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Confidential Offering Memorandum
SOUTH FOX PORTFOLIO5318-5348 S FOX STREET I LITTLETON, CO 80120
INVESTMENT CONTACTSJosh Newell, Principal303.962.9559 | [email protected]
Lindsey Santaularia, Director of Team Operations303.962.9573 | [email protected]
Table of ContentsPortfolio Overview
Financial Analysis
Sales Comparables
Location Overview
One Broadway, Suite A300Denver, Colorado 80203303.962.9555www.PinnacleREA.com
South Fox Portfolio5318-5348 S Fox StreetLittleton, CO 80120
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PORTFOLIO OVERVIEW
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Portfolio Site Map
5318 S Fox Street(2) - Studios(9) - 1Bd/Ba
5338 S Fox Street(9) - 1Bd/Ba
5348 S Fox Street(2) - Studios(9) - 1Bd/Ba
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South Fox Portfolio 5318-5348 S Fox Street I Littleton, CO 80120
Portfolio Overview
Property Features
• Three Adjacent, Seperately Deeded Apartment
Buildings
• Recent Capital Improvements Include New:
Windows, Doors, Stairways, Handrailing and Recently
Paved Parking Lots
• Excellent Curb Appeal with Professional Landscaping
• Low Maintenance Masonry Construction with Noise
Reducing Concrete Floors
• Tenant Storage & On-Site Laundry Facilities
• Turn-Key Opportunity
• Near Downtown Littleton & Light Rail Station
• Easy Access to Retail, Entertainment & Employment
Units: 31
Year Built: 1972
List Price: $4,400,000
Price/Unit: $141,935
Price/SF: $243.27
Building Type: Brick
Building Size: 18,087
Lot Size: 0.63 Acres
Roof: Pitched
Heating: Hot Water Boilers
Parking: 41 Off-Street Parking Spaces
Proforma CAP Rate: 6.12%
Proforma Cash on Cash Return:
5.69%
Proforma Total Return: 10.32%
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Portfolio Overview
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FINANCIAL ANALYSIS
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Rent Rolls
Unit Type Rent Unit Type Rent Unit Type Rent5318 S Fox Street 5338 S Fox Street 5348 S Fox Street5318 101 1Br/1Ba $850 5338 101 1Br/1Ba $935 5348 101 1Br/1Ba $8755318 102 1Br/1Ba $935 5338 102 1Br/1Ba $950 5348 102 1Br/1Ba $9505318 103 1Br/1Ba $850 5338 103 1Br/1Ba $750 5348 103 1Br/1Ba $9255318 201 1Br/1Ba $995 5338 201 1Br/1Ba $925 5348 201 1Br/1Ba $9005318 202 1Br/1Ba $875 5338 202 1Br/1Ba $950 5348 202 1Br/1Ba $8405318 203 1Br/1Ba $870 5338 203 1Br/1Ba $950 5348 203 1Br/1Ba $8755318 204 Studio $825 5338 301 1Br/1Ba $875 5348 204 Studio $8155318 301 1Br/1Ba $850 5338 302 1Br/1Ba $935 5348 301 1Br/1Ba $8705318 302 1Br/1Ba $975 5338 303 1Br/1Ba $900 5348 302 1Br/1Ba $9505318 303 1Br/1Ba $970 5348 303 1Br/1Ba $9355318 304 Studio $845 5348 304 Studio $775
Total 31 Units
S Fox Portfolio
$27,720
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Financial Analysis
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
Studio 4 475 $815 $3,260 $1.72 $825 $3,300 $1.741 Bed 1 Bath 27 575 $906 $24,460 $1.58 $995 $26,865 $1.73
TOTAL 31 17,425 $27,720 $30,165
INCOME Pro FormaGross Potential Rent $332,640 $361,980Other Income
Utility Reimbursement (Actual - 2018/ Estimated: $50/Unit/Month) $0 $18,600Total Other Income $0 $18,600Gross Potential Income $332,640 $380,580Vacancy/Collection Loss (Actual - 2018/ Estimated) 5.71% ($18,994) 5.00% ($18,099)EFFECTIVE GROSS INCOME $313,646 $362,481
