1438 Macon Street - LoopNet...Paul Hanson Associate Broker [email protected]...

Offering Memorandum

1438 Macon Street

Denver Realty Group

INVESTMENT OVERVIEW

2

PROPERTY DETAILS

7,389Gross Building SF

10,324Lot SF

Property Summary

Address1438 Macon StreetAurora, CO 80010

Number of Units 12

Number of Buildings 1

Number of Stories 2

Year Built 1962

Current Tax Bill $5,664

www.denverrealtygroup.com 3

82Walk ScoreVery Walkable

85Bike ScoreVery Bikeable

INVESTMENT HIGHLIGHTS

• Located in an Opportunity Zone

• Within a mile from Anschutz Medical Campus

• Close proximity to Lowry, Stanley Marketplace, and Stapleton


AREA MAP

1. North Aurora Division

2. Anschutz Medical Campus

3. Hillcrest Village Resort

4. Del Mar Park

5. Aurora Hills Golf Course

6. Town Center at Aurora

7. Community College Aurora Centre Tech

8. Sand Creek Park

9. Stapleton

10. Denver School of Arts

11. Community College of Aurora Lowry

12. Air and Space Museum

13. Rose Medical Center

14. Denver Zoo

15. Cherry Creek

1438 Macon St.

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AERIAL MAP


1438 Macon Street

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olfa

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Anschutz Medical Campus

INTERIOR

FINANCIAL ANALYSIS

UNIT MIX

Unit Type# of Units

Avg. Rentable SF

Total Rentable SF

1BD/1BA 11 560 SF 6,160 SF

Studio/1BA 1 500 SF 500 SF

Total / Wtd. Avg: 12 555 SF 6,660 SF

Current Rent/Unit

Current Rent/SF

Total Current Rent

$848 $1.51 $9,325

$829 $1.66 $829

$846 $1.52 $10,154

Pro Forma Rent/Unit

Pro Forma Rent/SF

Total Pro Forma Rent

$1,000 $1.79 $11,000

$875 $1.75 $875

$990 $1.78 $11,875


1BD/1BA Studio/1BACurrent Rent/Unit $848 $829Pro Forma Rent/Unit $1,000 $875

$0

$200

$400

$600

$800

$1,000

$1,200

1BD/1BA Studio/1BA

RENT ROLL

Unit # Unit Type Unit Bed Unit Bath Unit SF Current RentAnnual

Current RentCurrent Rent/SF

Pro Forma Rent

Annual Pro Forma Rent

Pro Forma Rent/SF


INCOME & EXPENSES

Historical Cash Flow

Operating Revenue Total $/Unit $/GSF %PMR

Potential Market Rent $121,848 $10,154 $16.49 100.0%

Vacancy ($6,092) ($508) ($0.82) 5.0%

Late Fees $450 $38 $0.06 0.4%

Effective Gross Revenue $116,206 $9,684 $15.73 95.4%

Operating Expenses Total $/Unit $/GSF %EGR

Real Estate Taxes ($5,664) ($472) ($0.77) (4.9%)

Repairs & Maintenance ($12,485) ($1,040) ($1.69) (10.7%)

Insurance ($5,450) ($454) ($0.74) (4.7%)

Gas/Electric ($6,670) ($556) ($0.90) (5.7%)

Water/Sewer ($7,174) ($598) ($0.97) (6.2%)

Trash Removal ($1,536) ($128) ($0.21) (1.3%)

Management Fee ($8,135) ($678) ($1.10) (7.0%)

Total Expenses ($47,114) ($3,926) ($6.38) (40.5%)

Net Operating Income $69,092 $5,758 $9.35 59.5%

Pro Forma Cash Flow

Total $/Unit $/GSF %PMR

$142,500 $11,875 $19.29 100.0%

($7,125) ($594) ($0.96) (5.0%)

$450 $38 $0.06 0.3%

$135,825 $11,319 $18.38 95.3%

Total $/Unit $/GSF %EGR

($5,664) ($472) ($0.77) (4.2%)

($9,600) ($800) ($1.30) (7.1%)

($5,500) ($458) ($0.74) (4.0%)

($6,870) ($573) ($0.93) (5.1%)

($7,389) ($616) ($1.00) (5.4%)

($1,582) ($132) ($0.21) (1.2%)

($8,379) ($698) ($1.13) (6.2%)

($44,984) ($3,749) ($6.09) (33.1%)

