Offering Memorandum 9233 PARK MEADOWS DRIVE Lone Tree, CO 80124
Peter Peluso Will Matthews [email protected] [email protected] 720.529.2984 720.529.2896
THE OFFERING
Legend Investment Group is pleased to present investors with the opportunity to acquire a mixed-use property in one of the largest commercial districts in Denver. The property is fully occupied by a diverse mix of tenants including restaurant, medical, office, and service-oriented providers. Many of the tenants have a long-term history at this location with Office Evolution and Panera Bread recently executing 10-year lease renewals.
Ideally situated at the entrance to Lone Tree’s entertainment district and less than 1 mile away from Colorado’s biggest shopping mall, Park Meadows, the property benefits from the synergistic traffic generated. With over 185 stores and restaurants as well as major anchor retailers like Costco, Home Depot, and Ikea this location represents one of the most robust trade areas of Denver.
The offering presents several opportunities for growth including a separate 1-acre parcel currently leased to Key Bank at a below market rate, a City approved Drive-thru addition as well as upside in rents. Many tenants have attractive annual increases as well as additional upside potential through conversion to net leases. C 470 C 110,000 vpd 470
Yosemite St
28,000 vpd
Park Meadows Dr 22,000 vpd Highlights | 4 HIGHLIGHTS
LONE TREE ENTERTAINMENT DISTRICT DIVERSE TENANCY - REPLACEABLE RENTS Ideally situated at the entrance to Lone Tree’s entertainment district the property Occupied by a diverse range of tenancy including restaurant, medical, benefits from the synergistic traffic generated by neighboring entertainment office, and service-oriented providers. Panera Bread has been in occupancy oriented and hospitality focused tenants. for 15 years with a recent 10-year lease extension being completed in 2017 demonstrating their long-term commitment to this location. Office Evolution also signed a recent 10-year lease extension at a very replaceable rental rate. INVESTMENT UPSIDE Property comes with a separately parceled 1-acre lot currently leased to Key Bank on a below market gross lease. City approved drive-thru addition to the PARK MEADOWS MALL Panera Space. Below market Office Evolution rental rate which is supported by Located less then 1 mile away from Colorado’s biggest shopping mall the recent leasing activity within the property at higher rates. Furthermore, many property is within proximity to over 185 stores and restaurants as well as major of the tenants have attractive annual increase with additional upside through anchor retailers like Costco, Home Depot, and Ikea. further conversation of gross leases to net. Income
Base Income $816,582 Expense Reimbursements $130,391 Effective Gross Income $946,973 INVESTMENT SUMMARY Vacancy Reserve - 2.5% -$23,674 Gross Effective Income $923,298 Operating Expenses $406,342 Net Operating Income $516,956 PRICE $7,545,000 CAP 6.85% Expenses Reimbursements: Monthly Annualized
Flawless Enterprises $300 $3,600 ReMax $1,921 $23,052 Panera $4,460 $53,520 Panera Utilities $1,585 $19,019 Office Evolution Utilities $2,600 $31,200 Total $10,866 $130,391 *Office Evolution & Flawless Enterprises utilities are an average, as they are required to pay actual pro rata share of each month's utilities
Operating Expenses:
Legal Fees $1,012 HVAC Repairs $6,574 Real Estate Taxes $236,029 Advertising and Marketing $2,178 Accountant $2,824 Cleaning $22,423 Insurance $7,065 Management Fee - 3% EGI $28,000 Fire and Safety $6,225 Elevator Maintenance $2,100 Plumbing Repairs $2,810 Utilities $85,930 Misc $3,172 Total $406,342 PROPERTY SUMMARY
ADDRESS 9233 Park Meadows Dr. PARKING 62 Spaces Lone Tree, CO 80124
RENTABLE BLDG. AREA 25,336 SF PARCEL # 2231-03-3-05-019
BLDG. AREA 28,325 SF PARCEL # 2231-03-3-05-020
LAND AREA 152,286 SF COUNTY Douglas
YOC/RENOVATION 1999/2003
Property Summary | 6 RENT ROLL
CURRENT OPTIONS TENANT SF RENT PSF TERM END DATE RENT INCREASES CAM REIMBURSEMENT/OTHER RENT TO RENEW Allstate 1,100 $2,000.00 $21.82 12/31/2023 (1) 3-year None Increases in CAM over Base Year Electrical Pro-rata beginning 2/1/2020 Flawless Enterprises (1) 2 -year & 2,216 $7,072.00 $38.30 10/31/2022 3% Annual - November | If tenant exercises extension term in (Eco Salon) (1) 5-year 2020, 10/2023 rent is abated $1,921/month adjusted based on ReMax 1 2,004 $4,155.57 $24.88 9/4/2023 (1) 5-year 5% Annual - November increase in CAM of this base amount ReMax 2 2,500 $7,374.61 $35.40 9/4/2023 None 4% Annual - May None Not less then amount Solution for Tuition 500 $2,042.00 $49.01 12/31/2020 (2) 5-year None tenant Sec 4.1 Super Smooth 2,000 $4,082.58 $24.50 5/31/2024 None 4% Annual - January Utility Reimbursement starting 1/1/22 (Waxing the City) Panera 4,000 $10,962.67 $32.89 3/31/2027 (4) 5-year 4/1/22-3/31/27 - $11,519.33 $4,460/mo plus $1,584.88 for Utilities Utility Reimbursement Approx. Office Evolution 9,266 $23,809.04 $30.83 5/31/2026 (1) 5-year 2% Annual - June $2600/month Cool Car Guy 250 $1,050.00 $50.40 2/29/2024 None 5% Annual - March None
Sun Hae Kwon 750 $1,300.00 $20.80 6/30/2021 None 5% Annual - July None
My Denver Therapy 500 $600.00 $14.40 11/30/2020 None Fair Market Value None
Carlson CPA 250 $1,000.00 $48.00 10/31/2020 None None None
Key Bank ATM $2,600.00 5/31/2021 (2) 5-year None None
Total 25,336 $68,048.47
* ReMax 2 rent per May 2020 * Cool Car Guy rent per March 2020
Investment Summary | 7 DEMOGRAPHICS 1 MILE 3 MILE 5 MILE
POPULATION 9,361 74,190 220,124
AVG. HOUSEHOLD INCOME $163,058 $154,710 $149,744
HOUSEHOLDS 4,085 30,645 86,476
BUSINESSES 963 6,702 14,394
DAYTIME POPULATION 14,972 100,115 196,540