Investment Highlights:

Transcription

1 1756 Clarkson St. Denver, CO 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 Investment Summary: Price: $18,300,000 Unit Mix: 51-1Bd/1Ba 9-2Bd/2Ba

2 UNIT MIX AND AVERAGE RENT SCHEDULE # Units Unity Type Avg. SqFt Current Rents Proforma Rents 51 1Br/1Ba 641 $1,275-$1,650 $1,375-$1, Br/2Ba 935 $1,600-$2,450 $1,725-$2,650 OPERATING DATA INVESTMENT SUMMARY Price: $18,300,000 Price/Unit: $305,000 Price/SqFt: $ INCOME Current Year 1 Gross Annual Rent: $1,073,880 $1,170,529 Vacancy Allowance: ($32,216) ($35,116) Net Rental Income: $1,041,664 $1,135,413 Utility Income: $21,298 $21,937 Parking Income: $0 $36,000 Other Income: $37,890 $39,027 FINANCING Loan Amount: $11,895,000 Down Payment: $6,405,000 Interest Rate: 3.82% Monthly Payment: $37, Year Fixed Rate Interest Only for 5yrs 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 Utilities: $45,384 $46,745 Repairs & Maintenance: $33,606 $34,614 Professional Management: $47,144 $61,619 PROPERTY DESCRIPTION Units: 60 Year Built: 2013 Building Size (SqFt): 49,035 Lot Size (SqFt): 18,145 Office/Admin: $3,326 $3,425 Leasing & Advertising: $11,447 $11,791 Total Expenses: $228,325 $260,745 Expense/Unit: $3,805 $4,346 Net Operating Income (NOI) $872,527 $913,696 FINANCIAL ANALYSIS Current Year 1 NOI: $872,527 $913,696 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. Projected Debt Service: ($454,389) ($454,389) 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%

3 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

4 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

5 sleek sophisticated modern

6 5 Year Projection: Current Year 1 Year 2 Year 3 Year 4 Year 5 Income Gross 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, ,485 12,860 13,245 13,643 14,052 Gross Potential Income 59,189 96,965 99, , , ,861 Total Income 1,100,852 1,232,378 1,280,703 1,331,159 1,383,609 1,438,134 Expenses Property 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, , , , , ,536 Net Operating Income 872, , ,166 1,026,007 1,071,253 1,115,597 Five-Year IRR Analysis Year 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, ,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, , , ,864 10,971,040 Leveraged 5yr. IRR 16.98% Annual Cash-on-cash % 8.29% 8.92% 9.63% 10.32% Projection Assumptions Year 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 Assumptions 5-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

7 10 Year Projection: Year 6 Year 7 Year 8 Year 9 Year 10 Income Gross 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, , , , ,817 Total Income 1,481,532 1,518,978 1,557,341 1,604,347 1,652,775 Expenses Property 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, , , , ,919 Net Operating Income 1,151,952 1,179,689 1,210,950 1,247,364 1,287,856 Ten-Year IRR Analysis Year 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 % 6.45% 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, , , ,630 14,488,587 Leveraged 10yr. IRR 14.31% Annual Cash-on-cash % 8.01% 8.50% 9.07% 9.70% Projection Assumptions Year 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 Assumptions 10-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

8 Rent Comps: The Clarkson Uptown Clarkson St. 60 Total Units Unit Type: Studio Sq Ft: N/A Avg Rent: N/A Avg Rent/Sq Ft: N/A Unit Type: 1Bd/1Ba Sq Ft: Avg Rent: $1,275-$1,650 Avg Rent/Sq Ft: $2.20 Unit Type: 2Bd/2Ba Sq Ft: Avg Rent: $1,600-$2,450 Avg Rent/Sq Ft: $2.07 Cadence Cruise The Logan (Union Station/LoDo th St Total Units) Unit Type Sq Ft Avg Rent Avg Rent/Sq Ft Studio $1,475-$1,700 $2.71 1Bd/1Ba $1,775-$2,425 $2.45 2Bd/2Ba $2,500-$3,000 $2.61 (Uptown Gaylord St Total Units) Unit Type Sq Ft Avg Rent Avg Rent/Sq Ft Studio 410 $980-$1,000 $2.41 1Bd/1Ba $1,315-$1,470 $2.38 2Bd/2Ba 759 $1,725 $2.27 (Capitol Hill Logan St Total Units) Unit Type Sq Ft Avg Rent Avg Rent/Sq Ft Studio $1,125-$1,325 $2.39 1Bd/1Ba $1,290-$1,595 $2.16 2Bd/2Ba 846 $1,699-$1,890 $2.12 My Block Wash Park (Wash Park Washington St Total Units) Unit Type Sq Ft Avg Rent Avg Rent/Sq Ft Studio N/A N/A N/A 1Bd/1Ba $1,525-$2,895 $2.74 2Bd/2Ba 871-1,072 $2,765-$2,995 $2.97 One City Block (Uptown E. 19th Ave Total Units) Unit Type Sq Ft Avg Rent Avg Rent/Sq Ft Studio $1,290-$1,685 $2.83 1Bd/1Ba $1,515-$1,975 $2.61 2Bd/1Ba 985-1,153 $2,195-$2,345 $2.28

9 Area Demographics: Radius 1 Mile 3 Mile 5 Mile Population: 2019 Projection 49, , , Estimate 43, , , Census 39, , ,709 Growth % 12.42% 11.52% Growth % 11.14% 9.18% 2014 Population Hispanic Origin 5,770 49, , Population by Race: White 35, , ,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 Other 1,414 5,816 12,764 Households: 2019 Projection 31, , , Estimate 27, , , Census 24,908 94, ,855 Growth % 12.73% 11.83% Growth % 6.39% 5.41% Owner Occupied 6,494 41,535 95,473 Renter Occupied 21,411 64, , Avg Household Income $58,043 $78,522 $74, Med Household Income $39,813 $51,921 $49, 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, ,580 8,807 $150,000 - $200,000 1,048 6,100 10,910 $200, ,208 13,736 Source: CoStar

10 Floor Plans: 1Bd/1Ba 664 Sq Ft 6 Units 1Bd/1Ba 616 Sq Ft 32 Units 1Bd/1Ba 651 Sq Ft 6 Units

11 Floor Plans: 1Bd/1Ba 731 Sq Ft 6 Units 2Bd/2Ba 933 Sq Ft 6 Units Additional Floor Plans Available Upon Request

12 View from Roof Top Deck Property tours are available by appointment only. The Clarkson is exclusively offered for sale by & of Madison Commercial Properties, a Denver-based commercial real estate group specializing in apartment brokerage and investment sales in Central Denver. Broker Contacts: Madison Commercial Properties is a division of Madison & Company Properties