HIGH PROFILE DOWNTOWN HEALTH CLUB PROPERTY AT OPPORTUNISTIC PRICE

OFFERING MEMORANDUM Interested Party understands and agrees, upon receipt of any and all This Offering Memorandum was prepared by Colliers International documents and other information from Property Owner (“Materials”), that (“Broker”) solely for the use of prospective purchasers of the real property Property Owner does not warrant the accuracy of such materials, express or commonly known as 1849 Curtis Street (the “Property”). Neither the implied, but intends only to supply the Interested Party with materials which Broker nor the owner of the Property (“Owner”) makes any representation are in Property Owner’s possession, to be reviewed and evaluated at or warranty, express or implied, as to the completeness or the accuracy of Interested Party’s discretion, including but not limited to any maps, diagrams the material contained in the Offering Memorandum. Prospective or schematics of the Property, including, without limitation: (i) the quality, purchasers of the Property are advised that: (i) changes may have occurred nature, adequacy and physical condition and aspects of the Property, in the physical or financial condition of the Property since the time this including but not limited to, elevations, structural elements, foundation, Offering Memorandum or the financial statements therein were prepared; roof, appurtenances, access, landscaping, parking facilities and the electrical, and (ii) the projections contained herein were made by Broker and not by mechanical, HVAC, plumbing, sewage and utility systems, facilities and Owner and are based upon assumptions of events beyond the control of appliances, if any; (ii) the quality, nature, adequacy and physical condition of Broker and Owner, and therefore may be subject to variation. Other than the soils, geology and any groundwater; (iii) the existence, quality, nature, historical revenue and operating expense figures of the Property, Owner adequacy and physical condition of utilities serving the Property, if any; (iv) has not, and will not, provide Broker or any prospective purchaser with the development potential of the Property and the Property’s use, any income and expense figures, budgets or projections regarding the Confidentiality Agreement Confidentiality merchantability, or fitness or the suitability, value or adequacy ofthe Property. Prospective purchasers of the Property are advised and Property for any particular purpose; (v) the zoning or other legal status of encouraged to conduct their own comprehensive review and analysis of the Property or any other public or private restrictions on use of the Property; the Property. (vi) the compliance of the Property or its operation with any applicable codes, laws, regulations, statutes, ordinances, covenants, conditions and The Offering Memorandum is a solicitation of interest only and is not an restrictions of any governmental or quasi-governmental entity or of any offer to sell the Property. The Owner and Broker expressly reserve the other person or entity; (vii) the presence of hazardous materials on, under right, at their sole discretion, to reject any or all expressions of interest or or about the Property or the adjoining or neighboring property; (viii) the offers to purchase the Property and expressly reserve the right at their quality of any labor and materials used in any improvements on the sole discretion, to terminate discussions with any entity at any time or Property, if any; and (ix) the condition of title to the Property. without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to Property Owner shall not be liable for Interested Party’s reliance on the purchase the Property unless and until such offer of the Property is accuracy of the information contained in any such documents. Interested approved by Owner pursuant to its Finance Committee authorities and Party shall rely on Interested Party’s own due diligence on the Property the signature of an authorized representative of Owner is affixed to a prior to close of escrow. Property Owner is providing these documents for Purchase Agreement prepared by Owner. This Offering Memorandum is reference purposes only. It is Interested Party’s sole responsibility to verify confidential. By accepting the Offering Memorandum, you agree that: (i) the veracity of the documents provided and to confirm the condition of you will hold and treat the Offering Memorandum and its contents in the the Property and any improvements thereon. Interested Party expressly strictest confidence; (ii) you will not photocopy or duplicate any part of the waives any and all claims against Property Owner for any cause of action Offering Memorandum; (iii) you will not disclose the Offering Memorandum arising from Interested Party’s reliance on the documents and information or any of its contents to any other entity without the prior written provided by Property Owner. authorization of the Owner; and (iv) you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of All information contained in the documents provided is confidential, and Owner or Broker. shall not be disclosed by Interested Party without the prior written consent of Property Owner. Notwithstanding the foregoing, Interested Party may *Please call listing team to register clients and discuss coop broker fees. disclose information contained in the documents to Interested Party’s attorneys, lenders, accountants or other advisors and consultants (“Authorized Third Parties”), provided such Authorized Third Parties are similarly advised of the documents’ confidential nature. Curti Confidentiality02 Agreement

