OFFERING MEMORANDUM CLAYTON ST APARTMENTS 1411 CLAYTON ST , CO 80206

BENTON ADAMS GUNNAR WILSON BRANDON KAUFMAN Investment Sales Advisor Investment Sales Advisor Senior Advisor

[email protected] [email protected] [email protected] 303.328.5208 970.306.3787 303.547.7357 TABLE OF CONTENTS

EXECUTIVE SUMMARY PROPERTY OVERVIEW FINANCIAL OVERVIEW LOCATION OVERVIEW EXECUTIVE SUMMARY PROPERTY HIGHLIGHTS

Beautiful converted Victorian mansion with large common courtyard.

Each of the 4 units have been updated.

Incredible Congress Park location minutes from Cheesman & Congress Park.

Ability to increase NOI significantly through rental increases and capturing additional parking income.

Great unit mix of (1) 2 bedroom/1 bath, (1) oversized 1 bedroom/1 bathroom and (2) normal sized 1 bedroom/1 bath.

Steps away from the Colfax retail corridor. PROPERTY OVERVIEW AREA STREET MAP

COLFAX AVE 1411 CLAYTON ST

CLAYTON ST

14TH AVE LOCATION MAP

BERKELEY 70 LAKE

SLOAN LAKE CITY PARK PARK

DOWNTOWN DENVER E COLFAX AVE

1411 CLAYTON ST

CHEESEMAN 25 PARK

W ALAMEDA AVE HOUSTON PARK WASHINGTON PARK AREA MAP

CHEESMAN 23RD AVE PARK

YORK ST

CONGRESS PARK

CITY PARK 1411 CLAYTON ST GOLF

COURSE COLFAX AVE COLFAX DENVER ZOO

COLORADO BLVD NEIGHBORHOOD MAP

DINING 1 Voodoo Doughnut - Colfax 2 Denver Biscuit Company 3 TAG Burger Bar 4 Chick-fil-A 5 Tacos Tequila Whiskey 6 The Goods Restaurant 22 21 7 Shells & Sauce 1 14 5 11 2 23 16 COLFAX AVE 18 6 17 15 4 8 Blue Pan Pizza 9 10 9 The Ethiopian Restaurant 10 Annies Café and Bar 11 Starbucks 12 Downpours Coffee 13 Sienna Wine Bar & Small Plates

14 Illegal Petes 3 12 8 20 7 12TH AVE RETAIL 13 19

COLORADO BLVD 15 Tattered Cover Book Store 16 Sprouts Farmers Market 17 Walgreens 18 Twist & Shout Records 24 19 Lamb Shoppe 20 Ace 21 GroundSwell Cannabis Boutique 22 Marion Street Tattoo

LIFESTYLE 23 Bluebird Theater 24 PHOTOS 1411 CLAYTON ST PHOTOS 1411 CLAYTON ST MATTERPORT TOUR 1411 CLAYTON ST

Click Here to View The 3D Matterport Tour PROPERTY DETAILS 1411 CLAYTON ST

UNIT MIX & CURRENT RENTS

Unit Type Unit Amount Unit SF Current Avg. Rent Current Rent/SF Market Rent Market Rent/SF

1 Bed / 1 Bath 2 625 $1,235 $1.98 $1,337 $2.14

1 Bed / 1 Bath 1 875 $1,595 $1.77 $1,625 $1.81

2 Bed / 1 Bath 1 900 $1,695 $1.88 $1,850 $2.24

Total/Average 4 756 $1,440 $1.91 $1,537 $2.08

BUILDING DETAILS SYSTEMS

Units: 4 Gas/Elec Meters: Master / Individual

Building SF: 2,976 Water: Master

Parking: (1) Garage Spot and (3) Reserved Spaces Trash: Waste Management

Land: 5,625 Roof: Pitched

Zoning: U-RH-3A Heating: Boiler

Year Built: 1897 Cooling: None FINANCIAL OVERVIEW INVESTMENT & DEBT SUMMARY

INVESTMENT SUMMARY DEBT SUMMARY

Purchase Price: $1,230,000 Loan to Value: 70.00% Units: 4 Loan Amount: $861,000 Price Per Unit: $307,500 Loan Term: 60 Total SF: 2,976 Interest Rate: 3.50% Price Per SF: $413 Amortization: 30

