INVESTMENT

HIGHLIGHTS

OLIVE REAL ESTATE GROUP, INC 102 N CASCADE AVE, SUITE 250, COLORADO SPRINGS, CO 80903 t. 719.598.3000 f.719.598-0089 www.olivereg.com

EXECUTIVE SUMMARY

Park Plaza consists of 24 individual condominium units

and is currently under common ownership & rented as

an investment property.

These units could be sold as individual condos, offering

substantial upside potential. All units have separate legal

descriptions & individual schedule numbers. Unit configu-

ration consists of 12 one-bedroom units and 12 two-

bedroom units. New roof and Boiler in 2001.

PARK PLAZA CONDOMINIUMS 1614 Rainier Drive, Colorado Springs, CO 80910

Separately platted condominiums

Value add opportunity

Desirable location

Close to shopping

Exceptional mountain views

Well-maintained property

Close to public transit/bus line

Air Conditioned (second and third floors)

Minutes from I-25, Hwy 24, Ft Carson & Downtown

School District 2

Rent growth with continued upside potential

24 CONDOMINIUMS | $1,080,000 | 7.92%CAP

PROPERTY SUMMARY

Number of Units ............. 24

Site Size ........................... .59 AC

Building Size ................... 23,034 SF

Rentable SF ................... 17,556

Year Built ........................ 1965

Offering Price ................ $1,080,000

Offering Price/Unit ........ $45,000

Offering Price/SF ........... $46.89

Cap Rate

2011 Actuals .............. 7.92%

Proforma .................... 9.97%

Unit Mix

12 x 1 bedroom, 1 bathroom……608 Sq. Ft.

12 x 2 bedroom, 1 bathroom…….855 Sq. Ft.

Laundry

Coin-operated, on site.

HVAC

All units have individual forced air furnaces.

Upper two levels have air conditioning units.

Zoning

R5 (Multi Family Residential) City of Colorado Springs

Utilities

Water, Wastewater, Natural Gas & Electric

Colorado Springs Utilities / CSU can be reached at

719.448.4800 or online at www.csu.org

Unit Interiors

Individually condoed units offer potential of strong

upside value. All units have separate furnaces. Hot

water is from a common source.

Common Amenities

Three story building with interior hallways.

Sufficient off-street parking. There is no elevator.

Site Layout

The property is situated just east of Circle Drive, offer-

ing easy access to Hwy 24 Bypass, Interstate 25, Down-

town & Fort Carson. Walking distance to shopping

centers and bus lines.

Ingress/Egress

Access to the property is directly off of Rainier Drive, with surface

parking on south and west sides of the property.

Tax Schedule No’s

64281-02-014 thru 037

Park Plaza is separately platted as 24 individual condominiums. All

units are currently held by one owner. However the opportunity to

sell as individual units offers strong upside potential

Park Plaza Condominiums

Aerial

Average Rents from 5/30/12 Rent Roll

Unit Type Unit Count Square Feet Total SqFt Rent Per Unit Rent Per SqFt Total Monthly Rent

Studio/1 Bath 0 0 0 0 0 $0

1 Bd/1Ba 12 606 7,272 $460 .78 $5,520

2 Bd/1Ba 12 855 10,260 $545 .70 $6,540

Total 24 23,034* $12,060

Market Rents

Unit Type Unit Count Square Feet Total Sq Ft Rent Per Unit Rent Per SqFt Total Monthly Rent

Studio/1 Bath 0 0 0 0 0 $0

1 Bd/1Ba 12 606 7,272 $499 .82 $5,988

2 Bd/1Ba 12 855 10,260 $575 .67 $6,900

Total 24 23,034* $12,888

*Total building square feet

Financial Analysis

Income & Expenses

2011 2011 Per Unit Proforma Proforma Per Unit

RENTAL INCOME $ 138,132.00 $ 5,755.50 $ 154,656.00 $ 6,444.00

Vacancy $ 16,444.63 $ 685.19 $ 10,825.92 $ 451.08

Loss to Lease

EFFECTIVE RENTAL INCOME $ 121,687.37 $ 5,070.31 $ 143,830.08 $ 5,992.92

Concessions

Past Due Collected

Prepayments $ (1,589.35) $ (66.22) $ (1,589.35) $ (66.22)

