CHAMBERS OFFICE CENTRE
15290 E. 6th Avenue, Aurora, CO
Offering Memorandum For more information, please contact: Tom Crosby, Associate 303.390.0956 [email protected]
Joella Rodarte, Senior Associate 720.508.8109 [email protected]
Rick Egitto, CCIM, Principal 303.390.0955 [email protected] CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Table of Contents
01 Executive Summary 5
02 Property Description 11
03 Location Overview 21
04 Financial Analysis 31
3 Executive Summary 1 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
The Offering Avison Young is pleased to offer to qualified investors the opportunity to acquire a 100% fee interest in the 19,340 square foot multi-tenant office/retail property located at 15290 E. 6th Avenue in Aurora, Colorado. Built in 1981 and situated on 1.87 acres of land, Chambers Office Centre is 47% leased, which offers upside to the Buyer. Chamber Office Centre offers in-place income, an attractive price per square foot and convenient and immediate access to and from Interstate 225 via 6th Avenue, the primary east-west traffic arterial servicing the north part of the Aurora market. Interstate 225 is the busiest north / south artery in Aurora with over 150,000 vehicles per day travelling along this road. The subject property benefits from a solid infill location which at some point can be converted to a hard corner retail redevelopment play. The demographic densities in the immediate area are excellent with over 140,000 residents and a projected growth rate of 1.2%.
Chambers Office Centre is located on a signalized hard corner and is oriented as an outparcel to the 100,000 sf Chambers Centre retail center that features a You Fit Health Club and a Sav-a-Lot Grocer.
XX Low maintenance ownership XX New roof and interior refresh recently completed XX Ideal 1031 exchange property XX Value-add office opportunity XX Small tenants offer protection from large tenant improvement and leasing commission expenses over time
XX Seller has spent the dollars to create spec suites available for occupancy
5 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
LOCATION AERIAL
Downtown Denver
FITZSIMONS GOLF COURSE
AURORA HILLS Aurora E COLFAX AVENUE GOLF COURSE
E ALAMEDA AVENUE 2nd Ave
225 E 6TH AVENUE & Abilene TOWN CENTER Station 225 AT AURORA 13 Avenue SABLE BOULEVARD SUBJECT Station PROPERTY
CHAMBERS ROAD
E E 6TH AVENUE
RTD Light Rail | R Line
6 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Investment Summary
Property Name: Chambers Office Centre
E 96TH AVENUE 15920 E. 6th Avenue Address: DENVER Aurora, CO INTERNATIONAL AIRPORT (DIA) Year Built: 1981
GAYLORD Total Acres: 1.871 ROCKIES RESORT & CONVENTION CENTER Total sf: 19,340
Sale Price: $1,799,000 Sale Price psf: $93.00
Net Operating Year 1 Actual: $51.247 Income: Year 2 Pro Forma: $188,071
Actual: 2.8% CAP Rate: Pro Forma: 10.5% PENA BOULEVARD PENA
70 SUBJECT PROPERTY E COLFAX AVENUE 225
E 6TH AVENUE
7 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Investment Highlights XX Pride of Ownership Asset: Located at solid retail location in Aurora. Chambers Office Centre offers the savvy investor solid upside in that the office asset is only 47% leased.
XX Market Financing Available: Chambers Office Centre is offered free and clear of any debt encumbrance allowing the incoming investors to take advantage of low interest rates.
XX Solid Location gets better over time: The intersection of Chambers and E. 6th Avenue serves the local neighborhood today; however, funding is currently being put into place to extend E. 6th Avenue to the east and have it connect to and cross E-470, the superhighway that encircles Denver. This will create much more traffic along E. 6th Avenue as residents to the east of E-470, in neighborhoods such as Murphy Creek, Adonia and Cross Creek, use 6th Avenue to drive west.
XX New roof installed in 2013. Comes with a 20 year warranty, definitively taking away one of the largest go-forward expenses an owner might encounter. The rest of the mechanical components are in good physical condition.
XX Seller finished the major interior hallway updates in 2017 – cost was approximately $100,000. Seller also took vacant suites back to vanilla shell.
