1411 S Corona St, Colorado Springs OM

OFFERING MEMORANDUM 1411 S CORONA ST COLORADO SPRINGS, CO 80905

For More Information Contact

ROBERT GRAY ADAM RIDDLE Investment Advisor Co-Founder/Principal

713.857.3054 | 303.257.7627 | [email protected] | [email protected] | TABLE OF CONTENTS

Property Overview

Property Photos

Maps

Financials

Sold Comparables

Location Overview

Demographics

The Nexus People

PROPERTY OVERVIEW INVESTMENT HIGHLIGHTS Property Name: The Elms Apartments 9% Cash-on-cash Year 1 Located near IvyWild Redevelopment area

Address: 1411 S Corona St Value Add Opportunity New nearby restaurants and retail including Starbucks, Sprouts, Chick-Fil-A Colorado Springs, CO 9 of the units are large 2 bedroom units Units: 11 Conveniently located near I-25 Building SF: 8,265 SF SYSTEMS INVESTMENT SUMMARY Gas/Elec Meters: Master/Separate Meters Purchase Price $1,050,000 Parking: 11 Spaces Water: Master Per Unit $95,455 Land: 0.17 Sq-Ft Trash: CO Trash Price Per SF $127 Zoning: C5 Roof: Flat Year Built: 1964 Heating: Boiler Year Renovated: 2016 Cooling: Walls Units

ADAM RIDDLE ROBERTSEAN HOLAMON GRAY Co-Founder/Principal InvestmentInvestment AdvisorAdvisor | 303.257.7627 | [email protected] || 713.857.3054806.789.9799 || [email protected]@nexus-cr.com PROPERTY PHOTOS

Located near IvyWild Redevelopment area

New nearby restaurants and retail including Starbucks, Sprouts, Chick-Fil-A

Conveniently located near I-25

ADAM RIDDLE SEANROBERT HOLAMON GRAY Co-Founder/Principal InvestmentInvestment AdvisorAdvisor | 303.257.7627 | [email protected] || 806.789.9799713.857.3054 || [email protected]@nexus-cr.com PROPERTY PHOTOS

ADAM RIDDLE SEANROBERT HOLAMON GRAY Co-Founder/Principal Investment Advisor | 303.257.7627 | [email protected] | 806.789.9799713.857.3054 | [email protected]@nexus-cr.com PROPERTY PHOTOS

ADAM RIDDLE ROBERTJASON KOCH GRAY Co-Founder/Principal InvestmentCo-Founder/Principal Advisor | 303.257.7627 | [email protected] | 713.857.3054303.918.8909 | [email protected]@nexus-cr.com COLORADO SPRINGS SUBMARKET

ADAM RIDDLE ROBERTSEAN HOLAMON GRAY Co-Founder/Principal InvestmentInvestment AdvisorAdvisor | 303.257.7627 | [email protected] || 713.857.3054806.789.9799 || [email protected]@nexus-cr.com PROPERTY

AERIAL S CORONA AVE S CORONA

INVESTMENT SUMMARY Purchase Price: $1,050,000 Units: 11 Price Per Unit: $95,455 Total SF: 8,265 Price Per SF: $127 T12 Cap Rate: 6.51% Year 1 Cap Rate: 7.37% Year 1 Cash Flows: $45,902 5 Year IRR: 33.15%

DEBT SUMMARY Loan to Value: 75.00% Loan Amount: $787,500 Loan Term: 30 Interest Rate: 4.25% Interest Only Period: None Amortization: 30 Years

UNIT SUMMARY: Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF 1 bed, 1 bath 3 600 $687 $1.14 $725 $1.21 2 bed, 1 bath 8 800 $794 $0.99 $861 $1.08 Total / Average 11 745 $765 $1.03 $824 $1.11

LOSS TO LEASE BURN-OFF Net Loss to Lease Gain to Lease

$650 $600

$500

$400

$300

$200

$100

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

LEASE EXPIRATION SCHEDULE 1 Bed 2 Bed

# of Units 3 2 1 0 Earlier Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Later

REVENUE T12 Annualized Year 1 Year 2 Year 3 Gross Potential Revenue $99,540 $108,780 $112,043 $115,405 Vacancy ($4,977) ($5,439) ($5,602) ($5,770) Rental Revenue $94,563 $103,341 $106,441 $109,634 Expense Reimbursements $9,500 $9,405 $9,687 $9,978 Other Residential Income $2,220 $2,500 $2,575 $2,652 Effective Gross Revneue $106,283 $115,246 $118,703 $122,264 EXPENSES Repairs and Maintenance ($8,800) ($8,800) ($9,064) ($9,336) Utilities ($9,900) ($9,900) ($10,197) ($10,503) Insurance ($6,180) ($6,180) ($6,365) ($6,556) Real Estate Taxes ($1,980) ($1,980) ($2,039) ($2,101) Property Management ($9,034) ($9,034) ($9,305) ($9,584) Admin and Other ($2,000) ($2,000) ($2,060) ($2,122) Total Expenses ($37,894) ($37,894) ($39,031) ($40,202) Expenses Per Unit ($3,445) ($3,445) ($3,548) ($3,655) Net Operating Income $68,389 $77,352 $79,673 $82,063 Cap Rate 6.51% 7.37% 7.59% 7.82% Debt Service - Yr 1 ($31,450) ($31,450) ($43,684) ($43,684) Total Cash Flow $36,939 $45,902 $35,989 $38,379

