FOR SALE 3801 Franklin St. 3801 Franklin St. Denver, CO 80205 OFFERING MEMORANDUM CONTACT: SAM LEGER EXECUTIVE VICE PRESIDENT 303.512.1159 sleger@uniqueprop.com TIM FINHOLM EXECUTIVE VICE PRESIDENT 303.512.1161 tfinholm@uniqueprop.com UNIQUE PROPERTIES 400 S. BROADWAY DENVER, CO 80209 (p) 303.321.5888 (f) 303.321.5889 WWW.UNIQUEPROP.COM
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EXCLUSIVE AGENTS: SAM LEGER EXECUTIVE VICE PRESIDENT 303.512.1159 sleger@uniqueprop.com TIM FINHOLM EXECUTIVE VICE PRESIDENT 303.512.1161 tfinholm@uniqueprop.com 3801 FRANKLIN ST. OFFERING MEMORANDUM
TABLE OF CONTENTS EXECUTIVE SUMMARY THE OFFERING OFFER SOLICITATION PROCEDURE PROPERTY OVERVIEW PROPERTY DETAILS FINANCIAL SUMMARY REGIONAL MAP AERIAL MAP NEIGHBORHOOD MAP CONSTRUCTION DETAILS TENANT OVERVIEW ADDITIONAL PHOTOS NEIGHBORHOOD INFORMATION 6 7 9 10 11 12 13 14 15 16 17 3801 FRANKLIN ST. OFFERING MEMORANDUM 4
1 EXECUTIVE SUMMARY 3801 FRANKLIN ST. OFFERING MEMORANDUM
THE OFFERING Unique Properties, as exclusive real estate advisor for the Seller, is pleased to offer the exceptional opportunity to acquire 3801 Franklin Street, a 5,926 SF office investment opportunity located in Denver, CO. OFFERING TERMS Sale Price: $2,295,000 Cap Rate: 6.3% NOI: $144,594 Lot Size: Building Size: Building Class: 0.07 Acres 5,926 SF B Year Built: 1896 Zoning: Cross Streets: U-MX-2 Franklin Street & East 38th Avenue/ Humboldt Street 3801 FRANKLIN ST. EXECUTIVE SUMMARY 6
OFFER SOLICITATION PROCEDURE Offering Price: $2,295,000 Confidentiality & Disclaimer: Please refer to first page in this offering memorandum and carefully read full confidentiality statements and disclaimer. Property Tours: All showings must be arranged in advance with Unique Properties, Inc. To schedule a property tour, please contact the listing brokers below: SAM LEGER EXECUTIVE VICE PRESIDENT 303.512.1159 sleger@uniqueprop.com TIM FINHOLM EXECUTIVE VICE PRESIDENT 303.512.1161 tfinholm@uniqueprop.com UNIQUE PROPERTIES, INC. 400 S. BROADWAY DENVER, CO 80222 (p) 303.321.5888 (f) 303.321.5889 www.uniqueprop.com 3801 FRANKLIN ST. EXECUTIVE SUMMARY 7
2 PROPERTY OVERVIEW 3801 FRANKLIN ST. OFFERING MEMORANDUM
PROPERTY DETAILS PROPERTY ADDRESS: PROPERTY TYPE: LOT SIZE: BUILDING SIZE: BUILDING CLASS: ZONING: OPERATING EXPENSES: 3801 Franklin St. Denver, CO 80205 Office 3,000 SF 5,926 SF B U-MX-2 $6.00 PSF YEAR BUILT: 1896 YEAR RENOVATED: 2015 NUMBER OF STORIES: 2 Plus Basement PROPERTY TAXES: $10,275.74 PROPERTY HIGHLIGHTS NEWLY RENOVATED OFFICE BUILDING 3801 Franklin Street was completely renovated in 2015 with modern finishes. Renovations included new roof, HVAC, plumbing, and electrical systems, along with exposed brick interior, wood beams, and garage doors. SINGLE TENANT LEASE IN PLACE The property is 100% leased to SecureSet Accelerator through December 31, 2020, and the tenant has 2 5-year options to renew. SecureSet Accelerator's rent is $24.39 PSF NNN, or $144,554 per year, is effective January 1, 2018 and is subject to 3% annual increases. RINO/COLE NEIGHBORHOOD LOCATION The RINO and Cole Neighborhoods have experienced a lot of growth over the past few years, and the interest in the area continues to grow. The location benefits from its proximity to Downtown Denver, major highways, and multiple light rail stations/public transportation options. LOCATION OVERVIEW 3801 Franklin Street is located in the RINO/Cole Neighborhood on the corner of East 38th Avenue/Humboldt Street and Franklin Street. The property is behind the new Industry office, one block from the proposed 700,000 SF mixed-use Denver Rock Drill Campus set to begin construction Q1 2018, and only 2 blocks away from the new 38th & Blake Light Rail Stop in RINO. The property is easily accessible from both I-70 & I-25. There are many restaurants, retail, and recreation destinations within walking distance. 3801 FRANKLIN ST. PROPERTY OVERVIEW 9
