12121 GRANT STREET - LoopNet...The global data center market is estimated to reach revenues of around $174 billion by 2023. Growing at a CAGR of approximately 4% during the forecast

1 2 1 2 1 G R A N T S T R E E TOffering MemorandumNET LEASED DATA CENTER & VALUE-ADD OFFICE INVESTMENT

THORNTON, COLORADO 80241

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N O N - E N D O R S E M E N T N O T I C E C O N F I D E N T I A L I T Y & D I S C L A I M E R NON-ENDORSEMENT NOTICE

Marcus & Millichap 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Activity ID: ZAA0050560

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1 2 1 2 1 G R A N T S T R E E T

Exclusively Listed By

BRANDON KRAMERSenior Associate | Director, NOIPG

Denver OfficeDirect: 303.328.2020 // Mobile: 605.390.1248

[email protected]

JAKE KLIMASBroker Associate | Member, NOIPG

Denver OfficeDirect: 303.328.2070 // Mobile: 303.956.6469

[email protected]

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TSNET LEASED DATA CENTER & VALUE-ADD OFFICE INVESTMENT

THORNTON, COLORADO 80241

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1 2 1 2 1 G R A N T S T R E E T

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Table of Contents

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COMPARABLE PROPERTIES // 32 Sales Comparables • Sales Comparables Map03MARKET OVERVIEW // 40 Location Overview • Location Highlights Local Attractions

EXECUTIVE SUMMARY // 08 Offering Summary • Summary of TermsInvestment Overview • Investment Highlights

02 FINANCIAL ANALYSIS // 16 Property Details • Tenant Overview • Local Map Retail Aerial Map • Rent Roll Summary • Operating Expense Summary

NET LEASED DATA CENTER & VALUE-ADD OFFICE INVESTMENTTHORNTON, COLORADO 80241

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E X E C U T I V E S U M M A R Y

12121 GRANT STREET

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Net Leased Data Center & Value-Add Office Investment, Thornton, Colorado 80241

OFFERING PRICE 10-YEAR IRR AVERAGE

SUMMARY

Price $32,000,000

Existing NOI $1,138,487

Year 2 Pro Forma Cap Rate 11.48%*

Price/SF $119.80

Gross Square Feet 267,117 SF

Occupancy 50.58%

1 2 1 2 1 G R A N T S T R E E T

O F F E R I N G S U M M A R Y

$32,000,000 23.55% ANNUAL

*Year 2 Pro Forma Cap Rate. (Accounting for 1-year to lease up vacant space).

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INTEREST OFFERED

Marcus & Millichap has been selected to exclusively market for sale 12121 Grant Street, Thronton, Colorado 80241.

TERMS OF SALE

12121 Grant Street is offered at $32,000,000 based on a price per square foot of $119.80.

PROPERTY TOURS

Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site management or staff be contacted without prior approval.

S U M M A R Y O F T E R M S

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The Kramer Group of Marcus & Millichap is pleased to present 12121 Grant St, located in Thornton, CO 80205. This 267,117 SF building features office and datacenter space. The steel construction building is 7-stories high and sits on 12 acres of land. The facility is situated in the Washington Square Business Park, which is home to many businesses and communication companies, most notably Google. The building provides a high amount of visibility, and is easily seen from I-25, Colorado’s most traveled interstate. You have quick access to Downtown Denver, which is only 10 miles away. The property benefits from a direct fiber line to 1500 Champa in Downtown Denver. This line provides a direct connection to major carriers throughout Colorado, reducing overall latency.

The main anchor tenant is Avaya (AVYA: NYSE). Avaya provides digital communications products, solutions, and services for business worldwide. Avaya provides services through 220,000 customer locations worldwide and is considered the largest pure-play UC and CC company. Currently ranking No.1 in CC and No. 2 in UC and collaboration.

The second tenant is Hensel Phelps, which is one of the largest general contractors and construction managers in the United States. Founded in 1937, Hensel Phelps focuses on offering a full range of construction services that combine proven processes with the latest technology becoming a single source solution for most client’s needs.

