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2 executive SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ), acting as exclusive advisors for the seller, is pleased to present the opportunity to acquire the fee simple interest in Olde Town Plaza, a 19,673 SF, mixed-use retail and residential building, and the adjacent 5790 Yukon Street, a 0.42 acre redevelopment opportunity located in the northwest Denver suburb of Arvada, Colorado. This value-add, transit-oriented opportunity is located at the entrance to historic Olde Town Arvada which is experiencing a renaissance; attracting urban retail and restaurant concepts and residents seeking a neighborhood near both downtown Denver and the Rocky Mountains. Olde Town Plaza s retail and residential components present significant upside with proven executable plans for a new investor to implement. Retail rents currently sit at 33% below market and leasing interest at the property has attracted tenants to sign LOIs at market rates. Current ownership has renovated one apartment unit that was well received obtaining an in-place rent premium of $269 per month. With two additional renovations underway, a new investor has the opportunity to finish 14 additional unit renovations with a demonstrated road map to capture higher rents and enhanced yields Yukon Street provides the opportunity to redevelop an infill location to its highest and best use, enhancing the attractiveness and performance of both assets. Zoning permits for up to 3-stories of residential, retail and office uses on the site allowing a new investor to engineer a program to maximize yields. The city of Arvada has embraced nearby development and encourages the continued revitalization of the downtown neighborhood. Situated 10 minutes from downtown, on the next light rail line to begin operation in late 2017, Olde Town Arvada is attracting affluent consumers and residents. Investors can offer on one or both of the assets and capitalize on this opportunity YUKON ST OLDE OLDE 2

3 DOWNTOWN DENVER RiNo 25 SLOAN S LAKE PARK WADSWORTH BYPASS RTD G-LINE OLDE TOWN ARVADA RALSTON RD OLDE WADSWORTH BLVD O L D E 5790 YUKON ST N

4 the OFFERING Olde Town Plaza Olde Town Plaza is a mixed-use asset with 17 apartment units and 10,844 square feet of ground floor retail situated in an in-fill location in the heart of Olde Town Arvada, one of Denver s true Historic Districts experiencing robust growth. Olde Town Plaza is strategically located at the highly trafficked Main and Main intersection of Olde Wadsworth Boulevard and Ralston Road. The Property enjoys incredible access to some of Denver s most celebrated breweries, restaurants, and galleries, and is just a short walk from the Olde Town Arvada RTD Light Rail Station scheduled to open late The Property s retail tenants benefit from being in the retail core of Olde Town Arvada, experiencing a resurgence of popularity as an alternative to Downtown Denver. The Property s trade area includes an estimated population of 335,500 people with an average household income of $80,000 within a 5-mile radius. OFFERING SUMMARY - Olde Town Plaza PRICE $6,250,000 ($317 PSF) Address Year Built 1938 Asset Type Site Size Olde Wadsworth Blvd Arvada, CO Story Mixed-Use 0.45 AC Total SF 19,673 Apartment Units 17 Average Unit Size (SF) ±519 Average Market Rent (Residential) $927 Average Rent/SF (Residential) $1.82 Retail Square Footage 10,844 Retail Spaces 8 Avg Market Retail Rent Retail Occupancy* 100%* $26.00 PSF NNN *As of October 1, 2017 OLDE 4

5 the OFFERING 5790 Yukon Street (Land Site) 5790 Yukon Street, located on Yukon Street and Ralston Road just west of Olde Town Plaza, provides an investor irreplaceable in-fill land adjacent to true a Colorado Main Street on Olde Wadsworth Boulevard. The ±18,125 square foot parcel is currently improved with a ±5,360 square foot, one-story multi-tenant building. This well-located, highly visible property presents a unique opportunity to purchase an urban-infill land site for redevelopment that is at the convergence of residential demand and a retail renaissance in Olde Town Arvada. The site is located in the OT-EY Zone District allowing for commercial, residential, and mixed-use development. The future owner of this site will have the opportunity to develop remarkable transit oriented condominiums, residential apartments, retail, and/or office space in an activated suburban core neighborhood with access to Light Rail and countless amenities. OFFERING SUMMARY Yukon St PRICE Address County $1,300,000 ($71.72 PSF) 5790 Yukon Street Arvada, CO Jefferson County 5790 YUKON ST ± 18,125 SF (0.42 ACRES) ± 145 Municipality City of Arvada Parcel ID Size ±18,125 SF / 0.42 AC ± 125 Zoning General Zoning OT-EY Mixed-Use Zoning Description Maxmimum Height Permitted Uses Existing Use Olde Town East Yukon 20'-42'/3 Stories Multifamily, Retail, Office Occupied Single Story Office Building (Approx. 5,360 SF) 5

