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OFFERING MEMORANDUM 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 Matt Lewallen Principal 720.738.1940

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Page 1: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

OFFERING MEMORANDUM

1901 KIPLING STREET

1901 Kipling Street Lakewood, CO 80215

INVESTMENT CONTACTS:

Kevin CalamePrincipal720.738.1939

Matt LewallenPrincipal720.738.1940

Page 2: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

INVESTMENT CONTACTS:

Kevin Calame Principal 720.738.1939 [email protected]

Matt Lewallen Princial 720.738.1940 [email protected]

Kaila Dee Operations Manager 720.738.1948 [email protected]

Dan Hawthorne Advisor 720.738.1941 [email protected]

Hunter Schaefer Advisor 720.738.1942 [email protected]

Jack Sherman Advisor 720.738.1942 [email protected]

1720 S Bellaire St. Suite 701 Denver, CO 80222 720.738.1949 • aqyre.com

� EXECUTIVE SUMMARY

� PROPERTY OVERVIEW

� LOCATION OVERVIEW

� FINANCIAL ANALYSIS

� VALUE-ADD OPPORTUNITY

�MARKET OVERVIEW

Page 3: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

EXECUTIVE SUMMARY

Page 4: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

OFFERING SUMMARY:Address: 1901 Kipling Street Building Size: 7,854 SF Number of Offices: 19 Price: $1,225,000Price/SF: $194Year Built: 1971Parking Lot: 19

EXECUTIVE SUMMARY

AQYRE Real Estate Advisors is pleased to announce they have been retained as the exclusive marketing advisor for 1901 Kipling Street, Lakewood, CO 80215. Qualified investors have the opportunity to acquire this unique 19-unit office property located in Lakewood. The property was built in 1971, and has a nice mix of different office spaces.The property is located in the heart of Lakewood and is very well maintained with many recent updates making it a strong opportunity.

PROPERTY FEATURES:• Opportunity to add additional

office space, see page 16.• Newly renovated exterior and

interior• High visibility on Kipling• Plenty of parking• Low price per square foot

Page 5: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

PROPERTY OVERVIEW

Page 6: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

PROPERTY DESCRIPTION

Total Units 19

Year Built 1971

Building GSF 7,854

Land SF 17,237

Building Type Concrete Block

Roof Flat

HVAC Forced Air

Parking Lot 18

PROPERTY OVERVIEW1901 Kipling StreetLakewood, CO 80215

INVESTMENT SUMMARY

Price $1,225,000

Price/SF $194

FINANCING ASSUMPTIONS

Loan Amount $875,500

Down Payment $367,500

Interest 4.50%

Amortization 30 Years

Page 7: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

PROPERTY OVERVIEW

EXECUTIVE SUITES

A new type of office space needed with much less risk! Historically speaking, the big con-cern for investors of Office real estate is TI cost (Tenant Improvement). When large spaces go empty, TI costs are a real factor to the Landlords bottom line. However, if tenant spaces are small – under 500sqft., that concern goes away. With the surge of self-employment on the rise, this type of asset is much more stable.

Momentum Behind Wave of Independent Workers Is Growing Despite Challenges, With 27 Million Expected to Enter Self-Employed Workforce by 2020

FreshBooks, the #1 accounting and invoicing software in the cloud designed exclusively for self-employed professionals and their teams, today announced results from its 2nd annual “Self-Employment Report”. The data suggest a dramatic shift in the American workforce, whereby the number of Americans working for themselves could triple, bringing the total population of self-employed professionals to 42 million by 2020.

A Paradigm Shift in Real Time

“The data suggest that over the next two years, the number of self-employed profession-als in the U.S. could triple,” said Mike McDerment, co-founder and CEO at FreshBooks. “Whether or not change occurs at this pace, it’s clear the mindset of the American worker has shifted. With significantly more people aspiring to work for themselves versus holding a traditional job, it’s critical that we build a world to support them.”

