One Broadway Suite A300 | Denver, CO 80203303.962.9555 | www.PinnacleREA.com
Jeff Johnson, Co-Founder, PrincipalAndrew Monette, Associate AdvisorCorey Sandberg, Associate AdvisorDallas Sandberg, Associate AdvisorBriana Masullo, Transaction Manager
8600 WEST 14TH AVENUELAKEWOOD, CO 80215
NEWLY INCREASED CAP RATE
TA B L E O F C O N T E N T S
Executive Summary
Location Overview
Property Overview
Comparables
Revenue
Cash Flow
Disclaimer
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E X E C U T I V E S U M M A R Y INVESTMENT CONTACTS
JEFF JOHNSONCo-Founder, [email protected]
ANDREW MONETTEAssociate [email protected]
COREY SANDBERGAssociate [email protected]
DALLAS SANDBERGAssociate [email protected]
ADMINISTRATIVE CONTACTS
BRIANA MASULLOTransaction [email protected]
Pinnacle Real Estate Advisors is pleased to announce they have been exclusively retained to offer qualified investors an opportunity to purchase 8600 W. 14th Ave in Lakewood, Colorado.
This highly flexible property has potential for both retail and office tenants. The investment is ideal for either investors or owner/users. With many recent capital improvements and a flexible layout, the property is primed for stabilization.
The current tenants have expressed interest in extending their leases. Some of the short term leases are below market offering immediate upside for a new owner. The short-term leases offer an investor or owner/user the opportunity to execute new leases in line with their objectives for the property.
The property is listed at a low price/ square foot (just over $80), and has the potential to achieve a cap rate in excess of 9% with minimal effort.
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L A K E W O O D O V E R V I E W
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.
LAKEWOOD DEMOGRAPHICS
Population 153,621
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
RTD LIGHT RAILLAKEWOOD
W LINE
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L O C AT I O N O V E R V I E W
LAKEWOOD COUNTRY CLUB
COLFAX AVENUE
SLOAN’S LAKE
20TH AVENUE
LIGHT RAIL
ART
ART
ART
ART
ART
WALKER RANCH PARK
MOUNTAIRPARK
PIE
RC
E S
TR
EE
T
WA
DS
WO
RT
H B
OU
LE
VA
RD
KIP
LIN
G P
AR
KW
AY
SH
ER
IDA
N B
OU
LE
VA
RD
FORTY WEST ARTS DISTRICT
GARRISONLIGHT RAIL
STATION
LAMAR LIGHTRAIL STOP
SHERIDAN LIGHT RAIL STOP
8600 W 14TH AVE
WADSWORTHLIGHT RAIL
PARK-N-RIDE
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P R O P E R T Y O V E R V I E W
8600 W 14TH AVE Lakewood, CO 80215
Acquisition Price: $655,000
Building Type: Multi-Tenant Office/Retail
Building Size: 8,160 SF (Per Leases)
Construction Type: Masonry
YOC: 1962
Land Area: 25,000 SF
Zoning: M-N-U
Property Highlights:
• Recent capital improvements
• Flexible layout with usable attic space
• Flexible tenant uses
• Structure/systems/roof
• Easily add value through lease-up
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Location RSF Lease SF Sign Date Year Built Rate Lease Type NNNExpenses Gross Rate
8725 W 14th Ave Lakewood, CO
8021512,665 1,279 7/1/2018 1980 $12.00 FS $0.00 $12.00
3705 Kipling St Wheat Ridge, CO
8003314,000 800 3/1/2017 1973 $10.00 FS $0.00 $10.00
7711 W 6th Ave Lakewood, CO
8021417,924 1,550 3/1/2018 1987 $7.75 NNN $5.66 $13.41
8850 W 38th Ave Wheat Ridge, CO
800334,850 2,524 6/1/2018 1981 $11.88 MG $0.00 $11.88
Comps Average: $10.41 $5.66 $11.82
C O M PA R A B L E L E A S E S
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C O M PA R A B L E S A L E SCOMPARABLESSales
Location Year Built Building SF Date Sold Sale Price Bldg Price/SF Occupancy Cap Rate