I N V E S T M E N T O V E R V I E W

I N V E S T M E N T H I G H L I G H T S•

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Current NOI of $1,138,487

Year 2 Cap Rate 11.48% (Accounting for 1 year to add occupancy)

Unleveraged IRR 12.91%, Leveraged IRR of 23.55%

Steel and Concrete Construction, with 10K SF of existing SCIF Space

Triple Net Lease with nationally recognized businesses (Avaya & Hensel Phelps)

44% of the building Net-Leased to Avaya through 2025

Mission Critical Site for Avaya Operations, including 10K SF of SCIF Space

Direct Fiber Connection to Downtown Denver (1500 Champa)

7MW of Power (Expandable), 3,000 Tons of Cooling, Five 1200 KW Generators with 30,000 Gallons of Diesel

Over $20 Million invested into infrastructure and tenant improvements

Value-Add Through Office Space and Expanded Data Center Leasing

Prominent Location with Great Access and Visibility to I-25 in North Denver

Close Proximity to RTD Park & Ride and Light Rail

481 Parking Spaces (2.07/1,000 SF)

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Global internet traffic is expected to exceed 4.8 zettabytes by 2022. This is a 3X increase over the last five years. The IDC expects 175 zettabytes of data worldwide by 2025, this is a 61% increase from current levels. The demand for data is not slowing down and only going to increase as technology advances. We are already a data driven world, and it would be safe to say that data will become one of the most valuable commodities in the world.

With the advent of booming technologies such as artificial intelligence, virtual reality, and machine learning, the world is seeing rapidly increasing demand for more data storage and stronger processing power. The Internet of Things (IoT)-interconnected smart devices that include AI assistants and autonomous cars-will also generate much more data than we could ever have imagined.

The global data center market is estimated to reach revenues of around $174 billion by 2023. Growing at a CAGR of approximately 4% during the forecast period. The demand for data centers is growing 30% per year in the U.S. and 70% in China. The sector in general is expected to double in size by 2021 partly due to demand for cloud computing.

This is an opportunity to own an asset that will participate in the massive growth potential of the “Big Data” era. Due to the hybrid nature of the property being split between office and data center, you can take advantage of the diversification this asset offers to a portfolio. Reduced correlation to the traditional real estate sector provides a hedge while simultaneously taking advantage of the soon to be most valuable commodity in the world.

Colorado has a relative lack of supply when compared to other markets due to high barriers to entry. Landlords can demand higher rent because of the low supply and minimal options. The tenants face a tremendous risk and expense, if they decide to leave due to the amount of investment involved in the operations on the tenant side. In a sense, this creates a small monopoly which is beneficial to the owner.

D A T A C E N T E R I N D U S T R Y O V E R V I E W

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P R O P E R T Y S U M M A R Y

12121 GRANT STREET

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P R O P E R T Y D E T A I L S

12121 GRANT STREET | NET LEASED DATA CENTER & OFFICE INVESTMENT

Property Address 12121 Grant Street, Thornton, CO 80241

Number of Buildings 1

Number of Stories 7

Year Built/Renovated 1983/2014

Building Size 267,117 SF

Lot Size 12.0 Acres (522,720 SF)

Parking 481 Parking Spaces (2.07/1,000 SF)

Utilities: Electric7MW Power (Expandable) and Five 1200KW

Backup Generators with 30,000 Gallon Diesel Storage

Utilities: Cooling 3,000 Tons of Cooling Capacity

Tenant SF % Share Commence End Current Rent Current Reimbursement Options

Avaya 117,700 44.05% 11/1/2014 5/31/2025 $1,786,394.76 $943,612.68 Two, 5-Year at 2.5% Increase

Hensel Phelps 17,425 6.52% 6/15/2017 5/31/2022 $279,999.97 $113,962.68 Two, 3-Year at Market

JAB Wireless 0 0 4/1/2018 3/31/2019 $14,758.44 $0 None

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T E N A N T P R O F I L E - A V A Y A

Avaya is an American multinational technology company headquartered in Santa Clara, California, that specializes in business communications, specifically unified communications (UC), contact center (CC), and services. Serving organizations at 220,000 customer locations worldwide, Avaya is the largest pure-play UC and CC company, ranking No. 1 in CC and No. 2 in UC and collaboration. The company had FY17 revenues of $3.3 billion, 78% of which was attributed to software and services.

In 1995, Lucent Technologies was spun off from AT&T, and Lucent spun off units of its own in an attempt to restructure its struggling operations.

Avaya was then spun off as its own company in 2000. It remained a public company from 2000 to 2007, when it was purchased by private equity firms.

In 2001, the Mark Avaya Interaction Center for customer relationship management began, enabling businesses to draw multi-platform call centers to multimedia, multi-site contact centers. A proposed "converged communications" road map focused on the role that applications would play in making communications improve business performance.