Self-Employment Is on the Rise and Co-Working Fits the Bill for Many Freelancers

The advantages of being a self-employed contractor are well known—being your own boss, having the flexibility to choose your hours and place of work, and the ability to deduct business expenses from income tax are all powerful incentives to choose self-employment, especially given that the traditional “job for life” that many of our parents and grandparents enjoyed has all but disappeared.

Statistics indicate that self-employment is on a steady rise and by 2020, 40 percent of the workforce in the U.S. and 45 percent of the workforce in Canada will consist of freelancers, independent contractors, and on-demand workers.

Page 8: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

PROPERTY OVERVIEW

Page 9: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

LOCATIONOVERVIEW

Page 10: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

1. AREA OVERVIEW

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26 DIFFERENT FEDERAL AGENCIESMaking Lakewood the largest concentration of Federal agencies

outside of Washington D.C.

AREA OVERVIEW

LAKEWOOD

Encompassing approximately 44 square miles in Jefferson County, Lakewood sits between the Rocky Mountains and the heart of Denver. As the 5th largest city in Colorado by population, Lakewood is a key component of the 7 county Denver-Aurora-Lakewood Metropolitan Statistical Area. Surrounded by several major universities and research facilities, including the world renowned Colorado School of Mines, Lakewood has one of the most highly educated workforces in the country with 36% of residents holding a bachelor’s degree or higher. The city has dedicated more than 7,100 acres to parks and open space, with approximately 200 miles of hiking and biking trails.

Lakewood has also become a hotbed for employment in the aerospace, financial services, technology firms and government sectors with corporations such as 1stBank, The Integer Group, and HomeAdvisor holding large employment centers in Lakewood. Government is Lakewood’s most dense employment sector, largely due to the presence of the Denver Federal Center. Home to employees from 26 different Federal agencies, Lakewood boasts the largest concentration of federal agencies outside of Washington D.C. The city also hosts employment concentrations in the mining/oil and gas/energy related, medical device manufacturing, and renewable energy sectors. Recently, Denver’s RTD program has made a concerted effort to bring light rail to Denver’s west suburbs.

Lakewood has become the beneficiary of the RTD W Line which opened in 2013, giving significant boost to local business and commuters living in the city.

7,100 ACRES Dedicated to parks and open space with

approximately 200 mile of hiking and biking

LAKEWOOD DEMOGRAPHICS

Population 152,621

Population Growth 2010-2016 7.4%

Households 67,482

Household Growth 2010-2016 9.2%

Median Age 40

Total Employment 77,626

Average Household Income $76,206

Median Home Value $289,628

Page 11: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

AERIAL

1901 Kipling Street

Page 12: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

FINANCIAL ANALYSIS

Page 13: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

FINANCIAL ANALYSIS // UNIT MIX

UNIT TYPE NO. OF UNITS APPROX. SF CURRENT RENT CURRENT MONTHLY

INCOME MARKET RENT MARKET MONTHLY INCOME

Small Office 15 157 SF $419 $6,282 $575 $8,625

Medium Office 3 328 SF $590 $1,770 $728 $2,184

Large Office 1 2200 SF $2,800 $2,800 $2,800 $2,800

Total 19 5,541 SF $10,852 $13,609

Page 14: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

INCOME: CURRENT MARKET

Gross Scheduled Rent $127,581 $192,288

Less: Vacancy ($6,379) ($9,614)

Gross Rental Income $121,202 $182,674

Sign Income $1,080 $1,080

Other Income $1,080 $1,080

Effective Gross Income $122,282 $183,754

EXPENSES:

Water-Consolidated Mutual $600 $600

Storm Sewer - Lakewood $360 $360

Taxes $10,216 $10,216

Trash $300 $300

Internet/Phone $3,300 $3,300

Grounds/Snow Removal $1,800 $1,800

Repairs/Maint. (2%) $2,062 $2,062

Janitorial $3,900 $3,900

Xcel Electric & Gas $6,612 $6,612

Management $- $-

Insurance $2,778 $2,778

Total Operating Expenses $31,927 $31,927

Expenses/SF $4.38 $4.38

NET OPERATING INCOME $90,355 $151,826

FINANCIAL ANALYSIS // CURRENT AND ONE-YEAR PROJECTIONS

FINANCIAL ANALYSIS CURRENT MARKET

Net Operating Income $90,355 $151,826

Projected Debt Service ($52,138) ($59,586)

Before Tax Cash Flow $38,217 $92,240

CAP Rate 7.4% 10.8%

Cash-on-Cash Return 10.4% 22.0%

Page 15: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

VALUE-ADD OPPORTUNITY

1901 Kipling StreetLakewood, CO 80215

This space has a unique value-add opportunity. Not only has the building been renovated: new flooring, interior and exterior paint,

added conference room, stair treads, break room and more, there is potential to add $40,944 per year in rent by adding 3

additional offices. Turning the additional 1,850 sqft will cost approximately $175,000. Adding these 3 offices will increase your NOI by 47% or 22% Return on your $175,000 equity

investment.

Page 16: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

MARKET OVERVIEW

Page 17: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

1901 Kipling Street Lakewood, CO 80215

Number of Units 19

Year Built 1971

Building Size 7,854 SF

Price/SF $159

Actual Cap Rate 7.4%

Tentants Multi

MARKET OVERVIEW // COMPARABLE SALES

SUBJECT PROPERTY

1000 10th Street Golden, CO 80401

Sale Date 3/31/2017

Price $1,782,000

Building SF 5,942

Price/SF $300

Year Built 1971

Tenants 1

607 19th Street Golden, CO 80401

Sale Date 11/28/2017

Price $3,300,000

Building SF 12,301

Price/SF $274

Year Built 1985

Tenants 1

#2#1 15485 W 44th Avenue Golden, CO 80403

Sale Date 11/9/2018

Price $833,000

Building SF 4,500

Price/SF $367

Year Built 1981

Tenants Multi

#3 1200 Arapahoe Street Golden, CO 80401

Sale Date 11/21/2016

Price $950,000

Building SF 3,457

Price/SF $275

Year Built 1967

Tenants Multi

#4

Page 18: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

DISCLOSURE AND CONFIDENTIALITY AGREEMENT

This confidential Offering Memorandum, has been prepared by AQYRE Real Estate Advisors, LLC (AQYRE Real Estate Advisors) 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. AQYRE Real Estate Advisors recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 1901 Kipling Street Lakewood, CO (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 AQYRE Real Estate Advisors or its brokers.

AQYRE Real Estate Advisors 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. AQYRE Real Estate Advisors 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 AQYRE Real Estate Advisors and the Owner of the Property. AQYRE 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, AQYRE Real Estate Advisors and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, AQYRE Real Estate Advisors 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. AQYRE Real Estate Advisors 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.

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 AQYRE Real Estate Advisors. You agree that you 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 AQYRE Real Estate Advisors at your earliest convenience.

Page 19: OFFERING MEMORANDUM 1901 KIPLING STREET … · 1901 KIPLING STREET 1901 Kipling Street Lakewood, CO 80215 INVESTMENT CONTACTS: Kevin Calame Principal 720.738.1939 ... especially given

INVESTMENT CONTACTS:

Kevin Calame Principal 720.738.1939 [email protected]

Matt Lewallen Princial 720.738.1940 [email protected]

Kaila Dee Operations Manager 720.738.1948 [email protected]

Dan Hawthorne Advisor 720.738.1941 [email protected]

Hunter Schaefer Advisor 720.738.1942 [email protected]

Jack Sherman Advisor 720.738.1942 [email protected]

1720 S Bellaire St. Suite 701 Denver, CO 80222 720.738.1949 • aqyre.com