1520 York Street Omfinal.Indd6.28.19.Indd
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FOR SALE 1520 YORK STREET DENVER, CO 80206 A 4-UNIT CONVERTED MANSION IN CITY PARK WEST Capital Markets | Investment Properties ROBERT BRATLEY CBRE Multifamily C+1 541 729 9667 P+1 303 583 2032 [email protected] FOR SALE 1520 YORK STREET THE OFFERING CBRE is pleased to offer for sale 1520 York Street, a four-unit converted mansion located in the City Park West neighborhood. PROPERTY OVERVIEW YEAR BUILT 1893 NUMBER OF APARTMENTS 4 TOTAL BUILDING AREA 5,144 SF AVERAGE UNIT SIZE 1,286 SF PRICE $1,150,000 PRICE PER/SF $223.56 AVERAGE MARKET RENT $1,568 AVERAGE MARKET RENT PER/SF $1.22 1520 YORK STREET| 3 FOR SALE 1520 YORK STREET INVESTMENT HIGHLIGHTS • 1520 York Street is a four-unit, value-add opportunity. The buildings show pride of ownership by the current owners, but substantially higher rents are immediately achievable with upgrades to the interiors over the long term. • Select units at the property have air conditioning, a fenced yard, dishwashers, microwaves, hardwood fl oors, newer windows, vaulted ceilings, skylights, and exposed brick. The carriage house includes a new roof and recent servicing of the air conditioner. The property also has a sprinkler system, laundry room, private patio and grilling area and motion-sensor security lights. • The property is in a highly walkable location in the City Park West neighborhood. The brand-new Carla Madison Rec Center & Dog Park is located less than a block away and City Park is two blocks. 1520 York Street also benefi ts from the rejuvenation of Colfax Avenue where highly desirable restaurants, bars, social hangouts and coffee shops are located including Tacos Tequila Whiskey, Okinawa, Colfax Sports & Brew, SAME Café, Illegal Pete’s, Tattered Cover Book Store, Starbucks, Denver Biscuit Company, The Bluebird Theatre, Sprouts Market and many more. In addition, Restaurant Row along 17th Avenue is within walking distance and includes Vine Street Pub & Brewery, St. Mark’s Coffee House, The Thin Man, The Weathervane Café, Olive & Finch, Patxi’s Pizza, Dos Santos, and White Pie. • The property has a great unit mix consisting mainly of two- and three-bedrooms units. All have spacious fl oor plans where additional bathrooms or upgrades can be added to increase revenue. • The property includes six parking spaces that can be utilized for a substantial increase in additional income. In the fourth quarter 2018 the average vacancy rate in the City Park submarket for apartment buildings with eight or fewer units remained at 0.0% for the third consecutive quarter. Due to this high demand, average rents increased 4.7% by the fi rst quarter 2019 to $1,281 per month. • 1520 York Street is within walking distance of the $700 million St. Joseph Hospital redevelopment. This facility includes St. Luke’s Medical Center and Children’s Hospitals which account for a combined 7,045 healthcare jobs. The property is also a short commute to National Jewish Health and Rose