OFFERINGMEMORANDUM3014 MALLARD DR

COLORADO SPRINGS, CO 80910

JEFF DIMMENInvestment Sales Advisor

jdimmen@capstone-companies.com719.459.5756

LEE WAGNERInvestment Sales Advisor

lwagner@capstone-companies.com417.459.2155

TABLE OF CONTENTS

EXECUTIVE SUMMARY

PROPERTY OVERVIEW

FINANCIAL OVERVIEW

LOCATION OVERVIEW

EXECUTIVESUMMARY

Room for rent growth.

Recently renovated units.

All utilities billed to tenants in arrears.

Low maintenance costs.

PROPERTYHIGHLIGHTS

PROPERTYOVERVIEW

AREA STREET MAP

TE

AL

CT

MALLARD DR

3 0 1 4 M A L L A R D D R

LOCATION MAP

25

21

24

3014 M A L L A R D D R

COLORADOSPRING AIRPORT

VALLEY HIGOLF COURSE

PROSPECTLAKE

COUNTRY CLUBOF COLORADO

THEBROADMOOR

BEAR CREEK REGIONALPARK EAST

PATTY JEWETTGOLF COURSE

DOWNTOWNSPRINGS

3.6 miles away

AREA MAP

3 0 1 4 M A L L A R D D R

NEIGHBORHOOD MAP

RETAIL

DINING

LIFESTYLE

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Burger King

Taco Bell

Wingstop

Popeyes Louisiana Kitchen

Amy's Donuts

Pueblo Viejo Mexican Restaurant

Tong Tong

Market Square Shopping Center

Walgreens

The Home Depot

Walmart

Safeway

Walmart Neighborhood Market

Save A Lot

Valley Hi Golf Course

Leon Young Sports Complex

Planet Fitness

Springs Adventure Park

Mountain Vista Community School

Memorial Park

Colorado Springs Airport

Amazon Fulfillment Center

15

16

17

18

19

20

21

22

25S

AC

AD

EMY

BLVD

1

2

3

45

6

7

11

12

13

14

10

9 8

15

1718

19

20

21

22

16

3 0 1 4 M A L L A R D D R

PHOTOS3014 MALLARD DR

PHOTOS3014 MALLARD DR

PROPERTY DETAILS3014 MALLARD DR

BUILDING DETAILS

Units:

Building SF:

Parking:

Land:

Zoning:

Year Built:

SYSTEMS

Unit Type

1 Bed / 1 Bath

2 Bed / 1 Bath

Total/Average

Unit Amount

1

3

4

Unit SF

600

840

780

Current Avg. Rent

$775

$900

$869

Current Rent/SF

$1.29

$1.07

$1.13

Market Rent

$875

$975

$950

Market Rent/SF

$1.46

$1.16

$1.24

UNIT MIX & CURRENT RENTS

Gas / Elec Meters:

Water:

Trash:

Roof:

Heating:

Cooling:

Master / Individual

Master

Springs Waste

Pitched

Boiler

None

4

3,360

8

5,691

R5

1969

FINANCIALOVERVIEW

INVESTMENT SUMMARY

Purchase Price: $515,000

4

$128,750

3,360

$153

6.20%

6.92%

$13,298

10.64%

Units:

Price Per Unit:

Total SF:

Price Per SF:

T12 Cap Rate:

Year 1 Cap Rate:

Year 1 Cash Flows:

5 Year IRR:

DEBT SUMMARY

INVESTMENT &DEBT SUMMARY

80.00%

$412,000

60 Months

4.00%

30 Years

Loan to Value:

Loan Amount:

Loan Term:

Interest Rate:

Amortization:

CASHFLOW PROJECTIONST12 Year 1 Year 2 Year 3 Year 4 Year 5

REVENUE

Gross Potential Revenue $41,700 $45,600 $46,968 $48,377 $49,828 $51,323

Vacancy ($2,085) ($2,280) ($2,348) ($2,419) ($2,491) ($2,566)

Rental Revenue $39,615 $43,320 $44,620 $45,958 $47,337 $48,757

Expense Reimbursements $3,600 $3,600 $3,708 $3,819 $3,934 $4,052

Other Residential Income $600 $600 $618 $637 $656 $675

Effective Gross Revenue $43,815 $47,520 $48,946 $50,414 $51,926 $53,484

EXPENSES

Repairs and Maintenance ($3,600) ($3,600) ($3,708) ($3,819) ($3,934) ($4,052)

Vacancy ($3,600) ($3,600) ($3,708) ($3,819) ($3,934) ($4,052)

Insurance ($2,776) ($2,776) ($2,859) ($2,945) ($3,033) ($3,124)

Vacancy ($1,503) ($1,503) ($1,548) ($1,595) ($1,642) ($1,692)