XX Seller has created move-in ready spec suites, reducing capital that needs to be spent by new Owner.
8 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
9 Property Description 2 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Property Description
Property Name: Chambers Office Centre
15920 E. 6th Avenue Address: Aurora, CO
County: Arapahoe
Parcel ID: 1975-07-1-03-008
Legal Description: Lot 2, Block 1, Chambers Village East, filing 1, County of Araphoe, State of Colorado
Year Built: 1981
Land Area: 1.871 acres
Gross Leasable Area: 19,340 sf
Zoning: B -1, City of Aurora
Parking: 4.1/1000 sf
Chambers Road: Over 30,000 vehicles per day Traffic Counts: E. 6th Avenue: Over 24,407 vehicles per day
11 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Spec Suites Available for Occupancy
12 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Spec Suites Available for Occupancy (Continued)
13 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Site Plan
E 6T A EN E
Monument Sign C AM ERS ROAD C AM ERS
14 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Floorplan | 1st Floor
Floorplan | 2nd Floor
15 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
AMENITIES AERIAL
SUBJECT PROPERTY 225
E 6TH AVENUE N AIRPORT BOULEVARD AIRPORT N STREET ASPEN SABLE BOULEVARD SABLE ROAD CHAMBERS
TOWN CENTER AT AURORA E ALAMEDA PARKWAY
BUCKLEY AIR FORCE BASE
E MISSISSIPPI AVENUE
16 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
SITE AERIAL SUBJECT PROPERTY E 6TH AVENUE Sweet Leaf Tsai Shen Garden
Superior Laundries CHAMBERS ROAD CHAMBERS
Imagination Plus Child Care
17 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Survey
18 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Site Survey
19 Location Overview 3 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Arapahoe County grew Location Overview 15290 E. 6th Avenue is located in northern Arapahoe County, on the east side of the Denver region, in central Aurora, Colorado. With 20-minute access to Denver 17.2% International Airport, the Denver Tech Center and Downtown Denver, businesses in since 2010 Aurora are well positioned to interface with the metro area and the world. Interstate 225, Interstate 70 and major rail lines run through Aurora, and the city is a national logistics hub. Expressway 470 and eight rail stations further link Aurora with the greater Denver Arapahoe County Metropolitan Statistical Area (MSA). The Rocky Mountains are a natural boundary to gained over the west, and the availability of developed land to the east ensures that future growth will flow through Aurora, Colorado’s third largest city. Advanced industries in Arapahoe County taking advantage of the location, business friendly policies and skilled workforce 50,000 include aerospace and defense, bioscience and renewable energy. jobs and over ARAPAHOE COUNTY/AURORA FACTS 24,000 in Aurora • Arapahoe County grew 24.6% between 1990 and 2000, then 17.2% since 2010. • The county is the third most populous in Colorado, and the State Demographer Median household estimates there are 637,254 residents. Aurora is the third largest city in Colorado, income increased with 368,200 people. • Since December 2007, Arapahoe County gained over 50,000 jobs and over 24,000 1.9% in Aurora. • The Arapahoe County median household income increased 1.9% annually since annually since 2010 2010, and is now $66,689.
• Aurora is consistently rated as one of the safest large cities in the country by the FBI. Aurora is the THIRD largest city in Colorado with 368,200 people
21 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Denver Overview Denver’s economic growth outlook remains bright, with substantial in-migration of new residents, strong employment gains, and an enviably-low unemployment rate. These positive economic indicators point towards continued expansion in Denver’s office market throughout 2018.
The Denver office market continued to expand through the fourth quarter of 2017. Absorption remains slightly dampened by tenants vacating space in the Southeast and Suburban regions, but direct absorption gains more than made up for these losses. After falling to historic lows, the vacancy rate began trending upward in mid-2016. The vacancy rate declined slightly from the previous quarter, to 11.8%. The rise in vacancy from second quarter 2016 to second quarter 2017 is due to new buildings delivering additional space to the market. With over 3.9 million square feet (msf) currently under construction, the building boom has begun to subside. Declining vacancy and preleasing of under-construction square footage indicate that the tenant favorable swing of the past year might be ending. The sustained demand continues to push asking rates to new highs.