6 INVESTMENT HIGHLIGHTS PROVEN VALUE-ADD OPPORTUNITY With a weighted average in-place retail rental rate that is 33% below market and 6,020 square feet of retail tenant expirations in the first two years, a new investor has an opportunity to capture significant upside marking tenants to market. There are 14 units at Olde Town Plaza that have yet to be renovated. Completing additional unit renovations can generate an aggregate $259/ month premium in rental rates Yukon Street presents a rare urban-infill land development opportunity in a booming Colorado Historic District experiencing rapid growth and high demand. OUTSTANDING ACCESSIBILITY AND ACCESS TO TRANSIT Strategically located just two short blocks from RTD s newest line, the Gold Line (G-Line) at Olde Town Station. Olde Town Station will provide 600 parking spaces and 15-minute light rail service to Downtown Denver. The station is scheduled to open late Located just one mile from Interstate 70, a major east-west highway that sees more than 157,000 vehicles per day. Direct access to Wadsworth Boulevard, a major commuter and retail corridor that sees more than 55,000 vehicles per day. Wadsworth Boulevard is just three blocks to the east and serves as the areas major north-south arterial on the way to Broomfield/Interlocken and as a connector to the U.S. Route 36 corridor to Boulder. STRONG RETAIL TRADE AREA AND MARKET FUNDAMENTALS Olde Town Arvada, the roughly 15-block area, continues to demonstrate excellent retail fundamentals. Direct retail vacancy within Olde Town Arvada is 1.7% as of Q2 2017, a 470 bps decrease from Virtually no new deliveries in Olde Town Arvada district limits coupled with robust demand for retail space have driven rents up to a market average of $26.18 PSF NNN, a 66.5% increase from The robust growth and demand of Olde Town Arvada has led to a retail resurgence bringing some of Denver s favorite local urban concepts into this Historic District creating a true destination retail experience. OLDE 6

7 INVESTMENT HIGHLIGHTS COVETED WALKABILITY IN URBAN DOWNTOWN LOCATION The Property currently has a walk score of 73 proving Olde Town Plaza and 5790 Yukon Street are very walkable locations with access to a multitude of amenities. Olde Town Arvada is one of Denver metro s most exciting destinations for dining, unique bars, breweries, wineries, galleries, and boutique shopping providing a true downtown feel. Olde Town Arvada features more than 100 dining, shopping, and entertainment options in the 15-block area, where residents, visitors, and commuters pack the area with high daytime traffic volume. CONVENIENT ACCESS TO MAJOR EMPLOYMENT HUBS AND AMENITIES Conveniently equidistant from Downtown Denver and Interlocken Business Park, two of metro Denver s largest employment centers. 15-minute Light Rail or 15-minute car ride from Denver s CBD, with over 130,000 employees and 32 million square feet of office space. Nearby employers include more than 10 million square feet of retail along the Wadsworth Boulevard retail corridor and three million square feet of office within a three-mile radius of the property. Short distance via rail or car from Denver s top amenities including Coors Field, Mile High Stadium, Pepsi Center, Downtown Aquarium, Harold Lutz Sports Complex, and 11 world class Rocky Mountain ski resorts via Interstate 70. ABUNDANT NEW DEVELOPMENT AROUND OLDE TOWN ARVADA The success of Olde Town Arvada and the impending arrival of the RTD G-Line service has prompted more than $230 million in projects within a five-block area of Olde Town Arvada, part of which is expected to bring more than 780 new housing units and abundant new retail and commercial space to the area when completed. The growth of Olde Town Arvada has compelled the City of Arvada along with business and property owners to form the Olde Town Arvada Business Improvement District (BID). The BID has served the growing area to provide public improvements such as art and bike racks, parks, and to provide light levels of maintenance and public safety initiatives. 7

8 value-add OPPORTUNITY Multifamily Value-Add Current ownership has renovated one residential unit and two additional unit renovations are underway at Olde Town Plaza. Renovations have included resurfaced countertops, new cabinetry, vinyl plank flooring, new appliances, and updated light fixtures. The completed residential improvements have resulted in an additional $269/month premium over current rents. A new investor has the opportunity to complete the renovation plan on the remaining 14 units and achieve a projected $259/month overall average increase in rents. The Property s increased rents generate greater cash flow while remaining below the competition in the area. PROVEN INTERIOR UPGRADES INCLUDE: Granite Countertops Upgraded Kitchen Lighting Fresh Paint in Units Remodeled Bathrooms Ductless Air Conditioning Systems Refinished Hardwood Floors OLDE TOWN Retail Value-Add With a weighted average in-place retail rental rate that is 33% below market and 6,020 square feet of retail tenant expirations in the first two years a new investor has an opportunity to capture significant upside marking tenants to market. Limited deliveries in recent years combined with strong demand for the area have caused market rents in Olde Town Arvada to rapidly increase from $15.72 PSF NNN in 2013 to $26.18 PSF NNN in 2017, a 66.5% increase. With a turn-key restaurant opportunity and limited capital improvements including renovations of the courtyard patio area, a new investor will be able to capture significant upside through marking to market retail rents. Multifamily Renovation Premiums $259 Per Month AVERAGE PREMIUMS Unit Type Total Units Rehabbed Units Classic Units Achieved Premiums Proposed Premiums Annualized Premium Potential 0 Bd/1 Ba $0 $150 $1,800 1 Bd/1 Ba $269 $269 $48,420 2 Bd/1 Ba $0 $225 $2,700 Totals/ Average $269 $259 $52,920 Assuming the proposed renovation premiums above, a new owner has an opportunity to increase the property s net operating income by $52,920. Retail Value-Add SF In-Place Rent Market Rent % Difference Weighted Average 10,884 $19.18 $ % OLDE 8

