OFFERING MEMORANDUM · 2020. 12. 29. · OFFERING MEMORANDUM THE LIGHTHOUSE 2836 & 2830 WYANDOT ST...

OFFERING MEMORANDUMTHE LIGHTHOUSE2836 & 2830 WYANDOT ST DENVER, CO 80211

BRANDON KAUFMANSr. Investment Advisor

[email protected]

NIK MACCARTERSr. Investment Advisor

[email protected]

TABLE OF CONTENTS

• EXECUTIVE SUMMARY

• PROPERTY OVERVIEW

• FINANCIAL OVERVIEW

• LOCATION OVERVIEW

EXECUTIVE SUMMARY

AREA STREET MAP

2830 & 2836 W Y A N D O T S T

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LOCATION MAP

SUNKEN SUNKEN GARDENS PARKGARDENS PARK

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WEST-BAR-VAL WEST-BAR-VAL WOOD PARKWOOD PARK

LAKEWOODLAKEWOODCOUNTRY CLUBCOUNTRY CLUB

DOWNTOWNDOWNTOWNDENVERDENVER

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AREA MAP

PROPERTY OVERVIEW

Highlands Area Map

2830 & 2836 W Y A N D O T S T

NEIGHBORHOOD MAPDINING

1 Zuni Street

2 Cart Driver Lo-Hi

3 Linger

4 Lola Coastal Mexican

5 Little Man Ice Cream

6 Ohana Island Kitchen

RETAIL

7 Conoco

8 REI

9 Dollar Tree

10 Safeway

11 Walgreens

12 Shell

LIFESTYLE

13 Commons Park

14 Confluence Park

15 Hirshorn Park

16 North High School

17 Highland Park

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PROPERTY OVERVIEW

PHOTOS2830 & 2836 WYANDOT ST

2830 WYANDOT ST

Newly Renovated Interior and Exterior.

Washer/Dryer in Units.

Front Balcony for top unit.

PROPERTYHIGHLIGHTS

2830 WYANDOT ST

Central AC.

Very large units.

PROPERTYOVERVIEW 2830 WYANDOT ST

BUILDING DETAILS

Units: 2

Building SF: 1,656

Land: 3,610

Zoning: C-MX-3

Year Built: 1886

SYSTEMS

Gas / Elec Meters: Master / Separate

Water: Master

Trash: Waste Management

Roof: Flat

Heating: Boiler

Cooling: A/C

UNIT MIX & CURRENT RENTS

2830 WYANDOT ST

Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF

1 Bed / 1 Bath 1 775

$2,000

$2.57

$2,050

$2.60

2 Bed / 1 Bath 1 850

$1,995

$2.35

$2,015

$2.41

Total / Average 2 813 $1,998 $2.46 $2,033 $2.51

CASH FLOW PROJECTIONS2830 WYANDOT ST

T12 Year 1 Year 2 Year 3 Year 4 Year 5

REVENUE

Gross Potential Revenue $47,940 $48,780 $50,243 $51,751 $53,303 $54,902

Vacancy ($2,397) ($2,439) ($2,512) ($2,588) ($2,665) ($2,745)

Rental Revenue $45,543 $46,341 $47,731 $49,163 $50,638 $52,157

Expense Reimbursements $1,200 $1,236 $1,273 $1,311 $1,351 $1,391

Other Residential Income $0 $600 $618 $637 $656 $675

Effective Gross Revenue $46,743 $48,177 $49,622 $51,111 $52,644 $54,224

EXPENSES

Repairs and Maintenance ($1,600) ($1,600) ($1,648) ($1,697) ($1,748) ($1,801)

Utilities ($1,600) ($1,600) ($1,648) ($1,697) ($1,748) ($1,801)

Insurance ($1,000) ($1,000) ($1,030) ($1,061) ($1,093) ($1,126)

Real Estate Taxes ($2,808) ($2,808) ($2,892) ($2,979) ($3,068) ($3,160)

Property Management ($2,277) ($2,277) ($2,345) ($2,416) ($2,488) ($2,563)

Total Expenses ($9,285) ($9,285) ($9,564) ($9,851) ($10,146) ($10,451)

Expenses Per Unit ($4,643) ($4,643) ($4,782) ($4,925) ($5,073) ($5,225)

$37,458 $38,892 $40,059 $41,260 $42,498 $43,773 NET OPERATING INCOME

HISTORICAL ANALYSIS2830 WYANDOT ST

T12

REVENUE

Gross Potential Revenue $47,940

Vacancy ($2,397)

