APACHE COURT APARTMENTS 3401 W AVE

Offering Memorandum

01 denverrealtygroup.com EXECUTIVE SUMMARY

DRGinvest has prepared the following Document, which contains select employees, agents and representatives agree to maintain the confidentiality information pertaining to the business and financial operation of the Property and of the Information in accordance with this Agreement; its Owner. This Document is not all-inclusive, nor does it contain all information 3. Purchaser will not use the Information for any purpose other than to evaluate that may be required by a prospective purchaser. Neither the Owner, DRGinvest, Purchaser’s potential acquisition of the Property; nor Owner’s or DRginvest’s respective officers, employees, or agents make any 4. Purchaser shall not copy or otherwise duplicate any of the Information, and representation or warranty, express or implied, as to the accuracy or completeness agrees to return upon demand of Owner or DRginvest all Information and of this Document or any of its contents, any information as defined below or the destroy any extracts, analyses, summaries, or other documents prepared condition of the Property, and no legal liability is assumed or shall be implied from or based upon the Information; with respect thereto. Purchaser(s) and / or Purchaser’s Agent(s) (“You”) will only 5. You and your agents are not entering into a co-broke agreement with be able to rely upon those representations and warranties contained in any final DRginvest; and agreement entered into between You and Owner relating to the purchase and 6. The Property and improvements described in this Document are being sale of the Property. offered for sale on an “As Is, Where Is” basis without representations or warranties. By acknowledging and accepting the receipt of this Document, You hereby agree:

1. The Document and its contents, and all other information supplied to you, in The Owner and DRGinvest reserve the right, at their sole and absolute discretion, any manner, by Owner and/or DRGinvest (collectively the “information”) are to reject any and all expressions of interest or offers to purchase the Property confidential; and to terminate discussions with any entity or person reviewing this Document 2. You and your shareholders, members, directors, officers, employees, agents or Information making an offer to the purchase the Property until a written and representatives (collectively “Purchaser”) will keep the information agreement for the purchase of the Property has been fully executed. confidential, and will not disclose or otherwise divulge or permit anyone else to disclose or otherwise divulge any of the information in any manner to any If you do not wish to pursue negotiations leading to the potential acquisition other individual, entity or party. Notwithstanding the foregoing, Purchaser of this Property, or if in the future you discontinue such negotiations, then you may disclose such information to Purchaser’s shareholders, members, agree to return this Document to DRGinvest This Document shall not be deemed directors, officers, employees, agents and representatives who need to to represent the state of the affairs of the Property or constitute an indication that know such information in connection with the possible acquisition of the there has been no change in the state of the affairs of the Property since the date Property, provided that such shareholders, members, directors, officers, this Document was prepared.

P: (303) 502-7333 Physical Address: F: (888) 274-7626 5925 E Evans Avenue, Ste #300 E: [email protected] Denver, CO 80222

02 denverrealtygroup.com PROPERTY OVERVIEW

3 denverrealtygroup.com PROPERTY PHOTOS

4 denverrealtygroup.com PROPERTY PHOTOS

5 denverrealtygroup.com AERIAL INVESTMENT HIGHLIGHTS

| INVESTMENT HIGHTLIGHTS #1 This asset is located in the highly desirable Old City and is only 1.5 miles from Most Desirable Places to Live active tourist areas the Garden of the Gods Park and Manitou Springs. Throughout the last U.S. News & World Report quarter the property has collected 100% of the rents on time despite the volatility seen in 2018-2019 the market, proving that the asset attracts a consistent tenant base with a virtually non existent vacancy rate. Walking distance to many tourist and entertainment venues.

• Rare opportunity to own a short-term rental product in highly restricted environment. #1 Mid-Sized American Cities for Human • All units on short leases with opportunity to instantly increase rents/income. Capital and Lifestyle fDi Intelligence • Irreplaceable location at the base of the with several hiking trails within walking distance.