On December 15, 2017, it again became a public company, trading under the stock ticker AVYA.

Lease Abstract

Tenant Avaya

SF 117,700

% Share 44.05%

Commence 11/1/2014

End 5/34/2025

Current Rent $1,786,394.76

Current Reimbursement $943,612.68

Options Two, 5-Year at 2.5% Increase

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T E N A N T P R O F I L E - H E N S E L P H E L P S

Hensel Phelps Construction Co. is one of the largest general contractors and construction managers in the United States, ranked consistently among ENR's (Engineering News-Record) top 20 Contractors. Founded in 1937 as a small, local builder in Greeley, Colorado, Hensel Phelps has grown into a multibillion-dollar employee owned, national contractor with an eclectic and unparalleled portfolio of successfully completed projects.

People, Process, Partnership, Technology. These are the main elements to The Hensel Phelps Way.

As an employee-owned company, Hensel Phelps culture is based on dedication and commitment to achieving Performance for our clients

and employees. Established in 1937, Hensel Phelps celebrates over three-quarters of a century in the construction industry as a direct

result of the performance of our people who focus on providing clients a higher level of service.

Hensel Phelps Plans, Builds and Manages a diverse range of domestic and international project types that encompass development, new

construction and renovation, facilities management for a variety of project types, including aviation and transportation, commercial office,

educational, government, healthcare, mission critical, hospitality and leisure, industrial, justice and public safety, lab and research, multi-

residence, museum and library, and more. Hensel Phelps is an industry leader in the successful delivery of projects for both the public

and private sectors providing real estate development, construction and facilities management services to support our clients needs.

Lease Abstract

Tenant Hensel Phelps

SF 17,425

% Share 6.52%

Commence 6/15/2017

End 5/31/2022

Current Rent $279,999.97

Current Reimbursement $113,962.68

Options Two, 3-Year at Market

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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

Potential Gross Revenue

Base Rental Revenue $2,092,602 $4,265,115 $4,507,692 $4,555,196 $4,603,892 $4,662,737 $4,963,249 $5,077,058 $5,098,839 $5,098,839 $5,098,839

Absorption & Turnover Vacancy (385,195) (24,685) (446,550) (28,316)

Scheduled Base Rental Revenue 2,092,602 3,879,920 4,483,007 4,555,196 4,603,892 4,662,737 4,516,699 5,048,742 5,098,839 5,098,839 5,098,839

Expense Reimbursement Revenue

Cleaning Expenses 42,286 74,731 86,498 88,709 90,482 92,293 86,384 95,500 97,943 99,900 101,899

Electrical Maintenance 21,106 37,300 43,173 44,275 45,162 46,063 43,116 47,665 48,884 49,862 50,859

HVAC Maintenance 15,793 27,913 32,304 33,130 33,793 34,470 32,264 35,667 36,579 37,310 38,057

Plumbing 2,529 4,469 5,175 5,305 5,412 5,519 5,167 5,712 5,858 5,976 6,095

Elevator Maintenance 14,596 25,796 29,856 30,620 31,232 31,857 29,817 32,965 33,804 34,482 35,172

Building M&R 115,294 203,753 235,832 241,865 246,701 251,634 235,529 260,377 267,036 272,378 277,826

General Building Maintenance 21,221 37,503 43,407 44,517 45,407 46,317 43,353 47,926 49,151 50,134 51,136

Security / Life Safety 12,421 21,951 25,405 26,056 26,579 27,110 25,373 28,049 28,768 29,341 29,930

Utilities 313,113 553,354 640,473 656,854 669,989 683,392 639,650 707,132 725,219 739,722 754,517

Grounds 53,783 95,049 110,011 112,827 115,082 117,384 109,870 121,464 124,568 127,060 129,602

Administrative 71,390 126,165 146,028 149,765 152,759 155,815 145,843 161,228 165,351 168,658 172,033

Insurance 24,583 43,444 50,284 51,573 52,602 53,653 50,219 55,519 56,937 58,075 59,237

Taxes 178,933 316,220 366,008 375,368 382,873 390,534 365,538 404,102 414,436 422,725 431,180

Total Reimbursement Revenue 887,048 1,567,648 1,814,454 1,860,864 1,898,073 1,936,041 1,812,123 2,003,306 2,054,534 2,095,623 2,137,543

