Holliday Fenoglio Fowler, L.P. ( HFF ) a licensed Colorado real estate broker. A 472-Unit Apartment Community Located in Lakewood, Colorado Unique Value-Add Opportunity with 72 Spacious Townhomes Low-Density Setting with Only 12 Units/Acre
THE OFFERING Village at Bear Creek HFF is pleased to present the exclusive listing of Village at Bear Creek ( Property ), a 472- unit apartment community located in the Bear Creek area of Lakewood, Colorado, one of Denver s highly sought-after western suburbs. Originally constructed in two phases in 1987 and 1996 and featuring a unique mix of traditional flats and spacious townhomes, Village at Bear Creek offers tremendous upside potential through a renovation of apartment interiors and common area amenities. Residents of Village at Bear Creek enjoy one of metro Denver s most desirable locations with convenient access to recreation, retail, and major employment centers including the Denver Federal Center and Lockheed Martin. Village at Bear Creek offers investors immediate upside potential as the apartment homes remain largely in their original condition from time of construction. Competing properties in the submarket command monthly rents more than $150 higher than those at Village at Bear Creek, demonstrating the significant opportunity for near- and long-term revenue growth. Additionally, Village at Bear Creek faces limited competition from new construction, with only one property delivered within the submarket in the past 15 years, and only two currently under construction. When combined with historically low vacancy rates in the area, these favorable market conditions present an ideal value-add opportunity. Offering Summary Village at Bear Creek is offered to the market* unpriced and free and clear of any existing debt. Address 2605 S Miller Dr, Lakewood, CO 80227 Residential Units 472 Year Completed Phase 1: 1987 Phase 2: 1996 Asset Type Garden / Townhome Average Unit Size ±989 SF Total SF ±466,610 SF Site Size ±38.4 Acres Density 12 Units / Acre Number of Buildings 51 882; 1.9 spaces per unit; 1.1 spaces per bedroom Surface Spaces: 455 Parking Attached Garages: 108 Detached Garages: 102 Carports: 217 *Avg Market Rent $1,586 *Avg Market Rent/SF $1.60 **Occupancy 96% *The purchase may be achieved through the sale of an indirect interest in the Property through a sale of equity interests. **Based on the 8/31/2017 Rent Roll 2
INVESTMENT HIGHLIGHTS Extraordinary Value-Add Opportunity One-of-a-kind Location on Bear Creek Convenient to Major Employment Centers Apartment homes at Village at Bear Creek are largely in their original condition, presenting the opportunity for a new investor to complete a comprehensive renovation of the entire property. Residents of Village at Bear Creek enjoy an abundance of recreational amenities, including immediate adjacency to the Bear Creek Trail. With convenient access to both C-470 and US-285, Village at Bear Creek is within a short commute of some of metro Denver s largest employment centers, including the Denver Federal Center, Lockheed Martin, Downtown Denver, and the Denver Tech Center. Nearby competing properties command monthly rents of $150 or more per month than Village at Bear Creek. There is a clear opportunity to realize significant near- and long-term revenue upside from a renovation program. Over the past five years, submarket vacancy averaged just 4.43% annually. With limited new supply and a scarcity of available development land, this submarket is forecast to remain supply-constrained well into the future. Other nearby attractions include Bear Creek Lake Regional Park, Chatfield State Park, and the world-famous Red Rocks Park and Amphitheatre. There are four golf courses within two miles of the property, including the public Fox Hollow, The Homestead, and Foothills courses, as well as the private Bear Creek Golf Club, designed by Arnold Palmer. 10,000 1 Mile Lockheed Martin, less than 15 minutes away, recently announced plans to hire an additional 650 employees at their Deer Creek Facility Acres of parks and open space from the 2,600-acre Bear Creek Lake Park within a 10-minute drive Large Kitchens Townhomes with Private One- and Two-Car Attached Garages 3 375,000 Employees within a 20-minute drive Townhome Great Room and Kitchen
