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Offering Memorandum Emerson Street 1101Denver, Colorado Presented By: Boomer Beatty Peter Standley Sr. Associate Sr. Associate (303) 328-2041 (303) 328-2053 [email protected] [email protected] License CO 1000516925 License CO 100056456 Matthew Beverly Payton Calhoun Associate Marketing Coordinator (303) 328-2060 (303) 328-2063 [email protected] [email protected] License FA 100081440 1101 North Emerson Street Denver, CO 80218 04 EXECUTIVE SUMMARY 10 MARKET OVERVIEW 18 THE PROPERTY 24 FINANCIAL ANALYSIS 30 MARKET COMPARABLES EXECUTIVE SUMMARY The Offering Marcus & Millichap has been selected to exclusively market for sale 1101 Emerson Street apartments, located in the Capitol Hill neighborhood of Denver, Colorado. The property consists of three large one-bedroom/one-bathroom units averaging around 800 SF and one five-bedroom/two-bathroom, two-story unit. The five-bedroom unit is located on the main floor and is perfect for an owner occupant. The property features original woodwork, hardwood floors, and doors throughout. In addition, recent upgrades include the plumbing, windows, roof, and furnace. Residents of 1101 Emerson Street have easy access to many convenient community amenities including off-street parking, nearby parks, secured entry ways, shared garden and backyard, and multiple patios. Residents also have the added benefit of on-site laundry, dishwashers, central air conditioning, wi-fi, and decorative fireplaces. 6 1101Emerson Investment Highlights 1. Amazing Capitol Hill Location 2. Newer Roof, Furnace, Windows, & Plumbing 3. 5 Off-Street Parking Spaces 4. Massive 5-Bed/2-Bath, 2-Story Unit; Perfect for Owner Occupied 5. Located in Capitol Hill Retail Pocket 6. All Large Floor Plans 7. In-Unit Washer & Dryer; Central Air Conditioning 8. Multiple Patios 9. Community Garden & Shared Yard 10. Immense Amount of Historical Charm with Original Woodwork ExecutiveSummary 7 Summary of Terms List Price : $1,400,000 Current CAP Rate : 4.86% 1101 EMERSON ST., PROPERTY ADDRESS DENVER, CO 80218 Number of Units 4 Total Square Footage 4,967 Year Built 1894 List Price $1,400,000 Price/Unit $350,000 Price/SF $281.86 Lot Size 0.11 Acres Current CAP 4.86% Pro Forma CAP 5.82% Current GRM 15.05 Pro Forma GRM 14.07 8 1101Emerson Property Tours Prospective purchasers are encouraged to visit the subject properties prior to submitting offers. Please do not contact the on-site management or staff without prior approval. All property tours must be coordinated through the listing team. Interest Offered 100 percent fee-simple interest in the four-unit, 4,967 square- foot apartment building in Capitol Hill. ExecutiveSummary 9 MARKET OVERVIEW Capitol Hill Capitol Hill is Denver’s perfectly located neighborhood, centered between the exciting and lively Downtown Denver and quieter areas like Cheesman Park. With Cheesman Park less than one mile away, and being one of Denver’s biggest and most well-kept outdoor spaces, Capitol Hill residents are able to enjoy Colorado’s beautiful weather any day of the week. Capitol Hill can be a quiet, easy-going neighborhood, but also features countless dining, entertainment, and nightlife options. DENVER 12 1101Emerson DENVERCAPITOL HILL MarketOverview 13 Positive Demographics Outdoors Low Unemployment Rates Cheesman Park Economic Growth Over 80 Miles Off-Street Trails in Denver Renter Growth 41 State Parks Many Large Companies’ HQ Relocation Rocky Mountain National Park Capitol Hill is one of Denver’s most Cultural prized residential areas offering Sports Denver Art Museum incredible dining, retail, and Avalanche - Hockey entertainment. In a few blocks, First Friday Art Walks Broncos - Football residents can reach Colfax Avenue, Red Rocks Amphitheatre making the entirety of the Denver Nuggets - Basketball Weekly Art, Film, Food, & Cultural Festivals metro easily accessible. Being so Rockies - Baseball close to central Downtown Denver means residents of 1101 Emerson Street are only a few minutes from Colorado’s top employers. Dining & Nightlife Employment Over 220 Breweries in Colorado 10 Fortune 500 Companies LoDo & South of Colfax Nightlife District Top 10 City for Tech Talent Comedy Works - Top 5 Comedy Club in U.S. United & Frontier Airlines Hub 10+ Weekly Farmers Markets Growing Alternative Energy Sector 14 1101Emerson Surrounding Neighborhoods This property is central to several of Denver’s hottest neighborhoods, including Cheesman Park, South Broadway, City Park, LoDo, and RiNo. Being so close to so many incredible areas means residents are only minutes from sought-after spots such as Thump Coffee, Congress Park, Denver Art Museum, and the Central Business District. MarketOverview 15 Demographics 1 MILE 3 MILES 5 MILES Total