1411 Clayton OM
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OFFERING MEMORANDUM CLAYTON ST APARTMENTS 1411 CLAYTON ST DENVER, 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 Denver Botanic Gardens 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 United States. 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, Ogden Theatre, 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.