9900 E Florida Ave OM Electronic...

OFFERING MEMORANDUM9900 E FLORIDA AVEDenver, CO 80247

For More Information Contact

JASON KOCHCo-Founder/Principal

303.918.8909 | [email protected] |

ADAM RIDDLECo-Founder/Principal


Property Overview

Property Photos

Maps

Financials

Location Overview

Demographics

The Nexus People

TABLE OFCONTENTS


| 303.257.7627 | [email protected]

JASON KOCHCo-Founder/Principal | 303.918.8909 | [email protected]

PROPERTYOVERVIEW

PROPERTY OVERVIEWProperty Name: Cherry Creek Square

Address: 9900 E Florida Ave

Denver, CO 80247

Units: 56

Building SF: 39,600 SF

Parking: 75 Spaces

Land: 2.58 AC

Zoning: R3

Year Built: 1957

SYSTEMSGas/Elec Meters: Separate/SeparateWater: MasterTrash: Waste Magament Roof: Pitched Heating: FurnaceCooling: Walls Units

Purchase Price

Per Unit

Price Per SF

$8,200,000

$151,786

$215

Turnkey asset located in Cherry Creek School District.

Property has newer windows, new exterior paint, pitched roofs, and an updated boiler system.

Built in BBQ's and picnic tables in gazebo area.

INVESTMENT HIGHLIGHTS Turned & updated 50 of the units that includes upgrades to the floorings, kitchens, baths, lighting, and more!

New dog park.

Bocce ball play area.

Laundry room renovations.

INVESTMENT SUMMARY




PROPERTYPHOTOS




PROPERTYPHOTOS




PROPERTYPHOTOS




S D

AYTO

N S

T

E FLORIDA AVE

N

PROPERTYAERIAL




CHERRY CREEK STATE PARK

DENVERSUBMARKET




9900 EAST FLORIDA AVE

ALAMEDA AVE

Dowtown Denver15 Minutes

LEETSDALE DR

GLENDALE

LOWRY

S HAVA

NA ST

Purchase Price:

Units:

Price Per Unit:

Total SF:

Price Per SF:

T6 Cap Rate:

Year 1 Cap Rate:

Year 1 Cash Flows:

$8,200,000

56

$146,429

39,600

$207

5.77%

5.99%

$179,702

INVESTMENT SUMMARY

Loan to Value:

Loan Amount:

Loan Term:

Interest Rate:

Interest Only Period:

Amortization:

80.00%

$6,560,000

30

4.75%

12 Months

30 Years

DEBT SUMMARY

INVESTMENTSUMMARY




RENT ROLLANALYSIS

Unit Type

1 Bed / 1 Bath

2 Bed / 1 Bath

Total / Average

Unit Amount

40

16

56

Unit SF

527

806

1,333

Current Ave. Rent

$930

$1,141

$2,071

Current Rent / SF

$1.77

$1.42

$3.18

Market Rent

$952

$1,169

$2,121

Market Rent / SF

$1.81

$1.45

$3.26

UNIT SUMMARY:

$1,359$1,200

$1,000

$800

$600

$400

$200

$0 Earlier May-19Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Later

LOSS TO LEASE BURN-OFF

1 Bed 2 Bed

Net Loss to Lease Gain to Lease

LEASE EXPIRATION SCHEDULE

1514

12

10

8

6

4

2

0Earlier May-19Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Later

# of

Uni

ts




FINANCIALS

REVENUE

Gross Potential Revenue

(Vacancy)

Rental Revenue

Expense Reimbursement

Other Income

Effective Gross Revenue

EXPENSES

Repairs and Maintenance

Utilities

Insurance

Real Estate Taxes

Property Management

Admin and Other

Total Expenses

Expenses Per Unit

Net Operating Income

Cap Rate

Debt Service - Yr 1

Total Cash Flow

Cash on Cash Return

T12

$664,348

($45,508)

$618,840

$31,912

$99,628

$750,380

($95,205)

($67,137)

($16,800)

($37,296)

($48,460)

($12,486)

($277,384)

($4,953)

$472,996

5.77%

($311,600)

$161,396

9.84%

Year 1

$681,480

($34,074)

$647,406

$32,026

$90,000

$769,432

($95,951)

($67,137)

($16,800)