Medical Center which include another 2,069 jobs. Downtown Denver is very close as well with more than 133,500 jobs. 4 | 1520 YORK STREET FOR SALE 1520 YORK STREET COMMUNITY AMENITIES • In the heart of Colfax Avenue’s restaurants, bars, coffee shops and entertainment venues • Less than one block from the Carla Madison Rec Center & Dog Park • Near multiple RTD bus stops • Two blocks from Restaurant Row • Walking distance to St. Joseph Hospital redevelopment • Less than ten minutes to downtown Denver 1520 YORK STREET| 5 FOR SALE 1520 YORK STREET PROPERTY DETAILS ADDRESS 1520 York St. Denver, CO 80206 UNITS 4 TOTAL SQUARE FOOTAGE 5,144 Square Feet ZONING C-MS-5 LOT SIZE 5,915 Square Feet CONSTRUCTION DETAILS CONSTRUCTION TYPE Converted Mansion FOUNDATION Concrete & Brick SIDING Brick, Wood & Stone ROOFING Pitched Shingle UTILITIES ELECTRICITY Sub-Metered, Tenant Paid GAS Sub-Metered, Tenant paid WATER, SEWER & TRASH Master Metered, Tenant Paid PARKING OFF-STREET PARKING SPACES 6 PARKING RATIO 1.50 LEASING DETAILS APPLICATION FEE $50 PET RENT $25 PET FEE $250 OFF STREET PARKING FEE $65 6 | 1520 YORK STREET FOR SALE 1520 YORK STREET FINANCIAL SUMMARY PROPERTY OVERVIEW YEAR ONE OPERATING SUMMARY NUMBER OF UNITS 4 PER UNIT TOTAL EFFECTIVE GROSS YEAR BUILT 1893 $20,370 $81,479 INCOME PRICE $1,150,000 LESS:OPERATING 3,961 15,845 PRICE PER UNIT $287,500 EXPENSES LESS:CAPITAL PRICE PER/SF $223.56 250 1,000 RESERVES NET RENTABLE SF 5,144 NET OPERATING $16,159 $64,634 AVG. PROFORMA RENT PER UNIT $1,568 INCOME AVG. PROFORMA RENT PER/SF $1.22 LESS:DEBT SERVICE 10,706 42,824 NET CASH FLOW $5,453 $21,810 (AFTER DEBT SERVICES) FINANCIAL RETURNS FINANCIAL ASSUMPTIONS PROPOSED NEW LOAN 2018 AS-IS CAP RATE 3.90% INITIAL EQUITY $402,500 PROFORMA CAP RATE 5.62% PROPOSED NEW LOAN $747,500 PROFORMA CASH-ON CASH RETURN 5.32% AMOUR LEVERAGED IRR LOAN-TO-VALUE 65% 5 YEAR HOLD 11.64% INTEREST RATE 4.00% 10 YEAR HOLD 12.16% LOAN TERM 5 YEARS ALL CASH IRR AMORTIZATION 30 YEARS ANNUAL PAYMENT 5 YEAR HOLD 7.11% $42,824 (AMORTIZED) 10 YEAR HOLD 7.63% LOAN CONSTANT 5.73% DEBT SERVICE COVERAGE 1.51 RATIO 1520 YORK STREET| 7 FOR SALE 1520 YORK STREET HISTORICAL ANALYSIS 2018 ACTUAL YEAR ONE PROFORMA INCOME ASSUMPTIONS GROSS SCHEDULED RENT $56,400 3.0% $77,497 LESS:GAIN/LOSS-TO-LEASE 0.0% 0 (1.0%) ($775) GROSS POTENTIAL INCOME $56,400 $76,722 LESS:VACANCY 0.0% $0 (5.0%) ($3,875) TOTAL RENTAL INCOME 100.0% $56,400 94.0% $72,847) PLUS: OTHER INCOME $0 $0 $363 $1,450 PLUS UTILITY INCOME $606 $2,423 $684 $2,736 PLUS:PARKING INCOME $0 $0 $1,112 $4,446 EFFECTIVE GROSS INCOME $58,823 $81,479 EXPENSES PER UNIT ACTUAL PER UNIT PROFORMA EXP. REPAIRS & MAINTENANCE $485 $1,940 $600 $2,400 CONTRACT SERVICES $0 $0 $250 $1,000 TURNOVER COSTS $0 $0 $250 $1,000 ADMINISTRATIVE $348 $1,393 $200 $800 UTILITIES $606 $2,423 $900 $3,600 TOTAL VARIABLE EXPENSES $1,439 $5,756 $2,200 $8,800 TAXES $786 $3,142 $1,361 $5,445 INSURANCE $1,262 $5,046 $400 $1,600 CAPITAL RESERVES $0 $0 $250 $1,000 TOTAL EXPENSES $3,486 $13,944 $4,211 $16,845 NET OPERATING