INCOME STATEMENT Cash on Cash Return 14.07% 17.49% 13.71% 14.62%

# Comp Address Units Building SF Sale Price Price Per Unit Price Per Foot Cap Rate SUBJECT 1411 S Corona St 11 8,265 $1,050,000 $95,455 $127 7.37% PROPERTY

1 425 Prairie Rd 6 4,262 $559,900 $93,317 $131 7.11%

2 2609 E Dale St 16 12,800 $1,550,000 $96,875 $121 7.20%

3 319-321 E Brookside St 34 16,392 $2,400,000 $70,588 $146 7.16%

$1,389,975 $89,059 $131 7.23% Averages

ADAM RIDDLE SEANROBERT HOLAMON GRAY Co-Founder/Principal InvestmentInvestment Advisor Advisor | 303.257.7627 | [email protected] | |806.789.9799 713.857.3054 | |[email protected] [email protected] COLORADO SPRINGS NOTABLE RANKINGS #2 BEST PLACE TO LIVE (U.S. NEWS & WORLD REPORT, 2018)

#1 Mountain 3rd Best City Top 5 Rent growth City for Livability market in the U.S. (MONEY MAGAZINE, 2016) (U.S. NEWS & WORLD REPORT, 2016) (AXIOMETRICS)

National Hub for Cybersecurity 10% Increase -ROOT9B - #1 security Company in Median Home in the world Prices Y-O-Y (U.S. NEWS & WORLD REPORT, 2016) (NATIONAL ASSOCIATION OF REALTORS, 2018)

ADAM RIDDLE ROBERT GRAY Co-Founder/Principal Investment Advisor | 303.257.7627 | [email protected] | 713.857.3054 | [email protected] COLORADO SPRINGS

The 186-square mile city of Colorado Springs is located near the base of one of the most famous American mountains, Pikes Peak, and 61 miles south of Denver. With an estimated population of 456,568, Colorado Springs is the most populous city in El Paso County and it is estimated that the population will increase 58.6% by 2050.

Colorado Springs consistently receives high rankings such as •#1 Best Big City in "Best Places to Live" by Money magazine •#1 Outside Magazine's list of America's Best Cities •#2 on U.S. News list of most desirable cities. Along with many trails and parks, major attractions include: •Pikes Peak •Garden of the Gods Park •The Broadmoor Seven Falls •Cave Of The Winds Mountain •Cheyenne Mountain Heritage Center •Cheyenne Mountain Zoo •Colorado Springs Fine Arts Center •Colorado Springs Pioneers •Peterson Air and Space Museum •United States Air Force Academy.

Colorado Springs is also home to the Colorado Springs Olympic Training Center and the headquarters of the United States Olympic Committee. In addition, a number of United States national federations for individual Olympic sports have their headquarters in Colorado Springs.

*Some information sourced from https://www.visitcos.com/about-cvb/about-colorado-springs/.

The Broadmoor in Colorado Springs is known for being a member of the Historic Hotels of America of the National Trust for Historic Preservation, as well as the longest-running consecutive winner of both the AAA Five-Diamond and Forbes Five-Star awards. The property originally started as a dairy farm, was turned into a casino in 1891, and became a hotel in 1918. Blending European elegance and Western hospitality, The Broadmoor has been the destination of a long list of presidents, statesmen, foreign dignitaries, sports stars, and celebrities. The Broadmoor is not only the premier attraction for the Springs, but draws consistent visitors nationwide.

The Broadmoor continues to offer impeccable service, distinctive amenities, and endless opportunities to explore the picturesque mountains, streams, and canyons that have inspired generations. The hotel offers over 185,000 square feet of meeting space and 779 rooms including suites, cottages, and cabins. Fine dining includes 18 award-winning restaurants and lounges, including the Five Diamond Penrose Room. The Forbes Five-Star Spa at The Broadmoor offers luxurious spa services. The Broadmoor features three of Colorado’s championship golf courses and is also ranked among the Top 10 tennis resorts in the United States. Additionally, there are 26 specialty shops located across from the resort. Nearby activities include fly fishing, horseback riding, waterfall treks, and ziplining adventures. .