Contents Executive04 Summary

Thevin Campton, CCIM Capital Markets [email protected] +1 720 731 8350 Jeremy Reeves 07 Vice President Property Summary [email protected] +1 303 283 1375

ford malmquist, mba Research Analyst [email protected] +1 303 283 4561

Colliers 4643 South Ulster Street | Suite 1000 | Denver, CO 80237 Market19 Overview +1 303 745 5800 | fax +1 303 745 5888 www.colliers.com/denver

3 Curtis Executive Summary Colliers, as owner’s exclusive advisor, is pleased to present an exclusive opportunity to acquire a one-of-a-kind, irreplaceable 30,790-rentable-square-foot commercial condo located in the heart of downtown Denver, Colorado. The Property, commonly offering summary referred to as ‘The Bridge,’ represents a premier location for any future gym, health- Sale Price $3,997,000 wellness or fitness operator at a price that is significantly below the market average Price/SF $129.81 price per square foot and replacement cost. Nestled between two downtown towers, Condo Size 30,790 SF and , the facility is strategically located within a five- Building Type Commercial Condo minute walk of more than 95,000 residents, daytime employees, hospitality guests, and tourists, offering a robust population for any operator’s membership program. Space Use Gym/Fitness Club The Bridge, which formerly served as the training facility of the Denver Nuggets, Annual HOA Dues (2020) $63,290 ($5,274/Mo) offers existing infrastructure to accommodate a full-service health and wellness Property Taxes (2021) $109,002 operation. Zoning D-C # of Floors 3 + Mechanical Room The property shares walls with both the 909,685-square-foot Denver Place office Parking Street side/Garage tower, as well as the 5-Star, 202 luxury room Ritz Carlton Hotel where visiting professional sports teams often stay. With Denver ranked as a city best positioned to recover from COVID-19, a top-ranked relocation city for millennials, and one of the fittest cities in America, any investor/operator will stand to benefit from the long- term growth potential that the health-conscious atmosphere of the mile-high city has to offer. The space is currently vacant, but has an ongoing lease with TruFit Athletic Club who has leased the space since 2014. The Seller has agreed to relieve TruFit of their lease upon sale. The building will be delivered to a new owner free and clear of all existing lease obligations.

view the space fully operational

4 Property Summary property Summary

is a 30,790-square-foot, commercial1849 Curtiscondominium located in downtown Connected to the Ritz-Carlton More than 43,000 residents and Denver’s central business district (CBD). The Hotel, one of only two five-star 125,000 employees within a condominium, also known as ‘The Bridge,’ is located hotels in downtown Denver, 1-mile radius of the Property above Curtis Street (11,500+ AADT), connecting with 202 rooms Denver Place with the Ritz-Carlton Hotel and Granite Tower city block, and situated between more than 1.5 million square feet of Class A office space. This property comprises a common area walking bridge, allowing tenants, residents, and hotel guests to travel between the Ritz-Carlton Hotel and Denver Building and monument Attached to more than 1.5 Place without crossing street traffic or experiencing signage visible to pedestrians million square feet of Class A harsher elements during winter months. The and over 11,500+ vehicles office space and nearly 200 property, which spans three floors, was formerly per day apartment and 150 luxury operated as a fitness center. The facility includes condo units two full-sized locker and steam rooms, a multitude of private showers and saunas, an indoor pool and hot tub, an expansive workout and gymnasium area with 13-foot windows with views of the Denver skyline, and three large fitness studios. Located within downtown Six-minute walk to the 16th Denver’s D-C (Downtown Core) Street Mall and less than one Zoning District, allowing a mile to Denver’s Union Station, multitude of potential uses Coors Field, Colorado (subject to the Condominium Convention Center, RiNo Arts Association’s CC&R’s) District and more

7 location information

Building Name The Bridge

Street Address 1849 Curtis St

City, State, Zip Denver, CO 80202

Cross-Streets 18th and Curtis St

Signaled Intersection Yes

Traffic Count (AADT) 11,487+ Denver Place, Ritz-Carlton Denver, & Connected Buildings Residence XXV

building information Condominium Association Block 95 Condominiums / Denver Place Unit # Unit 4A Tenant Single Year Built 1989 Year Renovated 2013 Gross Leasable Area 30,790 SF Condition Second generation health club Free Standing No Legal Description Block 95 Unit 4 Sub Condos U-4A Schedule Number 02345-10-065-065 Mill Levy (2021) 74.195 Assessed Value (2021) $1,462,360 Assessed Value (2020) $1,405,750 Assessment Increase 4.03%