Rental Revenue $45,543

Expense Reimbursements $1,200

Effective Gross Revenue $46,743

EXPENSES

Repairs and Maintenance ($1,600)

Utilities ($1,600)

Insurance ($1,000)

Real Estate Taxes ($2,808)

Property Management ($2,277)

Total Expenses ($9,285)

Expenses Per Unit ($4,643)

Net Operating Income $37,458

SOLD COMPS2830 WYANDOT ST

Property Address Units SF Price Per Unit Price Per Unit Price Per Foot

(subject) 2 1,656 TBD

1 2 3,934 $271

2 2 2,480 $483

3 2 3,101 $298

4

2830 Wyandot St

380 S Humboldt St

817 & 825 S Washington St

1200 E 24th Ave

135 N Logan St 2 2,901

TBD

$1,066,000

$1,199,000

$925,000

$900,000

TBD

$533,000

$599,500

$462,500

$450,000 $310

Averages $1,022,500 $511,250 $341

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W COLFAX AVEW COLFAX AVE

2836 WYANDOT ST

Newly Renovated Interior and Exterior.

Walking distance to retail and dining locations.

Off street parking and front lawn area.

PROPERTYHIGHLIGHTS

2836 WYANDOT ST

All mechanical systems, plumbing, and roof have been updated to code.

PROPERTYOVERVIEW 2836 WYANDOT ST

BUILDING DETAILS

Units: 23

Building SF: 18,500

Parking: 10

Land: 7,250

Zoning: C-MX-3

Year Built: 1962

SYSTEMS

Gas / Elec Meters: Master / Individual

Water: Master

Trash: Waste Management

Roof: Flat

Heating: Boiler

Cooling: A/C Units

UNIT MIX & CURRENT RENTS

2836 WYANDOT ST


Studio 5 600 $1,365 $2.28 $1,395 $2.33

1 Bed / 1 Bath 18 750 $1,537 $2.05 $1,545 $2.06

Total / Average 23 717 $1,500 $2.10 $1,512 $2.12

CASH FLOW PROJECTIONS2836 WYANDOT ST


REVENUE


Vacancy ($20,697) ($20,871) ($21,497) ($22,142) ($22,806) ($23,490)

Rental Revenue $393,243 $396,549 $408,445 $420,699 $433,320 $446,319

Other Residential Income $10,758 $10,308 $10,617 $10,936 $11,264 $11,602


EXPENSES


Utilities ($21,850) ($21,850) ($22,506) ($23,181) ($23,876) ($24,592)

Insurance ($7,000) ($7,000) ($7,210) ($7,426) ($7,649) ($7,879)



Admin and Other ($4,500) ($4,500) ($4,635) ($4,774) ($4,917) ($5,065)

Total Expenses ($95,223) ($98,939) ($101,907) ($104,965) ($108,114) ($111,357)


$308,778 $307,918 $317,155 $326,670 $336,470 $346,564 NET OPERATING INCOME

HISTORICAL ANALYSIS2836 WYANDOT ST

T12

REVENUE


Vacancy ($20,697)


Other Residential Income $10,758


EXPENSES


Utilities ($21,850)

Insurance ($7,000)



Admin and Other ($4,500)




SOLD COMPS2836 WYANDOT ST

Property Address Units SF Price $ Price Per Unit Price Per Foot Cap Rate

(subject) 2836 Wyandot St 23 18,500 TBD TBD TBD TBD

1 1158 Marion St 13 10,825 $4,000,000 $307,692 $370 4.00%

2 290 S Humboldt St 12 7,295 $3,075,000 $256,250 $422 5.08%

3 59 & 65 Ogden St 22 12,911 $5,000,000 $227,273 $387 4.97%

4 950 Lafayette st, 1120 & 1136 York st 51 35,525 $12,200,000 $239,216 $343 4.59%

5 3206 Osage St 20 10,039 7,100,000 $355,000 $707 N/A

6 1165 Columbine St 13 13,455 $3,525,000 $271,154 $262 4.10%

Averages $5,816,667 $276,097 $415 4.55%

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2830 & 2836WYANDOT ST

PORTFOLIOUNIT MIX &

CURRENT RENTS


Studio 5 600 $1,295 $2.16 $1,295 $2.16

1 Bed / 1 Bath 18 750 $1,506 $2.01 $1,545 $2.06

1 Bed / 1 Bath 1 775 $2,000 $2.58 $2,015 $2.60

2 Bed / 1 Bath 1 850 $1,995 $2.35 $2,050 $2.41

Total / Average 25 725 $1,503 $2.07 $1,534 $2.12

PORTFOLIOCASH FLOW PROJECTIONS


REVENUE


Vacancy ($22,545) ($22,989) ($23,679) ($24,389) ($25,121) ($25,874)