T12 Cap Rate: 4.30% Year 1 Cap Rate: 5.06% Year 1 Cash Flows: $15,896 5 Year IRR: 23.04% CASHFLOW PROJECTIONS

T12 Year 1 Year 2 Year 3 Year 4 Year 5

REVENUEREVENUE Gross Potential Revenue $67,120 $73,800 $76,014 $78,294 $80,643 $83,063 Vacancy ($2,074) ($2,214) ($2,280) ($2,349) ($2,419) ($2,492) Rental Revenue $67,046 $71,586 $73,734 $75,946 $78,224 $80,571 Expense Reimbursements $2,142 $3,120 $3,214 $3,310 $3,409 $3,512 Other Residential Income $600 $4,380 $4,511 $4,647 $4,786 $4,930

Effective Gross Revenue $69,788 $79,086 $81,459 $83,902 $86,419 $89,012

EXPENSESEXPENSES Repairs and Maintenance ($3,576) ($3,576) ($3,683) ($3,794) ($3,908) ($4,025) Utilities ($4,207) ($4,207) ($4,333) ($4,463) ($4,597) ($4,735) Insurance ($1,700) ($1,700) ($1,751) ($1,804) ($1,858) ($1,913) Real Estate Taxes ($2,673) ($2,673) ($2,753) ($2,836) ($2,921) ($3,008)

Property Management ($4,693) ($4,693) ($4,834) ($4,979) ($5,128) ($5,282)

Total Expenses ($16,849) ($16,849) ($17,355) ($17,875) ($18,412) ($18,964) Expenses Per Unit ($4,212) ($4,212) ($4,339) ($4,469) ($4,603) ($4,741)

NET OPERATING INCOME $52,939 $62,237 $64,104 $66,027 $68,008 $70,048

Cap Rate 4.30% 5.06% 5.21% 5.37% 5.53% 5.69%

Debt Service - Yr 1 ($46,341) ($46,341) ($46,341) ($46,341) ($46,341) ($46,341)

Total Cash Flow $6,598 $15,896 $17,763 $19,686 $21,667 $23,707 Cash on Cash Return 1.79% 4.31% 4.81% 5.33% 5.87% 6.42% SOLD COMPS

PROPERTY ADDRESS UNITS SF PRICE $ PRICE PER UNIT PRICE PER FOOT CAP RATE

(subject) 1411 Clayton St 4 2,976 $1,230,000 $307,500 $413 5.06%

1 1225 Clarkson St 4 3,326 $1,395,000 $348,750 $419 4.75%

2 1650 Emerson St 4 5,980 $1,950,000 $487,500 $326 N/A

3 534 N Logan St 4 3,896 $1,500,000 $375,000 $385 4.52%

4 2428 Tremont Pl 4 3,716 $1,560,000 $390,000 $420 4.25% Averages $1,601,250 $400,313 $388 4.51%

4

2

W COLFAX AVE S

1

SPEER BLVD

COLORADO BLVD

3 LOCATION OVERVIEW DEMOGRAPHICS

2020 SUMMARY .25 Mile .5 Mile .75 Mile

Population 3,397 12,102 20,586

Households 2,158 7,348 12,018

Families 427 1,661 3,029

Average Household Size 1.52 1.57 1.63

Owner Occupied Housing Units 567 2,126 3,782

Renter Occupied Housing Units 1,591 5,221 8,236

Median Age 37.2 38.7 38.2

Median Household Income $51,619 $60,033 $63,127

Average Household Income $76,802 $91,251 $97,424

.25 MILE 2025 SUMMARY .25 Mile .5 Mile .75 Mile

Population 3,632 13,074 22,268 .5 MILE Households 2,300 7,922 12,980

Families 461 1,804 3,277 .75 MILE Average Household Size 1.53 1.58 1.64

Owner Occupied Housing Units 605 2,318 4,096

Renter Occupied Housing Units 1,695 5,604 8,883

Median Age 38.2 39.1 38.5

Median Household Income $61,376 $72,311 $75,376

Average Household Income $92,100 $107,991 $114,095 CAPITOL HILL

Capitol Hill is Denver’s most densely populated neighborhood, located just half of a mile away from the Colorado State Capitol building with the famed “Mile High” marker on the 12,102 20,586 13th step, and two miles southeast of Downtown Denver’s Union Station. It is approximately

