Offering Memorandum 1553 Steele St

OFFERING MEMORANDUM 1553 STEELE ST. DENVER, CO 80206 <ul style="display: flex;"><li style="flex:1">AUSTIN SMITH </li><li style="flex:1">JASON KOCH </li></ul><ul style="display: flex;"><li style="flex:1">Investment Advisor </li><li style="flex:1">Co-Founder/Principal </li></ul><a href="mailto:[email protected]" target="_blank">[email protected] </a>303.868.9096 <a href="mailto:[email protected]" target="_blank">[email protected] </a>303.918.8909 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 PROPERTY OVERVIEW FINANCIALS LOCATION OVERVIEW 01 PROPERTY OVERVIEW PROPERTY HIGHLIGHTS Newly renovated turnkey asset in Capitol Hill. Located less than two blocks from City Park. Great unit mix with studios, 1 bed and 3 bed units. Value Add opportunity to renovate basement. Washer and dryer in every unit. 4 income producing garages in alley. PROPERTY OVERVIEW Units: 7Building SF: Parking: 6,712 Street Parking 7,501 Land: Zoning: U-TU-B 1905 Year Built: Year Renovated: 2018 PROPERTY OVERVIEW SYSTEMS Gas / Elec Meters: Water: Master / Individual Master Trash: Waste Management Pitched Roof: Heating: Boiler Cooling: None 1553 STEELE ST AREA STREET MAP LOCATION MAP <ul style="display: flex;"><li style="flex:1">OWN </li><li style="flex:1">WNT </li><li style="flex:1">DO </li></ul>DENVER CITY PARK 1553 STEELE ST AREA MAP 1553 STEELE ST LOCAL FAVORITES <ul style="display: flex;"><li style="flex:1">OWN </li><li style="flex:1">WNT </li><li style="flex:1">DO </li></ul>DENVER FILLMORE AUDITORIUM WATERCOURSE FOODS OGDEN THEATER DENVER ZOO VOODOO DOUGHNUT MILE HIGH ILLEGAL PETE’S COLFAX TATTERED COVER BOOK STORE COLFAX TACOS TEQUILA WHISKEY CHEESMAN PARK 1553 STEELE ST <ul style="display: flex;"><li style="flex:1">ARK </li><li style="flex:1">CITY P </li></ul>THE UBER SAUSAGE BLUEBIRD THEATER DENVER BISCUIT CO. DENVER BOTANIC GARDENS SPROUTS FARMERS MARKET NATIONAL JEWISH HEALTH CEREBRAL BREWING TAG BURGER BAR PHOTOS 1553 STEELE ST PHOTOS 1553 STEELE ST FLOOR PLANS 5701 W25thStreet Denver,Colorado Warehouse 51'5x19'10 Warehouse Manager 8'6x9'0 Lunch 10'9x7'10 Reception/Waiting/OpenOffice 26'1 x19'1 N1/2Bath Office 10'9x11'6 Floor Plans byOverheadViews, (303)886-9578, [email protected] 02 FINANCIALS Investment Summary Purchase Price: $2,080,000 Units: 7Price Per Unit: Total SF: $297,143 6,712 Price Per SF: T12 Cap Rate: Year 1 Cap Rate: Year 1 Cash Flows: 5 Year IRR: $310 5.01% 5.67% INVESTMENT SUMMARY & DEBT SUMMARY $49,377 26.67% Debt Summary Loan to Value: 75.00% Loan Amount: $1,560,000 60 Months 4.40% Loan Term: Interest Rate: Interest Only Period: Amortization: 12 Months 30 Years UNIT MIX & CURRENT RENTS <ul style="display: flex;"><li style="flex:1">Unit Type </li><li style="flex:1">Unit Amount </li><li style="flex:1">Unit SF Current Ave. Rent </li><li style="flex:1">Current Rent / SF </li><li style="flex:1">Market Rent </li><li style="flex:1">Market Rent / SF </li></ul><ul style="display: flex;"><li style="flex:1">Studio </li><li style="flex:1">2</li></ul>237400 600 983 <ul style="display: flex;"><li style="flex:1">$1,135 </li><li style="flex:1">$2.84 </li></ul>$2.12 $1,175 $1,295 $2,300 $1,691 $2.94 <ul style="display: flex;"><li style="flex:1">$2.16 </li><li style="flex:1">1 Bed / 1 Bath </li></ul>3 Bed / 2 Bath Total / Average $1,273 $2,231 $1,644 $2.39 $2.44 $2.47 $2.49 686 <ul style="display: flex;"><li style="flex:1">Year 1 </li><li style="flex:1">Year 2 </li><li style="flex:1">Year 3 </li><li style="flex:1">Year 4 </li><li style="flex:1">Year 5 </li></ul>RR Annualized REVENUE Gross Potential Revenue Vacancy $131,700 ($6,585) $125,115 $7,680 $143,400 ($7,101) $147,702 ($7,385) $140,317 $7,910 $152,133 ($7,607) $144,526 $8,148 $156,697 ($7,835) $148,862 $8,392 $161,398 ($8,070) $153,328 $8,644 Rental Revenue $136,230 <ul style="display: flex;"><li style="flex:1">$7,680 </li><li