FINANCIAL SUMMARY INVESTMENT OVERVIEW Price $2,295,000 Price per SF $387.28 CAP Rate 6.3% Cash-on-Cash Return (yr 1) 5.6 % Total Return (yr 1) $77,110 Debt Coverage Ratio 1.44 OPERATING DATA Gross Scheduled Income $144,594 Other Income $35,556 Total Scheduled Income $180,150 Vacancy Cost $0.00 Gross Income $180,150 Operating Expenses $35,556 Net Operating Income $144,594 Pre-Tax Cash Flow $44,109 FINANCING DATA Down Payment $805,000 Loan Amount $1,490,000 Debt Service $100,485 Debt Service Monthly $8,373 Principal Reduction (yr 1) $33,001 3801 FRANKLIN ST. PROPERTY OVERVIEW 10
3801 Franklin St. 3801 FRANKLIN ST. PROPERTY OVERVIEW 11
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CONSTRUCTION DETAILS CONSTRUCTION Wood frame with masonry/brick ROOFING TPO membrane with R-38 foam insulation installed in 2015 ELECTRICAL 400 amp, single phase HVAC 4 new rooftop units (2015) UTILITIES PROVIDER SEWER & WATER ELECTRICITY NATURAL GAS Denver Water Xcel Energy Xcel Energy 3801 FRANKLIN ST. PROPERTY OVERVIEW 14
TENANT OVERVIEW TENANT LEASED SF % OF TOTAL LEASE EXPIRATION SecureSet Accelerator 5,926 100.0% December 2020 TOTALS 5,926 100.0% - 3801 FRANKLIN ST. PROPERTY OVERVIEW 15
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NEIGHBORHOOD INFORMATION COLE NEIGHBORHOOD The Cole Neighborhood, which became part of the city in 1874 stretches north from Martin Luther King Blvd. (32nd Ave.) to 40th Ave and Walnut St., and east from Downing St. to York St. Cole Junior High School and the neighborhood itself are named after Carlos M. Cole, a superintendent of Denver s Public Schools who was instrumental in establishing junior high schools in Denver. More than half of the residential blocks were developed prior to 1900. Several historic buildings remain such as the cleanly designed red brick and sandstone Wyatt School on 3620 Franklin St. built in 1887 and named after its former principal George W. Wyatt. POINTS OF INTEREST The Source Denver Coliseum The Walnut Room Infinite Monkey Theorem Russell Square Park Cole Arts and Sciences Academy Denver Rock Drill Development RINO (RIVER NORTH) NEIGHBORHOOD The River North Art District "where art is made" goes by the nickname of "RiNo" and has even adopted a rhino design for its official logo. The neighborhood's interesting blend of urban charm and unique industrial revival makes it a great destination. Historic warehouses and factories now house jazz bars, restaurants, brewpubs, art galleries and working studios. RiNo boasts a diverse mix of creative businesses ranging from visual artists, designers and furniture makers, to craft distillers and brewers, winemakers, and creators of unique outdoor gear. The art definitely extends beyond gallery walls in this neighborhood, with its colorful and innovative street art murals in alleys and on buildings around almost every corner. 3801 FRANKLIN ST. PROPERTY OVERVIEW 17
EXCLUSIVE AGENTS: SAM LEGER EXECUTIVE VICE PRESIDENT 303.512.1159 sleger@uniqueprop.com TIM FINHOLM EXECUTIVE VICE PRESIDENT 303.512.1161 tfinholm@uniqueprop.com The information contained herein was obtained from sources believed reliable; however, Unique Properties makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation on this property is submitted subject to errors, omission, changes of price, or conditions, prior to sale or lease, or withdrawal without notice.