Absorption totaled 355,593 square feet (sf) in the fourth quarter. Absorption was strong in direct space, totaling 441,763 sf. Tenants vacated 86,170 sf of sublease space in the fourth quarter, up from from over 38,000 sf vacated last quarter. Leasing was active throughout 2017, totaling over 10.9 msf. Denver’s vacancy rate declined slightly from the previous quarter, due to strong absorption, to 11.8% in the fourth quarter. The vacancy rate is still low by historic standards, despite increasing 100 basis points in the previous four quarters.
Average asking rates in the Denver market increased in the fourth quarter, rising 1.6% per square foot (psf) to $27.09 psf gross. Rates for Class AA space in Denver’s CBD appear to have peaked, and declined slightly to $39.34 psf gross. In the past five years, asking rates have grown at unprecedented levels, particularly in the LoDo and Platte River submarkets, and many tenants have either expressed sticker shock with lease renewals or been priced out of their desired market. The frantic rate of growth appears to be over, as landlords responded to rising vacancy rates. Asking rates are expected to continue rising steadily in 2018.
Approximately 391,000 sf broke ground in the fourth quarter and Denver’s construction pipeline is 4.0 msf, with 39% preleasing. Office tenants in the Denver market continue to make real estate decisions based on recruiting and retention, with an increased emphasis on improved amenities that are provided in new construction projects. Five buildings delivered in the fourth quarter, totaling 432,700 sf with 65% preleasing. Construction activity is projected to remain elevated through 2018, although the rate of groundbreakings is expected to slow.
22 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Arahapoe County Overview ASKING RATES $24.00 Arapahoe County is a geographically expansive area, that extends from the south- $22.98 $22.00 central metro area 70 miles to the eastern plains. The county’s nearly 38 msf of office $20.00 space accounts for one-quarter of the Denver metro market. Its major municipalities $18.00 are Aurora, Centennial, Englewood and Littleton, which all include major residential and $16.00 commercial districts. The market includes the business-oriented Denver Tech Center, as $14.00 well as suburban office parks. Several major leases were signed in 2017, including Charter $12.00 Communications’ 184,000 sf renewal, The Traveler’s Companies acquiring 142,000 sf in $10.00 the INOVA business park and Performance Food Group plans to move into 67,000 sf in
Englewood. Offering a range of office space product and excellent accessibility enables 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 the county to attract a diverse mix of industries. HISTORICAL VACANCY RATES Total leasing in 2017 was 3.5 msf and absorption was positive 758,000 sf, continuing a 18.0% trend of positive annual absorption going back to 2009. Fourth quarter 2017 vacancy 16.0% was 10.2%, 100 bps lower than the first quarter. Class A space was 10.2% vacant, Class B 10.7% and Class C 5.0% Vacancy has steadily trended downward since it was 17.2% in 14.0% first quarter 2012. 12.0%
Rental rates continue their steady growth, without exhibiting the volatility evident in 10.0% 10.2% some of the other Denver area submarkets. From fourth quarter 2016 to fourth quarter 8.0% 2017, rents increased 1.9% to $22.98. Class A direct asking rent was $25.74, Class B $21.58 6.0% and Class C $15.47. 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4
The pace of development slowed in 2017, as 890,000 sf delivered to the market. There HISTORICAL NET ABSORPTION are currently three projects, totaling 384,000 sf under construction. One building is 900,000 800,000 757,935 entirely preleased by Charter Communications and the other two developments also 700,000 have waiting tenants. 600,000 500,000 400,000 300,000 200,000 100,000 0 2011 2012 2013 2014 2015 2016 2017
23 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Aurora Overview DENVER INTERNATIONAL AIRPORT Aurora contain over 360,000 residents and is located just east of Denver and is the state’s 3rd largest city. Median age is 34. Located minutes from Denver International Airport and Front Range Airport, Aurora is intersected by Interstate 225, Interstate 70 and E470. Light rail was installed in 2017 along Interstate 225 and now serves the entire city including the Aurora City Center and Anschutz Medical Center Fitzsimons.