JAB Wireless, Inc. 14,760 15,055 15,356 15,663 15,977 16,296 16,622 16,955 17,294 17,640 17,992

Back Up Power - Avaya Inc. 72,000 73,440 74,909 76,407 77,935 79,494 81,084 82,705 84,359 86,047 87,768

Electric - Avaya Inc. 102,000 104,040 106,121 108,243 110,408 112,616 114,869 117,166 119,509 121,899 124,337

Equipment - Avaya Inc. 39,144 39,927 40,725 41,540 42,371 43,218 44,083 44,964 45,863 46,781 47,716

Equipment - Hensel Phelps Cons 5,796 5,912 6,030 6,151 6,274 6,399 6,527 6,658 6,791 6,927 7,065

Total Potential Gross Revenue 3,213,350 5,685,942 6,540,602 6,664,064 6,754,930 6,856,801 6,592,007 7,320,496 7,427,189 7,473,756 7,521,260

General Vacancy (321,335) (221,919) (631,844) (666,406) (675,493) (685,680) (257,306) (706,565) (742,719) (747,376) (752,126)

Effective Gross Revenue 2,892,015 5,464,023 5,908,758 5,997,658 6,079,437 6,171,121 6,334,701 6,613,931 6,684,470 6,726,380 6,769,134

10-YEAR PRO FORMA PROJECTION

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10-YEAR PRO FORMA PROJECTION CONTUINUED


Operating Expenses Cleaning Expenses 83,592 85,264 86,969 88,708 90,483 92,292 94,138 96,021 97,941 99,900 101,898



Plumbing 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095


Building M&R 227,914 232,472 237,122 241,864 246,701 251,635 256,668 261,802 267,038 272,378 277,826



Utilities 618,967 631,346 643,973 656,853 669,990 683,390 697,057 710,999 725,218 739,723 754,517

Grounds 106,318 108,444 110,613 112,826 115,082 117,384 119,731 122,126 124,568 127,060 129,601

Administrative 141,126 143,949 146,827 149,764 152,759 155,815 158,931 162,109 165,352 168,659 172,032

Insurance 48,596 49,568 50,559 51,570 52,602 53,654 54,727 55,822 56,938 58,077 59,238

Taxes 353,717 360,791 368,007 375,367 382,875 390,532 398,343 406,310 414,436 422,725 431,179

Total Operating Expenses 1,753,528 1,788,597 1,824,370 1,860,858 1,898,075 1,936,035 1,974,758 2,014,253 2,054,537 2,095,629 2,137,541

Net Operating Income 1,138,487 3,675,426 4,084,388 4,136,800 4,181,362 4,235,086 4,359,943 4,599,678 4,629,933 4,630,751 4,631,593

Debt Service Interest Payments 1,258,750 1,258,750 1,258,750 1,180,490 1,153,521 1,125,313 1,095,808 1,064,949 1,032,672 998,912

Principal Payments 587,057 614,026 642,235 671,739 702,598 734,876 768,636

Origination Points & Fees 265,000 265,000

Total Debt Service 1,523,750 1,258,750 1,258,750 2,032,547 1,767,547 1,767,548 1,767,547 1,767,547 1,767,548 1,767,548

Tenant Improvements 2,524,346 117,838 2,787,082 130,103

Leasing Commissions 173,338 13,330 200,945 15,290

Total Leasing & Capital Costs 2,697,684 131,168 2,988,027 145,393

Cash Flow After Debt Service ($385,263) ($281,008) $2,694,470 $2,104,253 $2,413,815 $2,467,538 ($395,631) $2,686,738 $2,862,385 $2,863,203 $4,631,593

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REIMBURSEMENT REVENUE


Cleaning Expenses $83,592 $85,264 $86,969 $88,708 $90,483 $92,292 $94,138 $96,021 $97,941 $99,900 $101,898



Plumbing 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975 6,095


Building M&R 227,914 232,472 237,122 241,864 246,701 251,635 256,668 261,802 267,038 272,378 277,826



Utilities 618,967 631,346 643,973 656,853 669,990 683,390 697,057 710,999 725,218 739,723 754,517

Grounds 106,318 108,444 110,613 112,826 115,082 117,384 119,731 122,126 124,568 127,060 129,601

Administrative 141,126 143,949 146,827 149,764 152,759 155,815 158,931 162,109 165,352 168,659 172,032

Insurance 48,596 49,568 50,559 51,570 52,602 53,654 54,727 55,822 56,938 58,077 59,238