8 floor plans plaza level 1 [existing] • assembly [type a-3] occupancy • 9,356 sf

SHADED AREA GROUP X NOT IN PROJECT SAUNA

PILATES SHADED AREA MEN’S SPINNING NOT IN PROJECT LOCKER ROOM

SALES STORAGE PT OFFICE TANNING SALES PEDESTRIAN SKY BRIDGE OVER CURTIS STREET NOT IN PROJECT

STAIRS ENTRY

9 street level g [existing] • assembly [type a-3] occupancy • 8,960 sf

DRIVE TO RITZ CARLTON HOTEL ENTRANCE

SHADED AREA NOT IN PROJECT

HALL

ELECTRICAL

WOMEN’S STORAGE LOCKER ROOM DRIVE LANE FOR LOADING AREA [UNDER PLAZA] SAUNA HALL curtis street curtis JANITORS CLOSET EXTERIOR STAIRS TO PLAZA LEVEL MEN’S ABOVE ROOM EXIT RAMP FROM HALL PARKING GARAGE BELOW POOL SHADED AREA NOT IN PROJECT

POOL POOL STORAGE SPA PUMP MECHANICAL

10 gym level 2 [existing] • assembly [type a-3] occupancy • 12,474 sf

EXTERIOR STAIRS DOWN TO PLAZA CONNECTION TO RITZ CARLTON HOTEL

CARDIO

FREE SHADED AREA WEIGHTS NOT IN PROJECT

CIRCUT TRAINING

FUNCTIONAL TRAINING

11 12 13 14 Market Overview location summary

1849 Curtis Street resides in a centrally located, downtown location and benefits from close proximity to over 11 million square feet of office, 3,500 residential housing units, and 9,460 hotel rooms. With downtown employees, residents, and visitors expected to be the primary member base for the fitness facility, it is estimated that over 95,000 potential users reside or work within a 5-minute walk of the property.

The location and user base further stand to benefit from a mass return to the office already underway and accelerating throughout the rest of the year, with September being the target date for a full office return for many large downtown tenants. Multiple proposed developments in the surrounding area highlight the location’s desirability and serve as catalysts for facility membership growth. The adjacent former Greyhound Bus Station, which sold in December 2020 for $38 million and spans a full city block, has proposed two towers that would account for 479 residential units and 732,000 square feet of new office product, adding to the currently existing 1,529 residential units in the immediate area.

1849 Curtis Street’s location and surrounding user base cannot be replicated given Downtown’s density and buildout. With 95,000 potential members nearby and downtown users expected to accelerate throughout 2020 and beyond, 1849 Curtis Street represents a flagship fitness location with high visibility and a deep surrounding user base.

Adjacent Development to Add Significant Activity to Immediate Area

The 2.45- acre Greyhound bus station site adjacent to the northeast of 1849 Curtis sold in December for $38 million ($15.5m/acre). Plans have been submitted for two 400-foot towers – one office and one residential. The 38-story, 515,805 SF residential tower would have 479 units. The proposed office tower would be 28 stories, totaling 732,000 SF.

There are four proposed residential towers nearby, totaling 1,529 units and one Adjacent future office and residential towers under construction adding 282 units.

17 THE BRIDGE - 1849 CURTIS STREET ESTIMATED PROPERTY NAME/ADDRESS EMPLOYEES 1801 California 7,517 1801 California St. Denver Place 5,198 surrounding 999 18th St. Johns Manville Plaza 4,033 717 17th St. 1900 Lawrence 4,023 office employees 1901 Arapahoe St. 4,000 1055 19th St.

Seventeenth Street Plaza 3,974 65,000 daytime employees 1225 17th St.

within a 5-minute walk 3,746 1001 17th St.

Tabor Center 3,687 n. broadway 1200 17th St. City Center 3,681 707 17th St. Granite Tower 3,469 1099 18th St. Independence Plaza 3,242 1050 17th St. miles .25 OVER 30 OFFICE BUILDINGS WITHIN A 5-MIN WALK

This calculation assumes one employee per 175 rentable square feet. Recent 2021 data shows that the average square foot per employee is climbing speer blvd. around 200 square feet per employee.

curtis st.