EXPENSESTaxes (Actual - 2018) $12,747 $12,747Insurance (Actual - 2018) $13,885 $13,885Gas & Electric (Actual - 2018) $10,457 $10,457Water & Sewer (Actual - 2018) $10,797 $10,797Trash (Actual - 2018) $1,930 $1,930Maintenance & Repairs (Estimated: $600/Unit/Year) $18,600 $18,600Management Fee (Estimated: 6%) $18,819 $21,749Administrative (Actual - 2018/ Estimated: $100/Unit/Year) $3,887 $3,100TOTAL EXPENSES $91,122 $93,265Expenses per Unit $2,939 $3,009Expenses per SF $5.23 $5.35% OF EGI 29.1% 25.7%NET OPERATING INCOME $222,524 $269,216
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: $4,400,000 CASH FLOW INDICATORS CASH FLOW INDICATORS
Price/Unit: $141,935 Net Operating Income $222,524 Net Operating Income $269,216
Price/SF: $243.27 Debt Service ($206,572) Debt Service ($206,572)
Net Cash Flow 1.45% $15,952 Net Cash Flow 5.69% $62,644
Principal Reduction $50,921 Principal Reduction $50,921
Total Return 6.08% $66,874 Total Return 10.32% $113,565
Loan Amount: $3,300,000
Down Payment: $1,100,000
Interest: 4.75% CAP Rate 5.06% CAP Rate 6.12%
Amortization: 30 Years Price Per Unit $141,935 Price Per Unit $141,935
Monthly Payment: ($17,214) Price Per Foot $243.27 Price Per Foot $243.27
Proposed Financing
VALUE INDICATORS
Pro FormaInvestment Summary Current
VALUE INDICATORS
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SALE COMPARABLES
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Comparable Sales
Number of Units: 16
Year Built: 1971
Sale Price: $2,700,000
Sale Date: 06/04/2019
Price/Unit: $168,750
Price/SF: $233.77
Unit Mix:
4 1Bd/1Ba
12 2Bd/1Ba
901-931 W. Prentice AveLittleton, CO
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SUBJECT
SUBJECT
1
Number of Units: 22
Year Built: 1960
Sale Price: $3,850,000
Status: Under Contract
Price/Unit: $175,000
Price/SF: $327.38
Unit Mix:
4 Studio
8 1Bd/1Ba
10 2Bd/1Ba
5635 S Bannock StLittleton, CO
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SUBJECT
3
Number of Units: 19
Year Built: 1962-1971
Sale Price: $3,400,000
Sale Date: 06/19/2019
Price/Unit: $178,947
Price/SF: $196.63
Unit Mix:
1 Studio
8 1Bd/1Ba
9 2Bd/1Ba
1 2Bd/2Ba
Prentice Huron 841 W Prentice & 5290 S Huron Way
2
SUBJECT
2
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LOCATION OVERVIEWLOCATION OVERVIEW
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PIRATES COVE
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
W LITTLETON BLVD
W BELLEVIEW AVE
SOUTH FOX PORTFOLIO
DOWNTOWN LITTLETON
DOWNTOWN LITTLETON LIGHT
RAIL STATION
CORNERSTONE PARK
PROGRESS PARK
BELLEVIEW PARK
S B
RO
AD
WA
Y
LITTLETON PREPARATORY
CHARTERSCHOOL
KETRING PARK
Location Overview
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DOWNTOWN LITTLETONDowntown Littleton is located approximately nine-miles south of downtown Denver. There are over 220 businesses in downtown. Main Street is lined with charming art galleries, antique shops, unique clothing boutiques and popular restaurants and bars. Downtown hosts numerous events including: a weekly Farmer’s Market, Mardis Gras celebration, fireworks, concerts and art shows. The 87th annual Western Welcome Week celebration is a community favorite hosting 40 events benefiting local civic and charitable organizations.