INCOME $44,879 $64,634 8 | 1520 YORK STREET FOR SALE 1520 YORK STREET UNIT MIX MONTHLY MONTHLY ANNUAL MONTHLY PROFORMA ACTUAL TOTAL UNIT TYPE UNITS % SF PROFORMA PROFORMA PROFORMA ACTUAL RENT/SF RENT/SF SF RENTS RENT TOTAL RENT TOTAL RENT TOTAL STUDIO 1 25.0% 533 $895 $1.68 $895 $10,740 $800 $1.50 533 2 BED X 1 BATH 2 50.0% 1,259 $1,563 $1.24 $3,125 $37,500 $1,200 $0.95 2,518 3 BED X 1 BATH 1 25.0% 2,093 $2,250 $1.08 $2,250 $27,000 $1,500 $0.72 2,093 TOTAL/AVG. 4 100.0% 1,286 $1,568 $1.22 $6,270 $75,240 $1,175 $0.91 5,144 By Bedroom Type By Square Feet 1,700 1200 25% Two 25% Bedroom Studio 50% 25% 1,000 400 Three 25% 25% Bedroom 25% 1520 YORK STREET| 9 FOR SALE 1520 YORK STREET SERVICE & OTHER INCOME SERVICE & OTHER INCOME YEAR ONE PROFORMA APPLICATION FEES 4U X 40% RELETS X 175% X $50 $35 $140 OTHER INCOME 188 750 NON-REFUNDABLE PET FEE 4U X 40% RELETS X 35% PETS X $250 35 140 MONTHLY PET RENT 4U X 35% PETS X $25 X 12 MO. 105 420 TOTAL SERVICE &OTHER INCOME $363 $1,450 UTILITY INCOME UTILITY INCOME 4U X $60 X 12 MO. X 95% OCC. $684 $2,736 TOTAL UTILITY INCOME $684 $2,736 PARKING INCOME GARAGE INCOME 6 SPACES AT $65/MO. AT 95% OCC. $1,112 $4,446 TOTAL PARKING INCOME $1,112 $4,446 10 | 1520 YORK STREET FOR SALE 1520 YORK STREET TAX ANALYSIS DENVER COUNTY 2018 TAXES PAYABLE 2019* PARCEL MILL LEVY FULL CASH VALUE ASSESSMENT RATIO ASSESSED VALUE TAX 0236309007000 0.077365 $920,500 7.20% $66,276 $5,127 VALUATION PER UNIT: $230,125 TAXES PER UNIT $1,282 DENVER COUNTY 2019 TAXES PAYABLE 2020 & 2020 PAYABLE 2021** PARCEL MILL LEVY FULL CASH VALUE ASSESSMENT RATIO ASSESSED VALUE TAX 0236309007000 0.077365 $977,500 7.20% $70,380 $5,445 VALUATION PER UNIT: $244,375 TAXES PER UNIT: $1,361 *2018 Taxes Payable 2019 are based on the Assessor’s Appraised Value of $230,125 per unit. **2019 Txes Payable 2020 & 2020 Taxes Payable 2021 are based on a sales price of $287,500 per unit discounted to 85% and the assumption that the Mill Levy and Assessment Ratio will remain the same as in 2018. 1520 YORK STREET| 11 FOR SALE 1520 YORK STREET MARKET OVERVIEW Carla Madison Rec Center & Dog Park This state-of-the-art, $44 million building opened in January 2018. The 67,000-square foot facility has 28 amenities including two pools, a climbing wall, spin studio, weight and cardio rooms, gymnasium, rooftop event space and a dog park. Memberships start at just $30 per month. Colfax Avenue Over the past several years, Colfax Avenue has emerged as one of central Denver’s strongest retail corridors. Dozens of new restaurants, coffee shops, bars and retailers have moved to East Colfax as the area continues to redevelop and improve. However, many historic establishments remain a staple for local residents. Many of Denver’s best are within walking distance of 1520 York including Tacos Tequila Whiskey, Illegal Pete’s, DC Pie Co., SAME Café, Pete’s Kitchen, Squire Lounge, Voodoo Doughnuts, Irish Snug, Ogden Theatre, Fillmore Auditorium, Tattered Cover, Bluebird Theater, Bastien’s, Cerebral Brewing, Sprouts Market and many more.