• Outstanding in place cash flow and cap rate. #1 Fastest Growing City for Millennials • Link to Photo Gallery Brooking’s Institution https://tours.mediamaxphotography.com/1610112 2018

#2 Best Places to Live U.S. News & World Report 2018 #4 Business Friendly City Thumbtack 2018

7 denverrealtygroup.com PROPERTY DETAILS

| LOCATION

Name: Court Apartments

3401 Pikes Peak Ave Address: Colorado Springs, CO 80904

County: El Paso County

| PROPERTY

Lot Size: .24 Acres

Year Built: 1946

# of Units: 16

Building SF: 4,833 SF

Parking: Free and Street Parking

Zoning: R5

| UNIT SUMMARY

Studio/ 1 bedroom: 16

8 denverrealtygroup.com INVESTMENT SUMMARY

INVESTMENT SUMMARY

Offering Price $1,840,000

Units 16

Price/Unit $115,000

Total SF 4,833

Price/SF $381

NOI $141,296

Pro-Forma NOI $161,784

GRM 10.18

Pro-Forma GRM 7.90

Cap Rate 7.68%

Pro-Forma Cap Rate 8.74%

9 denverrealtygroup.com UNIT MIX & RENT ROLL

Rent Roll Monthly Information AVERAGE RENT UNIT MIX NUMBER OF UNITS TOTAL (IN-PLACE) Market Rent TOTAL (MARKET) (IN PLACE) Studio Long-term 3 $650 $1,950 $850 $2,550

Studio short-term 4 $1,000 $4,000 $1,200 $4,800

Studio-#10 1 $700 $700 $1,000 $1,000 1 Bedroom 7 $1,200 $8,400 $1,400 $9,800 1 Bedroom Manager 1 - - $1,200 $1,200 Total 16 $941 $15,050 $1,209 $19,350

10 denverrealtygroup.com FINANCIAL SUMMARY

In Place Rent Market Rent

INCOME 6/1/20 Per Unit 6/1/20 Per Unit

Gross Potential Revenue $180,600 $11,288 $232,200 $14,513

Vacancy $(9,030) $(564) $(11,610) $(726)

Rent Received $171,570 $10,723 $220,590 $13,787

Other income - - - -

Expense Reimbursements $270 $17 $270 $17

Total Revenue $171,840 $10,740 $220,860 $13,804

EXPENSES

Taxes $1,664 $104 $12,800 $800

$4,880 $305 $6,080 $380 Insurance

Repairs & Maintenance $2,400 $150 $13,600 $850

Management - - $13,932 $871

Utilities $21,600 $1,350 $12,064 $754

Other - - $1,600 $100

Total expenses $30,544 $1,909 $60,076 $3,755

NOI $141,296 $160,784

11 denverrealtygroup.com COMPARABLES

4 1 3 5

9

2

PRICE PER SALE PRICE UNITS DATE SOLD UNIT SUBJECT PROPERTY

3401 W. Pikes Peak Ave Apache Court Apartments $1,800,000 16 $112,500 -

COMPS 1 2815 King St. $1,000,000 8 $125,000 Jun-20 2 1505-1511 E St. $1,000,000 9 $111,111 19-Sep 3 3419 W Colorado Ave. $1,100,000 10 $110,000 Active 4 54 Manitou Ave. Park Row Lodge $2,990,000 21 $142,381 Active 5 2916 W Bijou Street. $3,150,000 28 $112,500 Active LOCATION

Ridge Road

Pikes Peak Ave

Hwy 24

13 denverrealtygroup.com MEET THE TEAM

ZACK KOBILCA JACOB CHASE LAUREN RICHARDSON

Managing Partner and Managing Broker Managing Partner Director of Business Development [email protected] [email protected] [email protected] 303.828.7091 720.758.6375 750.537.9891

CHRIS MITTON KEVIN WOOLSEY BRENT RYERSON

Investment Advisor Principal of Sales Principal of Sales [email protected] [email protected] [email protected] 303.887.4955 303.990.4361 303.725.4442

14 denverrealtygroup.com WHY DRGINVEST?

Dedication To Constant Improvement Passion To Compete

We strive to continually add to our value offering while at the same We welcome the challenge of competition in our business. It pushes time increasing the efficiency in which we provide our services. Every us to improve ourselves, and ultimately results in a better outcome for day our business positioning will either increase or decrease in the our stakeholders. We view winning as a rewarding signal of a job well minds of our customers and relative to our competition – we are done. We differentiate themselves by welcoming the opportunity to dedicated to making each day count. excel in challenging circumstances.

Excellent Capital Allocation Market And Output-based Management

As time and money are always limited, we are dedicated to good DRG is a believer in the market system as an efficient distributor practices ensuring they are distributed in the most efficient manner of resources. Compensation, promotion, and recognition will not possible. We are dedicated to optimizing the use of all our resources. follow seniority or title, but will accompany employee output and contribution.

16th Street Mall 15 denverrealtygroup.com APACHE COURT APARTMENTS 3401 W PIKES PEAK AVE

KEVIN WOOLSEY BRENT RYERSON Principal of Sales Principal of Sales [email protected] [email protected] 16 303.990.4361 303.725.4442 denverrealtygroup.com