PROSPECT PLAZA APARTMENTS€¦ · ON MARKET COMPARABLES SALES COMPS AVG ON MARKET COMPS AVG PROSPECT PLAZA APARTMENTS Avg. 7.58% Avg. 8.30% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

PROSPECT PLAZA APARTMENTS

OFFERING MEMORANDUM PRESENTED BY:GREG PRICE & GREG PARKER

1965CONSTRUCTION

48UNITS

TRINIDADCOLORADO

E X C L U S I V L Y L I S T E D B Y :

Greg Price

First Vice President Investments

Senior Director - National Multi Housing Group

Denver Office

Tel: (303) 328-2047

Fax: (303) 328-2010

[email protected]

License: CO FA40026598

Greg Parker

Associate

Associate Member - National Multi Housing Group

Denver Office

Tel: (303) 328-2015

Fax: (303) 328-2010

[email protected]

License: CO FA.100074810


OFFERING SUMMARY

THE OFFERING

Property Prospect Plaza Apartments

Price $2,550,000

Property Address 500 State St, Trinidad, CO

Assessors Parcel Number 10083600

SITE DESCRIPTION

Number of Units 48

Number of Buildings 3

Number of Stories 3

Year Built/Renovated 1965

Rentable Square Feet 24,450

Lot Size 0.64 acre(s)

Type of Ownership Fee Simple

Parking 72

Parking Ratio 1.5 per Unit

UTILITIES

Water Master Metered / Owner Pays

Electric Master Metered / Owner Pays

Gas Master Metered / Owner Pays

CONSTRUCTION

Foundation Concrete

Framing Wood Frame

Exterior Brick Masonry

Parking Surface Asphalt

Roof Pitched and Shingled

MECHANICAL

HVAC Three Central boilers & Window A/C

3


PROPOSED FINANCINGLoan Amount $1,912,500

Loan Type Proposed New

Interest Rate 5.0%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 75%

Debt Coverage Ratio 1.89


4

INVESTMENT

OVERVIEW



#

OFFERING SUMMARY

PROPERTY OVERVIEW

Prospect Plaza Apartments is a 48-unit multifamily community located in Trinidad, CO. Built in 1965, the

property boasts an attractive unit mix of (24) studio/one-bathroom units, (7) one-bedroom/one-bathroom units, and (17) two-bedroom/one-bathroom units. Current ownership has improved theproperty by upgrading units with modern fixtures, installing video patrol cameras throughout the

property, upgrading community laundry rooms, and adding a brand new roof to each of the threebuildings. Tenants enjoy complimentary Wi-Fi and basic cable. The units have air conditioning, and areequipped with dishwashers, garbage disposals, walk-in closets, Wi-Fi, and intercoms. Site amenities

include coin operated laundry facilities, on-site property manager and video patrol.

Additional value can be added by carpeting and painting common area stairwells and hallways as well

as continue unit upgrades as they turn over.

5

▪ Property Manager on Site

▪ Ample Off-Street Parking

Common Area Amenities

▪ Laundry Facilities

▪ Video Patrol

▪ Air Conditioning / Heating

Unit Amenities

▪ Dishwasher

▪ Walk-In Closets

▪ Wi-Fi / Basic Cable

▪ Intercom System With Each Unit

5

▪ High Yield Asset:

▪ 9.12% CAP

▪ 17.14% Cash-on-Cash Return

▪ Value Add Opportunity through

Continued Unit Renovations

▪ Limited Apartment Supply in Market

Investment Highlights



#

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER# OF

EMPLOYEES

Walmart 200

Mount San Rafael Hospital 179

Pense Brothers Drilling Co 83

Purgatoire Valley Cnstr Inc 80

Topar Welding 75

Danielson Dry Goods 73

Holiday Inn 70

South Cntl Bd Coop Eductl Svcs

66

Rocky Mtn Ser Early Lrng Ctr 65

Trinidad Head Start Day Care 65

State Brd For Commnty Colleges

61

Trinidad Middle School 60

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop

5,602 9,087 9,463

2016 Census Pop 6,189 9,995 10,399

2016 Estimate HH

2,393 3,792 3,941

2016 Census HH 2,618 4,133 4,291

Median HH Income

$35,471 $37,860 $38,277

Per Capita Income

$21,938 $22,459 $22,568

Average HH Income

$49,741 $51,493 $51,798

UNIT MIXNUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

24 Studio 450

7 One Bedroom 500

17 Two Bedroom 600

48 Total 24,500

VITAL DATAPrice $2,550,000 CURRENT YEAR 1

Down Payment 25% / $637,500 CAP Rate 9.12% 9.97%

Loan Amount $1,912,500 GRM 7.00 6.31

Loan Type Proposed NewNet Operating Income

$232,472 $254,290

Interest Rate / Amortization

5.0% / 30 YearsNet Cash Flow After Debt Service

17.14% / $109,272 20.56% / $131,069

Price/Unit $53,125 Total Return 21.57% / $137,488 25.22% / $160,749

Price/SF $104.08

Number of Units 48

Rentable Square Feet 24,500

Number of Buildings 3

Number of Stories 3

Year Built 1965

Lot Size 0.64 acre(s)

6


INTERIOR PHOTOS

PROSPECT PLAZA

7


INTERIOR PHOTOS

PROSPECT PLAZA

8


SAMPLE FLOOR PLANS

PROSPECT PLAZA

9

ONE BEDROOM TWO BEDROOM



OFFERING SUMMARY

10

Trinidad's location at the foot of Raton Pass, along the Santa Fe Trail between

St. Joseph, Missouri, and Santa Fe, New Mexico, has always made it afavored route for travelers. Today, Interstate 25, the most highly traveledroute between Colorado and New Mexico, passes through Trinidad. Located

75 miles south of Pueblo, Colorado, Trinidad is known as a beautiful andscenic city with a strong employment base. The city hosts a year roundcalendar of cultural events and live theater; it is home to the southern

Colorado repertory theater, which is a professional live theater group thatoffers performances almost every evening during the summer. Trinidad offersdowntown shopping with a mix of furniture, textiles, fine art, jewelry and

crafts from around the world.

The property’s central location provides residents with convenient access to

countless retail and eatery options, as well as numerous nearby schools andparks. Just 1.2 miles from the property is Trinidad Municipal Golf Course,which is one of the oldest courses in the state and has been recognized as

one of “Colorado’s Best Nine Hole Golf Courses” for years. Another commonTrinidad attraction is the A.R Mitchell Museum of Western Art. This museumis located half a mile from Prospect Plaza Apartments. Located less than two

miles from the property is San Rafael hospital. This medical and surgicalfacility is equipped with a 25 bed critical access facility serving the medicaland surgical needs of Trinidad residents and surrounding areas.

LOCATION OVERVIEW


Trinidad Economic Highlights

• Business Licenses Have Increased 54% from 2015 to 2017

• Downtown Vacancy Rates Have Been Reduced to 22% in January 2018 from

69% in 2013

• Investment in the Private Sector Estimated at $77 Million

• Lodging Tax Revenues Expected to see a Significant Increase with Addition

of 50-Room Hotel

TRINIDAD MUNICIPAL GOLF COURSE


OFFERING SUMMARY

11

Trinidad State Junior College is the oldest public community college in Colorado. It was established in 1925 and joined the public college system in 1968. Fallenrollment exceeded 2000 students alone with 45 faculty members and 127 instructors. The campus is located .3 miles from the property. TSJC is a two-year

college that offers 49 degree programs in academic or vocational fields.

EDUCATION

INFRASRUCTURE

TRANSPOTRION


The Trinidad Amtrak Station—located at 110 West Pine Street—is the closest public transportation and is just a three minute walk, or .2 miles, from the

Prospect Plaza Apartments, and provides an easy commute throughout Colorado. Additionally, the Greyhound Station is located just 2.8 miles from the property.