18 THE BRIDGE - 1849 CURTIS STREET

PROPERTY NAME UNITS surrounding high density 1055 19th Street 750 1 The Quincy 359 2 The Fitzgerald 324 housing 3 Sunset Park Apartments 242 4 2020 Lawrence 231 Over 3,500 residential units 5 Tamai Tower at Sakura Square 199 within walking distance 6 Halcyon House 197 7

n. broadway The Apartments at Denver Place 193 8 2099 Lawrence Street 180 9 The Boston Lofts 158 10 Skyline 1801 Apartments 144 11 Bank & Boston Lofts Apartments 125 12 Solera 120 9 13 18 Renaissance Downtown Lofts 101 15 5 14 3 20 6 13 Sunset Towers Apartments 100 19 15 4 7 Chamber Lofts 39 speer blvd. 16 14 Buerger Brothers 31 11 8 1 17 1123 21st Street 16 18 Curtis Street Lofts 12 2 19 1015 21st Street 6 17 20 16 Total 3,527 10 12 curtis st.

19 THE BRIDGE - 1849 CURTIS STREET

PROPERTY NAME UNITS

Tribute Portfolio 297 1 Marriott 546 2 Hotel Teatro 110 surrounding 3 Four Seasons Denver 239 4 Hampton by Hilton 120 5 Homewood Suites by Hilton 182

Hyatt Regency 1,100 hospitality 6 AC Hotels by Marriott Denver Downtown 223 7 Canopy by Hilton 230 8 Average Daily Occupancy Home2 Suites by Hilton 206

n. broadway in Downtown Hotels Tru by Hilton 176 Block 162 Hotel 450 9 Continues to Increase 15 Courtyard Denver Downtown 177 10 Thompson Hotels 220 11 Autograph Collection 241 average daily occupancy 12 Renaissance Denver Downtown City Center Hotel 230 29 13 The Oxford Hotel 80 2020 2021 31 14 The Rally Hotel 182 January 15 63% 26% 14 Blake Street Hotel 177 February 16 70% 34% Le Meridien Denver Downtown 272 curtis st. 17 March 28 Hilton Denver City Center 613 28% 40% 16 18 Kimpton Hotel Monaco Denver 189 April 19 Residence Inn Denver City Center 229 9% 44% 20 May 11 23 Hyatt Centric 264 17% 54% 24 21 DoubleTree by Hilton Hotel The Curtis 336 22 Ritz-Carlton Denver 202 20 23 Westin Denver Downtown 430 13 19 24 Hampton by Hilton 151 21 25 18 Embassy Suites by Hilton 403 10 1 26 Holiday Inn Express Denver Downtown 231 4 30 27 3 NATIV Hotel 19 32 25 28 22 The Maven 172 29 8 Grand Hyatt Denver 516 30 7 The Crawford Hotel 112 2 26 27 31 9 12 MOXY 225 17 6 32 5 [ 9,460 HOTEL ROOMS IN THE IMMEDIATE AREA ] 20 transit overview

21 AMENITIES over 400 restaurants located in downtown denver

colfax ave.

UNION STATION

DENVER MILK MARKET

n. broadway 20th st.

22 are people returning to downtown denver?

Daily Downtown Users (Visitors, Employees, Residents) 1/1/20 through 5/30/21

TOTAL Visitors Employees Residents

300,000 Downtown Denver Users are increasing significantly as economic activity begins to ramp up. The past two weeks saw the highest weekly user total since the onset of the pandemic, 250,000 with May 15th being the first day with over 200,000 total downtown users since the pandemic began. This increase is 200,000 being driven by visitors, but employees are returning to downtown offices as well. Opening Day on April 1st represented 150,000 a significant jump in visitors downtown with the trend continuing upward since.

100,000 Unemployment in the Denver Metro Area was 6.7% in March. When compared to the top 30 largest metros by labor force, 50,000 Denver ranks 20th, but this is expected to improve quickly. In January 2020, Denver’s unemployment rate was one of the - 1/1/20202/1/20203/1/20204/1/20205/1/20206/1/20207/1/20208/1/20209/1/202010/1/2020 11/1 /202012/1/2020 1/1/20212/1/20213/1/20214/1/2021 5/1/2021 lowest among large metros at 2.7%. Looking at the top 30