Laundry & Vending $ 1,970.03 $ 82.08 $ 1,970.03 $ 82.08

Misc. Income $ 1,840.00 $ 76.67 $ 1,840.00 $ 76.67

Late Charges $ 1,670.00 $ 69.58 $ 1,670.00 $ 69.58

Utility Reimbursement $ 12,044.84 $ 501.87 $ 12,044.84 $ 501.87

GROSS REVENUE $ 137,622.89 $ 5,734.29 $ 159,765.60 $ 6,656.90

OPERATING EXPENSES

Real Estate Taxes $ 4,704.00 $ 196.00 $ 4,704.00 $ 196.00

Personal Property Taxes

Property Insurance $ 5,175.00 $ 215.63 $ 5,175.00 $ 215.63

Administrative

Payroll

Expenses/Benefits

Taxes/Worker's Compensation

Repairs and Maintenance $ 7,637.43 $ 318.23 $ 7,637.43 $ 318.23

Turnover Costs $ 2,719.09 $ 113.30 $ 2,719.09 $ 113.30

Utilities & Trash $ 30,852.58 $ 1,285.52 $ 30,852.58 $ 1,285.52

Management Services

Accounting and Legal $ 828.29 $ 34.51 $ 828.29 $ 34.51

Licenses/Permits

Supplies

Miscellaneous Contract Services $ 198.00 $ 8.25 $ 198.00 $ 8.25

Replacement Reserves

TOTAL OPERATING EXPENSES $ 52,114.39 $ 2,171.43 $ 52,114.39 $ 2,171.43

NET OPERATING INCOME $ 85,508.50 $ 3,562.85 $ 107,651.21 $ 4,485.47

Debt Service $ 47,647.00

CASH FLOW $ 58,619.00

Summary Rent Roll / March 2013

Unit Rent Misc Charges Total Charges Move-in Lease End

PPA-011 650.00 0.00 650.00 8/1/2008 3/31/2012

PPA-012 520.00 60.00 580.00 11/1/2013 11/30/2013

PPA-013 565.00 0.00 565.00 8/1/2008 8/31/2012

PPA-014 404.00 60.00 464.00 4/8/1901 3/31/2013

PPA-015 449.00 60.00 509.00 7/25/2012 7/31/2013

PPA-016 449.00 60.00 509.00 9/24/2012 9/30/2013

PPA-017 525.00 85.00 610.00 8/1/2012 7/31/2013

PPA-018 520.00 80.00 600.00 3/5/2010 3/31/2013

PPA-021 549.00 101.00 650.00 2/28/2012 2/28/2013

PPA-022 549.00 80.00 629.00 8/13/2012 8/31/2013

PPA-023 390.00 60.00 450.00 7/31/2009 10/31/2013

PPA-024 449.00 60.00 958.00 2/8/2013 2/28/2014

PPA-025 449.00 60.00 509.00 12/11/2012 12/31/2013

PPA-026 450.00 0.00 450.00 8/1/2008 3/31/2012

PPA-027 549.00 81.00 630.00 2/10/2012 2/28/2013

PPA-028 591.00 0.00 591.00 3/1/2011 2/28/2013

PPA-031 499.00 80.00 579.00 5/21/2011 5/31/2012

PPA-032 509.00 80.00 589.00 5/20/2011 5/31/2012

PPA-033 450.00 0.00 450.00 8/1/2008 5/31/2009

PPA-034 450.00 77.00 77.00

PPA-035 449.00 60.00 509.00 6/28/2012 6/30/2013

PPA-036 449.00 65.00 514.00 4/2/2012 4/30/2013

PPA-037 599.00 0.00 599.00 10/29/2008 10/30/2009

PPA-038 515.00 85.00 600.00 8/11/2009 2/28/2013

Security Deposit Rented Total Charges

$9,034 $11,978.00 13,405.00

Total Units: 24 Vacant Units: 1

Financial Analysis

Financing Assumptions

New Loan Balance $810,000

Interest Rate 4.25%

Amortization 30 Years

Loan-to-Value 75%

Monthly Payment $3,970.00

Proforma

Asking Price $1,080,000

Per Unit $45,000

Per Square Foot $46.89

All Cash IRR 15.54%