• I-25 runs northbound to Denver and Southbound to

Santa Fe and Albuquerque, NM• Highway 160 runs east to Springfield, CO• Highway 350 runs northeast to Junta, CO

• Highway 12, scenic highway of legends, runs westand loops to Trinidad

TRINIDAD STATE JUNIOR COLLEGE

1925BUILD

TRINIDAD STATE JUNIOR COLLEGE

2000STUDENTS

0.3 MILES AWAY


OFFERING SUMMARY

12

TRINIDAD REVITALIZATION NEWS


• “Phil Long Dealerships CEO Jay Cimino is spearheading a $30 million development near

downtown Trinidad that will include a classic car museum, brew pub, baseball training center,

hotel, movie theater and shopping center that he believes will bring tourists to the area…

Cimino said he and his partners plan to select a developer during the next few weeks to

renovate the six buildings on the site, which they acquired from the railroad, and add several

new structures that will look as if they were built in the early 1900s… “We estimate that La

Puerta will attract 175,000 visitors during the first six months and 225,000 visitors during the

first year, based on traffic counts that show 2.5 million people drive through Trinidad annually

on Interstate 25. That will provide a $75 million economic benefit for the city,” Cimino said.”

• “Community leaders said Wednesday that Trinidad soon will have a new energy, a spirit and a

sense of well-being thanks in part to El Pomar Foundation.” “Jay Cimino said the 1907 church and

adjacent music hall are becoming an integrated care facility combining medical, mental health

and other services to Trinidad.” "Mount Carmel will bring back the spirit of the city of champions

that once was for that great little city," Cimino said.

• “Trinidad Artspace is the demonstration project for Space to Create, a state-led initiative to

create affordable workforce housing and workspace in rural Colorado communities. Trinidad

Artspace will transform an entire downtown block on Main Street into artist live/work

housing, gallery, and flexible community space.” Estimated Project Cost: $14 million.

http://gazette.com/30m-development-planned-for-downtown-trinidad/article/150008

http://www.artspace.org/our-places/trinidad-artspace#tab-node_place_full_group_overview

https://www.chieftain.com/business/trinidad-wellness-center-gets-shot-in-the-

arm/article_1be945bc-1bcd-11e1-9e4f-001cc4c03286.html

http://gazette.com/30m-development-planned-for-downtown-trinidad/article/150008

http://www.artspace.org/our-places/trinidad-artspace#tab-node_place_full_group_overview

https://www.chieftain.com/business/trinidad-wellness-center-gets-shot-in-the-arm/article_1be945bc-1bcd-11e1-9e4f-001cc4c03286.html

PROSPECT PLAZA APARTMENTSPROSPECT PLAZA APARTMENTS

AERIAL MAP

Trinidad State Jr. College

Trinidad Middle School

Trinidad High School

Trinidad History Museum

Prospect Plaza

Trinidad Artspace

La Puerta de Colorado

Mt. Carmet Wellness & Community Center

14

Prospect Plaza Apartments

REGIONAL MAP

PUEBLO1 h 13 min (86.1 mi) via I-25 N

COLORADO SPRINGS1 h 51 min (127.6 mi) via I-25 N

DENVER2 h 53 min (198.0 mi) via I-25 N

Sante Fe, NM1 h 48 min (195 mi) via I-25 N



15

FINANCIAL

ANALYSIS


FINANCIAL ANALYSIS


RENT ROLL SUMMARY

16


FINANCIAL ANALYSIS


17

RENT ROLL DETAIL


FINANCIAL ANALYSIS


18

RENT ROLL DETAIL


FINANCIAL ANALYSIS


OPERATING STATEMENT

19


FINANCIAL ANALYSIS


NOTES

20


FINANCIAL ANALYSIS


PRICING DETAIL

21


FINANCIAL ANALYSIS


GROWTH RATE PROJECTIONS

22


FINANCIAL ANALYSIS


CASH FLOW

23



24

MARKET

COMPARABLES



SALES COMPARABLES MAP

25


(SUBJECT)

