multifamily portfolio€¦ · pinnacle real estate advisors, llc (“pinnacle rea”) for use by a...
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Kevin Calame, Principal303-962-9535
Matt Lewallen, Principal303-962-9561
Investment Contacts:
DENVERMULTIFAMILY
PORTFOLIO
DENVER NORTHEAST2440-2450 OGDEN ST
Denver, CO 80205
3501-3543 HIGH ST
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 properties described herein as 2440-2450 Ogden Street, Denver, CO and 3501-3543 High Street, Denver, CO (the “Properties”) and of all of the information provided herein related to the Properties. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Properties 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 Properties 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 Properties. 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 Properties. Although the information contained herein is believed to be accurate, Pinnacle REA and the Properties Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Properties 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 Properties and an opportunity to inspect the Properties upon written request.
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 will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Properties. If you determine you have no interest in the properiesy, kindly return the Offering Memorandum to Pinnacle REA at your earliest convenience.
DISCLOSURE AND CONFIDENTIALITY AGREEMENT
Kevin [email protected]
Dan HawthorneAssociate [email protected]
Hunter SchaeferAssociate [email protected]
Matt [email protected]
Jack ShermanAssociate [email protected]
Kaila DeeTransaction [email protected]
Investment Contact:
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Table of Contents
Area Overview
Executive Summary
Property Overview
Arial
Financial Analysis
Market Overview
One Broadway, Suite 300A | Denver, CO 80203Main: 303-962-9555 | www.PinnacleREA.com
Kevin [email protected]
Dan HawthorneAssociate [email protected]
Hunter SchaeferAssociate Advisor [email protected]
Matt [email protected]
Jack ShermanAssociate [email protected]
Kaila DeeTransaction [email protected]
A R E A O V E R V I E WDenver is one of the fastest-growing cities in the U.S., with a highly educated workforce, and it is becoming a magnet for talented professionals who are seeking dynamic careers outside of the typical financial centers. The quest for work-life balance has made Colorado a hot destination for professionals and companies in search of talent.
1# IN THE NATIONFOR BUSINESSAND CAREERS
3# IN THE US FOR PERCENTAGE OF ADULT POPULATION WITH FULL-TIME EMPLOYMENT
1# IN THE NATIONFOR ECONOMIC & JOB GROWTH
IN MAY 2018, DENVER'S
UNEMPLOYMENT RATE DROPPED TO
2.8%A full percentage point below the national unemployment rate of 3.8%
20%
15%
10%
5%
0%
TOTAL DENVER EMPLOYEES (Current Employment Stat is t ics - Bureau of Labor Stat is t ics)
Mining, Lodging, and Construction
Manufacturing Trade Information Financial Business/Professional
Education and Health Services
Hospitality Government
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARYPinnacle Real Estate Advisors is pleased to announce they have been retained as the exclusive marketing advisor for 2440-2450 Ogden Street and 3501-3543 High Street. Qualified investors have the opportunity to acquire this 17-unit multifamily portfolio located in central Denver. The properties were built in 1956 and 1960 respectively, and are composed of two 1-bedroom & fifteen 2-bedroom apartments. The properties are located just outside Downtown Denver in the highly desired RiNo & Whittier neighborhoods. Properties are subject to a HAP contract expiring February 2022. For more info, contact broker.
Property Features:
• Large developable lot on High street zoned for 10 single family dwellings with ADU’s
• Great unit mix including rare central Denver 2 bedrooms
• Separately metered for gas and electric
• New roof on High Street in September 2019
Combined Offering Summary
Address: 2440-2450 Ogden Street 3501-3543 High Street
Building Size: 12,388 SF
Units: 17
Price: $3,000,000
Price/Unit: $176,471
Price/SF: $242
Year Built: 1956/1960
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PROPERTY OVERVIEW
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PROPERTY OVERVIEW
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Denver Northeast Apartments2440-2450 Ogden Street Denver, CO 80205
PROPERTY OVERVIEWS
PROPERTY DESCRIPTIONTotal Units 6Year Built 1956Zoning U-SU-A1, U03Building GSF 4,328Land SF 6,200Building Type MasonryRoof FlatHVAC Forced Air Furnace Parking 4 Off-Street Spaces
3501-3543 High StreetDenver, CO 80205
PROPERTY DESCRIPTIONTotal Units 11Year Built 1960Zoning U-SU-A1Building GSF 8,060Land SF 33,700Building Type MasonryRoof PitchedHVAC Forced Air Furnace Parking 22 Off-Street Spaces
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Denver Northeast Apartments2440-2450 Ogden Street &3501-3543 High StreetDenver, CO 80205
PROPERTY OVERVIEW
INVESTMENT SUMMARYPrice $3,000,000Price/Unit $176,471Price/SF $242
FINANCINGLoan Amount $2,100,000Down Payment $900,000Interest: 3.875%Amortization: 30 Years
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ARIAL OVERVIEW
E 26TH AVENUE
MARTIN LUTHER KING BOULEVARD
N D
OW
NIN
G S
TR
EE
T
E 23RD AVENUE
YO
RK
ST
RE
ET
2440-2450 Ogden St.
