1475 macon street - loopnet...7. community college aurora centre tech. 8. sand creek park. 9....
TRANSCRIPT
Offering Memorandum
1475 Macon Street
Denver Realty Group
INVESTMENT OVERVIEW
2
PROPERTY DETAILS
8,497Gross Building SF
9,148Lot SF
Property Summary
Address1475 Macon StreetAurora, CO 80010
Number of Units 11
Number of Buildings 1
Number of Stories 3
Year Built 1961
Current Tax Bill $5,882
www.denverrealtygroup.com 3
82Walk ScoreVery Walkable
85Bike ScoreVery Bikeable
INVESTMENT HIGHLIGHTS
• New Roof and Boiler• New granite countertops, new cabinets,
updated appliances and bathrooms• Located in an Opportunity Zone• Within a mile from Anschutz Medical
Campus• Close proximity to Lowry, Stanley
Marketplace, and Stapleton
www.denverrealtygroup.com 4
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
1475 Macon St.
1 2 3
4
5
6
7
8
9
10
11
12
13
14
15
www.denverrealtygroup.com 5
AERIAL MAP
www.denverrealtygroup.com 6
1475 Macon Street
E C
olfa
x A
ven
ue
Anschutz Medical Campus
INTERIOR
FINANCIAL ANALYSIS
UNIT MIX
Unit Type# of Units
Avg. Rentable SF
Total Rentable SF
1BD/1BA 3 615 SF 1,845 SF
2BD/1BA 8 815 SF 6,520 SF
Total / Wtd. Avg: 11 760 SF 8,365 SF
Current Rent/Unit
Current Rent/SF
Total Current Rent
$943 $1.53 $2,830
$1,112 $1.36 $8,895
$1,066 $1.40 $11,725
Pro Forma Rent/Unit
Pro Forma Rent/SF
Total Pro Forma Rent
$1,000 $1.63 $3,000
$1,300 $1.60 $10,400
$1,218 $1.60 $13,400
www.denverrealtygroup.com 10
1BD/1BA 2BD/1BACurrent Rent/Unit $943 $1,112Pro Forma Rent/Unit $1,000 $1,300
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2BD/1BA 1BD/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
www.denverrealtygroup.com 11
INCOME & EXPENSES
Historical Cash Flow
Operating Revenue Total $/Unit $/GSF %PMR
Potential Market Rent $140,700 $12,791 $16.56 100.0%
Vacancy ($7,035) ($640) ($0.83) (5.0%)
Garage $5,400 $491 $0.64 3.8%
Laundry $1,835 $167 $0.22 1.3%
Effective Gross Revenue $140,900 $12,809 $16.58 100.1%
Operating Expenses Total $/Unit $/GSF %EGR
Real Estate Taxes ($5,882) ($535) ($0.69) (4.2%)
Repairs & Maintenance ($14,075) ($1,280) ($1.66) (10.0%)
Insurance ($4,795) ($436) ($0.56) (3.4%)
Gas/Electric ($3,866) ($351) ($0.45) (2.7%)
Water/Sewer ($7,098) ($645) ($0.84) (5.0%)
Trash Removal ($3,456) ($314) ($0.41) (2.5%)
Management Fee ($9,485) ($862) ($1.12) (6.7%)
Total Expenses ($48,657) ($4,423) ($5.73) (34.5%)
Net Operating Income $92,243 $8,386 $10.86 65.5%
Pro Forma Cash Flow
Total $/Unit $/GSF %PMR
$160,800 $14,618 $18.92 100.0%
($8,040) ($731) ($0.95) (5.0%)
$5,400 $491 $0.64 3.4%
$1,835 $167 $0.22 1.1%
$159,995 $14,545 $18.83 99.5%
Total $/Unit $/GSF %EGR
($5,882) ($535) ($0.69) (3.7%)
($8,800) ($800) ($1.04) (5.5%)
($4,939) ($449) ($0.58) (3.1%)
($3,982) ($362) ($0.47) (2.5%)
($7,311) ($665) ($0.86) (4.6%)
($3,560) ($324) ($0.42) (2.2%)
($7,250) ($659) ($0.85) (4.5%)
($41,723) ($3,793) ($4.91) (26.1%)
$118,272 $10,752 $13.92 73.9%
www.denverrealtygroup.com 12
PRICING & LOAN SUMMARY
Offering Summary
Purchase Price $1,550,000
Price per SF $182.42
Price per Unit $140,909
Historical Cap Rate / Pro Forma 5.95% / 7.63%
Historical GRM / Pro Forma 11.02x / 9.64x
Historical Cash-on-Cash / Pro Forma 6.62% / 13.33%
Acquisition Debt Summary
Loan Amount (75%) $1,162,500
Down Payment (25%) $387,500
Interest Rate 4.00%
Amortization 30 years
Annual Debt Service -$66,599
Net Cash Flow After Debt Service $20,863 / $46,747
Principal Reduction $20,400
Total Return ($) $41,263 / $67,147
Total Return (%) 10.65% / 17.33%
Property Summary
Historical NOI $92,243
Pro Forma NOI $118,272
No. Of Units 11
GSF 8,497
www.denverrealtygroup.com 13
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
www.denverrealtygroup.com 14
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
www.denverrealtygroup.com 16
Paul HansonAssociate [email protected]
Wan LimAssociate [email protected]
www.denverrealtygroup.com 17
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.
www.denverrealtygroup.com 18
CONTACT:
Scott WhitfieldAssociate [email protected] 303.919.7967
www.denverrealtygroup.com 19
Paul HansonAssociate [email protected]
Ryan FloydAssociate [email protected] 720.335.1469
Wan LimAssociate [email protected]