Denver, Colorado Presented By

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 $3,600 $1.80 $3,600 $3,600 $1.80 $3,600

Unit Rent

4000 $1.82 SF

3500 $1.80 SF SF/Month per Rent 3000 $1.78 SF 2500 $1.76 SF 2000 $1.74 SF 1500 $1.72 SF

Rent per Month 1000 500 $1.70 SF 0 $1.68 SF One Bedroom/One Bathroom Five Bedroom/Two Bathroom Unit Type

Rent Rent SF

28 1101Emerson Rent Roll Detail

CURRENT CURRENT PRO FORMA PRO FORMA UNIT UNIT TYPE SF RENT / MONTH RENT / MONTH / SF RENT/MONTH RENT / SF / MONTH

1 1 Bed / 1 Bath 750 $1,200 $1.60 $1,200 $1.60

2 1 Bed / 1 Bath 750 $1,300 $1.73 $1,300 $1.73

3 1 Bed / 1 Bath 900 $1,650 $1.83 $1,650 $1.83

4 5 Bed / 2 Bath 2,000 $3,600 $1.80 $3,600 $1.80

MARKET COMPARABLES Sales Comparables

PROPERTY NAME PROPERTY ADDRESS SALE DATE NUMBER OF UNITS CAP RATE

1101 Emerson Street 1101 N Emerson St. 4 4.86%

1. 664 North Washington 664 N Washington St. Feb-18 5 N/A

2. 1445 North High 1445 High St. Aug-16 4 N/A

3. 1225 Clayton 1225 Clayton St. Mar-18 3 4.58%

4. 1571 High 1571 High St. Mar-18 4 5.04%

5. 1530 Gaylord 1530 Gaylord St. Jan-18 4 5.89%

6. The O’Keefe Mansion 1601 York St. Dec-16 5 6.22%

7. Sunnsyide Apartments I 2405-2411 Tremont Pl. May-18 4 5.30%

8. 22 Jackson Street Apartments 22 Jackson St. Feb-16 4 6.00%

32 1101Emerson 7

6 4 5 2

8 1101 EMERSON STREET 1 664 NORTH WASHINGTON 2 1445 NORTH HIGH

1101 N EMERSON ST., DENVER, CO 80218 664 N WASHINGTON ST., DENVER, CO 80203 1445 N HIGH ST., DENVER, CO 80218

Sale Price $1,400,000 Sale Price $1,563,395 Sale Price $1,400,000

Price Per Unit $350,000 Price Per Unit $312,679 Price Per Unit $350,000

Total SF 4,967 Gross SF 5,432 Gross SF 6,802

Price Per SF $281.86 Price Per SF $287.81 Price Per SF $205.82

Year Built 1894 Year Built 1904 Year Built 1896

UNIT MIX UNIT MIX UNIT MIX

3 1 Bed / 1 Bath 1 1 Bed / 1 Bath 1 Studio

1 5 Bed / 2 Bath 3 2 Bed / 1 Bath 1 1 Bed / 1 Bath

1 2 Bed / 2 Bath 3 2 Bed / 1 Bath

34 1101Emerson 3 1225 CLAYTON 4 1571 HIGH 5 1530 GAYLORD

1225 CLAYTON ST., DENVER, CO 80206 1571 N HIGH ST., DENVER, CO 80218 1530 GAYLORD ST., DENVER, CO 80206

Sale Price $932,500 Sale Price $1,705,000 Sale Price $1,117,500

Price Per Unit $310,833 Price Per Unit $426,250 Price Per Unit $279,375

Gross SF 2,661 Gross SF 4,847 Gross SF 3,306

Price Per SF $350.43 Price Per SF $351.76 Price Per SF $338.02

Year Built 1906 Year Built 1890 Year Built 1902

UNIT MIX UNIT MIX UNIT MIX

1 1 Bed / 1 Bath 1 1 Bed / 1 Bath 2 1 Bed / 1 Bath

2 2 Bed / 1 Bath 2 2 Bed / 2 Bath 2 2 Bed / 1 Bath

1 3 Bed / 2 Bath

MarketComparables 35 6 THE O’KEEFE MANSION 7 SUNNYSIDE APARTMENTS I 8 22 JACKSON STREET APARTMENTS