Taxes 353,717 360,791 368,007 375,367 382,875 390,532 398,343 406,310 414,436 422,725 431,179

Total Reimbursable Expenses $1,753,528 $1,788,597 $1,824,370 $1,860,858 $1,898,075 $1,936,035 $1,974,758 $2,014,253 $2,054,537 $2,095,629 $2,137,541


Cleaning Expenses $42,286 $74,731 $86,498 $88,709 $90,482 $92,293 $86,384 $95,500 $97,943 $99,900 $101,899



Plumbing 2,529 4,469 5,175 5,305 5,412 5,519 5,167 5,712 5,858 5,976 6,095


Building M&R 115,294 203,753 235,832 241,865 246,701 251,634 235,529 260,377 267,036 272,378 277,826



Utilities 313,113 553,354 640,473 656,854 669,989 683,392 639,650 707,132 725,219 739,722 754,517

Grounds 53,783 95,049 110,011 112,827 115,082 117,384 109,870 121,464 124,568 127,060 129,602

Administrative 71,390 126,165 146,028 149,765 152,759 155,815 145,843 161,228 165,351 168,658 172,033

Insurance 24,583 43,444 50,284 51,573 52,602 53,653 50,219 55,519 56,937 58,075 59,237

Taxes 178,933 316,220 366,008 375,368 382,873 390,534 365,538 404,102 414,436 422,725 431,180

Total Expense Reimbursement $887,048 $1,567,648 $1,814,454 $1,860,864 $1,898,073 $1,936,041 $1,812,123 $2,003,306 $2,054,534 $2,095,623 $2,137,543

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REIMBURSEMENT REVENUE


Cleaning Expenses 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Electrical Maintenance 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

HVAC Maintenance 50.59% 87.66% 99.46% 100.00% 100.00% 100.00% 91.77% 99.46% 100.00% 100.00% 100.00%

Plumbing 50.58% 87.63% 99.48% 99.98% 100.00% 99.98% 91.76% 99.46% 100.00% 100.02% 100.00%

Elevator Maintenance 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 99.99% 100.00% 100.00%

Building M&R 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

General Building Maintenance 50.59% 87.65% 99.45% 100.00% 100.00% 100.00% 91.77% 99.46% 100.00% 100.00% 100.00%

Security / Life Safety 50.59% 87.65% 99.45% 100.00% 100.01% 100.01% 91.76% 99.45% 100.00% 99.99% 100.00%

Utilities 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Grounds 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Administrative 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Insurance 50.59% 87.65% 99.46% 100.01% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Taxes 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Total Expense Reimbursement 50.59% 87.65% 99.46% 100.00% 100.00% 100.00% 91.76% 99.46% 100.00% 100.00% 100.00%

Year 1 Year 2 Year 3

Interest Payments $1,258,750 $1,258,750 $1,258,750

Total Minimum Debt Service 1,258,750 1,258,750 1,258,750

Fees & Contingencies Origination Points & Fees 265,000

Total Fees & Contingencies 265,000

Reductions & Retirement Principal Balloon or Call 26,500,000

Total Reductions & Retirement 26,500,000

Total Cash Flow Paid To Lender $1,523,750 $1,258,750 $27,758,750

Principal Balance Summary Beginning Principal Balance $26,500,000 $26,500,000 $26,500,000

Principal Balloon Payments (26,500,000)

Ending Principal Balance $26,500,000 $26,500,000

Interest Rates Interest Rate on Principal 4.75% 4.75% 4.75%

Cash Flow Coverage Ratios Cash to Total Interest Charged 90.45% 291.99% 324.48%

Cash to Minimum Debt Service 90.45% 291.99% 324.48%

Loan To Value Ratios Loan to Purchase Price 82.81% 82.81% 82.81%

Loan to Capitalized Value 203.67% 63.09% 56.77%

Lenders Yields (IRR) Base Yield to Maturity 4.75%

Including Fees & Penalties 5.11%23

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LOAN & DEBT SUMMARY

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Interest Payments $1,180,490 $1,153,521 $1,125,313 $1,095,808 $1,064,949 $1,032,672 $998,912

Principal Payments 587,057 614,026 642,235 671,739 702,598 734,876 768,636

Total Minimum Debt Service 1,767,547 1,767,547 1,767,548 1,767,547 1,767,547 1,767,548 1,767,548

