A 17-UNIT APARTMENT BUILDING in the CAPITOL HILL NEIGHBORHOOD 01 Executive Summary 02 Market Overview for MORE INFORMATION, PLEASE CONTACT
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DENVER, COLORADO 80218 A 17-UNIT APARTMENT BUILDING IN THE CAPITOL HILL NEIGHBORHOOD 01 Executive Summary 02 Market Overview FOR MORE INFORMATION, PLEASE CONTACT: EXCLUSIVE AGENT Robert Bratley 541.729.9667 [email protected] 03 DEBT & STRUCTURED Financial Analysis FINANCE Craig Branton 303.583.2029 [email protected] © 2019 CBRE, Inc. All Rights Reserved. 01 Executive Summary The Offering CBRE is pleased to offer for sale 1010 Emerson Street, a 17-unit apartment building located in the Capitol Hill neighborhood. PROPERTY ADDRESS 1010 Emerson St. Denver, CO 80218 YEAR BUILT 1965 TOTAL BUILDING AREA 8,979 Square Feet NUMBER OF APARTMENTS 17 AVERAGE UNIT SIZE 528 SF PRICE $3,250,000 PRICE PER UNIT $191,176 PRICE PER SQUARE FOOT $361.96 AVG. MARKET RENT $1,225 AVG. MARKET RENT PER SF $2.32 6 - 1010 EMERSON STREET Investment Highlights Fifteen (15) of the 17 units at 1010 Emerson Street are renovated and include updated plank flooring and carpet, new cabinets and countertops, stainless steel appliances including microwaves and dishwashers, disposals, ceiling fans, updated tiling and vanities in the bathrooms, and more. In addition, all units have their own air conditioning units. The property has a light value-add component with two units left to be renovated to increase the rents to achieve maximum returns. Nevertheless, 1010 Emerson Street has substantial capital improvements including upgraded electrical and a newer boiler, roof and windows. 1010 Emerson Street has a laundry room on-site with secured bike storage. The property also includes 18 storage units and five off-street parking spaces with additional income potential. The property is in the highly desirable Capitol Hill neighborhood. With an 84 Walkscore and 90 Bikescore or Biker’s Paradise, all the concert venues, coffee shops, restaurants, bars, and boutique shops in Cap Hill are minutes away. In the first quarter 2019 the Capitol Hill submarket had anaverage vacancy rate of 3.6% in buildings with nine to 50 units. This is well below the metro Denver average of 5.4%. This high demand increased the average rents by 3.7% over the previous quarter to $1,226 per month. 1010 Emerson Street is located less than five minutes from downtown Denver and 133,500 jobs. The property is also close to Denver Health and St. Joseph Hospital which account for 6,323 healthcare jobs. *Source: AAMD Q1 2019 Vacancy & Rent Survey 7 - EXECUTIVE SUMMARY PROPERTY DETAILS ADDRESS 1010 Emerson St. Denver, CO 80218 UNITS 17 TOTAL SQUARE FEET 8,979 Square Feet ZONING G-RH-3 LOT SIZE 6,250 Square Feet CONSTRUCTION DETAILS CONSTRUCTION TYPE Exterior Walkup FOUNDATION Concrete SIDING Brick ROOFING Flat UTILITIES ELECTRICITY Individually metered GAS Master metered WATER, SEWER & TRASH Master metered PARKING OFF-STREET PARKING SPACES 5 PARKING RATIO 0.29 LEASING DETAILS APPLICATION FEE $50 PET RENT $25 PET FEE $250 OFF-STREET PARKING $60 8 - 1010 EMERSON STREET Community Amenities ◊ Near multiple RTD bus stops ◊ Blocks to bars, restaurants