Buckley Air Force Base is located to the east of the property and supports 12,000 personal, which proximity operate satellite systems that provide global surveillance and provides missile warning, defense and technical intelligence, tracking and targeting.
Aurora is soon to be the home to the 1,500 room Gaylord Rockies Resort and Convention Center. Currently under construction, the hotel will feature 485,000 sf of exhibition meeting and prefunction and outdoor space, eight food and beverage outlets and 25 million gallon water park and other high quality amenities on it’s 85 acres. Opening expected 4th quarter 2018.
GAYLORD ROCKIES RESORT AND CONVENTION CENTER
24 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Aurora Office Overview The Aurora office market contains approximately 90,500,000 sf, and office buildings are concentrated close to Interstate 225 and South Parker Road. Vacancy rate increased throughout 2017 after declining in the previous seven years, from 6.2% in the first quarter to 7.7% in the fourth. Due to the size of the market, relatively large available spaces in a few projects greatly affected the vacancy rates, and vacancy is still well below the greater Denver market.
Annual 2017 absorption was negative 139,000 sf, including negative 63,000 sf in the fourth quarter. Leasing slowed in 2017 to 310,000 sf, after averaging 632,000 over the past five years. However, rental rates reached a high of $18.29 in fourth quarter 2017, the highest rent since 2006. The lack of any current development and no recent deliveries, will give the Aurora office market an opportunity to achieve positive absorption in 2018.
COMPARATIVE VACANCY CHART
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
7.0%
5.0% 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4
Denver MSA Arapahoe County Aurora
25 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Demographics
Within 1 Mile Within 3 Mile Within 5 Mile $50,085 AVERAGE INCOME 1 MILE 21,188 154,527 414,947 76 2017 2017 2017 POPULATION POPULATION POPULATION 25
225 7,381 51,345 142,7 78 2017 HOUSEHOLDS 2017 HOUSEHOLDS 2017 HOUSEHOLDS 70 70 25
$ $50,085 $57,008 $67,709 2017 AVG. HOUSEHOLD 2017 AVG. HOUSEHOLD 2017 AVG. HOUSEHOLD INCOME INCOME INCOME
1 MILE 3 MILE 5 MILE 8,281 68,672 144,703 2017 DAYTIME 2017 DAYTIME 2017 DAYTIME EMPLOYEES EMPLOYEES EMPLOYEES $67,709 AVERAGE INCOME 5 MILE
25
225 $57,008 AVERAGE INCOME 3 MILE
26 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Sales Comparables $50,085 PROPERTY SALE DATE SIZE SF OCC. YEAR BUILT SALE PRICE $ / PSF BUYER COMMENTS AVERAGE INCOME 1 MILE East Park Plaza I 11 601 Chambers Road, Oct-16 13,948 100% 1980 $1,400,000.00 $100.37 Alex Guzman - Aurora, CO 80011
Canal Place 22 12101 E. 2nd Avenue, Aug-17 18,762 92% 1977 $1,365,000.00 $72.75 Kenneth Allen Horn - Aurora, CO 80011
Girard Business Center Wheelhouse Commercial Occupancy has dropped to 3 15200 E. Girard Avenue, Aug-17 39,474 99% 1985 $3,200,000.00 $81.07 3 Management 67% since purchase Aurora, CO 80014
Academy Center Went under contract at 81% 44 2101 & 2121 S. Blackhawk Street, Mar-18 43,202 90% 1984 $3,100,000.00 $71.76 SEC Associates of Aurora leased Aurora, CO 80014
Iliff Place East Owner-user resulting in 45 15101 E. Iliff Avenue, Apr-17 15,973 100% 1980 / 2017 $1,500,000.00 $93.91 Nathaniel Moore, MD higher price Aurora, CO 80014 $57,008 AVERAGE INCOME 3 MILE