7,348 12,018 one square mile in size and is home to more than 37,660 residents. This historic neighborhood

1,661 3,029 is more than 150 years old and is ranked as one of the top 10 most beautiful neighborhoods in the . Capitol Hill was once home to some of Denver’s wealthiest residents and 1.57 1.63 is now an exuberant residential, governmental, and commercial center. The neighborhood 2,126 3,782 continues to be highly desirable due its location and amenities. 5,221 8,236 38.7 38.2 50+ Galleries Night Clubs $60,033 $63,127 Fine Art Studios Coffee Houses $91,251 $97,424 Museums Bistros Sepecialty Stores Convert Venues Restaurants 3,632 13,074 22,268 2,300 7,922 12,980 It is near Civic Center Park, which features live music and food trucks, Nearby museums 461 1,804 3,277 include the Kirkland Museum of Fine and Decorative Art and the Molly Brown House. Popular 1.53 1.58 1.64 music venues include The Fillmore Auditorium, , and the Bluebird Theater. East

605 2,318 4,096 Colfax Avenue is the heart of Capitol Hill and serves as the neighborhood’s main commercial

1,695 5,604 8,883 area.

38.2 39.1 38.5

$61,376 $72,311 $75,376

$92,100 $107,991 $114,095 CHEESMAN PARK Cheesman Park is bounded by Colfax to the north, Eighth Avenue to the South, York Street to the east Downing Street to the west, and right between Capitol Hill and Congress Park. Cheesman Park is a tranquil residential area that centers on its namesake green space, with expansive lawns, shady jogging trails, a dramatic neoclassical pavilion. With one of the best green spaces Denver has to offer, it is also within biking distance to City Park and Congress Park. Just east of the park, Denver Botanic Gardens features themed areas and an amphitheater for popular summer concerts.

Casual pizzerias, relaxed coffeehouses, and hip craft-cocktail bars dot the streets around the park, including: Marion St Tavern Pete’s Kitchen Voodoo Doughnut Lik’s Ice Cream Illegal Pete’s Tacos Tequilla Whiskey Bruz off Fax Brewery Copper Door Coffee Roasters

You can find a variety of housing options in Cheesman Park, though this highly sought-after neighborhood is mostly known for its mansions and luxury high-rise towers. The median price per square foot in Cheesman Park is $374, which is higher than the Denver average of $345. CONGRESS PARK

Congress Park is an old-school Denver neighborhood with a small town atmosphere. Its west end starts about 5 blocks from Cheesman Park. Congress Park is bordered by York Street on the west, East Colfax Avenue on the north, Colorado Boulevard on the east and East 6th Avenue on the south.

Just about one-square-mile in size, the neighborhood has a population of about 11,250. It features easy access to Cherry Creek and downtown, and is within walking distance of public amenities including playground and swimming pool.

The median home price in Congress Park is 522,500, versus the Denver median price of $470,000. Homes along Seventh Avenue Parkway, in particular, are beautifully maintained and much sought after. This primarily residential neighborhood features a scattering of retail areas with cozy shops and eateries. Many of these shops sit in decades-old buildings along former trolley lines through the old Capitol Heights.