and entertainment on 13th, 14th, and Colfax Avenues ◊ Steps from The Park Tavern, Potiger, Snarf’s Sandwiches, Sexy Pizza, Barricuda’s, and more ◊ Proximity to Cheesman Park, Governors Park, and Trader Joe’s ◊ Two blocks from King Soopers, Starbucks, Dazbog Coffee, Whole Body ◊ Less than five minutes to downtown Denver Barre, and A Pet’s Paradise 9 - EXECUTIVE SUMMARY BRIGHTON 36 LOUISVILLE 470 INTERSTATE 25 THORNTON BROOMFIELD SUPERIOR 287 NORTHGLENN WESTMINSTER DENVER 470 INTERNATIONAL AIRPORT 36 ARVADA COMMERCE CITY INTERSTATE 70 WHEAT INTERSTATE RIDGE GOLDEN DENVER 70 INTERSTATE 6 70 6 INTERSTATE INTERSTATE 70 25 LAKEWOOD ENGLEWOOD EVERGREEN GREENWOOD 470 VILLAGE 470 LITTLETON 285 HIGHLANDS RANCH parker 85 INTERSTATE 10 - 1010 EMERSON STREET 25 RINO DIA UNION STATION CITY PARK GOLF COURSE DOWNTOWN DENVER ZOO DENVER ST. JOSEPH'S HOSPITAL CITY PARK REDEVELOPMENT RESTAURANT ROW CHEESMAN PARK & DENVER BOTANIC GARDENS DENVER HEALTH CHERRY CREEK SHOPPING CENTER 11 - EXECUTIVE SUMMARY DOWNTOWN DENVER 133,500 EMPLOYEES ST. JOSEPH'S HOSPITAL REDEVELOPMENT COLORADO STATE CAPITOL CIVIC CENTER PARK CHEESMAN PARK DENVER HEALTH DON’S CLUB TAVERN, ANGELO’S 6TH AVENUE TAVERNA, TABLE 6, RETAIL CORRIDOR SAFEWAY, UNO MAS TAQUERIA, FRUITION 12 - 1010 EMERSON STREET 13 - EXECUTIVE SUMMARY 02 Market Overview Market Overview CAPITOL HILL As Denver’s most densely populated neighborhood, and one of its oldest, there is always something going on in Capitol Hill. The proximity to the Colorado State Capitol and downtown Denver makes this a highly desirable area for millennials and employees wanting a short commute every day. The neighborhood is a great mixture of history and hip, filled with beautiful late 18th-century mansions like the Molly Brown House and great nightlife spots such as The Black Box, Pub on Penn, Hudson Hill and Stoney’s. Great coffee shops and restaurants are popular gathering spots for locals and can be found scattered throughout the neighborhood including Pablo’s Coffee, City O’ City, Capitol Hill Tavern, Bang Up To The Elephant, The Network Coffee House, The Corner Beet, Thump Coffee and many more. 16 - 1010 EMERSON STREET CHEESMAN PARK Centrally located between Capitol Hill and Congress Park, this 80-acre park is one of the most-popular parks in Denver. The park includes beautiful flower beds, picnic areas, The Pavilion, jogging path, scenic views, and a playground. The Denver Botanic Gardens is attached to the park as well and hosts a variety of events year-round, including a summer concert series, corn maze in the fall and Blossoms of Light in the winter. The Cheesman Park neighborhood is quieter than Capitol Hill and is lined by bounded by large, historic mansions. COLFAX AVENUE Over the past several years, Colfax Avenue has emerged as one of central Denver’s strongest retail corridors. Dozens of new restaurants, coffee shops, bars and retailers have moved to East Colfax as the area continues to redevelop and improve. However, many historic establishments remain a staple for local residents. Many of Denver’s best are within walking distance of 1010 Emerson Street including Sassafras, Prohibition, 1up Colfax, Fillmore Auditorium, Ogden Theatre, Alpine Dog Brewing Company, Irish Snug, and Voodoo Doughnuts. 