27 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Lease Comparables
PROPERTY TERM RATE TI’S SF OPEX. TYPE COMMENTS
Southeast Commons 16 2101 S. Blackhawk Street, 38 $16.00 - 1,365.00 N/A Office 2 months free, 50 cent bumps Aurora 80014
Southeast Commons 27 2101 S. Blackhawk Street, 122 $15.50 $6.30 2,411.00 N/A Office 2 months free, 50 cent bumps Aurora 80014
I-225 Trade Center 38 720 Billings Street, 37 $13.00 - 1,475.00 $1.52 Office MG Lease, 1 month free Aurora 80011
Hampden Executive Plaza 29 3515 S. Tamarac Drive, 36 $13.50 - 2,984.00 N/A Office 0 months fee, 50 cent bumps Denver 80237
28 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Lease & Sales Comparable Location Aerial
1 E 6TH AVENUE SUBJECT 8 PROPERTY
2
BUCKLEY AIR FORCE BASE S CHAMBERS ROAD CHAMBERS S S HAVANA STREET HAVANA S STREET PEORIA S ROAD BUCKLEY S
E MISSISSIPPI AVENUE
225
E JEWELL AVENUE
4 5 E ILIFF AVENUE 6 & 7 S ROAD TOWER
E YALE AVENUE
3 E HAMPDEN AVENUE E HAMPDEN AVENUE 9
29 Financial Overview 4 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Property Assumptions
Property Description
Property Type: Office Size of Improvements: 19,340 SF Currently Vacant as of 4/1/18 10,285 SF Property Address: 15290 E 6th Ave Current Occupancy as of 4/1/18 47% Aurora, CO 80011 Projected Occupancy as of 9/1/19 100% Market Leasing Assumptions First Floor Second Floor Average Lease Term Length 3 Years 3 Years Renewal Probability 75% 75% Months Vacant 6 6
Market Base Rent (New) $16.00 psf $14.00 psf Market Base Rent (Renewal) $16.00 psf $14.00 psf
Fixed Steps $.50/sf $.50/sf CPI Increase None None
Recovery Type Net None Miscellaneous Rent None None Tenant Improvements (New) $15.00/sf $0/sf Tenant Improvements (Renew) $5.00/sf $0/sf Leasing Commissions (New) $1.50/sf $1.00/sf Leasing Commissions (Renew) $.50/sf $.50/sf
Please note that our lease up schedule assumes the first floor 100% leased by January 1, 2019 and the second floor 100% leased by June 1, 2019
31 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
As - Is vs Pro Forma | Year 1 Analysis
YEAR 2 ANALYSIS
95% Leased As-Is NOI As-Is Pro-Forma 95% Leased Year 1 PSF Year 2 Year 2 PSF Initial Tenant Expiration: Base Rental Revenue $132,671 $6.86 $296,752 $15.34 Scheduled Base Rental Revenue $130,449 $6.75 $256,618 $13.27 Total Reimbursements $35,307 $1.83 $49,398 $2.55 POTENTIAL GROSS INCOME $165,756 $8.57 $306,016 $15.82 Vacancy/Credit Loss $0 $0.00 $0 $0.00 EFFECTIVE GROSS REVENUE $165,756 $8.57 $306,016 $15.82 Utilities - Electric $25,000 $1.29 $25,750 $1.33 Utilities - Gas $4,800 $0.25 $4,944 $0.26 Janitorial $20,000 $1.03 $20,600 $1.07 Plumbing $500 $0.03 $515 $0.03 Fire Protection $500 $0.03 $515 $0.03 General Maintenance & Repairs $20,000 $1.03 $20,600 $1.07 Pest Control $1,260 $0.07 $1,298 $0.07 Locks/Doors/Glass $1,000 $0.05 $1,030 $0.05 Signs $500 $0.03 $515 $0.03 Insurance $4,457 $0.23 $4,591 $0.24 Taxes $36,492 $1.89 $37,587 $1.94 TOTAL OPERATING EXPENSES $114,510 $5.92 $117,945 $6.10 NET OPERATING INCOME $51,247 $2.65 $188,071 $9.72
32 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 For the Years Ending June-2019 June-2020 June-2021 June-2022 June-2023 June-2024 June-2025 June-2026 June-2027 June-2028 June-2029