Leveraged IRR 35.43%

Proforma Cash on Cash 21.71%

Cap Rate 9.97%

Profit & Loss / 2011 (Cash Basis) INCOME

4000 Property Income

4010 Rent 121,687.37

4040 Prepayments -1,589.35

4130 Late Fees Income 1,670.00

4140 Laundry Income 1,970.03

4150 Month-to-Month Fees 940.00

4180 Pet Income 900.00

4000 Total Property Income 125,578.05

4300 Reimbursements

4320 Cleaning Reimbursement 803.00

4350 Legal Reimbursement 251.85

4360 Other Reimbursement 994.14

4370 Trash Reimbursement 108.00

4380 Utilities Reimbursement

4381 Electric 660.00

4380 Other Utilities Reimbursement 9,227.85

4380 Total Utilities Reimbursement 9,887.85

4300 Total Reimbursements 12,044.85

TOTAL INCOME 137,622.89

EXPENSES

5000 Property Operating Expenses 6000 Turnover Cost

5001 Administrative Expenses 5780 Painting/Drywall/Tiling 240.50

5230 Legal & Professional 828.29 6001 Maintenance Supplies - Turn 250.45

5001 Total Administrative Expenses 828.29 6080 Carpet Cleaning 395.00

6090 Cleaning 1,894.00

5500 Maintenance 6115 Locks & Keys 137.14

5600 Exterior Maintenance 6000 Total Turnover Cost 2,917.09

5620 Exterior Lighting 60.00

5625 Glass & Screen Repair 740.74 6400 Taxes & Insurance

5635 Pest Control 85.00 6460 Property Insurance 5,175.00

5645 Roof Repairs 343.30 6480 Real Property Taxes 4,704.00

5600 Total Exterior Maintenance 1,229.04 6400 6400 Total Taxes & Insurance 9,879.00

5650 Grounds Maintenance 6500 Utilities

5651 Maintenance Supplies - Grounds 13.94 6540 Electricity 10,139.09

5660 Grounds Pick Up 100.00 6580 Gas 7,030.78

5670 Landscaping 315.00 6600 Water 6,905.97

5680 Snow Removal 81.50 6630 Waste Water 3,873.69

5690 Sprinkler System 35.00 6660 Trash 2,903.05

5650 Total Grounds Maintenance 545.44 6500 Total Utilities 30,852.58

5700 Interior Maintenance 5000 Total Property Operating Expenses 52,114.39

5701 Maintenance Supplies - Interior 696.33

5715 Appliance Repair 258.00 TOTAL EXPENSE 52,114.39

5730 Electrical 122.04

5760 Heating System 1,190.00

5770 Lock Repairs 550.83 NOI 85,508.50

5790 Plumbing 961.28

5700 Total Interior Maintenance 3,778.48

5800 Other Maintenance

5820 General Labor 2,084.47

5800 Total Other Maintenance 2,084.47

5500 Total Maintenance 7,637.43

Financial Analysis

PARK PLAZA CONDOMINIUMS

1/1/2011 - 12/31/2011

Total Income

$137,622.89

Total Expenses

$52,114.39

Net Operating Income

$85,508.50

C O M P A R A B L E A P A R T M E N T S A L E S

Market Comps

Subject Property

Park Plaza Condominiums

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M This Investment Memorandum (“Memorandum”) is furnished to prospective purchasers solely to facilitate the purchaser’s consideration of the property known as