Fees & Contingencies Origination Points & Fees 265,000

Total Fees & Contingencies 265,000

Reductions & Retirement Principal Balloon or Call 21,778,833

Total Reductions & Retirement 21,778,833

Total Cash Flow Paid To Lender $2,032,547 $1,767,547 $1,767,548 $1,767,547 $1,767,547 $1,767,548 $23,546,381

Principal Balance Summary Beginning Principal Balance $26,500,000 $25,912,942 $25,298,917 $24,656,681 $23,984,942 $23,282,344 $22,547,469

Periodic Principal Reductions (587,057) (614,026) (642,235) (671,739) (702,598) (734,876) (768,636)

Principal Balloon Payments (21,778,833)

Ending Principal Balance $25,912,943 $25,298,916 $24,656,682 $23,984,942 $23,282,344 $22,547,468

Interest Rates Interest Rate on Principal 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50%

Cash Flow Coverage Ratios Cash to Total Interest Charged 350.43% 362.49% 376.35% 397.87% 431.92% 448.34% 463.58%

Cash to Minimum Debt Service 234.04% 236.56% 239.60% 246.67% 260.23% 261.94% 261.99%

Loan To Value Ratios Loan to Purchase Price 82.81% 80.98% 79.06% 77.05% 74.95% 72.76% 70.46%

Loan to Capitalized Value 56.05% 54.23% 52.27% 49.48% 45.63% 44.00% 42.60%

Lenders Yields (IRR) Base Yield to Maturity 4.50%

Including Fees & Penalties 4.68%

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Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Net Operating Gains $1,138,487 $3,675,426 $4,084,388 $4,136,800 $4,181,362 $4,235,086 $4,359,943 $4,599,678 $4,629,933 $4,630,751

Debt Funding Proceeds 26,500,000 26,500,000

Initial Equity Contribution Net Proceeds from Sale 5,500,00 51,873,841

Defined Sources Of Capital 33,138,487 3,675,426 4,084,388 30,636,800 4,181,362 4,235,086 4,359,943 4,599,678 4,629,933 56,504,592

Required Equity Contributions 385,263 281,008 23,805,530 395,631

Total Sources Of Capital $33,523,750 $3,956,434 $27,889,918 $30,636,800 $4,181,362 $4,235,086 $4,755,574 $4,599,678 $4,629,933 $56,504,592

Uses Of Capital Property Purchase Price $32,000,000

Total Debt Service 1,523,750 1,258,750 1,258,750 2,032,547 1,767,547 1,767,548 1,767,547 1,767,547 1,767,548 1,767,548

Tenant Improvements 2,524,346 117,838 2,787,082 130,103

Leasing Commissions 173,338 13,330 200,945 15,290

Retirement & Penalties 26,500,000 21,778,833

Defined Uses Of Capital 33,523,750 3,956,434 27,889,918 2,032,547 1,767,547 1,767,548 4,755,574 1,912,940 1,767,548 23,546,381

Cash Flow Distributions 28,604,253 2,413,815 2,467,538 2,686,738 2,862,385 32,958,211

Total Uses Of Capital $33,523,750 $3,956,434 $27,889,918 $30,636,800 $4,181,362 $4,235,086 $4,755,574 $4,599,678 $4,629,933 $56,504,592

Unleveraged Cash On Cash Return Cash to Purchase Price 3.56% 3.06% 12.35% 12.93% 13.07% 13.23% 4.29% 13.92% 14.47% 14.47%

NOI to Book Value 3.56% 10.59% 11.73% 11.88% 12.01% 12.16% 11.53% 12.12% 12.20% 12.20%

Cash to Purchase Price & Costs 3.56% 3.06% 12.35% 12.93% 13.07% 13.23% 4.29% 13.92% 14.47% 14.47%

Leveraged Cash On Cash Return Cash to Initial Equity (7.00%) (5.11%) (432.83%) 520.08% 43.89% 44.86% (7.19%) 48.85% 52.04% 52.06%

Unleveraged Annual IRR 12.91%

Leveraged Annual IRR 23.55%

Gross Proceeds from Sale $42,004,869 $46,678,720 $47,277,714 $47,786,994 $48,400,983 $49,827,920 $52,567,749 $52,913,520 $52,922,869 $52,932,491

Commissions & Adjustments (840,097) (933,574) (945,554) (955,740) (968,020) (996,558) (1,051,355) (1,058,270) (1,058,457) (1,058,650)