($37,296)

($48,460)

($12,486)

($278,130)

($4,967)

$491,302

5.99%

($311,600)

$179,702

10.96%

Year 2

$701,924

($35,096)

$666,828

$32,987

$92,700

$792,515

($98,830)

($69,151)

($17,304)

($38,415)

($49,914)

($12,861)

($286,474)

($5,116)

$506,041

6.17%

($410,641)

$95,400

5.82%

Year 3

$722,982

($36,149)

$686,833

$33,977

$95,481

$816,291

($101,794)

($71,226)

($17,823)

($39,567)

($51,411)

($13,246)

($295,068)

($5,269)

$521,223

6.36%

($410,641)

$110,582

6.74%INC

OM

E

ST

AT

EM

EN

T




Denver, officially the City and County of Denver, is the capital and most populous municipality of the U.S. state of Colorado. Denver is in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains. The Denver downtown district is immediately east of the confluence of Cherry Creek with the South Platte River, approximately 12 mi east of the foothills of the Rocky Mountains. Denver is nicknamed the Mile-High City because its official elevation is exactly one mile above sea level, making it the highest major city in the United States.

Denver is ranked as a Beta- world city by the Globalization and World Cities Research Network. With an estimated population of 693,060 in 2016, Denver is the 19th-mostpopulous U.S. city, and with a 15.48% increase since the 2010 United States Census, it has been one of the fastest-growing major cities in the United States. The 10-countyDenver-Aurora-Lakewood, CO Metropolitan Statistical Area had an estimated 2016 population of 2,853,077 and is the 19th most populous U.S. metropolitan statistical area. The 12-city Denver-Aurora, CO Combined Statistical Area had an estimated 2016 population of 3,470,235 and is the 16th most populous U.S. metropolitan area. Denver is the most populous city of the 18-county Front Range Urban Corridor, an oblong urban region stretching across two states with an estimated 2016 population of 4,833,260. Denver is the most populous city within a 500-mile radius and the second-most populous city in the Mountain West after Phoenix, Arizona. In 2016, Denver was named the best place to live in the USA by U.S. News & World Report.

The Denver MSA has a gross metropolitan product of $157.6 billion in 2010, making it the 18th largest metro economy in the United States. Denver's economy is basedpartially on its geographic position and its connection to some of the country's major transportation systems. Because Denver is the largest city within 500 miles, it hasbecome a natural location for storage and distribution of goods and services to the Mountain States, Southwest states, as well as all western states. Another benefit fordistribution is that Denver is nearly equidistant from large cities of the Midwest, such as Chicago and St. Louis and some large cities of the West Coast, such as Los Angeles.

LOCATION OVERVIEW




PROPOSAL TO MARKET

THE CITY OF DENVER’S NOTABLE RANKINGS

#1 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT, 2016)

#1 IN ECONOMIC & JOB GORWTH

(AREA DEVELOPMENT, 2015)

AMERICA’S BEST PLACE FOR

BUSINESS & CAREERS (FORBES, 2015 & 2016)

2ND BEST BEER CITY IN AMERICA

(LIVIABILITY, 2014)

7TH BEST STATE IN WHICH TO

MAKE A LIVING (FORBES 2015)

3RD BEST CITY FOR COLLEGE GRADS

(RENT.COM, 2015)

6TH FASTEST GROWING METRO

AREA IN THE U.S. (FORBES, 2016)

2ND BEST TECH STATE

(THE MILKEN INSTITUTE, 2016)

4TH BEST CITYFOR BIKE RIDING

IN THE U.S. (WALK SCORE, 2015)

3RD HEALTHIST CITYIN THE NATION

(FORBES, 2016)

#1 IN THE NATION FOR LARGEST INCREASE IN

RESIDENTS WITH COLLEGE DEGREES

(U.S. CENSUS BUREAU, 2014)

TOP 10 PLACESIN THE U.S. TO TRAVEL

(LONELY PLANET, 2016)


| 303.257.7627| 303.257.7627 AAA| [email protected]


DENVER GROWTH

PROPOSAL TO MARKET

Ranked as the top place to live in the U.S. by U.S. News & World Report, the city of Denver is home to over 693,000 residents (as of July 2016). An estimated 2.9 million people live in the Denver Metro as a whole, with more people moving to the area each year, as this number is expected to grow by 12.6 percent over the next five years, compared to 3.7 percent nationally. Currently 100+ people are immigrating to the city each day. The Denver Metro accounts for over half of the population in the entire state of Colorado, which is home to an estimated 5.5 million people.

