VALUE ADD INFILL RETAIL 2870 & 2864 COLORADO BOULEVARD DENVER, CO 80207 One Broadway, Suite 300A Denver, CO 80203 303.962.9555 www.pinnaclerea.com Chris Student 303.962.9575 Jules Hochman 303.962.9533 Justin Brockman 303.962.9553
TABLE OF CONTENTS EXECUTIVE SUMMARY 4 OFFERING SUMMARY 5 LOCATION OVERVIEW 7-9 FINANCIAL OVERVIEW 11-12 INVESTMENT CONTACTS Chris Student, Associate Advisor 303.962.9575 Jules Hochman, Principal 303.962.9533 Justin Brockman, Principal 303.962.9553 Melanie Williford, Transaction Manager 303.962.9531 Pinnacle Real Estate Advisors One Broadway, Suite 300A Denver, CO 80203 303.962.9555 www.pinnaclerea.com For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 2
PROPERTY OVERVIEW For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 3
EXECUTIVE SUMMARY Pinnacle Real Estate Advisors, LLC is pleased to exclusively offer the sale of 2870 & 2864 Colorado Blvd, a 7,546 square foot multitenant retail building located on Colorado Blvd. The street front retail property is currently 100% occupied and offers a tremendous value add opportunity with two short term leases at well below market rents. The property features free street parking in front, off street parking in back, exceptional traffic counts of over 53,000 vehicles per day on Colorado Blvd, and robust demographics in the surrounding Park Hill Neighborhood with an average household income in excess of $99,000 in a one mile radius. Average household income in excess of $99,000 in a one mile radius Offering Summary Address Price $1,800,000 Building Size 7,546 SF Land Size 11,399 SF Cap Rate (Market) 6.84% 2870 & 2864 Colorado Blvd Denver, CO 80207 For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 4
OFFERING SUMMARY Offering Summary Year Built 1942 & 1949 Building Type Multi Tenant Retail Gross Leasable Area 7,546 SF Lot Size 11,399 SF County Denver Zoning U-MS-3 Parking 10 Off-Street Spaces Investment Summary Price $1,800,000 Down Payment 40% $720,000 Price/SF $238.54 CAP Rate (Proforma) 6.84% Type of Ownership Fee Simple Financing (proposed) Loan Amount $1,080,000 Loan Type New Interest Rate 4.50% Amortization 25 Years Loan to Value 60% For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 5
LOCATION OVERVIEW For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 6
LOCATION OVERVIEW $604,000 CONGRESS PARK MEDIAN HOME VALUE DOWNTOWN DENVER $651,000 CITY PARK MEDIAN HOME VALUE $649,000 SOUTH PARK HILL MEDIAN HOME VALUE CITY PARK GOLF COURSE $413,000 SKYLAND NORTH MEDIAN HOME VALUE $446,000 NORTH PARK HILL MEDIAN HOME VALUE Renaissance 103 Class A Apartments Built in 2016 2870 & 2864 COLORADO BLVD PARK HILL GOLF COURSE FUTURE DEVELOPMENT Park Hill Station 156 Class A Apartments Built in 2016 Park Hill 4000 168 Class A Apartments Built in 2014 53,633 VPD COLORADO BOULEVARD LIGHT RAIL 18,000 DAILY RIDERS 40th & Colorado Light Rail Station INTERSTATE 70 For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 7
LOCATION OVERVIEW BACKGROUND I-70 East between I-25 and Chambers Road is one of the most heavily traveled and congested highway corridors in the Denver region and the state. Since 2003, CDOT has been studying a series of improvements to this corridor to make the interstate safer, relieve congestion and address aging infrastructure. The results of that study were released in January 2016 in the Final Environmental Impact Statement, which analyzes these alternatives. On Jan. 19, 2017, the Federal Highway Administration approved the Record of Decision, allowing the project to move forward. Additionally, in 2017, CDOT plans to select a private partner to design, build, and help finance Central 70, as well as to operate and maintain the completed project. Construction is expected to begin in 2018. THE PROJECT The Central 70 Project includes: Constructing one new Express Lane in each direction from Brighton Boulevard to Chambers Road Removing the 50-year-old viaduct and lowering the interstate between Brighton and Colorado boulevards Constructing a new 4-acre park and public space over the interstate between Clayton and Columbine streets For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 8