Net Proceeds From Sale 41,164,772 45,745,146 46,332,160 46,831,254 47,432,963 48,831,362 51,516,394 51,855,250 51,864,412 51,873,841

Outstanding Debt Retirement Total Principal Balances (26,500,000) (26,500,000) (25,912,943) (25,298,916) (24,656,682) (23,984,942) (23,282,344) (22,547,468) (21,778,833)

Net Resale Proceeds After Debt $14,664,772 $19,245,146 $46,332,160 $20,918,311 $22,134,047 $24,174,680 $27,531,452 $28,572,906 $29,316,944 $30,095,008

Unleveraged Annual IRR 32.20% 22.63% 18.34% 16.37% 15.28% 14.81% 14.06% 13.59% 13.21% 12.91%

Leveraged Annual IRR 159.63% 82.22% 56.65% 32.03% 29.45% 28.25% 26.53% 25.30% 24.31% 23.55%

SOURCES & USES

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PROPERTY OUTL INE

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LOCAL MAP

12121 GRANT STREET

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RETAIL AERIAL MAP

12121 GRANT ST

E 120th AVE

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

12121 GRANT STREET

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PROPERTY NAME PRICE YEAR BUILT/RENOVATED BLDG SF PRICE P/SF SALE DATE

12121 GRANT STREET, THORNTON, CO 80241 $32,000,000 1983/2014 267,117 SF $119.80 TBD

4500 S Cherry Creek Dr., Denver, CO 80246 $40,500,000 1973 238,357 SF $169.91 1/31/2018

The Capitol Center225 E 16th Ave, Denver, CO 80203

$24,485,509 1958/2001 139,907 SF $178.85 10/18/2018

1900 Grant Street, Denver, CO 80203 $20,655,000 1982 136,118 SF $151.74 9/30/2014

Orchard Pointe8480 E Orchard Rd, Greenwood Village, CO 80111

$16,550,000 1984 121,000 SF $136.78 2/12/2018

Diamond Hill Building D2420 W 26th Ave, Denver, CO 80211

$15,735,748 1973/1992 102,329 SF $153.78 8/22/2015

Pyramid Point9777 Pyramid Ct, Engelwood, CO 80112

$13,900,000 1996 125,540 SF $109.85 12/18/2017

Stapleton Plaza Office Center3401 Quebec St, CO 80207

$12,550,000 1975 122,172 SF $102.72 Under Contract

Average $20,625,178 -- 140,775 SF $143.38 --

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

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12121 GRANT STREETThornton, CO 80241

OFFERING PRICE $32,000,000

Sale Date TBD


Total SF 267,117 SF

Price Per SF $119.80


4 5 0 0 S C H E R R Y C R E E K D RDenver, CO 80246

SALE PRICE $40,500,000

Sale Date 1/31/2018

Year Built 1973

Total SF 238,357 SF


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1 9 0 0 G R A N T S T R E E TDenver, CO 80203


Sale Date 9/30/2014

Year Built 1982

Total SF 136,118 SF


3


2 T H E C A P I T O L C E N T E R225 E 16th Ave, Denver, CO 80203


Sale Date 10/18/2018


Total SF 136,907 SF


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D I A M O N D H I L L B U I L D I N G D2420 W 26th Ave, Denver, CO 80211


Sale Date 8/22/2015


Total SF 102,329 SF



5O R C H A R D P O I N T E8480 E Orchard Rd, Greenwood Village, CO 80111


Sale Date 2/12/2018

Year Built 1984

Total SF 121,000 SF


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S TA P L E T O N P L A Z A O F F I C E C E N T E R3401 Quebec Street, Denver, CO 80207


Sale Date Under Contract

Year Built 1975

Total SF 122,172 SF



7P Y R A M I D P O I N T E9777 Pyramid Ct, Englewood, CO 80112


Sale Date 12/18/2017

Year Built 1996

Total SF 126,540 SF


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M A R K E T O V E R V I E W

12121 GRANT STREET

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BEST PLACES

TO LIVE#3

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D E N V E R / / C O L O R A D O

BEST PLACES

TO LIVE

DENVERThe City of

Nicknamed the Mile High City for its 5,280-foot elevation (although officially reported as 5,279 feet), Denver’s location at the base of the Rocky Mountains provides a gateway to a slew of outdoor pursuits, although it is probably best known for its devout ski and snowboard enthusiasts. There are 200 named peaks visible from Denver, including 32 that soar to 13,000 feet (4,000 meters) and above. The mountain panorama visible from Denver is 140 miles (225 km) long.