Rental Revenue $428,355 $436,791 $449,895 $463,392 $477,293 $491,612

Expense Reimbursements $0 $900 $927 $955 $984 $1,013

Other Residential Income $10,308 $10,908 $11,235 $11,572 $11,919 $12,277


EXPENSES


Utilities ($23,450) ($23,450) ($24,154) ($24,878) ($25,624) ($26,393)

Insurance ($8,000) ($8,000) ($8,240) ($8,487) ($8,742) ($9,004)



Admin and Other ($4,500) ($4,500) ($4,635) ($4,774) ($4,917) ($5,065)

Total Expenses ($102,196) ($103,104) ($106,197) ($109,383) ($112,664) ($116,044)


NET OPERATING INCOME $336,467 $345,496 $355,861 $366,537 $377,533 $388,859

PORTFOLIOHISTORICAL ANALYSIS

T12

REVENUE


Vacancy ($22,545)


Other Residential Income $2,208


EXPENSES


Utilities ($23,450)

Insurance ($8,000)



Admin and Other ($4,500)




SOLD COMPS

Property Address Units SF Price $ Price Per Unit Price Per Foot Cap Rate

(subject) 2836 & 2830 Wyandot St 25 20,156 TBD TBD TBD TBD

1 2860 W 32nd Ave 37 24,069 $7,500,000 $202,703 $312 5.13%

2 1500-1510 Blake St 33 28,197 $8,400,000 $254,545 $298 5.08%

3 3775-3795 Grove St 13 9,372 $3,145,000 $241,923 $336 5.26%

Averages $6,348,333 $233,057 $315 5.16%

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LOCATION OVERVIEW

DEMOGRAPHICS

Census 2019 Summary .25m .5m .75m

Population 2,446 9,226 22,928

Households 1,288 4,806 12,439

Families 406 1,586 3,983

Average Household Size 1.82 1.89 1.83

Owner Occupied Housing Units 458 1,680 4,154

Renter Occupied Housing Units 830 3,126 8,285

Median Age 34.4 33 34.4

Median Household Income $87,453 $87,450 $98,770

Average Household Income $120,215 $119,319 $133,529

Census 2024 Summary .25m .5m .75m

Population 2,901 10,803 26,682

Households 1,520 5,574 14,368

Families 487 1,863 4,668

Average Household Size 1.84 1.91 1.84

Owner Occupied Housing Units 535 1,860 4,555

Renter Occupied Housing Units 985 3,714 9,813

Median Age 33.2 32.9 34.6

Median Household Income $104,567 $104,158 $110,082

Average Household Income $141,382 $137,454 $152,597

.25 MILE

.5 MILE

.75 MILE

CITY OF DENVERNOTABLE RANKINGS

#2 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT 2019)

#1 IN ECONOMIC& JOB GROWTH

(AREA DEVELOPMENT, 2015)

4th BEST PLACE IN AMERICA FOR

BUSINESS & CAREERS(FORBES, 2019)

(LONELY PLANET, 2016)

TOP 10 PLACESIN THE U.S. TO TRAVEL

6TH FASTEST GROWING METROAREA IN THE U.S.

(FORBES, 2016)

3RD BEST CITY FOR COLLEGE GRADS

(RENT.COM, 2015)

3RD HEALTHIEST CITYIN THE NATION

(FORBES, 2016)

#1 IN THE NATION FOR LARGEST INCREASE IN

RESIDENTS WITH COLLEGE DEGREES

(U.S. CENSUS BUREAU, 2014)

4TH BEST CITYFOR BIKE RIDING

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

7TH BEST STATEIN WHICH TO

MAKE A LIVING(FORBES, 2016)

#1 IN ECONOMIC RANKING

(USNEWS.COM, 2019)

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

*Some of this information sourced from denverpost.com

DENVER GROWTH

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 705,439 residents (as of May 2019). An

estimated 2.9 million people live in 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.

CONSTRUCTION

As 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 & Peal Apartments, a 315-unit apartment with 9,000 sq. ft. of

retail.

Alexan 20th St Station, a 358-unit apartment with street level retail.

Block 162, a full block project that included a 680,000 sq. ft. office

tower and separate tower hotel.

Tabor Center Tower Two, a 33 story 700,000 sq. ft. office tower

would be the largest development in Denver since 1985.

