OFFERING MEMORANDUM
1553 STEELE ST. DENVER, CO 80206
- AUSTIN SMITH
- JASON KOCH
- Investment Advisor
- Co-Founder/Principal
[email protected] 303.868.9096
[email protected] 303.918.8909
CONFIDENTIALITY DISCLAIMER
This confidential Offering Memorandum, has been prepared by Nexus Commercial Realty for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Nexus Commercial Realty recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided Nexus Commercial Realty or its brokers.
Nexus Commercial Realty makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Nexus Commercial Realty has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Nexus Commercial Realty and the Owner of the Property. Nexus Commercial Realty make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Nexus Commercial Realty and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further Nexus Commercial Realty and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Nexus Commercial Realty shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.
This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization Nexus Commercial Realty. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Nexus Commercial Realty at your earliest convenience.
TABLE OF CONTENTS
PROPERTY OVERVIEW FINANCIALS LOCATION OVERVIEW
01
PROPERTY OVERVIEW
PROPERTY HIGHLIGHTS
Newly renovated turnkey asset in Capitol Hill. Located less than two blocks from City Park. Great unit mix with studios, 1 bed and 3 bed units. Value Add opportunity to renovate basement. Washer and dryer in every unit. 4 income producing garages in alley.
PROPERTY OVERVIEW
Units:
7
Building SF: Parking:
6,712
Street Parking 7,501
Land: Zoning:
U-TU-B 1905
Year Built: Year Renovated:
2018
PROPERTY OVERVIEW
SYSTEMS
Gas / Elec Meters: Water:
Master / Individual Master
Trash:
Waste Management Pitched
Roof: Heating:
Boiler
Cooling:
None
1553 STEELE ST
AREA STREET MAP
LOCATION MAP
- OWN
- WNT
- DO
DENVER
CITY PARK
1553 STEELE ST
AREA MAP
1553 STEELE ST
LOCAL FAVORITES
- OWN
- WNT
- DO
DENVER
FILLMORE AUDITORIUM
WATERCOURSE
FOODS
OGDEN THEATER
DENVER ZOO
VOODOO DOUGHNUT
MILE HIGH
ILLEGAL PETE’S COLFAX
TATTERED COVER BOOK
STORE COLFAX
TACOS TEQUILA
WHISKEY
CHEESMAN
PARK
1553 STEELE ST
- ARK
- CITY P
THE UBER SAUSAGE
BLUEBIRD THEATER
DENVER BISCUIT CO.
DENVER
BOTANIC GARDENS
SPROUTS FARMERS MARKET
NATIONAL
JEWISH HEALTH
CEREBRAL BREWING
TAG BURGER BAR
PHOTOS
1553 STEELE ST
PHOTOS
1553 STEELE ST
FLOOR PLANS
5701 W25thStreet Denver,Colorado
Warehouse 51'5x19'10
Warehouse Manager 8'6x9'0
Lunch
10'9x7'10
Reception/Waiting/OpenOffice
26'1 x19'1
N
1/2Bath
Office
10'9x11'6
Floor Plans byOverheadViews, (303)886-9578, [email protected]
02
FINANCIALS
Investment Summary
Purchase Price:
$2,080,000
Units:
7
Price Per Unit: Total SF:
$297,143
6,712
Price Per SF: T12 Cap Rate: Year 1 Cap Rate: Year 1 Cash Flows: 5 Year IRR:
$310 5.01% 5.67%
INVESTMENT SUMMARY & DEBT SUMMARY