Source: Placer.ai/DDP Geography: Downtown Denver *Visits = at least 7 minutes, only 1 visit per day per individual is counted metros by labor force, Denver has second fastest growing labor force from March 2020 to March 2021 and is one of only a handful of metro areas with a growing labor force. Taken Population Growth and Migration are difficult to measure in real- together, these trends should create significant tailwinds time, but leading indicators of population growth suggest that moving forward. Denver’s population continues to expand. Denver’s labor force grew year-over-year by the second-highest percentage of all large metros Forecasted vs. Actual Monthly Downtown Activity in March. Furthermore, LinkedIn data shows Denver continues to be Forecast Actual in the top cities for employment gain and Penske’s annual report 300000 shows Denver as the 3rd most moved to city in 2020. 250000 Occupied Apartments in the CBD continue to increase, reflecting sustained demand for urban living in Denver. So far in 2021, total 200000 occupied apartments are up 377 units in Downtown Denver and 1,099 units in the Center City area. 150000

100000

Average Daily People Downtown (2021) 50000

0 r r r r t r r r y e r e t t t y e y e y ober ober ober mber january...... April...... ober mber mber mber

85,000 123,000 Average Daily Downtown Users (employees + visitors residents) 2022-Jul 2021-May 2019-Jul 2022-May 2019-May 2021-Jul 2020-May 2022-Jun 2020-Jul 2019-Jun 2021-Jun 2021-April 2019-April 2022-April 2020-Jun 2020-April 2022-March 2021-March

February...... may...... 2019-March 2020-March 2019-Augus 2021-Augus 2022-Augus 2019-January 2021-January 2020-Augus 2022-January 2019-Oct 2022-Oct 2021-Oct 2020-January 2021-February 2022-February 2020-Oct 2019-February 94,000 145,000 2020-February 2022-Novembe 2021-Novembe 2019-Decembe 2022-Decembe 2021-Decembe 2019-Novembe 2022-Sep te 2021-Sep te 2020-Novembe 2020-Decembe 2019-Sep te March...... 2020-Sep te 102,000 23

- | 2021 rankings

Coloradohighest educational attainment 2nd best economy 4t h best performing state economy during covid 5th america’s favorite state 2nd highest number of vc deals 6th lowest obesity rate among all states 1s t

Denvercity where millennials are moving 1s t best place to live 2nd best job market 3rd fastest growing large city 5th highest rate of entrepreneurship 2nd fittest city in america 8th Sources (from top to bottom): WalletHub, USA Today, 24-7 Wall Street, YouGov, Access Ventures, 24 SmartAsset, USA Today, Wall Street Journal, WalletHub, Inc. Surge Cities 2020 colorado tenant migration [post covid-19] Downtown denver tenants NEW EMPLOYEES +543 +150 +500 +125 +433 +100 +300 +100 hQ expansion +286 +75 2nd hq +200 +40 The Denver Metro has benefited from over 30 major relocation +200 TBD and expansion announcements since the beginning 2020, bringing more than 8,000 new +150 jobs to the region.

25 miles demographics 5

miles 3

mile 1 D

26 demographics

From property 1 Mile 3 Miles 5 Miles denver Colorado Population 2010 Population 26,240 183,408 399,436 600,263 5,029,196 2020 Population 43,038 237,279 486,524 741,500 5,857,922 Est. 2025 Population 50,707 267,829 534,758 810,001 6,283,296 2020-2025 Est. Population Growth 17.8% 12.9% 9.9% 9.2% 7.3% Median Age 34.2 35.0 35.7 35.4 37.6 Households D2010 Households 16,185 92,702 181,658 263,344 1,972,868 2020 Households 27,311 121,574 223,718 324,847 2,285,136 Est. 2025 Households 32,324 137,417 246,518 354,851 2,448,665 2020-2025 Est. Household Growth 18.4% 13.0% 10.2% 9.2% 7.2% 2020 Median Home Value $579,259 $499,449 $483,712 $459,422 $384,388 Income 2020 Per Capita Income $74,009 $52,219 $47,136 $45,121 $38,826 2020 Average Household Income $117,224 $101,642 $102,395 $102,833 $99,278 Business Total Businesses 6,911 17,084 29,002 34,799 228,666 Total Employees 126,271 258,652 391,343 473,789 2,633,851 Employees per 100 Residents 293.4 109.0 80.4 63.9 45.0 Educational Attainment Less than 9th Grade 1% 4% 6% 6% 3% High School Graduate 6% 9% 12% 13% 17% Some College, No Degree 15% 14% 15% 16% 21% Associate Degree 4% 5% 5% 5% 8% Bachelor's Degree 42% 37% 32% 30% 26% Graduate/Professional Degree 25% 23% 21% 20% 16% Source: ESRI

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Colliers Denver 4643 South Ulster Street | Suite 1000 | Denver, CO 80237 +1 303 745 5800 fax +1 303 745 5888 www.colliers.com/denver

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