3501-3542 N High St.
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FINANCIAL ANALYSIS
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UNIT MIX
Unit Type No. of Units Approx. SF Current/Market Rent Monthly Income ProForma Rent ProForma Monthly Rent ProForma Rent/SF
1Bd/1Ba 1 600 $1,025 $1,025 $1,100 $1,100 $1.83
1Bd/1Ba-Lg 1 648 $990 $990 $1,065 $1,065 $1.64
2Bd/1Ba 5 725 $1,261 $6,305 $1,336 $6,680 $1.84
2Bd/1Ba-Lg 10 781 $1,286 $12,860 $1,361 $13,610 $1.74
TOTALS 17 12,683 $21,180 $22,455
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INCOME: Current Market Income Rent Increase
Gross Scheduled Rent $254,160 $254,160 $284,760 Less: Vacancy (3%) ($7,625) ($7,625) ($8,543)Gross Rental Income $246,535 $246,535 $276,217
Late Fee $313 $313 $313 Cable/Phone Billback $786 $786 $786 Misc./Other $575 $575 $575 Other Income $1,674 $1,674 $1,674
Effective Gross Income $248,209 $248,209 $277,891
EXPENSES:
Property Tax $13,156 $13,156 $13,156 Insurance $6,649 $6,800 $6,800 Gas/Electric $2,744 $2,744 $2,744 Water/Sewer $8,306 $8,306 $8,306
Trash $5,846 $2,340 $2,340 Lawn/Snow $7,636 $3,600 $3,600 Legal/Professional $4,206 $3,000 $3,000 Management $19,912 $19,723 $22,097 Repairs/Maint. $33,258 $17,000 $17,000 Misc. $1,150 $500 $500 Admin/Payroll $13,395 $2,500 $2,500 Total Operating Expenses $116,258 $79,669 $82,043
Expenses/Unit $6,839 $4,686 $4,826
FINANCIAL ANALYSIS
Net Operating Income $131,951 $168,540 $182,194 Projected Debt Service ($118,500) ($118,500) ($118,500)Before Tax Cash Flow $13,451 $50,041 $63,694 CAP Rate 4.4% 5.6% 6.1%Cash-on-Cash Return 1.5% 5.6% 7.1%
CURRENT, MARKET, & PRO FORMA PROJECTIONS
FINANCIAL ANALYSIS
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MARKET OVERVIEW
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Price: $5,750,000SF: 17,091Price/SF: $336Price/Unit: $191,667Year Built 1908Unit Mix: 28 - Studio
1 -1Bd/1Ba1 - 2Bd/1Ba
Price: $3,800,000SF: 12,056Price/SF: $315Price/Unit: $237,500Year Built 1953Unit Mix: 1 - 1Bd
17 - 2 Bd
Price: $5,200,000SF: 13,870Price/SF: $375Price/Unit: $208,000Year Built 1913Unit Mix: 25 - 1Bd
Price: $1,900,000SF: 7,429Price/SF: $256Price/Unit: $190,000Year Built 1903Unit Mix: 10 - 2Bd/1Ba
1560 Downing StreetDenver, CO 80218
3401 Williams StreetDenver, CO 80205
COMPARABLE SALES
1 2 3 4
Units: 6Year Built: 1956Price/SF: $242Building Size: 4,328CAP: 5.4%Unit Mix: 1 - 1Bd/1Ba
5 - 2Bd/1Ba
2440-2450 Ogden StreetDenver, CO 80205
SUBJECT PROPERTIES
Units: 11Year Built: 1960Price/SF: $242Building Size: 8,060CAP: 5.4%Unit Mix: 1 - 1Bd/1Ba
10 - 2Bd/1Ba
3501-3543 High StreetDenver, CO 80205
1114 Acoma StreetDenver, CO 802
1435-1445 Jersey StreetDenver, CO 80220
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Kevin CalamePrincipal [email protected]
Matt [email protected]
Dan Hawthorne Associate [email protected]
Jack ShermanAssociate Advisor [email protected]
Kaila DeeTransaction Manager [email protected]
Hunter SchaeferAssociate Advisor [email protected]
One Broadway | Suite 300ADenver | Colorado | 80203www.PinnacleREA.com