style="flex:1">Expense Reimbursements </li></ul>Other Residential Income Effective Gross Revneue <ul style="display: flex;"><li style="flex:1">$1,800 </li><li style="flex:1">$4,500 </li></ul>$148,410 <ul style="display: flex;"><li style="flex:1">$4,635 </li><li style="flex:1">$4,774 </li><li style="flex:1">$4,917 </li><li style="flex:1">$5,065 </li></ul><ul style="display: flex;"><li style="flex:1">$134,595 </li><li style="flex:1">$152,862 </li><li style="flex:1">$157,448 </li><li style="flex:1">$162,172 </li><li style="flex:1">$167,037 </li></ul>EXPENSES Repairs and Maintenance Utilities ($5,950) ($6,300) ($3,360) ($6,181) ($5,950) ($6,300) ($3,360) ($6,181) ($6,129) ($6,489) ($3,461) ($6,366) ($8,139) ($721) ($6,312) ($6,684) ($3,565) ($6,557) ($8,383) ($743) ($6,502) ($6,884) ($3,672) ($6,754) ($8,635) ($765) ($6,697) ($7,091) ($3,782) ($6,957) ($8,894) ($788) Insurance CASH FLOW PROJECTIONS Real Estate Taxes Property Management Admin and Other ($7,902) ($700) ($7,902) ($700) <ul style="display: flex;"><li style="flex:1">Total Expenses </li><li style="flex:1">($30,393) </li></ul>($4,342) ($30,393) ($4,342) ($31,305) ($4,472) ($32,244) ($4,606) ($33,211) ($4,744) ($34,208) <ul style="display: flex;"><li style="flex:1">($4,887) </li><li style="flex:1">Expenses Per Unit </li></ul>Net Operating Income <ul style="display: flex;"><li style="flex:1">$104,202 </li><li style="flex:1">$118,018 </li><li style="flex:1">$121,558 </li><li style="flex:1">$125,204 </li><li style="flex:1">$128,960 </li><li style="flex:1">$132,829 </li></ul>Cap Rate <ul style="display: flex;"><li style="flex:1">5.01% </li><li style="flex:1">5.67% </li><li style="flex:1">5.84% </li><li style="flex:1">6.02% </li><li style="flex:1">6.20% </li><li style="flex:1">6.39% </li></ul>Debt Service - Yr 1 Total Cash Flow ($68,640) $35,562 6.84% ($68,640) $49,377 9.50% ($93,742) $27,816 5.35% ($93,742) $31,462 6.05% ($93,742) $35,218 6.77% ($93,742) $39,087 7.52% Cash on Cash Return RR Annualized REVENUE Gross Potential Revenue Vacancy $131,700 ($6,585) $125,115 $7,680 Rental Revenue Expense ReimbursementS Other Residential Income Effective Gross Revneue $1,800 $134,595 EXPENSES Repairs and Maintenance Utilities ($5,950) ($6,300) ($3,360) ($6,181) HISTORICAL ANALYSIS Insurance Real Estate Taxes Property Management Admin and Other ($7,902) ($700) <ul style="display: flex;"><li style="flex:1">Total Expenses </li><li style="flex:1">($30,393) </li></ul><ul style="display: flex;"><li style="flex:1">($4,342) </li><li style="flex:1">Expenses Per Unit </li></ul><ul style="display: flex;"><li style="flex:1">Net Operating Income </li><li style="flex:1">$104,202 </li></ul>SOLD COMPARABLES Price Per Unit Price Per Foot <ul style="display: flex;"><li style="flex:1">Property </li><li style="flex:1">Address </li><li style="flex:1">Units </li><li style="flex:1">SF </li><li style="flex:1">Price $ </li><li style="flex:1">Cap Rate </li></ul><ul style="display: flex;"><li style="flex:1">(subject) </li><li style="flex:1">1553 Steele St </li></ul>1432 Pennsylvania St 1571 High St 784666,712 8,664 4,847 2,787 3,085 $2,080,000 $2,375,000 $1,705,000 $1,295,000 $297,143 $296,875 $426,250 $215,833 5.67% 5.40% 5.04% 5.67% $310 $274 $352 $465 12<ul style="display: flex;"><li style="flex:1">3</li><li style="flex:1">1200 N Clarkson St </li></ul><ul style="display: flex;"><li style="flex:1">1401 Detroit St </li><li style="flex:1">4</li><li style="flex:1">$1,235,000 </li><li style="flex:1">$205,833 </li><li style="flex:1">$400 </li><li style="flex:1">N/A </li></ul><ul style="display: flex;"><li style="flex:1">Averages </li><li style="flex:1">$1,652,500 </li><li style="flex:1">$286,198 </li><li style="flex:1">$373 </li><li style="flex:1">5.37% </li></ul>2SE COLFAX AVE. 1 4303 LOCATION OVERVIEW

Offering Memorandum 1553 Steele St

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