Photo 3706-3710 W 72nd Ave Westminster, CO 80030 1972 3,850 01/12/17 $535,000 $138.96 100% 7.52%
Photo 9741 E Montview Blvd Aurora, CO 80010 1953 2,674 03/21/17 $400,000 $149.59 100% 7.00%
Sun Valley Shoppette 3 Property Portfolio
Lakewood, CO 80226 1968 14,389 06/29/18 $1,430,000 $99.38 100% 7.29%
1901 Kipling St Lakewood, CO 80215 1971 7,369 12/01/17 $735,000 $99.74 100% Not Reported
Photo 2660 Youngfield St Lakewood, CO 80215 1961 5,559 04/04/17 $425,000 $76.45 100% 6.23%
Comps Average: $112.83 100% 7.01%
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Total Occupied SF: 8,160 sf 100.0%
Total Vacant SF: 0 sf 0.0%
Total SF: 8,160 sf 100.0%
Tenant Unit SF Expiration AnnualBase Rent
AnnualPSF
ExpenseReimburse
AnnualPSF Total PSF
Keep Sake Studios 1 2,000 3/31/2022 $21,600 $10.80 psf $0 $0.00 psf $21,600 $10.80 psf
Pro-Forma 1.5 725 2-4 Years $8,700 $12.00 psf $0 $0.00 psf $8,700 $12.00 psf
JS Trading 2 1,250 6/30/2019 $10,200 $8.16 psf $0 $0.00 psf $10,200 $8.16 psf
Pro-Forma 2.5 950 2-4 Years $11,400 $12.00 psf $0 $0.00 psf $11,400 $12.00 psf
Kang Ho 3 1,250 6/30/2019 $10,200 $8.16 psf $0 $0.00 psf $10,200 $8.16 psf
Bei Jing Massage 4 1,185 5/31/2019 $16,800 $14.18 psf $0 $0.00 psf $16,800 $14.18 psf
Tyson Holzheimer 6 800 6/30/2019 $9,300 $11.63 psf $0 $0.00 psf $9,300 $11.63 psf
Subtotals 8,160 sf $88,200 $0 $88,200 $10.81 /sf
($3,528) ($0.43) /sf
Effective Gross Revenue $84,672 $10.38 /sf
8600 W 14th Ave: "Proforma" Gross Revenue per Leases
Vacancy Factor (4.00%)
R E V E N U E - P E R L E A S E S
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C A S H F L O W P E R L E A S E S
Investment Analysis "As-Is" PSF "Proforma" PSFSCHEDULED BASE RENTAL INCOME $68,100 $8.35 $88,200 $10.81Expense Reimbursement Revenue $0 $0.00 $0 $0.00
TOTAL POTENTIAL GROSS REVENUE $68,100 $8.35 $88,200 $10.81General Vacancy $0 $0.00 ($3,528) ($0.43)
GROSS REVENUE $68,100 $8.35 $84,672 $10.38Property Taxes* (Assesor $8632.74) ($8,633) ($1.06) ($8,633) ($1.06)Property Insurance ($3,308) ($0.41) ($3,308) ($0.41)Gas & Electric ($2,671) ($0.33) ($1,335) ($0.16)Water ($2,376) ($0.29) ($2,376) ($0.29)Repairs & Maintenance ($2,537) ($0.31) ($2,537) ($0.31)Management Fees (5%) ($3,405) ($0.42) ($4,234) ($0.52)Grounds Maintenance & Snow Removal ($1,150) ($0.14) ($1,150) ($0.14)Trash ($1,011) ($0.12) ($1,011) ($0.12)Professional Fees ($1,235) ($0.15) $0 $0.00
Total Operating Expenses ($26,325) ($3.23) ($24,583) ($3.01)NET OPERATING INCOME $41,775 $5.12 $60,089 $7.36Cap Rate (based on Acquisition Price) 6.38% 9.17%
Debt Service ($32,164) ($32,164)Before Tax Cash Flow $9,611 $27,925Cash on Cash 4.89% 14.21%Principal Reduction $9,454 $9,454Total Return 9.70% 19.02%ACQUISITION PRICE: $655,000 $80.27 psf $655,000 $80.27 psfLoan Amount $458,500 70.00% LTV $458,500 70.00% LTVInitial Equity $196,500 30.00% $196,500 30.00%Interest Rate/Amortization 5.000% 25 Years 5.000% 25 YearsMonthly/Annual Amortization Payments $2,680 $32,164 $2,680 $32,164
Property Square Feet: 8,160 SF 8,160 SF
8600 W 14th Ave: Cash Flow per Leases
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D I S C L A I M E R 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 the property located at 8600 W 14th Ave, Lakewood, CO 80215 (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.
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Jeff Johnson, Co-Founder, PrincipalAndrew Monette, Associate AdvisorCorey Sandberg, Associate AdvisorDallas Sandberg, Associate AdvisorBriana Masullo, Transaction Manager
One Broadway Suite A300 | Denver, CO 80203303.962.9555 | www.PinnacleREA.com