Some of the main attractions are:

TAG Burger Bar Shells & Sauce Under the Umbrella Café & Bakery

Congress Park is considered one of Denver’s more bike-able neighborhoods, ranking 14th in the city. And its residents enjoy topspeed internet access, as it was one of CenturyLink’s original Gig City neighborhoods, where the telecom company offered 1-gigabit internet service. CITY OF DENVER NOTABLE RANKINGS #2 BEST PLACES TO LIVE (U.S. NEWS & WORLD REPORT 2019)

#1 IN ECONOMIC 4th BEST PLACE IN TOP 10 PLACES & JOB GROWTH AMERICA FOR IN THE U.S. TO TRAVEL (AREA DEVELOPMENT, 2015) BUSINESS & CAREERS (LONELY PLANET, 2016) (FORBES, 2019)

#1 IN ECONOMIC 4TH BEST CITY 6TH FASTEST RANKING FOR BIKE RIDING (USNEWS.COM, 2019) GROWING METRO IN THE U.S. AREA IN THE U.S. (WALK SCORE, 2015) (FORBES, 2016)

3RD HEALTHIEST CITY IN THE NATION #1 IN THE NATION FOR (FORBES, 2016) LARGEST INCREASE IN RESIDENTS WITH COLLEGE DEGREES 7TH BEST STATE (U.S. CENSUS BUREAU, 2014) IN WHICH TO MAKE A LIVING 3RD BEST CITY FOR (FORBES, 2016) COLLEGE GRADS (RENT.COM, 2015) DENVER METRO

Located on the front range of the Rocky Mountains, the Denver Metro is a thriving urban epicenter famous for its breathtaking views, world-class dining, champion sports teams, exhilarating recreation, and eclectic arts and entertainment. It’s no wonder this metropolis is one of the biggest in the nation! ATTRACTIONS SPORTS

Denver Art Museum Basketball: Denver Nuggets Denver Museum of Nature and Science Hockey: Colorado Avalanche Denver Zoo Football: Denver Broncos Denver Aquarium Baseball: Colorado Rockies Six-Flags Elitch Gardens Soccer: Colorado Rapids Hyland Hills Water World Denver Aquarium DENVER GROWTH

Ranked as the top place to live in the U.S. by U.S. News & World Report, the city of Denver is home to over 705,439 residents (as of May 2019). An estimated 2.9 million people live in Denver Metro as a whole, with more people moving to the area each year, as this number is expected to grow by 12.6 percent over the next five years, compared to 3.7 percent nationally. Currently 100+ pe pleare immigrating to the city each day. The Denver Metro accounts for over half of the population in the entire state of Colorado, which is home to an estimated 5.5 million people.

CONSTRUCTION As one of the fastest-growing metros in the nation, Denver is thriving with new construction. This new construction will help accommodate the population growth throughout the metro. Some current projects include:

17th & Peal Apartments, a 315-unit apartment with 9,000 sq. ft. of retail.

Alexan 20th St Station, a 358-unit apartment with street level retail. Block 162, a full block project that included a 680,000 sq. ft. office tower and separate tower hotel.

Tabor Center Tower Two, a 33 story 700,000 sq. ft. office tower would be the largest development in Denver since 1985.

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.D(SFHPS4RVBSF -PEP BQSPKFDUMPDBUFEBDSPTTUIFTUSFFUGSPN$PPST'JFME  JUGFBUVSFTDPOOFDUFETUSVDUVSFTBOTUPSZPGGJDFCVJMEJOH BTUPSZ DPOEPNJOJVNBOEIPUFMCVJMEJOHTTVSSPVOEJOHBDFOUFSDPVSUZBSE -PXFSGMPPSTXJMMGFBUVSFSFUBJMUFOBOUT EMPLOYERS IN THE DENVER METRO

The Denver metro is a hub for various industries, including aviation, health, business, finance, and technology. Outside of city, state, and school services, major employers in the Denver metro area include:

Denver International Airport Kaiser Permanente Lockheed Martin Liberty Tax Service Health ONE Corporation Western Union Centura Health University of Colorado SCL Health Systems Children’s Hospital Comcast Wells Fargo CenturyLink

In 2017, Amazon opened up a 1 million sq. ft. fulfillment center in Aurora, creating nearly 1,000 full-time jobs. Google is building a $131 million, four-acre, state-of-the art facility in Boulder, potentially bringing more jobs to the area.

