6,523,950) 485,218 512,956 544,216 580,630 14,488,587 Leveraged 10yr. IRR 14.31%Annual Cash-on-cash - 7.58% 8.01% 8.50% 9.07% 9.70%
Projection AssumptionsYear 6 Year 7 Year 8 Year 9 Year 10
Market Rent - Annual Increases 3.0% 3.0% 3.0% 3.0% 3.0%Vacancy rate 3.0% 3.5% 4.0% 4.0% 4.0%Utility Income - Annual Increases 4.0% 4.0% 4.0% 4.0% 4.0%Other Income - Annual Increases 3.0% 3.0% 3.0% 3.0% 3.0%Property Tax - Annual Increases 0.0% 3.0% 0.0% 3.0% 0.0%Operating Expenses - Annual Increases 3.0% 3.0% 3.0% 3.0% 3.0%Utility Expense - Annual Increases 4.0% 4.0% 4.0% 4.0% 4.0%Management Fee (% of Income) 5.0% 5.0% 5.0% 5.0% 5.0%
Reversion Assumptions10-Year Hold
Exit CAP Rate 5.50%NOI in year of sale 1,287,856$ Exit Price 23,415,558$ per Unit 390,259$ per gross SqFt 618$ Sales Costs 234,156$ Sale Proceeds 23,181,402$ Loan Balance 9,313,937$
13,867,465$
10 Year Projection:
MADISON COMMERCIAL
One City Block (Uptown - 444 E. 19th Ave. - 302 Total Units)
Unit Type Sq Ft Avg Rent Avg Rent/Sq FtStudio 459-577 $1,290-$1,685 $2.83
1Bd/1Ba 557-865 $1,515-$1,975 $2.61
2Bd/1Ba 985-1,153 $2,195-$2,345 $2.28
Cruise (Uptown - 1899 Gaylord St. - 61 Total Units)
Unit Type Sq Ft Avg Rent Avg Rent/Sq FtStudio 410 $980-$1,000 $2.41
1Bd/1Ba 504-682 $1,315-$1,470 $2.38
2Bd/2Ba 759 $1,725 $2.27
Cadence (Union Station/LoDo - 1920 17th St. - 219 Total Units)
Unit Type Sq Ft Avg Rent Avg Rent/Sq FtStudio 553-616 $1,475-$1,700 $2.71
1Bd/1Ba 790-913 $1,775-$2,425 $2.45
2Bd/2Ba 1019-1081 $2,500-$3,000 $2.61
The Logan (Capitol Hill - 619 Logan St. - 57 Total Units)
Unit Type Sq Ft Avg Rent Avg Rent/Sq FtStudio 468-504 $1,125-$1,325 $2.39
1Bd/1Ba 468-738 $1,290-$1,595 $2.16
2Bd/2Ba 846 $1,699-$1,890 $2.12
Greg [email protected]
Kyle [email protected]
THE CLARKSON
My Block Wash Park (Wash Park - 255 Washington St. - 107 Total Units)
Unit Type Sq Ft Avg Rent Avg Rent/Sq FtStudio N/A N/A N/A
1Bd/1Ba 584-987 $1,525-$2,895 $2.74
2Bd/2Ba 871-1,072 $2,765-$2,995 $2.97
Rent Comps:
The ClarksonUptown - 1756 Clarkson St.60 Total Units
Unit Type: StudioSq Ft: N/AAvg Rent: N/AAvg Rent/Sq Ft: N/A
Unit Type: 1Bd/1BaSq Ft: 616-731Avg Rent: $1,275-$1,650Avg Rent/Sq Ft: $2.20
Unit Type: 2Bd/2BaSq Ft: 927-965 Avg Rent: $1,600-$2,450Avg Rent/Sq Ft: $2.07
MADISON COMMERCIAL Greg [email protected]
Kyle [email protected]
THE CLARKSONArea Demographics:
Radius 1 Mile 3 Mile 5 Mile Population:
2019 Projection 49,089 228,803 511,065 2014 Estimate 43,608 203,534 458,255 2010 Census 39,040 183,132 419,709 Growth 2014-2019 12.57% 12.42% 11.52%Growth 2010-2014 11.70% 11.14% 9.18%2014 Population Hispanic Origin 5,770 49,899 149,709
2014 Population by Race:White 35,404 169,318 383,521 Black 5,014 19,363 37,229 American Indian & Alaskan 723 4,007 10,565 Asian 1,022 4,805 13,606 Hawaiian & Pacific Island 31 224 570 Other 1,414 5,816 12,764
Households:2019 Projection 31,498 119,422 233,604 2014 Estimate 27,905 105,932 208,892 2010 Census 24,908 94,999 190,855 Growth 2014-2019 12.88% 12.73% 11.83%Growth 2010-2014 7.23% 6.39% 5.41%Owner Occupied 6,494 41,535 95,473 Renter Occupied 21,411 64,396 113,420
2014 Avg Household Income $58,043 $78,522 $74,5342014 Med Household Income $39,813 $51,921 $49,7392014 Households by Household Inc:
<$25,000 9,651 28,899 56,641 $25,000 - $50,000 6,704 22,677 48,247 $50,000 - $75,000 4,389 16,583 33,419 $75,000 - $100,000 2,837 11,447 23,074 $100,000 - $125,000 1,574 7,436 14,058 $125,000 - $150,000 897 4,580 8,807 $150,000 - $200,000 1,048 6,100 10,910 $200,000+ 805 8,208 13,736
Source: CoStar
MADISON COMMERCIAL
1Bd/1Ba616 Sq Ft32 Units
1Bd/1Ba651 Sq Ft
6 Units
1Bd/1Ba664 Sq Ft
6 Units
Greg [email protected]
Kyle [email protected]
THE CLARKSON
Floor Plans:
MADISON COMMERCIAL
2Bd/2Ba 933 Sq Ft
6 Units
Greg [email protected]
Kyle [email protected]
THE CLARKSON
1Bd/1Ba731 Sq Ft
6 Units
Additional Floor Plans Available Upon Request
Floor Plans:
MADISON COMMERCIAL
THE CLARKSON
Greg [email protected]
Kyle [email protected]
Property tours are available by appointment only.
The Clarkson is exclusively offered for sale by Kyle Malnati & Greg Johnson of Madison Commercial Properties, a Denver-based commercial real estate group specializing in apartment brokerage and investment sales in Central Denver.
Madison Commercial Properties is a division of Madison & Company Properties
View from Roof Top Deck
Broker Contacts:
![Singer, Brian & Fedorinchik, Greg – Investment Leadership ... · Singer, Brian & Fedorinchik, Greg – Investment Leadership and Portfolio Management John Wiley & Sons, 2010, [Finance]](https://img.pdfslide.net/doc/110x75/5b4ca20e7f8b9acc378b48fc/singer-brian-fedorinchik-greg-investment-leadership-singer-brian.jpg)
