mixed-usevalueaddinvestment opportunity

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Shannon Stewart
5 years ago
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The G al l ery @ 38th 7172-7180w. 38thave.

1 The G al l 38th w. 38thave., wheat ridge Price: $1,999,000 Summary: UNITS: 5 Zoning: C-1 YEARBUILT/ reno: 1946/ 2017 size: 7,432SF LOTSIZE: 6,534SF mixed-usevalueaddinvestment opportunity The 38th is an innovative mixed-use property located in the heart of downtown Wheat Ridge in the direct path of redevelopment for the city. The first floor is comprised of two retail spaces. A current Tattoo Parlor is occupying the smaller of the two spaces at below market rents. Their lease expires at the end of the year which provides a new owner the opportunity for upside in the short term. The second larger space is ready for build out for any variety of users. This space would be perfect for a restaurant, bar, coffee shop, or a variety of other retailers. The second floor is a redesign of a 3-unit multi-family apartment that has been turned into a creative Airbnb rental platform. The units have been well designed and artfully crafted from floor to ceiling, hence the name, The 38th. There are currently three master leases for the Airbnb units. the property can be purchased as a passive investment with the leases in place or a new owner has the option of taking over the Airbnb business at no additional cost to significantly increase their return on investment. The property is ready for the next owner to finish the work and create tremendous upside with the value add that exists with this property. Leasing the the main floor retail creates tremendous upside for the next owner!

Location Pecos Wadsworth west 41st avenue west 38thavenue

es Popul ation 14,252 142,233 393,178 Househol ds 6,406

oradopl usbrewpub&taphouse right coast pizza wheat

2 Location Pecos Wadsworth west 41st avenue west 38thavenue west 32ndavenue Demographics Nearby 1Mil e 3Mil es 5Mil es Popul ation 14, , ,178 Househol ds 6,406 59, ,792 Median Income $55,540 $52,988 $57,233 Col oradopl usbrewpub&taphouse right coast pizza wheat ridgecycl ery cl ancy'sirishpub founderspark easy accesstodowntown

3 Property Overview The Gallery at 38th is a unique mixed-use project that was the brain child of a local developer who likes to mix unique styling, design, art, and a forward thinking element into every project. The Gallery is one of the first of its kind in regards to the unit mix within the project as it incorporates Airbnb rentals instead of the traditional apartment units you would usually see in these types of properties. The second floor of the building currently consists of 11 bed Airbnb units in a total of approximately 3,750 SF of space. The units range from full suites with their own bathrooms and kitchens to community style living spaces with bedroom, bunk rooms, and shared private bathrooms. The look of every nook and cranny of these units feature design elements from wall art by local artists, wood walls, loft styling exposed brick, reclaimed doors, wood flooring, throwback tile flooring and walls, barn style entry doors, hard wood ceilings and the lists continues. There is also a large deck on the second level that guests can utilize with a future bar area, deck seating, and tanning area. There really is nothing like it in the Denver Metro Area. The main floor of the Property consists of two retail spaces. There is a Tattoo shop located on the west end the building. The Tattoo tenant only has until November 2018 when their lease expires at which time the potential rent for the building can almost triple from what is currently collected. This represents a huge value-add opportunity for the next owner of this property. That space currently consists of approximately 1,000 SF of space that has street exposure to busy 38th Ave. The space would be perfect for a variety of retailers or office users who would enjoy the retail exposure. The other space consisting of 2,850 SF would be a perfect space for any retailer, bar, restaurant, or office user. The space calls for large windows, roll up garage doors, a full kitchen, and a street side outdoor seating area. The re-leasing of both of these two spaces creates a tremendous upside for the buyer of the property. Downtown Wheat Ridge is being revitalized with an all new look and feel. This area commonly knows as Ridge at 38 is a commercial district at the heart of Wheat Ridge, located on West 38th Avenue between Sheridan and Wadsworth Boulevards. Ridge at 38 is home to an eclectic mix of businesses that serve the community and welcome visitors by offering a taste of small town life without the drive. Our district provides people with an authentic experience steeped in nostalgia; where tradition, and locally created and crafted goods are valued and where new ideas are nourished and cultivated. This district now houses many local business that are thriving and continue to grow the traffic to the area. These include Clancy's Irish Pub,Colorado Plus Brew Puband Taphouse, Four Seasons Farmers Market and Artisans Market, Wheat Ridge Cyclery, Sunrise and Sunset, and many more. The Gallery at 38th is at the forefront of something special both in uniqueness of the property and use as well as the new trendy location. With the tremendous upside, this value add opportunity is a gem for any investor.

4 operatingdata(buyer assumesairbnbbizoperation) Investment Analysis current PSF proforma PSF BASERENTALINCOME REtail space $90,708 $31.83 ananda art &tattoo $14,700 $14.70 $30,000 $30.00 airbnbrentals $125,041 n/a $168,000 N/a POTENTIALGROSSREVENUE $139,741 General Vacancy (0.00%) $0 GROSSREVENUE $139,741 Property Taxes $7,525 $1.01 $8,278 $1.11 Property Insurance $5,939 $0.80 $6,117 $0.82 Util ities $11,038 $1.49 $11,369 $1.53 Repairs&Maintenance $8,300 $1.12 $8,549 $1.15 Management Fees $10,261 $1.38 $10,569 $1.42 Trash/ Snow $1,591 $0.21 $1,639 $0.22 Legal / admin $1,250 $0.17 $1,288 $0.17 bookimgmanager $18,000 $2.42 $18,540 $2.49 Miscel l aneous $4,500 $0.61 $4,635 $0.62 Total OperatingExpenses $68,404 $9.20 $70,983 $9.55 NETOPERATINGINCOME $71,337 $217,725 CapRate 3.6% 10.89% Debt Service ($99,996) ($99,996) BeforeTax CashFl ow ($28,659) $117,279 CashonCash n/a 23.46% Principal Reduction $34,222 $34,222 ACQUISITIONPRICE: $1,999,000 $269psf $1,999,000 $269psf LoanAmount $1,499, %LTV $1,610, %LTV Initial Equity $499, % $690, % Interest Rate/Amortization 4.50% 25Years 4.50% 25Years Monthly/Annual $8,333 $99,996 $8,949 $99,996 Property SquareFeet: 7,432SF $288,708 $0.00 $0 $0.00 $288,708 7,432SF

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mixed-useinvestment opportunity

The G al l ery @ 38th 7172-7180w. 38thave., wheat ridge Price: Summary: UNITS: 5 Zoning: C-1 YEARBUILT/ reno: 1946/ 2017 size: LOTSIZE: 6,534SF mixed-useinvestment opportunity The Gallery @ 38th is an