Many companies choose to relocate to or expand in the Denver Metro, especially tech and startup compBnies.

Between 2007-2015, approximately 9,000 companies chose to relocate from to Denver. ThesF employers are attracted to the innovative culture, economic environment, exceptional talent, and deep sense of social responsibility that characterizes the Denver Metro. Forbes ranks Denver as #1 in the nation for business and careers, and Area Development ranks Denver as #1 in the nation for economic and job growth.

Denver metro is home to many fast-growing startups, with 113 local companies making the Inc. 5000 list of the nation’s fastest-growing private companies for the year 2017. LIGHT RAIL

The Regional Transportation District (RTD) operates 365 days a year to quickly connect travelers to their destination. As part of RTD, the 58-mile rail system features nine rail lines servicing 62 stations along the Denver metro’s North, East, Southeast, Southwest, and West rail corridors.

Popular destinations include:

Denver International Airport (DIA) Theatre District Convention Center Sports Authority Field at Mile High Pepsi Center 16th Street Mall Park Meadows Mall.

RTD’s rail system has transformed people’s commutes and the communities they live in. The 23-mile stretch from Downtown Denver to DIA is now just a 30-minute ride via light rail. The light rail is also attributed with revitalizing neighborhoods across the Denver metro, including Five Points and West Colfax. An average of 64,000 people utilize the light rail each day, making it eighth-largest system in the country, even though Denver is 21st in the nation in terms of population. DENVER INTERNATIONAL AIRPORT (DIA) Denver International Airport (DEN), also known as DIA, opened to the public on February 28, 1995 and at 34,000 acres, remains the largest and newest commercial airport in the United States, and the 2nd largest airport in the world by size and the 20th busiest airport in the world. It’s known around the world for its striking tented roof structure and technologically advanced operations. Over the past twenty years, DIA has established itself as the primary employer and economic driver in the Denver metro, supporting nearly 190,000 jobs and generating more than $26 billion in annual revenue. Served a record setting 64.5 Million passengers in 2018.

The airport serves over 170 destinations including 20 international cities in nine countries.

DIA is just 30 minutes from Union Station via the East Rail line. DIA has room to double its current capacity to remain competitive in the growing global aviation marketplace. DIA broke ground in May of 2018 on a $2.0 billion gate expansion project. The project will add 39 gates across all three concourses in the next four years, bringing the total to 150.

The expansion will utilize the airport’s original “telescoping” design by expanding astward and westward at the ends. The expansion is expected to be completed by the end of 2022.

DIA is among the first airports in North America to secure internationally recognized accreditation for measuring and reducing carbon emissions. CAPSTONE TEAM

BENTON ADAMS GUNNAR WILSON Investment Sales Advisor Investment Sales Advisor

[email protected] [email protected] 303.328.5208 970.306.3787

BRANDON KAUFMAN KIM HOFF Senior Advisor Marketing Manager [email protected] [email protected] 303.547.7357 612.669.2068

LAUREN ANDERSON Senior Investment Analyst

[email protected] 707.484.3320 CONFIDENTIALITY DISCLAIMER

Capstone Apartment Partners has been engaged as the exclusive listing Broker representative of the Owner for the sale of this property. No contact shall be made by any prospective purchaser or agents to the Owner, its executives, staff, personnel, tenants, or related parties.

This Investment Offering Memorandum is a confidential solicitation of interest, and the information provided herein is provided for the sole purpose of considering the purchase of the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Purchase Agreement on terms acceptable to the Owner. By receipt of this Offering Memorandum, prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner from any and all liability with respect hereto. The enclosed materials are being provided solely to facilitate the prospective purchaser’s own due diligence for which the purchaser shall be fully and solely responsible. All information contained herein is confidential in nature, and recipient agrees not to photocopy, duplicate, forward, distribute, or solicit third party interest without written permission and consent from Owner or Capstone Apartment Partners.

Neither Capstone Apartment Partners nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to the future performance of the Property.

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