Park Plaza (1614 Rainier Dr.) located in Colorado Springs, CO (“Property”). The Memorandum contains proprietary information and was prepared by Olive Real Es-

tate Group, Inc. using information compiled from sources we consider to be reliable. However, the Seller makes no representations or warranties herein and the

building is being sold in an “as is, where-is” condition. By receipt of this Memorandum, you agree that: (a) the Memorandum and its contents are of a confidential

nature and that you will hold and treat it in strictest confidence; (b) you will not reproduce, transmit or disseminate the information contained in the Memorandum

through any means, or disclose this Memorandum or any of its contents to any other entity without the prior written authorization of Olive Real Estate Group, Inc. nor

will you use this Memorandum or any of its contents in any fashion or manner detrimental to the interests of Olive Real Estate Group, Inc. or seller; and (c) upon

request you will return the Memorandum without retaining any copy or extracting any portion thereof. This Memorandum does not purport to be all-inclusive or to

contain all the information which prospective purchasers may desire. Certain documents, including leases and other materials, are described herein in summary

form. The summaries are not complete descriptions of the full agreements. Interested parties are expected to review all such documents independently. Financial

projections are provided for reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond the

control of Olive Real Estate Group, Inc. and are, therefore, subject to material variation. Additional information and an opportunity to inspect the Property will be

made available to qualified prospective purchasers upon request. Each purchase offer is to be based strictly and entirely upon the purchaser’s independent investi-

gation, analysis appraisal and evaluation of facts and circumstances deemed relevant by the purchaser. Neither Olive Real Estate Group, Inc. nor any of its respec-

tive directors, officers or affiliates have made any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any

of its contents, and no legal commitment or obligation shall arise by reason of this Memorandum or its contents. This offering is submitted and received with the

understanding that all offers for the acquisition of the herein described property will be conducted through Olive Real Estate Group, Inc. The sellers and Olive Real

Estate Group, Inc. expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate

discussions with any entity at any time with or without notice. If you have no interest in the Property at this time, please return this Offering Memorandum to:

Olive Real Estate Group, Inc. 102 N Cascade Ave, Suite 250, Colorado Springs, CO 80903

H A Z A R D O U S M A T E R I A L S D I S C L O S U R E Various construction materials may contain items that have been or may in the

future be determined to be hazardous (toxic) or undesirable and may need to

be specifically treated, handled or removed. Real estate agents have no exper-

tise in the detection or correction of hazardous or undesirable items. Expert

inspections are necessary. Current or future laws may require cleanup of such

materials. It is the responsibility of the buyer to retain qualified experts to de-

tect and correct such matters and to consult with legal counsel of their choice

to determine if such materials are present and if so, to determine what, if any-

thing, the buyer needs to do because of the presence of such materials.

A M E R I C A N S W I T H D I S A B I L I T I E S A C T

The United States Congress has enacted the Americans with Disabilities Act.

Among other things, it is intended to make many business establishments

equally accessible to persons with a variety of disabilities; modifications to real

property may be required. Other state and local laws also may mandate chang-

es. The real estate brokers in this transaction are not qualified to advise you as

to what, if any, changes may be required now, or in the future. Bidders should

consult attorneys and qualified design professionals of their choice for infor-

mation regarding these matters. Real estate brokers cannot determine which

attorneys or design professionals have the appropriate expertise in this area.

C O M P A R A B L E A P A R T M E N T S A L E S M A P

Park Plaza Condominiums

C. Stuart Sloat

stuartsloat@olivereg.com

102 N CASCADE AVE, SUITE 250, COLORADO SPRINGS, CO 80903 / T. (719) 598-3000 / F. (719) 578-0089 / www.olivereg.com

INFORMATION CONTAINED HEREIN, WHILE NOT GUARANTEED, IS FROM SOURCES WE BELIEVE TO BE RELIABLE. PRICES, TERMS AND INFORMATION SUBJECT TO CHANGE.

RADIUS MILE 1 MILE 3 MILE 5

Population 16,529 115,844 231,758

Average HH Income $38,219 $42,025 $50,387

No of Households 6,132 45,261 90,545

Family Households 4,009 27,856 57,003

Over 21 Years of Age 11,079 80,886 164,725

Renter Occupied Units 3,994 25,849 45,786

Renter Length of Res 6.2 5.8 5.8

DRIVE TIME 5 MIN 10 MIN 15 MIN

Population 13,500 67.892 127,809

Average HH Income $38,836 $45,468 $51,845

No of Households 7,199 56,760 135,822

Family Households 7,755 38,852 76,465

Over 21 Years of Age 22,122 114,497 220,342

Renter Occupied Units 7,887 35,040 59,211

Renter Length of Res 6.1 5.9 5.8 20

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