Cimarron Square

1906 Vinewood Ln

36-unit Portfolio

Casa Del Sol

La Morada

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5


PROPERTY NAMEPROSPECT PLAZA APARTMENTS

SALES COMPARABLES

26

SALES COMPARABLESSALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG


Avg. 7.58%

Avg. 8.30%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Prospect

Plaza

Apartments

Cimarron

Square

1906

Vinewood Ln

36-unit

Portfolio

Casa

Del Sol

La Morada

Average Cap Rate

Avg. $53,975

Avg. $56,667

$0

$6,000

$12,000

$18,000

$24,000

$30,000

$36,000

$42,000

$48,000

$54,000

$60,000

Prospect

Plaza

Apartments

Cimarron

Square

1906

Vinewood Ln

36-unit

Portfolio

Casa

Del Sol

La Morada

Average Price Per Unit

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


27

SALES COMPARABLES ON MARKET COMPARABLES

PROSPECT PLAZA APARTMENTS500 State St, Trinidad, CO, 81082

1

Close Of Escrow: 11/6/2016

Sales Price: $2,750,000

Price/Unit: $52,885

Price/SF: $40.02

CAP Rate: 7.50%

Total No. of Units: 52

Year Built: 1964

CIMARRON SQUARE1021 Ruppel St, Pueblo, CO, 81001

Units Unit Type

Close Of Escrow: 11/30/2016 12 2 Bdr 1 Bath

Sales Price: $650,000

Price/Unit: $54,167

Price/SF: $94.04

CAP Rate: 7.90%


Year Built: 1972

2

1906 VINEWOOD LN1906 Vinewood Ln, Pueblo, CO, 81005


Units Unit Type

Offering Price: $2,550,000 24 Studio

Price/Unit: $53,125 7 One Bdr

Price/SF: $104.08 17 Two Bdr

CAP Rate: 9.12%

GRM: 7.00


Year Built: 1965

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


28

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type


Sales Price: $1,800,000 30 2 Bdr 1 Bath

Price/Unit: $50,000

Price/SF: $236.84

CAP Rate: 7.90%


Year Built: 1972

3

NOTES

Includes 1691 Moore Avenue & 1936, 2018 Vinewood Lane

36-UNIT PORTFOLIO1691 Moore Ave, Pueblo, CO, 81005

4

Units Unit Type


Sales Price: $765,000

Price/Unit: $58,846

Price/SF: $52.85

CAP Rate: 7.00%


Year Built: 1995

CASA DEL SOL531 S Angus Ave, Pueblo, CO, 81007

Units Unit Type

On Market 1 1 Bdr 1 Bath

List Price: $340,000 5 2 Bdr 1 Bath

Price/Unit: $56,667

Price/SF: $98.38

CAP Rate: 8.30%


Year Built: 1929

5

LA MORADA520 W 11th St, Pueblo, CO, 81003



29

MARKET

OVERVIEW


PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on December 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Population 5,564 9,119 9,514

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2016 Estimate 6,392 9,938 10,433

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Households 2,397 3,847 4,005

▪ 2016 Estimate


Average (Mean) Household Size 2.25 2.27 2.27

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 0.17% 1.45% 1.62%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2021 Projection 2,397 3,847 4,005

2016 Estimate 3,072 4,808 5,008

Owner Occupied 1,450 2,410 2,532

Renter Occupied 943 1,382 1,409

Vacant 679 1,016 1,067

▪ Persons In Units

2016 Estimate Total Occupied Units 2,393 3,792 3,941

1 Person Units 37.90% 36.74% 36.44%

2 Person Units 30.59% 31.65% 31.97%

3 Person Units 13.66% 13.26% 13.30%

4 Person Units 9.36% 9.94% 9.92%

5 Person Units 5.35% 5.33% 5.33%

6+ Person Units 3.13% 3.09% 3.07%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2016 Estimate

$200,000 or More 1.11% 1.12% 1.11%

$150,000 - $199,000 0.50% 0.83% 0.89%

$100,000 - $149,000 11.31% 10.78% 10.84%

$75,000 - $99,999 8.83% 9.94% 9.99%

$50,000 - $74,999 12.91% 13.50% 13.80%

$35,000 - $49,999 15.90% 17.20% 17.19%

$25,000 - $34,999 12.03% 12.14% 11.96%

$15,000 - $24,999 14.74% 14.19% 14.23%

Under $15,000 22.68% 20.31% 19.99%

Average Household Income $49,741 $51,493 $51,798

Median Household Income $35,471 $37,860 $38,277

Per Capita Income $21,938 $22,459 $22,568

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2016 Estimate Total Population 5,602 9,087 9,463