Denver boasts the 10th largest downtown in America and one of the most exciting and walkable. Within a mile radius, downtown Denver has three major sports stadiums, the nation’s second-largest performing arts center, three colleges with 30,000 students, an assortment of art and history museums, a mint that produces 10 billion coins a year, a river offering white water rafting, more than 8,400 hotel rooms, a $140 million theme and water park, a $100 million aquar-ium and 300 restaurants.

Denver has more than 200 parks within the city and 20,000 acres of parks in the nearby mountains, including spec-tacular Red Rocks Park & Amphitheatre. The city has its own buffalo herd and every year plants more than 200,000 flowers in 26 formal flower gardens. Other mountain parks include Echo Lake, at the base of the Mount Evans highway – the highest road in North America – and Buffalo Bill’s Grave on top of Lookout Mountain.

Major Industries

Aerospace Information Technology (IT)

FinancialServicesEnergy

Bioscience

Aviation

Broadcasting & Telecommunications 41

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M A R K E T O V E R V I E W

Retai l Centers

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Parks & Recreat ion

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Schools

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Cherry Creek Shopping Center

16th Street Mall

Larimer Square

The Shops at Northfield Stapleton•

Denver has over 20,000 Acres of Urban

Over 80 miles of off-street, multi-use trails

Parks & Mountain Parkland

Auraria Campus - Three Separate Institutions

University of Denver

Johnson & Wales University

Denver Art Museum

Colorado State Capitol

Denver Union Station

Denver Botantic Gardens

Points of Interest

D E M O G R A P H I C SPOPULATION 1 MILE 3 MILES 5 MILES

2000 Population 9,907 90,804 214,046

2010 Population 11,968 115,112 271,087

2018A Population 13,129 124,296 296,904

2023 Population 14,417 135,102 321,309

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2000 Households 9,907 90,804 214,046

2010 Households 11,968 115,112 271,087

2018A Households 13,129 124,296 296,904

2023 Households 14,417 135,102 321,309

2018A Average HH Size 2.2174 2.5981 2.7366

2018A Daytime Population 15,413 96,713 241,745

2000 Median Contract Rent $651 $744 $717

HOUSING UNITS 1 MILE 3 MILES 5 MILES

2000 Owner Occupied Housing Units 46.4% 72.5% 74.4%

2000 Renter Occupied Housing Units 49.2% 24.4% 22.8%

2000 Vacant 4.4% 3.1% 2.8%



2010 Vacant 8.0% 4.6% 4.6%

2018A Owner Occupied Housing Units 30.4% 63.5% 68.6%

2018A Renter Occupied Housing Units 69.6% 36.5% 31.5%

2018A Vacant 0.8% 0.4% 0.6%



2023 Vacant 0.5% 0.3% 0.5%

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2018 Estimate

$250,000 or More 0.8% 2.7% 3.1%

$200,000 - $250,000 1.1% 2.3% 2.6%

$150,000 - $199,000 2.7% 7.2% 7.4%

$125,000 - $149,000 3.0% 8.1% 7.9%

$100,000 - $124,000 8.8% 13.3% 12.9%

$75,000 - $99,000 15.0% 17.8% 17.1%

$50,000 - $74,999 21.5% 19.8% 19.4%

$35,000 - $49,000 15.2% 11.2% 11.5%

$25,000 - $34,999 12.7% 6.8% 7.1%

$15,000 - $24,999 9.8% 5.7% 5.9%

Under $15,000 9.6% 4.9% 5.2%

Average Household Income $64,678 $94,398 $95,929

Median Household Income $53,566 $76,944 $76,214

Per Capita Income $29,160 $36,119 $34,780

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Points of Interest

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1 2 1 2 1 G R A N T S T R E E TNET LEASED DATA CENTER & VALUE-ADD OFFICE INVESTMENTTHORNTON, COLORADO 80241

Exclusively Listed By

BRANDON KRAMERSenior Associate | Director, NOIPG

Denver OfficeO: 303.328.2020 // C: [email protected]

JAKE KLIMASBroker Associate | Member, NOIPG

Denver OfficeO: 303.328.2070 // C: 303.956.6469

[email protected]

Documents

12121 GRANT STREET - LoopNet...The global data center market is estimated to reach revenues of around $174 billion by 2023. Growing at a CAGR of approximately 4% during the forecast