SOUTHWEST CORRIDOR LIGHT RAIL LINEThe Southwest Corridor is an 8.7-mile light rail line from I-25/ Broadway to Mineral Avenue in Littleton. There are five stations and approximately 2,600 parking spaces. There is a planned extension from Mineral Avenue to C-470/Lucent Boulevard. The extension will add 2.5 miles of additional light rail and 1,000 more parking spaces.
ARAPAHOE COMMUNITY COLLEGEACC is a 51-acre campus located adjacent to downtown Littleton and currently has over 7,500 full-time students, and 2,500 part-time students. With a track record of over 48 years of operation, Arapahoe Community College is recognized throughout the region as Colorado’s premier community college. They have a highly qualified and dedicated faculty and staff, and a student population that reflects the growing diversity of Colorado.
LITTLETON ADVENTIST HOSPITALLittleton Adventist Hospital is a full-service 231-bed acute care facility. The hospital has been serving the south metro Denver area for more than 20 years. The hospital is currently undergoing a $30 million renovation and expansion. Annually, the hospital has 9,250 admissions and 37,430 emergency room visits. The hospital is home to a Level III NICU, a Level II Trauma Center and a nationally accredited breast center. Littleton Adventist Hospital is one of 15 hospitals in the Centura Health system of care and is part of the Adventist Health System. The U.S. News & World Report ranks Littleton Adventist Hospital as one of the nation’s 1,500 best hospitals for excellence and expertise in urology care.
LITTLETON
Location Overview
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Location Overview
ECONOMYThe economy of Littleton, CO employs 24,268 people. The economy of Littleton, CO is spe-cialized in Mining, Quarrying, Oil, Gas Extraction; Management of Companies & Enterprises; and Information, which employ respectively 2.47; 1.82; and 1.74 times more people than what would be expected in a location of this size. The largest industries in Littleton, CO are Retail trade (3,142), Healthcare & Social Assistance (2,877), and Professional, Scientific, Tech Services (2,509), and the highest paying industries are Mining, Quarrying, Oil, Gas Extrac-tion ($89,444), Utilities ($68,529), and Professional, Scientific, Tech Services ($68,325).
Median household income in Littleton, CO is $67,133. Males in Littleton, CO have an average income that is 1.29 times higher than the average income of females, which is $51,933. The income inequality of Littleton, CO (measured using the Gini index) is 0.472 which is lower than the national average.
HOUSING & LIVINGThe median property value in Littleton, CO is $314,100, which is 1.53 times larger than the national average of $205,000. Between 2015 and 2016 the median prop-erty value increased from $284,000 to $314,100, a 10.6% increase. The homeownership rate of Littleton, CO is 60.5%, which is lower than the national aver-age of 63.6%. People in Littleton, CO have an average commute time of 23.4 minutes, and they commute by Drove Alone. Car ownership in Littleton, CO is approxi-mately the same as the national average, with an aver-age of 2 cars per household.
LITTLETON
POPULATION
52,894MEDIAN AGE
41.6MEDIAN HH INCOME
52,894NUMBER OF EMPLOYEES
24,268MEDIAN PROPERTY VALUE
$314,100
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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 properties located at 5318-5348 S Fox Street in Littleton, Colorado (the “Properties”) and of all of the information provided herein related to the Properties. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Properties 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 Properties. 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 Properties. 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 Properties 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 Properties and an opportunity to inspect the Properties 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 Properties. 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]
Lindsey Santaularia, Director of Team Operations303.962.9573 | [email protected]
INVESTMENT CONTACTS
Josh NewellPrincipal
Lindsey SantaulariaDirector of Team Operations
5318-5348 S FOX STREET
LITTLETON, CO 80120
South Fox Portfolio