Admin and Other ($400) ($400) ($412) ($424) ($437) ($450)

Total Expenses ($11,879) ($11,879) ($12,235) ($12,602) ($12,981) ($13,370)

Expenses Per Unit ($2,970) ($2,970) ($3,059) ($3,151) ($3,245) ($3,342)

NET OPERATING INCOME $31,936 $35,641 $36,710 $37,812 $38,946 $40,114

Cap Rate 6.20% 6.92% 7.13% 7.34% 7.56% 7.79%

Debt Service - Yr 1 ($22,343) ($22,343) ($22,343) ($22,343) ($22,343) ($22,343)

Total Cash Flow $9,593 $13,298 $14,367 $15,469 $16,603 $17,771

Cash on Cash Return 9.31% 12.91% 13.95% 15.02% 16.12% 17.25%

ADDRESS UNITS SFPROPERTY

(subject)

1

2

3

4

Averages

PRICE $

$557,500

PRICE PER UNIT

$139,375

PRICE PER FOOT

$145

SOLD COMPS

3014 Mallard Dr

1820 Monterey Road

357 Gahart Dr

4050 Airport Road

4390 Loomis Ave (Pending)

4

4

4

4

4

3,360

4,016

4,164

3,420

3,908

$515,000

$560,000

$525,000

$570,000

$575,000

$128,750

$140,000

$131,250

$142,500

$143,750

$153

$139

$126

$167

$147

S2

4

1

325

LOCATIONOVERVIEW

DEMOGRAPHICS

AREASTREET MAP

1,763

669

365

2.57

167

502

30.3

$31,263

$43,594

6,363

2,610

1,417

2.39

816

1,793

30.6

$33,958

$44,936

12,167

4,974

2,771

2.40

2,024

2,950

31.4

$38,088

$48,873

1,839

704

380

2.55

179

525

31.5

$33,235

$46,555

6,617

2,727

1,465

2.38

866

1,861

31.1

$36,180

$48,537

12,719

5,225

2,879

2.39

2,154

3,071

31.8

$40,432

$52,927

CENSUS 2020 SUMMARY .25m .5m .75m

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

CENSUS 2025 SUMMARY .25m .5m .75m.25 MILE

.5 MILE

.75 MILE

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

COLORADO SPRINGS NOTABLE RANKINGS#1 MOST DESIRABLE PLACE TO LIVE(U.S. NEWS & WORLD REPORT, 2018)

#1 MOUNTAIN CITY(MONEY MAGAZINE, 2016)

3RD BEST CITYFOR LIVABILITY

(U.S. NEWS & WORLD REPORT, 2016)

#1 BEST CITY TO LIVE

(MONEY MAGAZINE)

5TH BEST REAL ESTATE MARKET

(WALLETHUB, 2018)

#2 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT, 2018)

TOP 5 RENT GROWTH MARKET IN THE U.S.

(AXIOMETRICS)

#2 FITTEST CITY IN AMERICA(MEN'S FITNESS)

#21 BEST CITY IN AMERICA FOR STARTING A BUSINESS

(INC'S, 2019 )

NATIONAL HUB FOR CYBERSECURITY - ROOT9B - #1 SECURITY COMPANY

IN THE WORLD(U.S. NEWS & WORLD REPORT, 2016)

10% INCREASE IN MEDIAN HOME PRICES

Y-O-Y(NATIONAL ASSOCIATION OF REALTORS, 2018)

COLORADO SPRINGS

Pikes Peak

Garden of the Gods Park

The Broadmoor Seven Falls

Cave Of The Winds Mountain

Cheyenne Mountain Heritage Center

Cheyenne Mountain Zoo

Colorado Springs Fine Arts Center

Colorado Springs Pioneers

Peterson Air and Space Museum

United States Air Force Academy

Olympic Training Center

The 186-square mile city of Colorado Springs is located near the base of one of the most famous

American mountains, Pikes Peak, and 61 miles south of Denver. Popular destinations include:

It is one the fastest growing cities in Colorado, and in the country. With an estimated population of

456,568, Colorado Springs is the most populous city in El Paso County and it is estimated that the

population will increase 58.6% by 2050. In 2019 the city was ranked #29 in the nation for fastest

growing large cities (over 300,000 people) by Wallethub.

Many factors contribute the popularity of the city, as well as the unprecedented growth. The city was

ranked "Most Desirable Place to Live" in 2018 by US News.

Along with many trails and parks, major attractions include:

U.S. Olympic Museum & Hall of Fame

Professional Soccer Stadium

Multi-use Stadium - directly across from soccer stadium

82 acre master planned redevelopment across from both new stadiums

3,000 seat NCAA D-1 Hockey Arena

University of Colorado Sports Medicine and Performance Center

4 Downtown Hotels

Colorado Springs Fine Arts Center

2,700 apartment units under construction, 2,800 more planned.