9 5790 Yukon Street (Land Site) development OPPORTUNITY 5790 Yukon Street is located in the OT-EY Zoning District, promoting a mix of commercial and residential uses within Olde Town Arvada. The Olde Town Zoning District is intended to provide a full range of professional and business offices, retail, and services, plus a variety of residential uses in an urban 24-hour downtown environment. A new investor will have a rare opportunity to develop a transit oriented project to meet the exceptional growth of demand in Olde Town Arvada. Additionally, a new owner will have the opportunity to re-tenant the existing ±5,360 square foot multi-tenant office and retail building, collecting cash flow during the planning phase of the redevelopment vision. Favorable Zoning and Design Requirements Through the site s Commercial (OT-EY) zoning, the potential development program has a favorable floor-area-ratio (FAR) of 3:1, and a maximum height of 42 feet for multi-housing usage. Developed to maximum FAR and height, nearly 55,000 square feet of buildable space is available, allowing for a myriad of improvement possibilities. The favorable zoning of 5790 Yukon Street includes some of the following allowable uses: multi-housing, hotel, bar/tavern, retail and services, and office/medical office amongst other additional desirable uses. Favorable Condo Development Environment Construction-defects reform passing in the Supreme Court coupled with HB1279 make it more difficult for associations of condominium owners to file multi-million-dollar constructiondefects lawsuits. Developers will begin to invest in more condominium projects, which will help to fill the high demand for Front Range for sale housing. Condos make up only 3% of the new housing stock in the Denver market, down from 20% a decade ago. Architect Proposed 3-Story Condominium Rendering 9

10 olde town ARVADA Olde Town Arvada is an historic and charming downtown retail district in Arvada. Rich with Colorado culture, Olde Town Arvada offers businesses a high-energy place to locate with a balanced mix of retail, office, and residential real estate. Olde Town Plaza is situated at the northwest end of Olde Town Arvada on a Main-and-Main intersection at Olde Wadsworth Boulevard and Ralston Road. Olde Town Arvada offers immediate access to an abundance of shopping, dining, entertainment and recreational activities within walking distance. DOWNTOWN DENVER I ,000 VPD SLOAN S LAKE The Olde Town Arvada Station, along RTD s G-Line Light Rail, is planned to open in late 2017 providing a highly desirable transient oriented development (TOD) component and connectivity along Denver s western corridor as well as other metro areas and the Denver International Airport. Further, this location offers convenient access to major employment hubs like Downtown Denver, Broomfield/ Interlocken, and Denver West. Residents and retailers enjoy a popular, authentic, and vibrant neighborhood while centrally located to some of Denver Metro s major drivers including close proximity to the renowned Rocky Mountain ski corridor. WADSWORTH BYPASS - 55,500 VPD OLDE TOWN STATION (COMING SOON) RTD G-LINE - 15 MINUTES TO DENVER RALSTON ROAD - 22,000 VPD OLDE 10

11 WHEAT RIDGE average HOUSEHOLD INCOME OF $79,988 within 5 miles O L D E OLDE WADSWORTH BLVD 5790 YUKON ST N 11 over 8% POPULATION GROWTH since 2010 over 75% WHITE COLLAR OR SERVICE EMPLOYMENT within 1 mile dense POPULATION OF 335,496 within 5 miles interstate 70 TRAFFIC COUNTS OF 157,000 VEHICLES PER DAY less than 1 mile away

12 ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIANAPOLIS LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND SAN DIEGO SAN FRANCISCO TAMPA WASHINGTON D.C. LONDON TH STREET, SUITE 2540 DENVER, CO HFFLP.COM INVESTMENT SALES INQUIRIES CHAD MURRAY Director MARK WILLIFORD Director JEFF HAAG Director JULES SHERWOOD Managing Director ANDREW YAROMA Analyst CHRIS WHITE Analyst FINANCING INQUIRIES BROCK YAFFE Director