$49,377 26.67%
Debt Summary
Loan to Value:
75.00%
Loan Amount:
$1,560,000
60 Months
4.40%
Loan Term: Interest Rate: Interest Only Period: Amortization:
12 Months 30 Years
UNIT MIX &
CURRENT RENTS
- Unit Type
- Unit Amount
- Unit SF Current Ave. Rent
- Current Rent / SF
- Market Rent
- Market Rent / SF
- Studio
- 2
23
7
400 600
983
- $1,135
- $2.84
$2.12
$1,175
$1,295
$2,300
$1,691
$2.94
- $2.16
- 1 Bed / 1 Bath
3 Bed / 2 Bath
Total / Average
$1,273 $2,231
$1,644
$2.39
$2.44
$2.47
$2.49
686
- Year 1
- Year 2
- Year 3
- Year 4
- Year 5
RR Annualized
REVENUE
Gross Potential Revenue Vacancy
$131,700 ($6,585)
$125,115 $7,680
$143,400
($7,101)
$147,702 ($7,385) $140,317
$7,910
$152,133 ($7,607) $144,526
$8,148
$156,697 ($7,835) $148,862
$8,392
$161,398 ($8,070) $153,328 $8,644
Rental Revenue
$136,230
- $7,680
- Expense Reimbursements
Other Residential Income Effective Gross Revneue
- $1,800
- $4,500
$148,410
- $4,635
- $4,774
- $4,917
- $5,065
- $134,595
- $152,862
- $157,448
- $162,172
- $167,037
EXPENSES
Repairs and Maintenance Utilities
($5,950) ($6,300) ($3,360)
($6,181)
($5,950) ($6,300) ($3,360)
($6,181)
($6,129) ($6,489) ($3,461) ($6,366) ($8,139)
($721)
($6,312) ($6,684) ($3,565) ($6,557) ($8,383)
($743)
($6,502) ($6,884) ($3,672) ($6,754) ($8,635)
($765)
($6,697) ($7,091) ($3,782) ($6,957) ($8,894)
($788)
Insurance
CASH FLOW PROJECTIONS
Real Estate Taxes Property Management Admin and Other
($7,902)
($700)
($7,902)
($700)
- Total Expenses
- ($30,393)
($4,342)
($30,393)
($4,342)
($31,305) ($4,472)
($32,244) ($4,606)
($33,211) ($4,744)
($34,208)
- ($4,887)
- Expenses Per Unit
Net Operating Income
- $104,202
- $118,018
- $121,558
- $125,204
- $128,960
- $132,829
Cap Rate
- 5.01%
- 5.67%
- 5.84%
- 6.02%
- 6.20%
- 6.39%
Debt Service - Yr 1 Total Cash Flow
($68,640)
$35,562
6.84%
($68,640)
$49,377 9.50%
($93,742)
$27,816
5.35%
($93,742)
$31,462
6.05%
($93,742)
$35,218
6.77%
($93,742)
$39,087
7.52%
Cash on Cash Return
RR Annualized
REVENUE
Gross Potential Revenue Vacancy
$131,700 ($6,585) $125,115 $7,680
Rental Revenue Expense ReimbursementS Other Residential Income Effective Gross Revneue
$1,800 $134,595
EXPENSES
Repairs and Maintenance Utilities
($5,950) ($6,300) ($3,360) ($6,181)
HISTORICAL ANALYSIS
Insurance Real Estate Taxes Property Management Admin and Other
($7,902) ($700)
- Total Expenses
- ($30,393)
- ($4,342)
- Expenses Per Unit
- Net Operating Income
- $104,202
SOLD COMPARABLES
Price Per
Unit
Price Per
Foot
- Property
- Address
- Units
- SF
- Price $
- Cap Rate
- (subject)
- 1553 Steele St
1432 Pennsylvania St
1571 High St
7
8466
6,712
8,664 4,847 2,787 3,085
$2,080,000
$2,375,000 $1,705,000 $1,295,000
$297,143
$296,875 $426,250 $215,833
5.67%
5.40% 5.04% 5.67%
$310
$274 $352 $465
12
- 3
- 1200 N Clarkson St
- 1401 Detroit St
- 4
- $1,235,000
- $205,833
- $400
- N/A
- Averages
- $1,652,500
- $286,198
- $373
- 5.37%
2
S
E COLFAX AVE.
1
4
3
03
LOCATION OVERVIEW