E 29TH AVENUE E 28TH AVENUE LOCATION OVERVIEW OFF-STREET PARKING 2870 & 2864 COLORADO BLVD 53,633 VPD COLORADO BOULEVARD For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 9
PARK HILL NEIGHBORHOOD POPULATION 1 mile 18,412 3 mile 176,693 5 mile 421,260 BEST NEIGHBORHOOD TO LIVE IN COLORADO RANKED #1 BY NICHE.COM HOUSEHOLDS 1 mile 7,170 3 mile 87,022 5 mile 195,125 HOUSEHOLD INCOMES OVER $100,000 RANKED #4 3,206 TOTAL HOMES BY STATISTICALATLAS.COM AVERAGE HH INCOME 1 mile $99,076 3 mile $89,643 5 mile $87,716 For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 10
FINANCIAL OVERVIEW For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 11
ANALYSIS INCOME & EXPENSES INCOME Current Per SF Market Per SF Boost Mobile $21,360 $29.67 $17,280 $24.00 Trip-O-Core Electronics $14,400 $20.00 $12,960 $18.00 Exclusive Cuts $16,200 $22.50 $12,960 $18.00 Nationwide Tax Service $25,000 $16.67 $27,000 $18.00 ES Fitness & Dance Studio $46,308 $14.02 $59,436 $18.00 GROSS POTENTIAL RENT $123,268 $17.71 $129,636 $18.62 Other Income Expense Reimbursements $0 $0.00 $31,930 $4.59 TOTAL OTHER INCOME $0 $0.00 $31,930 $4.59 VACANCY & CONCESSION (5.00%) $6,163 $6,482 EFFECTIVE GROSS INCOME $117,105 $16.82 $155,084 $22.28 EXPENSES Property Tax $25,000 $3.59 $25,750 $3.70 Insurance $2,200 $0.32 $2,266 $0.33 Water $2,000 $0.29 $2,060 $0.30 Trash $1,800 $0.26 $1,854 $0.27 TOTAL EXPENSE $31,000 $4.45 $31,930 $4.59 NET OPERATING INCOME $86,105 $12.37 $123,154 $17.69 FINANCIAL ANALYSIS Net Operating Income $86,105 $123,154 Debt Service ($72,036) ($72,036) Net Cashflow After Debt Service $14,069 $51,118 Cash On Cash Return 1.95% 7.10% Principle Reduction $23,925 $23,925 Total Return $37,994 $75,044 Total Return % 5.28% 10.42% For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 12
TENANT RENT ROLL Tenant Name Sq Ft PRS Current Rate/SF Annual Rent Lease Term Start Lease Term End Expense Recoveries Boost Mobile 720 10.34% $29.67 $21,360 Dec-2015 Nov-2018 Gross Trip-O-Core Electronics 720 10.34% $20.00 $14,400 MTM Gross Exclusive Cuts 720 10.34% $22.50 $16,200 March-2016 March-2019 Gross Nationwide Tax Service 1,500 21.55% $16.67 $25,000 Nov-2016 Nov-2019 Gross ES Fitness and Dance 3,302 47.43% $14.02 $46,308 June-2015 July-2018 Gross Total Square Feet 6,962 Vacant Square Feet 0 Occupancy 100% Gross Lease: Tenant pays gas and electric direct to provider, does not reimburse for property tax, property insurance, water or trash. For more information, contact: Chris Student 303.962.9575 CStudent@PinnacleREA.com 13
DISCLAIMER This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC ( Pinnacle REA ) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 2870 & 2864 Colorado Boulevard, Denver, Colorado (the Property ) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Pinnacle REA or its brokers. Pinnacle REA makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Pinnacle REA has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Pinnacle REA shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request. will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Pinnacle REA at your earliest convenience. 2017 Pinnacle Real Estate Advisors, LLC. All information contained herein has been obtained from sources we believe to be reliable. However, we accept no responsibility for its accuracy and encourage verification of all information prior to making financial decisions. Investment Contacts: Chris Student, Associate Advisor 303.962.9575 Jules Hochman, Principal 303.962.9533 Justin Brockman, Principal 303.962.9553 Melanie Williford, Transaction Manager 303.962.9531 This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Pinnacle REA. You agree that you
Offered and Marketed by: Chris Student, Associate Advisor 303.962.9575 Jules Hochman, Principal 303.962.9533 Justin Brockman, Principal 303.962.9553 Melanie Williford, Transaction Manager 303.962.9531