Offering Memorandum 853 N Ogden Street Denver, Co 80218
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OFFERING MEMORANDUM 853 N OGDEN STREET DENVER, CO 80218 AUSTIN SMITH KIRK SMITH Investment Advisor Smith Real Estate, Inc. [email protected] [email protected] 303.868.9096 303.570.4950 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 • Executive Summary • Property Overview • Financial Overview • Location Overview 0101 EXECUTIVEEXECUTIVE SUMMARYSUMMARY PROPERTY HIGHLIGHTS Beautiful turn of the century building. Incredible location in Capitol Hill. Strong value add opportunity. Garage and off street parking income. Unmatched street appeal. 853 N OGDEN STREET. N OGDEN ST AREA STREET MAP E 9TH AVE LOCATION MAP CITY PARK/ DOWNTOWN DENVER ZOO DENVER E. COLFAX AVE. CHEESMAN PARK 853 N OGDEN STREET. N. BROADWAY E. 8TH AVE AREACapitol MAPHill Area Map 853 N OGDEN STREET. PROPERTY OVERVIEW NEIGHBORHOOD MAP DINING 1 The Park Tavern and Restaurant E. EV ANS AVE. 13 2 Table 6 14 10 3 Angelo's Taverna 4 Snarf's Sandwiches 7 5 Thump Coffee 6 Lik's Ice Cream E. EV ANS AVE. 5 6 7 The Corner Beet 8 Sexy Pizza RETAIL 9 King Soopers 1 4 10 Voodoo Doughnut 8 12 11 Trader Joes LIFESTYLE 15 12 Cheesman Park 13 Fillmore Auditorium 9 14 Ogden Theatre 15 Denver Botanic Gardens 853 N OGDEN STREET. 11 E. EV ANS AVE. 2 3 02 PROPERTY OVERVIEW BUILDING DETAILS Units: 6 Building SF: 4,394 Parking: 4 Land: 6,460 Zoning: G-RH-3 PROPERTY Year Built: 1900 OVERVIEW SYSTEMS Gas / Elec Meters: Master / Master Water: Master Trash: Denver Trash Roof: Flat Heating: Boiler Cooling: Swamp Cooler PHOTOS 853 N OGDEN ST UNIT MIX & CURRENT RENTS Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF 1 Bed / 1 Bath 6 683 $1,180 $1.73 $1,280 $1.87 Total / Average 6 683 $1,180 $1.73 $1,280 $1.87 SOLD COMPARABLES Property Address Units SF Price $ Price Per Unit Price Per Foot Cap Rate (subject) 853 N Ogden Street 6 4,394 $1,200,000 $200,000 $273 4.98% 1 2945 Irving Street 6 4,794 $1,330,000 $221,667 $277 N/A 2 660 Washington Street 6 4,620 $1,195,000 $199,167 $259 5.82% 3 1234 York Street 7 3,312 $1,200,000 $171,429 $362 5.63% 4 1247 Clarkson Street 5 3,025 $930,000 $186,000 $307 6.00% Averages $1,163,750 $194,565 $301 5.82% 1 BROADWAY W. COLFAX AVE 4 3 S W. 6th AVE N DR 2 03 FINANCIAL OVERVIEW INVESTMENT SUMMARY DEBT SUMMARY Purchase Price: $1,200,000 Loan to Value: 70.00% Units: 6 Loan Amount: $840,000 Price Per Unit: $200,000 Loan Term: 60 Months Total SF: 4,394 Interest Rate: 4.00% Price Per SF: $273 Amortization: 30 Years T12 Cap Rate: 3.86% Year 1 Cap Rate: 4.98% Year 1 Cash Flows: $11,681 5 Year IRR: 17.78% T12 Year 1 Year 2 Year 3 Year 4 Year 5 REVENUE Gross Potential Revenue $70,800 $83,808 $88,992 $91,662 $94,412 $97,244 Vacancy ($3,540) ($4,320) ($4,450) ($4,583) ($4,721) ($4,862) Rental Revenue $67,260 $79,488 $84,542 $87,079 $89,691 $92,382 Other Residential Income $3,600 $4,800 $4,944 $5,092 $5,245 $5,402 Effective Gross Revneue $70,860 $84,288 $89,486 $92,171 $94,936 $97,784 EXPENSES Repairs and Maintenance ($4,250) ($4,250) ($4,378) ($4,509) ($4,644) ($4,783) Utilities ($7,000) ($7,000) ($7,210) ($7,426) ($7,649) ($7,879) Insurance ($1,900) ($1,900) ($1,957) ($2,016) ($2,076) ($2,138) CASH FLOW Real Estate Taxes ($5,778) ($5,778) ($5,951) ($6,130) ($6,314) ($6,503) Property Management ($4,956) ($4,956) ($5,105) ($5,258) ($5,416) ($5,578) PROJECTIONS Admin and Other ($600) ($600) ($618) ($637) ($656) ($675) Total Expenses ($24,484) ($24,484) ($25,219) ($25,975) ($26,754) ($27,557) Expenses Per Unit ($4,081) ($4,081) ($4,203) ($4,329) ($4,459) ($4,593) Net Operating Income $46,376 $59,804 $64,268 $66,196 $68,182 $70,227 Cap Rate 3.86% 4.98% 5.36% 5.52% 5.68% 5.85% Debt Service - Yr 1 ($48,123) ($48,123) ($48,123) ($48,123) ($48,123) ($48,123) Total Cash Flow -$1,747 $11,681 $16,145 $18,073 $20,059 $22,104 Cash on Cash Return -0.49% 3.24% 4.48% 5.02% 5.57% 6.14% T12 Revenue Gross Potential Revenue $70,800 Vacancy ($3,540) Rental Revenue $67,260 Expense ReimbursementS $0 Other Residential Income $3,600 Effective Gross Revenue $70,860 EXPENSES Repairs and Maintenance ($4,250) HISTORICAL Utilities ($7,000) ANALYSIS Insurance ($1,900) Real Estate Taxes ($5,778) Property Management ($4,956) Admin and Other ($600) Total Expenses ($24,484) Expenses Per Unit ($4,081) Net Operating Income $46,376 Cap Rate 3.86% 04 LOCATION OVERVIEW DEMOGRAPHICS Census 2018 Summary .25m .5m .75m Population 4,516 16,702 29,454 Households 3,078 11,396 19,837 Families 443 1,802 3,384 Average Household Size 1.46 1.45 1.47 Owner Occupied Housing Units 979 3,142 5,411 Renter Occupied Housing Units 2,099 8,254 14,426 .75 MILE Median Age 36.3 34.9 34.9 Median Household Income $61,312 $60,600 $59,394 Average Household Income $80,342 $88,561 $90,995 .5 MILE Census 2023 Summary .25m .5m .75m .25 MILE Population 4,750 17,759 31,808 Households 3,201 12,017 21,273 Families 466 1,923 3,656 Average Household Size 1.48 1.47 1.48 Owner Occupied Housing Units 1,072 3,406 5,863 Renter Occupied Housing Units 2,130 8,611 15,410 Median Age 37.7 36.2 36.1 Median Household Income $74,917 $73,094 $71,434 Average Household Income $97,109 $106,080 $108,469 T O DENVER NOTE RNN #1 BEST PLACES TO LIVE (U.S. NEWS & WORLD REPORT 2016) #1 IN ECONOMIC AMERICA’S BEST & JOB GROWTH PLACE FOR (AREA DEVELOPMENT, 2015) BUSINESS & CAREERS (FORBES, 2015 & 2016) TOP 10 PLACES IN THE U.S. TO TRAVEL 3RD BEST CITY FOR 6TH FASTEST (LONELY PLANET, 2016) COLLEGE GRADS GROWING METRO (RENT.COM, 2015) AREA IN THE U.S. (FORBES, 2016) 3RD HEALTHIEST CITY #1 IN THE NATION FOR IN THE NATION LARGEST INCREASE IN (FORBES, 2016) RESIDENTS WITH COLLEGE DEGREES (U.S. CENSUS BUREAU, 2014) 7TH BEST STATE IN WHICH TO 4TH BEST CITY MAKE A LIVING FOR BIKE RIDING (FORBES, 2016) IN THE U.S.