INVESTMENT HIGHLIGHTS Access to Abundant Retail Amenities Limited New Construction Risk Rare Townhome Units Within five miles of Village at Bear Creek are nearly five million square feet of retail space. Within a two-mile radius, no projects have been completed in the past 15 years and none are currently under construction. Village at Bear Creek features 72 two- and threebedroom townhomes in a peaceful neighborhood setting. Within a three-mile radius: Only one other community in the submarket features a significant number of 1990s or newer townhomes. Just one mile away is the Safeway-anchored Heritage West Shopping Center, with a Starbucks, Walgreens, fast food options, and the Great Frontier Brewing Company. Village at Bear Creek is just ten minutes away from: Belmar Downtown Lakewood 2.3 million square feet Only one project has been completed in the past 15 years Only two projects currently under construction: Alta Pinehurst (350 units) and Westwood Green (300 units). South Wadsworth Retail Corridor 2.7 million square feet Southwest Plaza Mall 1.2 million square feet Outdoor Grilling Area Adjacent to Bear Creek Trail Two-car garages and separate driveways for townhomes combined with low-density flats create an open, residential feel. An abundance of green space and landscaped areas combine to create a unique, park-like feel throughout the property. Private Balconies with Sweeping Mountain Vistas 4
OUTSTANDING VALUE-ADD OPPORTUNITY Village at Bear Creek offers the opportunity for a new investor to complete a comprehensive renovation of all unit interiors and common areas, as finishes are in original condition and current rent levels are significantly below those of competing properties within the submarket. Additionally, with limited new development in the area and extremely high barriers to entry, Village at Bear Creek is positioned to sustain future rent growth shielded from the threat of new competition. Value-Add Premium Unit Type One Bed/One Bath Apartments Two Bed/One Bath Apartments Two Bed/Two Bath Apartments Two Bed Townhome Three Bed Townhome Totals/Average Number of Units 124 76 200 54 18 472 Premium $125 $150 $175 $225 $250 $166 Annualized Premium Potential $186,000 $136,800 $420,000 $145,800 $54,000 $942,600 Potential Renovations and Upgrades 6 8 Potential interior renovations include: 3 5 4 2 1 Stainless steel appliances 2 Granite or Quartz countertops in kitchens and bathrooms 3 Glass tile backsplashes 4 Undermount sinks 1 5 Upgraded fixtures and hardware 6 Modern lighting fixtures and ceiling fans 7 Wood-style plank flooring and upgraded carpet 8 Refaced cabinetry 7 Potential common area improvements include: 2 3 1 5 Renovate both clubhouses: Other Common Area Improvements: 1 Add demonstration kitchen 2 Upgraded Luxury Appliances 3 Granite or Quartz countertops in Kitchen 4 Upgrade current fitness center 5 Wood-style plank flooring 6 Upgraded resort-style pool furniture and outdoor areas 7 Enhanced landscaping throughout the Property 8 Dramatic monument signage and landscaping along Morrison Road 5
DESIRABLE LAKEWOOD SETTING Henry Lake S Wadsworth Blvd Federal Facilities and Open Space W Quincy Avenue Harriman Lake S Simms Street Fehringer Ranch Open Space 5,900 Employees The Homestead Golf Course Foothills Golf Course D Evelyn Jr/Sr High School 285 285 Bear Creek K-8 School Daniel L Schaefer Athletic Complex Bear Valley High School Fox Hollow Golf Course Bear Creek Greenbelt S Kipling Pkwy - 44,000 VPD Fox HollowVillage Average Home Value: $706,000 Bear Creek Golf Club W MORRISON RD 14,000 VPD Ridgepoint at Bear Creek Average Home Value: $623,000 6
Investment Sales Inquiries Financing Inquiries Jordan Robbins Managing Director 303 515 8010 jrobbins@hfflp.com Jeff Haag Director 303 515 8004 jhaag@hfflp.com Anna Stevens Director 303 515 8018 astevens@hfflp.com Mack Nelson Real Estate Analyst 303 515 8078 mnelson@hfflp.com Chris White Real Estate Analyst 303 515 8031 cwhite@hfflp.com Josh Simon Managing Director 303 515 8002 jsimon@hfflp.com Eric Tupler Senior Managing Director 303 515 8001 etupler@hfflp.com Holliday Fenoglio Fowler, L.P. ( HFF ) a licensed Colorado real estate broker.