1144 Fifteenth St, a 40 story office tower with

street level retail.

EMPLOYERS IN THEDENVER METROThe 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:

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.

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/

• Kaiser Permanente

• Liberty Tax Service

• Western Union

• University of Colorado

• Children’s Hospital

• Wells Fargo.

• Denver International Airport

• Lockheed Martin

• Health ONE Corporation

• Centura Health

• SCL Health Systems

• Comcast

• CenturyLink·

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 revitalizing neighborhoods across the Denver metro,

including Five Points and West Colfax. An average of 64,000 people

utilize the light rail each day, making it eighth-largest system in the

country, even though Denver is 21st in the nation in terms of population.

LIGHT RAIL

DENVERINTERNATIONAL AIRPORT (DIA)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, and the 2nd largest airport in the world by size and the

20th busiest airport in the world. 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 64.5 Million passengers in 2018.

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. DIA broke ground in May of 2018 on a $2.0 billion gate expansion

project. The project will add 39 gates across all three concourses in the next four

years, bringing the total to 150.

The expansion will utilize the airport’s original “telescoping” design by expanding

eastward and westward at the ends. The expansion is

expected to be completed by the end of 2022.

DIA is among the first airports in North America to secure

internationally recognized accreditation for measuring and

reducing carbon emissions.

*Some of this information sourced from denverpost.com

The Highlands is a distinct city-center neighborhood overlooking

downtown Denver, just 8 minutes from Union Station, which makes it an

ideal place to work and play.

The Highlands is a vibrant neighborhood featuring an eclectic mix of Victorian-

era homes and modern architecture. The Highlands is thriving with lush gardens

and parks, independently owned shops and boutiques, live music and events,

art galleries, award-winning restaurants and ethnic foods, and famous

breweries.

The Highlands is known for its live music and unique art, including antique

prints, photographs, and paintings. The Tennyson Street Cultural District

offers everything from paintings and photography to Chinese scrolls and

state costumes. The Navajo Street Art District - which features art, jewelry,

and performance art - is also a popular destination. The Highlands also

hosts several big events each year, including, Highlands Street Fair in June

Colorado Dragon Boat Festival in July.

The Highlands is also a foodie’s paradise, boasting a number of

award-winning restaurants and ethnic foods. Famous spots include:

Located along the Denver Beer Trail, the neighborhood is also

known for the Denver Beer Co. and Prost Brewing Co.

THE HIGHLANDS

Avanti

Postino

Little Man Ice

Cream

Duo

Linger

Root Down

Sassafras

JASON KOCHCo-Founder/Principal

[email protected]

ADAM RIDDLECo-Founder/Principal

303.257.7627 [email protected]


[email protected]

SEAN HOLAMONSr. Investment Advisor



[email protected]

CHRISTIAN BURGDORFInvestment Advisor

[email protected]

JEFF DIMMENInvestment AdvisorColorado Springs

[email protected]

PAT KNOWLTONSr. Investment Advisor

Colorado Springs

[email protected]

AUSTIN SMITHSr. Investment Advisor


LEE WAGNERInvestment Advisor

Colorado Springs


TRAVIS HODGESr. Investment Advisor


GUNNAR WILSONInvestment Advisor


NEXUS BROKERS

BENTON ADAMSInvestment Advisor

[email protected]

KEVIN PHELANSr. Investment Advisor

[email protected]

ANTHONY BOBAYInvestment Advisor

[email protected]

CONFIDENTIALITY DISCLAIMERThis confidential Offering Memorandum, has been prepared by Nexus Commercial Realty 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. Nexus Commercial Realty recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property (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 Nexus Commercial Realty or its brokers.

Nexus Commercial Realty 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. Nexus Commercial Realty 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 Nexus Commercial Realty and the Owner of the Property. Nexus Commercial Realty 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, Nexus Commercial Realty and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further Nexus Commercial Realty 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. Nexus Commercial Realty 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 Nexus Commercial Realty. 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 Nexus Commercial Realty at your earliest convenience.

AUSTIN SMITHSr. Investment Advisor

[email protected]

SEAN HOLAMONSr. Investment Advisor

[email protected]


[email protected]


[email protected]

2830 & 2836 WYANDOT ST DENVER, CO 8021 1

2836 & 2830WYANDOT STDENVER, C

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OFFERING MEMORANDUM · 2020. 12. 29. · OFFERING MEMORANDUM THE LIGHTHOUSE 2836 & 2830 WYANDOT ST...

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