Rental Revenue Potential Base Rent $225,518 $296,752 $304,274 $313,308 $322,881 $331,337 $340,711 $351,036 $360,646 $369,990 $380,760 Absorption & Turnover Vacancy -$3,318 -$40,134 -$6,329 -$2,427 -$42,963 -$9,106 $0 -$44,645 -$15,135 $0 -$42,145 Scheduled Base Rent $222,200 $256,618 $297,945 $310,880 $279,918 $322,231 $340,711 $306,392 $345,510 $369,990 $338,615 Total Rental Revenue $222,200 $256,618 $297,945 $310,880 $279,918 $322,231 $340,711 $306,392 $345,510 $369,990 $338,615
Other Tenant Revenue Total Expense Recoveries $49,455 $49,398 $57,840 $59,692 $53,978 $63,203 $66,209 $57,973 $69,063 $72,348 $64,367 Total Other Tenant Revenue $49,455 $49,398 $57,840 $59,692 $53,978 $63,203 $66,209 $57,973 $69,063 $72,348 $64,367
Total Tenant Revenue $271,655 $306,016 $355,785 $370,573 $333,897 $385,434 $406,920 $364,364 $414,574 $442,338 $402,982
Potential Gross Revenue $271,655 $306,016 $355,785 $370,573 $333,897 $385,434 $406,920 $364,364 $414,574 $442,338 $402,982
Vacancy & Credit Loss Vacancy Allowance -$10,431 $0 -$11,777 -$16,223 $0 -$10,621 -$20,346 $0 -$6,350 -$22,117 $0 Total Vacancy & Credit Loss -$10,431 $0 -$11,777 -$16,223 $0 -$10,621 -$20,346 $0 -$6,350 -$22,117 $0
Effective Gross Revenue $261,224 $306,016 $344,008 $354,350 $333,897 $374,813 $386,574 $364,364 $408,224 $420,221 $402,982
Operating Expenses Utilities - Electric $25,000 $25,750 $26,523 $27,318 $28,138 $28,982 $29,851 $30,747 $31,669 $32,619 $33,598 Utilities - Gas $4,800 $4,944 $5,092 $5,245 $5,402 $5,565 $5,731 $5,903 $6,080 $6,263 $6,451 Janitorial $20,000 $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 $24,597 $25,335 $26,095 $26,878 Plumbing $500 $515 $530 $546 $563 $580 $597 $615 $633 $652 $672 Fire Protection $500 $515 $530 $546 $563 $580 $597 $615 $633 $652 $672 General Maintenance & Repairs $20,000 $20,600 $21,218 $21,855 $22,510 $23,185 $23,881 $24,597 $25,335 $26,095 $26,878 Pest Control $1,260 $1,298 $1,337 $1,377 $1,418 $1,461 $1,505 $1,550 $1,596 $1,644 $1,693 Locks/Doors/Glass $1,000 $1,030 $1,061 $1,093 $1,126 $1,159 $1,194 $1,230 $1,267 $1,305 $1,344 Signs $500 $515 $530 $546 $563 $580 $597 $615 $633 $652 $672 Insurance $4,457 $4,591 $4,729 $4,871 $5,017 $5,167 $5,322 $5,482 $5,646 $5,816 $5,990 Taxes $36,492 $37,587 $38,715 $39,876 $41,072 $42,305 $43,574 $44,881 $46,227 $47,614 $49,043 Total Operating Expenses $114,510 $117,945 $121,483 $125,128 $128,881 $132,748 $136,730 $140,832 $145,057 $149,409 $153,891
Net Operating Income $146,715 $188,071 $222,525 $229,222 $205,015 $242,065 $249,844 $223,532 $263,166 $270,812 $249,090
33 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Rent Roll
Rentable Square Rent Per Suite Tenant Name Feet Term SF Increase Date Annual Rent Expense Reimbursement Pro-rate Share Comments $15.50 8/1/15 $16.00 8/1/16 150 Frederation Bail Bonds 942 to $16.50 8/1/17 $14,601 NNN 4.87% 7/31/20 $17.00 8/1/18 $17.50 8/1/19
8/1/17 $14.00 160 B.I. Incorporated 2404 to $14.00 8/1/18 (option) $33,656 NNN 12.43% 7/31/18
7/1/16 $12.22 165 Gloria Cisneros Agency 1277 to $13.16 07/01/17 $15,605 NNN 6.60% 9/30/19 $14.10 07/01/18
2/15/18 170 FleetLogix 833 to $15.50 - $12,912 NNN 4.31% 2/28/19
9/1/14 $14.40 190 Dave's Barber Shop 646 to 14.86 09/01/15 $9,302 NNN 3.34% 8/31/19 15.33 09/01/17
9/1/17 $16.50 220 Bob Massie Insurance 670 to $17.00 9/1/19 (option) $11,055 Gross 3.46% 8/31/18 $17.50 9/1/20 (option)
11/10/16 $12.95 250 G2 Secure Staff 1477 to $13.45 01/01/18 $19,127 Gross 7.64% 10/31/19 $13.95 01/01/19