$90,841 $7,570 $12.29 66.9%


PRICING & LOAN SUMMARY

Offering Summary

Purchase Price $1,550,000

Price Per SF $209.77

Price Per Unit $129,167

Historical Cap Rate / Pro Forma 4.46% / 5.86%

Historical GRM / Pro Forma 12.72x / 10.88x

Historical Cash-on-Cash / Pro Forma 2.36% / 6.08%

Acquisition Debt Summary

Loan Amount (75%) $1,162,500

Down Payment (25%) $387,500

Interest Rate 4.00%

Amortization 30 Years

Annual Debt Service -$66,000

Net Cash Flow after Debt Service / Pro Forma $12,998 / $34,628

Principal Reduction $20,400

Total Return ($) / Pro Forma $33,398 / $55,028

Total Return (%) / Pro Forma 8.62% / 14.2%

Property Summary

Historical NOI $69,092

Pro Forma NOI $90,841

No. Of Units 12

GSF 7,389


DENVER REALTY GROUP, LLC(DRG)

5925 E Evans Avenue, #300

Denver, CO 80222

Tel: 303.502.7333

Fax: 888.274.7626

Non-EndorsementsDenver Realty Group is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Denver Realty Group, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Denver Realty Group, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Denver Realty Group is a service mark of Denver Realty Group, LLC. ©2019 Denver Realty Group. All rights reserved.

www.DenverRealtyGroup.com

NON-ENDORSEMENT & DISCLAIMER NOTICE


ABOUT DRG

15

MEET THE TEAM

Scott WhitfieldAssociate [email protected] 303.919.7967

Ryan FloydAssociate [email protected]

Zack KobilcaFounder / Managing [email protected] 303.828.7091

Jacob ChaseManaging [email protected] 720.758.6375

Lauren RichardsonDirector of [email protected] 720.537.9891

Kelly WilliamsMarketing [email protected] 303.502.7333


Paul HansonAssociate [email protected]

Wan LimAssociate [email protected]


ABOUT DENVER REALTY GROUP

Denver Realty Group Structure

Founded in 2008, DRG is wholly owned and operated by Zack Kobilca and Jacob Chase (the “DRG Principals”). DRG is a Denver-based full-service real estate business, comprised of three main operating businesses: Property Management, Investing and Brokerage.

Property Management

DRG operates a full-service property management business, serving both affiliated and third-party owners of properties ranging from single family homes through large apartment complexes. The property management business currently has nearly 3,000 units in its portfolio. The property management business employs a full team of leasing agents, in-house maintenance and cleaning staff, and office staff designed to handle the demands of property operations. While the property management business has grown through acquisitions, it also actively solicits third party management projects.

Investing

The DRG Principals serve as anchor investors, investment advisors, and property managers to nine investment partnerships which collectively own over 40 apartment buildings comprising over 1,350 apartment units, ranging in size from 10 to 200+ units. These investing partnerships have a solid track record of attractive purchase prices, and through DRG property management services, have achieved excellent operational results from selective value-added renovations, and efficient leasing management. A tenth partnership also owns a portfolio of single-family homes, also managed by DRG. Total asset value owned and managed by the DRG Principals is over $150 million.

Real Estate Brokerage

DRG also operates as an independent brokerage business, with agentstransacting both residential and commercial real estate. The brokerage business currently comprises over 30 real estate agents and is actively recruiting new agents to feed the synergies between all three operating business units. The brokerage business has transacted over $100 million of property value in each of the last five years and has over $1 billion since inception.

WHY DRG

Dedication To Constant Improvement

We strive to continually add to our value offering while at the same timeincreasing the efficiency in which we provide our services. Every day ourbusiness positioning will either increase or decrease in the minds of ourcustomers and relative to our competition – we are dedicated to makingeach day count.

Passion To Compete

We welcome the challenge of competition in our business. It pushes us toimprove ourselves, and ultimately results in a better outcome for ourstakeholders. We view winning as a rewarding signal of a job well done.We differentiate themselves by welcoming the opportunity to excel inchallenging circumstances.

Excellent Capital Allocation

As time and money are always limited, we are dedicated to good practicesensuring they are distributed in the most efficient manner possible. We arededicated to optimizing the use of all our resources.

Market And Output-based Management

DRG is a believer in the market system as an efficient distributor ofresources. Compensation, promotion, and recognition will not followseniority or title, but will accompany employee output and contribution.


CONTACT:

Scott WhitfieldAssociate [email protected] 303.919.7967


Paul HansonAssociate [email protected]

Ryan FloydAssociate [email protected] 720.335.1469

Wan LimAssociate [email protected]

1438 Macon Street - LoopNet...Paul Hanson Associate Broker [email protected]...

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