1601 YORK ST., DENVER, CO 80206 2405-2411 TREMONT PL., DENVER, CO 80205 22 JACKSON ST., DENVER, CO 80206

Sale Price $1,600,000 Sale Price $1,241,250 Sale Price $1,250,000

Price Per Unit $320,000 Price Per Unit $310,313 Price Per Unit $312,500

Gross SF 4,400 Gross SF 3,200 Gross SF 3,685

Price Per SF $363.64 Price Per SF $387.89 Price Per SF $339.21

Year Built 1906 Year Built 1909 Year Built 1953

UNIT MIX UNIT MIX UNIT MIX

1 Studio 4 2 Bed / 1 Bath 4 2 Bed / 1 Bath

1 1 Bed / 1 Bath

2 2 Bed / 1 Bath

1 4 Bed / 2 Bath

36 1101Emerson MarketComparables 37 Rent Comparables

PROPERTY NAME PROPERTY ADDRESS YEAR BUILT NUMBER OF UNITS

1101 Emerson Street 1101 N Emerson St. 1894 4

1. 1109 Emerson 1109 Emerson St. 1894 5

2. Capitol Hill Victorian 1218 Washington St. 1896 8

3. 1129 Pearl 1129 Pearl St. 1891 5

4. Cheesman Triplex 1331 Marion St. 1905 3

38 1101Emerson 4

3 1 1101 EMERSON STREET 1101 N Emerson St., Denver, CO 80218

UNIT TYPE SF RENT RENT/SF 4 UTILITIES: Owner Pays All 1 Bed/1 Bath 800 $1,383 $1.73 units PARKING: Included in Rent 5 Bed/2 Bath 2,000 $3,600 $1.80 1894 year built

1 1109 EMERSON 1109 Emerson St., Denver, CO 80218

UNIT TYPE SF RENT RENT/SF $100 Bill Back fro Water, 5 UTILITIES: Trash, Sewer, & Electric 2 Bed/1 Bath 850 $1,475 $1.74 units PARKING: Off-Street Available 1894 year built

2 CAPITOL HILL VICTORIAN 1218 Washington St., Denver, CO 80203

UNIT TYPE SF RENT RENT/SF 8 UTILITIES: N/A Studio 350 $1,100 $3.14 units PARKING: 5 Surface Spots Available 1 Bed/1 Bath 625 $1,343 $2.15

2 Bed/1 Bath 850 $1,400 $1.65 1896 year built 3 Bed/2 Bath 1,210 $2,450 $2.02

40 1101Emerson 3 1129 PEARL 1129 Pearl St., Denver, CO 80203

UNIT TYPE SF RENT RENT/SF 5 UTILITIES: Included in Rent Studio 425 $1,200 $2.82 units 1 Off-Street Space Per PARKING: Unit 1 Bed/1 Bath 650 $1,431 $2.20 1891 year built

4 CHEESMAN TRIPLEX 1331 Marion St., Denver, CO 80218

UNIT TYPE SF RENT RENT/SF Water, Electric, & Internet 3 UTILITIES: Included in Rent 1 Bed/1 Bath 575 $1,348 $2.34 units PARKING: 3 Surface Spots Available 1 Bed/1 Bath 850 $1,625 $1.91 1905 year built

MarketComparables 41 42 1101Emerson CONFIDENTIALITY AGREEMENT

The information contained in the preceding offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigation.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Presented By:

Boomer Beatty Sr. Associate (303) 328-2041 [email protected] License CO 1000516925

Peter Standley Sr. Associate (303) 328-2053 [email protected] License CO 100056456

Matthew Beverly Associate (303) 328-2060 [email protected] License FA 100081440

Payton Calhoun Marketing Coordinator (303) 328-2063 [email protected]

For more information, please visit WWW.BEATTYSTANDLEY.COM