Apache Court Motel & Apartments 3401 W Pikes

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Apache Court Motel & Apartments 3401 W Pikes APACHE COURT MOTEL & APARTMENTS 3401 W PIKES PEAK 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 Colorado 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. Walking distance to U.S. News & World Report many tourist and entertainment venues. The Apache Court Motel and Apartments has 16 2018-2019 units that have been used as a furnished apartment and short term rental (STR). The motel license allows it to have the benefit of following limited motel rules versus the increasingly difficult short term rental rules constantly being adopted by the city. Apache Court Motel and Apartments was built in 1946 and the historic sign on the corner is part of a local his- #1 toric tour and is called the “Happy Indian”. Mid-Sized American Cities for Human Capital and Lifestyle • Rare opportunity to own a short-term rental product in highly restricted environment. fDi Intelligence • All units on short leases with opportunity to instantly increase rents/income. • Irreplaceable location at the base of the Rocky Mountains with several hiking trails within #1 walking distance. Fastest Growing City for Millennials Brooking’s Institution • Outstanding in place cash flow and cap rate. 2018 • Fully furnished units that are attracting a consistent tenant base with minimal marketing. • Link to Photo Gallery #2 https://tours.mediamaxphotography.com/public/vtour/display/1610112#!/ Best Places to Live U.S. News & World Report 2018 #4 Business Friendly City Thumbtack 2018 7 denverrealtygroup.com PROPERTY DETAILS | LOCATION Name: Apache Court Motel and 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 and HS | UNIT SUMMARY Studio/ 1 bedroom: 16 8 denverrealtygroup.com INVESTMENT SUMMARY INVESTMENT SUMMARY Offering Price $1,695,000 Units 16 Price/Unit $105,938 Total SF 4,833 Price/SF $351 NOI $143,921 Pro-Forma NOI $161,784 GRM 10.18 Pro-Forma GRM 7.90 Cap Rate 8.49% 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 $7,750 $1,400 $9,800 1 Bedroom Manager 1 $800 $800 $1,200 $1,200 Total 16 $991 $15,200 $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 $182,700 $11,419 $232,200 $14,513 Vacancy ($9,135) ($571) ($11,610) ($726) Rent Received $173,565 $10,848 $220,590 $13,787 Other income $0 $0 $0 $0 Expense Reimbursements $270 $17 $270 $17 Total Revenue $173,835 $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 $143,291 $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 $1,695,000 16 $105,938 - COMPS 1 2815 King St. $1,000,000 8 $125,000 Jun-20 2 1505-1511 E Kiowa 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 CHASE SULLIVAN Investment Advisor Principal of Sales Principal of Sales Investment Advisor [email protected] [email protected] [email protected] [email protected] 303.887.4955 303.990.4361 303.725.4442 812.320.2207 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. CHASE SULLIVAN Broker Associate [email protected] 812.320.2207 16th Street Mall 15 denverrealtygroup.com APACHE COURT MOTEL & 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.
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