Population 47,567 220,941 523,286 2023 Total Population Projection 49,436 226,971 531,074 Median Age 34.13 34.54 34.33 20 - 34 Years Old 47.00% 35.91% 30.82% Bachelor’s Degree 40.67% 34.81% 28.25% Total Households 32,007 118,067 241,750 Median Household Income $50,829 $63,304 $58,066 Total Renter Occupied Units 23,744 70,607 132,947 2018 Estimate Occupied Units 32,631 122,514 248,330 Vacant Units 624 4,447 6,580 3.93% $419,778 $50,829 45.22% Population growth over next 5 years Median housing value in 2018 Median income within 1 mile Of population college educated within 1 mile 23.5 0.1 0.5 Miles to Denver International Airport Miles to closest RTD stop Miles to closest gas station 16 1101Emerson Accessibility Dining 0.1 Miles to Potager 0.4 Miles to Thump Coffee 0.6 Miles to City O’ City 0.8 Miles to Lowdown Brewery Retail 0.3 Miles to King Soopers 0.8 Miles to Trader Joe’s 1.2 Miles to South Broadway 1.4 Miles to Tattered Cover Book Store Colfax Parks & Recreation 0.4 Miles to Cheesman Park 0.7 Miles to Civic Center Park 1.2 Miles to Congress Park 1.7 Miles to City Park Miscellaneous Amenities 0.4 Miles to Colfax Avenue 1.5 Miles to Central Business District 2.1 Miles to LoDo 2.3 Miles to Interstate 25 MarketOverview 17 THE PROPERTY 1101 Emerson Street Residents of 1101 Emerson Street are close to several walkable amenities along with those provided at the property. Cheesman Park sits only a few blocks to the east and is one of Denver’s largest parks, offering outdoor activities such as biking, kayaking, and running trails. This pocket of Capitol Hill boasts an assortment of bars, shops, and restaurants. The neighborhood is highly sought after by Denver apartment dwellers due to the historic charm and neighborhood features. The investment appeal of this asset is driven by the strong employment fundamentals, low vacancy levels, and rapidly expanding rental demand in Denver, Colorado. This well-located asset, just minutes from downtown Denver, presents an attractive choice for central Colorado renters. 20 1101Emerson Interiors Large Floor Plans In-Unit Washers & Dryers* Original Woodwork Newer Windows Newer Furnace Central Air Conditioning Decorative Fireplaces Exposed Brick Hardwood Floors *In Select Units Common Area Patios Shared Yard Community Garden Off-Street Parking Capitol Hill Retail Pocket Newer Roof Property Summary 1101 EMERSON STREET Utilities 1101 N Emerson St., Water Master Metered Property Address Denver, CO 80218 Sewer City Assessor’s Parcel Number 05022-29-011-000 Electric Master Metered Buildings 1 Gas Master Metered Stories 3 Trash City Zoning G-RH-3 Internet Provider Comcast Business Account Year Built 1894 Rent Restrictions None Site Description Mechanical Units 4 HVAC Forced Air Unit Total Building SF 4,967 Fire Protection N/A Net Rentable SF 4,400 Water Heaters 2 Water Heaters Parcel Size 0.11 Acres Laundry In-Unit Select Units & Shared Parking 5 Off-Street Spaces Plumbing Copper Wiring Copper 22 1101Emerson TheProperty 23 FINANCIAL ANALYSIS Financial Overview PRICE $1,400,000 FINANCING Down Payment 35% $490,000 Loan Amount $910,000 Number of Units 4 Loan Type New Price Per Unit $350,000 Interest Rate 4.75% Total SF 4,967 Amortization 30 Years Price Per SF $281.86 Year Due 2049 Lot Size 0.11 Acres *Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative. Year Built 1894 RETURNS CAP Rate - Current 4.86% CAP Rate - Pro Forma 5.82% GRM Rate - Current 15.09 GRM Rate - Pro Forma 14.07 # OF UNITS UNIT TYPE SF/UNIT CURRENT RENTS PRO FORMA RENTS 3 1 Bed / 1 Bath 800 $1,383 $1,483 1 5 Bed / 2 Bath 2,000 $3,600 $3,600 26 1101Emerson Operating Data INCOME CURRENT PRO FORMA PER SF Gross Scheduled Rent $93,000 $99,498 $22.61 Less: Vacancy/Deductions (3.0%) ($2,790) (3.0%) ($2,985) ($0.68) Total Effective Rental Income $90,210 $96,513 $21.93 Other Income $0 $3,600 $0.82 Effective Gross Income $90,210 $100,113 $22.75 Less: Expenses (24.6%) ($22,156) (18.6%) ($18,615) ($4.23) Net Operating Income $68,054 $81,498 $18.52 Cash Flow $68,054 $81,498 Debt Service $56,964 $56,964 Net Cash Flow After Debt Service 2.26% $11,090 5.01% $24,534 Principal Reduction $14,042 $14,724 Total Return 5.13% $25,132 8.01% $39,258 EXPENSES CURRENT PRO FORMA PER UNIT PER SF Real Estate Taxes $4,685 $4,685 $1,171 $1.06 Insurance $5,300 $4,000 $1,000 $0.91 Utilities $9,030 $6,680 $1,670 $1.52 Repairs & Maintenance $3,141 $3,250 $813 $0.74 Total Expenses $22,156 $18,615 $4,654 $4.23 Expenses/Unit $5,539 $4,654 Expenses/SF $5.04 $4.23 FinancialAnalysis 27 Rent Roll Summary SCHEDULED PRO FORMA SCHEDULED # OF AV G AVG RENT/ MONTHLY AV G MONTHLY UNIT TYPE AVG SF RENTAL AVG RENT UNITS RENT SF INCOME RENT/SF INCOME RANGE 1 Bed / 1 Bath 3 800 $1,200 - $1,650 $1,383 $1.73 $4,150 $1,483 $1.85 $4,450 5 Bed / 2 Bath 1 2,000 $3,600