Amazon Fulfillment Center

COLORADO SPRINGSGROWTHColorado Springs is currently undergoing a downtown transformation. These new developments are

the seeds of a new and modern downtown at the heart of Colorado Springs. The entertainment,

restaurants and services that follow will contribute to a re-imagined experience for both visitors and

residents. The energy and vibrancy will further the quality of life enjoyed by this community that attracts

top jobs and talent. These benefits radiate beyond downtown into the greater metro area.

Here are the upcoming additions:

Colorado Springs is heavily influenced by the military. Approximately 5.40% of the city’s population is in the military, and the military presence accounts for nearly 40% of the city’s economy with an annual impact of $2.5 billion. Additionally, a significant number of defense corporations and bases are located within the area. El Paso County is unique as the only county in the nation that is home to five military commands:

Together, these bases employ approximately 60,000 people and contribute almost $6 billion to the local economy. Putting these numbers in context, the Pikes Peak region has a population of almost 680,000 people and a salaried workforce of 257,000 people.

Although the military population in Colorado Springs has been declining over the past few years due to reduced defense spending from the 2011 sequestration plan, some of the military bases, such as Fort Carson, have added to their capabilities and troop levels as other bases around the country were forced to close.

Andy Merritt, Chief Defense Industry Officer of the Colorado Springs Regional Business Alliance, continues to work with many people, organizations and the regional government to support our military retention efforts. Military operations in Colorado Springs have been supported, enhanced, and grown in the area for over fifty years.

Fort Carson

U.S. Air Force Academy

Peterson Air Force Base

Schriever Air Force

Base Cheyenne Mountain

MILITARY INCOLORADO SPRINGS

AIR FORCE ACADEMYThe U.S. Air Force Academy, located north of Colorado Springs, is both a military organization and University for the undergraduate education of officers for the United States Air Force. Graduates of the four-year program receive a Bachelor of Science degree and most are commissioned as Second Lieutenants. The Academy is also one of the largest tourist attractions in Colorado, welcoming more than one-million visitors each year.

The U.S. Air Force Academy is among the most selective colleges in the United States. Candidates are judged based on their academic achievement, demonstrated leadership, athletics and character. The academy offers more than 500 courses across 32 academic disciplines. To gain admission, candidates must also pass a fitness test, undergo a thorough medical examination and secure a nomination, which usually comes from one of the candidate’s members of Congress. Recent incoming classes have usually consisted of about 1,400 cadets; just under 1,000 of those usually make it through to graduation. Cadets pay no tuition, but are committed to serve a number of years in the military service after graduation.

In addition to serving 4,400 cadets, the U.S. Air Force Academy employs 300 Air Force and civilian support personnel and manages more than $250 million worth of staff agencies and faculty resources. The surrounding military community includes 25,000 people, including 3,000 military, civilian, and contract personnel who conduct all base-level support activities, including law enforcement and force protection, civil engineering, communications, logistics, financial management, the clinic, and other services.

The academy is also well-known for its stunning chapel. The $3.5 million aluminum, glass, and steel structure is 150 feet tall and features 17 spires. The chapel was recently named one of CNN’s most epic churches in America. The building contains a separate chapel for four major religious faiths — Protestant, Catholic, Jewish, and Buddhist — plus an all-faiths room used by Muslim cadets and available for members of the other faiths as well. Each chapel has its own entrance, and services may be held simultaneously without interfering with one another.

*Some information sourced from http://www.usafa.af.mil/About-Us/Base-Information

U.S. OLYMPIC MUSEUMThe U.S. Olympic Museum will be located where many Olympic and Paralympic dreams begin – at 6,035 feet above sea level, in the shadow of Pikes Peak – just a few blocks away from the United States Olympic Committee headquarters in Colorado Springs. This will be the first full-fledged Olympic museum in the United States and will be developed on 1.7 acres of land in Colorado Springs’ Southwest Downtown Urban Renewal District, creating a stunning gateway to Downtown Colorado Springs and America the Beautiful Park. It is set to open in early 2020 and has an estimated cost of roughly $75 million.

The Museum is dedicated to U.S. Olympic and Paralympic athletes and their compelling stories. It will be a world-class destination, with the artifacts, media and technology behind the athletes who make the United States proud. It will focus on the core values of the Olympic and Paralympic movements: friendship, respect and excellence; determination, equality, inspiration and courage.

While The Olympic Training Center draws about 130,000 visitors a year. Museum officials are expecting their 60,000-square-foot showcase to eventually draw up to 350,000 a year, with more than half the visitors coming from outside the state. The 60,000-square-foot building will embody the forward-looking values of Team USA, with 20,000 square feet of highly interactive exhibit space, a state-of-the-art theater, gift shop, café, and broadcast studio.