17 - MARKET OVERVIEW DENVER HEALTH Founded in 1860, Denver Health Medical Center is one of the primary teaching hospitals in Denver and has affiliations to University of Colorado-Denver, Children’s Hospital Colorado and the Veteran’s Affairs Hospital at Fitzsimons. With 555 beds and 4,331 healthcare employees, Denver Health is one of the largest hospitals in metro Denver. With a central location in Denver, this facility serves more than 220,000 individuals a year. Denver Health delivers preventative, primary and acute services, including the Rocky Mountain Level 1 Trauma Center, Rocky Mountain Poison and Drug Center, Rocky Mountain Center for Medical Response to Terrorism, Mass Casualties and Epidemics, and family health and substance abuse centers. 18 - 1010 EMERSON STREET RESTAURANT ROW BROA 20TH 22ND 24TH E. 23RD AVE E. 23RD AVE ST ST STR DWAY WASHINGTON ST WASHINGTON PARK AVENUE WEST ARAPAHOE ST FIVE POINTS E. 22ND AVE CURTIS ST E. 22ND AVE FREE METRO RIDE 21ST ST 19TH ST E. 21ST AVE 1 4 5 E. 20TH AVE CITY 17TH ST 6 7 PARK 18TH ST E. 20TH AVE 3 2 St. Joseph's Hospital 8 9 CHAMPA ST DOWNTOWN 4 10 4 E. 19TH AVE Redevelopment STOUT ST 11 12 3 4 16TH STREET FREE MALL RIDE 2 E. 18TH AVE E. 18TH AVE WELTON ST 2 3 PARK AVENUE WEST 1 WEST CITY PARK 15TH ST CALIFORNIA ST 27 UPTOWN 39 TREMONT PL 13 15 16 17 42 1 19 20 21 22 23 28 29 36 38 40 41 14 E. 17TH AVE JOSEPHINE ST E. 17TH AVE 18 24 25 26 30 31 32 33 34 35 37 3 2 14TH ST GLENARM PL ST PENNSYLVANIA CAPITOL 1 ST WASHINGTON E. 16TH AVENUE CLARKSON ST CLARKSON HILL LAFAYETTE ST E. 16TH AVE HUMBOLDT ST FRANKLIN ST DOWNING ST GAYLORD ST SHERMAN ST EMERSON ST GILPIN ST WILLIAMS ST MARION ST LINCOLN ST HIGH ST OGDON ST LOGAN ST LOGAN GRANT ST GRANT RACE ST PEARL ST PEARL VINE ST GOLDEN COURT PL YORK ST TRIANGLE 70 W. COLFAX AVENUE RESTAURANTS 22 STONEY’S UPTOWN JOINT HOTELS 23 WAFFLE BROTHERS 1 GUARD AND GRACE 1 THE BROWN PALACE 24 THE DENVER BICYCLE CAFE 2 TRINITY GRILLE 2 WARWICK HOTEL 25 THE DISTRICT BISTRO RANDOLPHÍS 3 GRAND HYATT 3 26 HAMBURGER MARYÍS BELLA VISTA 4 HAMPTON INN & SUITES 4 27 THE WHITE PIE WAHOO'S 5 28 HUMBOLDT FARM FISH WINE COPERTA 6 29 DOS SANTOS TAQUERIA RETAIL 7 THE HORSESHOE LOUNGE 30 OLIVE AND FINCH 1 AVENUE THEATER 8 D BAR 31 PAXTI’S PIZZA 2 VIENNA CLEANERS 9 FLUID COFFEE BAR 32 THIRSTY MONK 3 SAMADHI CENTER YOGA 10 WALTER’S PIZZERIA 33 NEXT DOOR LOUNGE 4 URBAN DOGG LAS DELICIAS 11 34 BREAD-N-BUTTER MARGS 12 35 SUSHI BAY 17 WILLIAMS TAVERN 13 36 THE WEATHERVANE CAFE FITNESS PRIDE AND SWAGGER 14 37 BOCAZA MEXICAN GRILLE 1 DOWNTOWN YMCA PARK & CO. 15 38 CHADA THAI 2 ORANGE THEORY ACE 16 39 THE THIN MAN 3 9ROUND FITNESS STEUBEN’S 17 40 ST. MARKS COFFEE HOUSE 4 CITY SURF THE AVENUE GRILL 18 41 VINE STREET PUB & BREWERY BEAST + BOTTLE 19 42 TACOS TEQUILA WHISKEY 20 WATERCOURSE FOODS 21 ILLEGAL GROUNDS COFEEHOUSE 19 - MARKET OVERVIEW ST. JOSEPH HOSPITAL REDEVELOPMENT The $700 million St. Joseph’s hospital redevelopment broke ground in 2011 and is one of the largest redevelopments in Denver to date. The main building will be an 826,000-square foot, 348-bed building in the middle of the campus that opened in 2015.