ConstructionAs one of the fastest-growing metros in the nation, Denver is thriving with new construction. This new construction will help accommodate the population growth throughout the metro. Some current projects include:

17th & Curtis Street, 360-unit apartment building linked to a 9-story office building and 6 story parking structure.Skyhouse Denver, a 354-unit apartment with street level retail.Block 162, a full block project that included a 606,500-sq. ft. officetower and a separate hotel tower.Tabor Center Tower Two, a 31 story 700,000 sq. ft. office towerwould be the largest developed in Denver since 1985.1144 Fifteenth St, a 40-story office tower with street level retail.

*Some of this information is sourced from denverpost.com




DENVER INTERNATIONAL AIRPORT

PROPOSAL TO MARKET

Denver International Airport (DEN), also known as DIA, opened to the public on February 28, 1995 and at 34,000 acres, remains the largest and newest commercial airport in the United States. It’s known around the world for its striking tented roof structure and technologically advanced operations. Over the past twenty years, DIA has established itself as the primary employer and economic driver in the Denver metro, supporting nearly 190,000 jobs and generating more than $26 billion in annual revenue. Served a record setting 58 Million passengers in 2016.

The airport serves over 170 destinations including 20 international cities in nine countries. DIA is just 30 minutes from Union Station via the East Rail line.

DIA has room to double its current capacity to remain competitive in the growing global aviation marketplace. The Denver City Council recently approved a $1.8 billion set of contracts for gate expansion at DIA. The project will add 39 gates across all three concourses in the next four years. The expansion will utilize the airport’s original “telescoping” design by expanding eastward and westward at the ends.

DIA is among the first airports in North America to secure internationally recognized accreditation for measuring and reducing carbon emissions.

*Some of this information was sourced from Denver Post.




LIGHT RAIL

PROPOSAL TO MARKET

The Regional Transportation District (RTD) operates 365 days a year to quickly connect travelers to their destination. As part of RTD, the 58-mile rail system features nine rail lines servicing 62 stations along the Denver metro’s North, East, Southeast, Southwest, and West rail corridors.

Popular destinations include:

Denver International Airport (DIA)

Theatre District

Convention Center

Sports Authority Field at Mile High

Pepsi Center

16th Street Mall

Park Meadows Mall.

RTD’s rail system has transformed people’s commutes and the communities they live in. The 23-mile stretch from Downtown Denver to DIA is now just a 30-minute ride via light rail. The light rail is also attributed with revitalizingneighborhoods across the Denver metro, including Five Points and WestColfax. An average of 64,000 people utilize the light rail each day, making iteighth-largest system in the country, even though Denver is 21st in the nationin terms of population.




DENVER METRO

Located on the front range of the Rocky Mountains, the Denver Metro is a thriving urban epicenter famous for its breathtaking views, world-class dining, champion sports teams, exhilarating recreation, and eclectic arts and entertainment. It’s no wonder this metropolis is one of the biggest in the nation!

Attractions:

Denver Art Museum

Denver Museum of Nature and Science

Denver Zoo

Denver Aquarium

Six-Flags Elitch Gardens

Hyland Hills Water World

Denver Aquarium

SPORTS Basketball: Denver Nuggets

Hockey: Colorado Avalanche

Football: Denver Broncos

Baseball: Colorado Rockies

Soccer: Colorado Rapids

PROPOSAL TO MARKET




EMPLOYERS IN THE DENVER METRO

The Denver metro is a hub for various industries, including aviation, health, business,

finance, and technology. Outside of city, state, and school services, major employers

in the Denver metro area include Denver International Airport, Lockheed Martin,

Health ONE Corporation, Centura Health, SCL Health Systems, Comcast,

CenturyLink, Kaiser Permanente, Liberty Tax Service, Western Union, University of

Colorado, Children’s Hospital, and Wells Fargo. In 2017, Amazon opened up a 1

million sq. ft. fulfillment center in Aurora, creating nearly 1,000 full-time jobs.