BROADMOOR HOTELThe Broadmoor in Colorado Springs is known for being a member of the Historic Hotels of America of the National Trust for Historic Preservation, as well as the longest-running consecutive winner of both the AAA Five-Diamond and Forbes Five-Star awards. The property originally started as a dairy farm, was turned into a casino in 1891, and became a hotel in 1918. Blending European elegance and Western hospitality, The Broadmoor has been the destination of a long list of presidents, statesmen, foreign dignitaries, sports stars, and celebrities. The Broadmoor is not only the premier attraction for the Springs, but draws consistent visitors nationwide.

The Broadmoor continues to offer impeccable service, distinctive amenities, and endless opportunities to explore the picturesque mountains, streams, and canyons that have inspired generations. The hotel offers over 185,000 square feet of meeting space and 779 rooms including suites, cottages, and cabins. Fine dining includes 18 award-winning restaurants and lounges, including the Five Diamond Penrose Room. The Forbes Five-Star Spa at The Broadmoor offers luxurious spa services. The Broadmoor features three of Colorado’s championship golf courses and is also ranked among the Top 10 tennis resorts in the United States. Additionally, there are 26 specialty shops located across from the resort. Nearby activities include fly fishing, horseback riding, waterfall treks, and ziplining adventures.

MANITOU SPRINGSManitou Springs is a small town located at the base of Pike’s Peak, just 15 minutes west of Colorado Springs with about six miles from one downtown to the other. “Manitou” is a Native American word meaning “great spirit.” The Ute, Cheyenne and other Native Americans considered this area sacred for its healing springs and clean mountain air. Manitou Springs features eight naturally carbonated mineral spring fountains, which are free to use. Health and wellness continues to be a draw for residents and visitors who come to the area for its unparalleled quality of life and holistic, spiritually uplifting charm. Additionally, with Colorado Springs banning recreational marijuana stores, Manitou Springs has emerged as the closest option for those in Colorado Springs to purchase marijuana.

Manitou Springs is a vibrant artisan community with art, music, theater, and sidewalk sculpture displays. The Historic District is lined with unique art galleries, one of a kind gift shops, and trading posts with handcrafted Native American treasures. It is also home to dozens of artists and art galleries.

Manitou Springs is known for its proximately to Pikes Peak. The Manitou and Pikes Peak Cog Railway take travelers to the top of Pikes Peak with an elevation of 14,115 feet. For those that prefer to walk, there are a variety of hiking trails leading to spectacular views at the top, with the 13-mile Barr Trail serving as one of the most popular routes. The area also features the famous Garden of the Gods Park and The Incline, a popular hiking train that gains over 2,000 feet of elevation in less than 1 mile. The Cave of the Winds, Miramont Castle, and Cliff Dwellings Museum are also popular destinations. Additionally, the North Pole and Santa’s Workshop, Cheyenne Mountain Zoo, Seven Falls, Dinosaur Resource Center, Colorado Wolf and Wildlife Center, and the Air Force Academy are all a short drive away.

CAPSTONE BROKERS3014 MALLARD DR

COLORADO SPRINGS, CO 80910

JEFF DIMMENInvestment Sales Advisor

jdimmen@capstone-companies.com719.459.5756

EMILY HAMPSON Transaction Coordinator

ehampson@capstone-companies.com719.776.0916

WALLIS HUTCHENSHR & Operations Manager

whutchens@capstone-companies.com828.850.9033

LEE WAGNERInvestment Sales Advisor

lwagner@capstone-companies.com 417.459.2155

KIM HOFFMarketing Manager

khoff@capstone-companies.com 612.669.2068

Capstone Apartment Partners has been engaged as the exclusive listing Broker representative of the Owner for the sale of this property. No contact shall be made by any prospective purchaser or agents to the Owner, its executives, staff, personnel, tenants, or related parties.

This Investment Offering Memorandum is a confidential solicitation of interest, and the information provided herein is provided for the sole purpose of considering the purchase of the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property or to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Investment Offering Memorandum or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Purchase Agreement on terms acceptable to the Owner. By receipt of this Offering Memorandum, prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the Owner from any and all liability with respect hereto. The enclosed materials are being provided solely to facilitate the prospective purchaser’s own due diligence for which the purchaser shall be fully and solely responsible. All information contained herein is confidential in nature, and recipient agrees not to photocopy, duplicate, forward, distribute, or solicit third party interest without written permission and consent from Owner or Capstone Apartment Partners.

Neither Capstone Apartment Partners nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to the future performance of the Property.

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CONFIDENTIALITY DISCLAIMER