ADAM RIDDLE ROBERT GRAY Co-Founder/Principal Investment Advisor | 303.257.7627 | [email protected] | 713.857.3054 | [email protected] MANITOU SPRINGS

Manitou Springs is a small town located at the base of Pike’s Peak, just 15 minutes west of Colorado Springs with about six miles from one downtown to the other. “Manitou” is a Native American word meaning “great spirit.” The Ute, Cheyenne and other Native Americans considered this area sacred for its healing springs and clean mountain air. Manitou Springs features eight naturally carbonated mineral spring fountains, which are free to use. Health and wellness continues to be a draw for residents and visitors who come to the area for its unparalleled quality of life and holistic, spiritually uplifting charm. Additionally, with Colorado Springs banning recreational marijuana stores, Manitou Springs has emerged as the closest option for those in Colorado Springs to purchase marijuana.

Manitou Springs is a vibrant artisan community with art, music, theater, and sidewalk sculpture displays. The Historic District is lined with unique art galleries, one of a kind gift shops, and trading posts with handcrafted Native American treasures. It is also home to dozens of artists and art galleries.

Manitou Springs is known for its proximately to Pikes Peak. The Manitou and Pikes Peak Cog Railway take travelers to the top of Pikes Peak with an elevation of 14,115 feet. For those that prefer to walk, there are a variety of hiking trails leading to spectacular views at the top, with the 13-mile Barr Trail serving as one of the most popular routes. The area also features the famous Garden of the Gods Park and The Incline, a popular hiking train that gains over 2,000 feet of elevation in less than 1 mile. The Cave of the Winds, Miramont Castle, and Cliﬀ Dwellings Museum are also popular destinations. Additionally, the North Pole and Santa’s Workshop, Cheyenne Mountain Zoo, Seven Falls, Dinosaur Resource Center, Colorado Wolf and Wildlife Center, and the Air Force Academy are all a short drive away.

*some information sourced from https://manitousprings.org/

The U.S. Olympic Museum will be located where many Olympic and Paralympic dreams begin – at 6,035 feet above sea level, in the shadow of Pikes Peak – just a few blocks away from the United States Olympic Committee headquarters in Colorado Springs. This will be the ﬁrst full-ﬂedged Olympic museum in the United States and will be developed on 1.7 acres of land in Colorado Springs’ Southwest Downtown Urban Renewal District, creating a stunning gateway to Downtown Colorado Springs and America the Beautiful Park. It is set to open in 2018 and has an estimated cost of roughly $75 million.

The Olympic Training Center draws about 130,000 visitors a year. Museum oﬃcials are expecting their 60,000-square-foot showcase to eventually draw up to 350,000 a year, with more than half the visitors coming from outside the state.

The 60,000-square-foot building will embody the forward-looking values of Team USA, with 20,000 square feet of highly interactive exhibit space, a state-of-the-art theater, gift shop, café, and broadcast studio.

2017 Summary 1 Mile 3 Miles 5 Miles Population 14,342 96,775 410,580 Households 6,609 44,720 163,751 Families 2,895 22,000 89,359 Average Household Size 1.91 2.09 2.46 Owner Occupied Housing Units 3,269 21,342 74,792 Renter Occupied Housing Units 3,340 23,378 88,959 Median Age 37.5 40.3 34.1 Median Household Income $49,089 $42,593 $51,406 Average Household Income $71,103 $58,878 $77,543

2022 Summary 1 Mile 3 Miles 5 Miles 1 MILE Population 14,684 100,709 259,064 Households 6,801 46,672 114,078 Families 2,934 22,678 61,994 3 MILES Average Household Size 1.90 2.08 2.22 Owner Occupied Housing Units 3,321 22,063 54,613 Renter Occupied Housing Units 3,480 24,609 59,465 5 MILES Median Age 37.9 40.9 38.2 Median Household Income $55,385 $46,763 $52,193 Average Household Income $81,541 $67,116 $74,639

ADAM RIDDLE ROBERTSEAN HOLAMON GRAY Co-Founder/Principal InvestmentInvestment Advisor Advisor | 303.257.7627 | [email protected] | 806.789.9799 | [email protected] | 713.857.3054 | [email protected] THE NEXUS PEOPLE 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.

ADAM RIDDLE JASON KOCH WALLIS HUTCHENS Co-Founder Co-Founder Oﬃce Principal Principal Manager 303.257.7627 303.918.8909 828.850.9033 [email protected] [email protected] [email protected]

KIM ROY SHANNON LACKEY SEAN HOLAMON Sales & Operations Executive Assistant/ Investment Manager Transaction Coordinator Advisor 612.669.2068 707.332.5907 806.789.9799 [email protected] [email protected] [email protected]

AUSTIN SMITH ROBERT GRAYT KEVIN WOOLSEY Investment Investment Analyst Advisor Advisor 303.990.4361 303.868.9096 713.857.3054 [email protected] [email protected] [email protected] Colorado Springs Oﬃce

ADAM RIDDLE ROBERT GRAY Co-Founder/Principal Investment Advisor | 303.257.7627 | [email protected] | 713.857.3054 | [email protected] 1411 S CORONA ST COLORADO SPRINGS, CO 80905

For More Information Contact

ROBERT GRAY Investment Advisor 713.857.3054 | [email protected] |

ADAM RIDDLE Co-Founder/Principal 303.257.7627 | [email protected] |