Under 20 24.63% 23.72% 23.47%

20 to 34 Years 18.35% 18.13% 18.00%

35 to 39 Years 4.80% 4.94% 4.93%

40 to 49 Years 10.39% 10.72% 10.78%

50 to 64 Years 21.92% 21.84% 22.03%

Age 65+ 19.90% 20.66% 20.78%

Median Age 42.20 43.10 43.45

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 3,839 6,346 6,636

Elementary (0-8) 4.69% 5.27% 5.23%

Some High School (9-11) 10.47% 10.39% 10.40%

High School Graduate (12) 25.69% 26.35% 26.44%

Some College (13-15) 25.19% 25.34% 25.29%

Associate Degree Only 14.53% 14.09% 14.17%

Bachelors Degree Only 12.32% 11.96% 11.92%

Graduate Degree 6.58% 6.09% 6.07%

▪ Population by Gender

2016 Estimate Total Population 5,602 9,087 9,463

Male Population 49.56% 50.02% 50.18%

Female Population 50.44% 49.98% 49.82%

30


Income

In 2016, the median household income for your selected geography is

$35,471, compare this to the US average which is currently $55,159.

The median household income for your area has changed by 33.02%

since 2000. It is estimated that the median household income in your

area will be $43,331 five years from now, which represents a change

of 22.16% from the current year.

The current year per capita income in your area is $21,938, compare

this to the US average, which is $30,249. The current year average

household income in your area is $49,741, compare this to the US

average which is $79,207.

Population

In 2016, the population in your selected geography is 5,602. The

population has changed by -10.70% since 2000. It is estimated that

the population in your area will be 5,564.00 five years from now,

which represents a change of -0.68% from the current year. The

current population is 49.56% male and 50.44% female. The median

age of the population in your area is 42.20, compare this to the US

average which is 37.69. The population density in your area is

1,781.74 people per square mile.

Households

There are currently 2,393 households in your selected geography. The

number of households has changed by -9.53% since 2000. It is

estimated that the number of households in your area will be 2,397

five years from now, which represents a change of 0.17% from the

current year. The average household size in your area is 2.25 persons.

Employment

In 2016, there are 2,037 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

51.81% of employees are employed in white-collar occupations in

this geography, and 47.05% are employed in blue-collar occupations.

In 2016, unemployment in this area is 8.27%. In 2000, the average

time traveled to work was 18.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

80.00% White, 1.17% Black, 0.12% Native American and 1.46%

Asian/Pacific Islander. Compare these to US averages which are:

70.60% White, 12.83% Black, 0.19% Native American and 5.43%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 48.83% of the current year

population in your selected area. Compare this to the US average of

17.77%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $132,888 in 2016,

compare this to the US average of $190,673. In 2000, there were

1,707 owner occupied housing units in your area and there were 938

renter occupied housing units in your area. The median rent at the

time was $375.

Source: © 2016 Experian

DEMOGRAPHICS

31


N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


Trinidad, CO

ACT ID Y0050674

32

E X C L U S I V L Y L I S T E D B Y :

Greg Price

First Vice President Investments

Senior Director - National Multi Housing Group

Denver Office

Tel: (303) 328-2047

Fax: (303) 328-2010

[email protected]

License: CO FA40026598

Greg Parker

Associate

Associate Member - National Multi Housing Group

Denver Office

Tel: (303) 328-2015

Fax: (303) 328-2010

[email protected]

License: CO FA.100074810

Documents

PROSPECT PLAZA APARTMENTS€¦ · ON MARKET COMPARABLES SALES COMPS AVG ON MARKET COMPS AVG PROSPECT PLAZA APARTMENTS Avg. 7.58% Avg. 8.30% 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0