value add infill retail - loopnet · 2017-11-17 · • constructing one new express lane in each...

EXECUTIVE SUMMARY 4OFFERING SUMMARY 5LOCATION OVERVIEW 7-9FINANCIAL OVERVIEW 11-12

TABLE OF CONTENTS

INVESTMENT CONTACTS

Chris Student, Associate [email protected]

Jules Hochman, [email protected]

Justin Brockman, [email protected]

Melanie Williford, Transaction [email protected]

Pinnacle Real Estate AdvisorsOne Broadway, Suite 300A | Denver, CO 80203303.962.9555 | www.PinnacleREA.com

For more information, contact: Chris Student | 303.962.9575 | [email protected] 2

PROPERTY OVERVIEW


EXECUTIVE SUMMARY

Pinnacle Real Estate Advisors, LLC is pleased to exclusively offer the sale of 2870 & 2864 Colorado Blvd, a 7,546 square foot multi-tenant 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.

Offering Summary Address 2870 & 2864 Colorado Blvd

Denver, CO 80207Price $1,800,000 Building Size 7,546 SFLand Size 11,399 SFCap Rate (Market) 6.84%

Average household income in excessof $99,000 in a one mile radius


OFFERING SUMMARY

Offering Summary Year Built 1942 & 1949Building Type Multi Tenant RetailGross Leasable Area 7,546 SFLot Size 11,399 SFCounty DenverZoning U-MS-3Parking 10 Off-Street Spaces

Investment SummaryPrice $1,800,000Down Payment 40% $720,000Price/SF $238.54CAP Rate (Proforma) 6.84%Type of Ownership Fee Simple

Financing (proposed)Loan Amount $1,080,000 Loan Type NewInterest Rate 4.50%Amortization 25 YearsLoan to Value 60%


LOCATION OVERVIEW


DOWNTOWNDENVER

CITY PARKGOLF COURSE

PARK HILLGOLF COURSE

FUTUREDEVELOPMENT

LOCATION OVERVIEW

53,633 VPD COLORADO BOULEVARD

40th & Colorado Light Rail Station

Renaissance103 Class A ApartmentsBuilt in 2016

Park Hill 4000168 Class A ApartmentsBuilt in 2014

LIGHT RAIL 18,000 DAILY RIDERS

INTERSTATE

70

Park Hill Station156 Class A ApartmentsBuilt in 2016

$604,000 CONGRESS PARK

MEDIAN HOME VALUE

$651,000 CITY PARK

MEDIAN HOME VALUE

$413,000 SKYLAND NORTH

MEDIAN HOME VALUE

$446,000 NORTH PARK HILLMEDIAN HOME VALUE

$649,000 SOUTH PARK HILLMEDIAN HOME VALUE

2870 & 2864COLORADO BLVD


BACKGROUNDI-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

LOCATION OVERVIEW


53,633 VPD COLORADO BOULEVARD

E 28T

H A

VE

NU

E

E 29T

H A

VE

NU

E

OFF-STREET PARKING

LOCATION OVERVIEW

2870 & 2864COLORADO BLVD


PARK HILL NEIGHBORHOOD

1 mile 18,4123 mile 176,6935 mile 421,260

POPULATION

1 mile 7,1703 mile 87,0225 mile 195,125

HOUSEHOLDS

AVERAGE HH INCOME1 mile $99,0763 mile $89,6435 mile $87,716

BEST NEIGHBORHOOD TO LIVE IN COLORADO

BY NICHE.COM

RANKED #1

HOUSEHOLD INCOMES OVER $100,000

3,206 TOTAL HOMES BY STATISTICALATLAS.COM

RANKED #4


FINANCIAL OVERVIEW


ANALYSIS INCOME & EXPENSES

INCOME Current Per SF Market Per SFBoost 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 IncomeExpense 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 ANALYSISNet 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 $23,925Total Return $37,994 $75,044Total Return % 5.28% 10.42%


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.


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. 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 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:





DISCLAIMER





Offered and Marketed by:

value add infill retail - loopnet · 2017-11-17 · • constructing one new express lane in each...

Documents