$12.50 6/1/17 260 Visiting Angels 806 to $13.00 06/01/18 $10,075 Gross 4.17% 5/31/20 $13.50 06/01/19
* Expense Reimbursement is NNN for all first floor tenants and Gross for all second floor tenants
34 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Tenant Rollover
40.00% 7 35.00% 6 30.00% 5 25.00% 4 20.00% 3 15.00% 10.00% 2 5.00% 1 0.00% 0 Year End Year End Year End Year End Year End Year End Year End Year End Year End Year End Year End Year End 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Percentage of Square Footage Expiring Number of Tenants Expiring
35 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
Property Tax Assumptions PROPERTY TAX ASSUMPTIONS
2016 Payable 2017 Payable 2017 2018 Actual Value (Land) $448,560 $489,846 Actual Value (Imp) $797,440 $878,154 Actual Value Total $1,246,000 $1,368,000 Assessed Percentage 29% 29% Assessed Value $361,340 $396,720 Mill Levy 93.949 91.985 Assessed Tax $33,947.53 $36,492.29 Taxes/SF $1.76 $1.89
COLORADO RE-ASSESSMENT A property sale does not trigger a reassessment, instead properties are reassessed every odd year. ARGUS MODEL The information for the 2017 payable in 2018 was gathered from the city of Aurora website. OVERVIEW – THE PROPERTY TAX PROCESS The county assessor is responsible for valuing all property in the county as directed by state laws. The assessor’s goal is equalization of property values to ensure that the tax burden is distributed fairly and equitably among property owners.
Property owners have the right to examine the assessor’s property records and to participate in the budget hearings held by school boards, cities and towns, and special districts that levy taxes on your property, as well as the right to protest your property’s value if you disagree with the assessor’s valuation. Additionally, owners have the responsibility to provide accurate information to the assessor about property owned.
The assessor is required to send you a real property Notice of Valuation by May 1 of each year. The notice describes the property, gives the actual or market value for both the prior and current year, and describes the process to present your objections to the assessor. The deadlines for appeal are statutory. CALCULATION OF PROPERTY TAXES Statute provides that the actual value of property is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate,” and the resulting value is called the “assessed value.” The assessment rate is 29 percent for all properties except residential and producing natural resource properties. The residential assessment rate is established by the legislature every odd-numbered year. The intent of having the ability to change the residential assessment rate is to maintain the tax burden balance between residential properties and all other properties. Property taxes are calculated by multiplying the mill levy or tax rate by the assessed or taxable value of a property.
36 CHAMBERS OFFICE CENTRE 15290 E. 6th Avenue, Aurora, CO
37 avisonyoung.com
1801 California Street | Suite 3750 | Denver, CO 80202 For more information, please contact: Tom Crosby, Associate Joella Rodarte, Senior Associate Rick Egitto, CCIM, Principal 303.390.0956 720.508.8109 303.390.0955 © 2018 Avison Young - Northern California, LTD. All rights reserved. [email protected] [email protected] [email protected]