Google is building a $131 million, four-acre, state-of-the art facility in Boulder,

potentially bringing more jobs to the area

Several Fortune 500 companies with headquarters in the Denver metro including:

Many companies choose to relocate to or expand in the Denver Metro, especially

tech and startup companies. Between 2007-2015, approximately 9,000 companies

chose to relocate from California to Denver. These employers are attracted to the

innovative culture, economic environment, exceptional talent, and deep sense of

social responsibility that characterizes the Denver Metro. Forbes ranks Denver as

#1 in the nation for business and careers, and Area Development ranks Denver as #1

in the nation for economic and job growth.

Denver metro is home to many fast-growing startups, with 113 local companies

making the Inc. 5000 list of the nation's fastest-growing private companies for the

year 2017.

*Some information was sourced from: https://choosecolorado.com/

PROPOSAL TO MARKET




LOWRY

Lowry is a newer eastern Denver neighborhood located on the site of the former Lowry Air Force Base, just 10 minutes away from Downtown Denver. Lowry is ranked by 5280 Magazine as one of the top 5 neighborhoods in the Denver Metro. Average home value in Lowry is $610,000, up 8.9% from the previous year.

Lowry Town Center offers a wide variety of shopping, restaurants, and fitness facilities. This shopping hub features stylish fashion, affordable jewelry, unique gifts, locally made toys, and more. Dining experiences range from ethnic to casual, with the Lowry Beer Garden being a neighborhood favorite. Lowry is also home to 17 parks and open spaces, including:

City of Ulaanbaatar Park Lowry Sports Complex Lowry Dog Park Reading Garden

Wings Over the Rockies Air and Space Museum, is a local landmark in Lowry. It is also the site of the Colorado Aviation Historical Society's Colorado Aviation Hall of Fame. The museum includes more than 182,000 square feet of hangar space and 50 iconic aircraft dating from 1939 to 1990. In addition to viewing iconic aircraft, space vehicles, artifacts, military uniforms, and more, visitors can experience thrilling flight simulators, discover the learning center, and participate in dozens of exciting museum sponsored events. The Hangar can also be rented out for private events for an unforgettable experience.

*Some information sourced from wingsmuseum.org

PROPOSAL TO MARKET




2017 Summary

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

2022 Summary

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

1 Mile

25,034

12,017

5,600

2.08

4,050

7,967

36.0

$49,343

$67,818

1 Mile

27,272

12,985

6,059

2.10

4,417

8,568

36.0

$55,087

$79,088

3 Miles

188,745

86,181

42,978

2.17

37,735

48,447

36.6

$48,933

$68,461

3 Miles

204,354

92,984

46,160

2.18

40,662

52,322

36.9

$54,764

$79,264

5 Miles

477,176

206,458

107,639

2.27

96,581

109,877

35.8

$53,650

$82,494

5 Miles

517,025

223,448

115,785

2.28

104,171

119,278

36.2

$60,761

$94,931

5 MILES

3 MILES

1 MILE




DEMOGRAPHICS




The Nexus People

ADAM [email protected]

KIM ROYSales & Operations [email protected]

AUSTIN SMITH Investment Advisor303.868.9096 [email protected]

WALLIS HUTCHENS Office Manager 828.850.9033 [email protected]

SEAN HOLAMON InvestmentAdvisor806.789.9799 [email protected]

KEVIN WOOLSEYAnalyst [email protected]

Not your average brokers.As a team, we might not appear as your typical brokerage - and that’s by design. Even though we’ve been in the industry for more

than two decades, we are as enthusiastic, energetic and collaborative as when we first started. At Nexus, there is no internal competition because our purpose is aligned. This reduces internal competition and makes us more productive on a per

broker/agent basis. We love coming to work everyday because we love helping our clients achieve their goals. You might find us in jeans instead of slacks, outside meeting people instead of in our office. We do things differently because we are different.

JASON KOCH Co-FounderPrincipal 303.918.8909 [email protected]

SHANNON LACKEYExecutive Assistant/Transaction Coordinator 707.332.5907 [email protected]

ROBERT GRAYInvestmentAdvisor713.857.3054 [email protected] Springs Office

9900 E FLORIDA AVEDENVER, CO

For More Information Contact

JASON KOCHCo-Founder/Principal




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