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OFFERING MEMORANDUM
1901 KIPLING STREET
1901 Kipling Street Lakewood, CO 80215
INVESTMENT CONTACTS:
Kevin CalamePrincipal720.738.1939
Matt LewallenPrincipal720.738.1940
INVESTMENT CONTACTS:
Kevin Calame Principal 720.738.1939 [email protected]
Matt Lewallen Princial 720.738.1940 [email protected]
Kaila Dee Operations Manager 720.738.1948 [email protected]
Dan Hawthorne Advisor 720.738.1941 [email protected]
Hunter Schaefer Advisor 720.738.1942 [email protected]
Jack Sherman Advisor 720.738.1942 [email protected]
1720 S Bellaire St. Suite 701 Denver, CO 80222 720.738.1949 • aqyre.com
� EXECUTIVE SUMMARY
� PROPERTY OVERVIEW
� LOCATION OVERVIEW
� FINANCIAL ANALYSIS
� VALUE-ADD OPPORTUNITY
�MARKET OVERVIEW
EXECUTIVE SUMMARY
OFFERING SUMMARY:Address: 1901 Kipling Street Building Size: 7,854 SF Number of Offices: 19 Price: $1,225,000Price/SF: $194Year Built: 1971Parking Lot: 19
EXECUTIVE SUMMARY
AQYRE Real Estate Advisors is pleased to announce they have been retained as the exclusive marketing advisor for 1901 Kipling Street, Lakewood, CO 80215. Qualified investors have the opportunity to acquire this unique 19-unit office property located in Lakewood. The property was built in 1971, and has a nice mix of different office spaces.The property is located in the heart of Lakewood and is very well maintained with many recent updates making it a strong opportunity.
PROPERTY FEATURES:• Opportunity to add additional
office space, see page 16.• Newly renovated exterior and
interior• High visibility on Kipling• Plenty of parking• Low price per square foot
PROPERTY OVERVIEW
PROPERTY DESCRIPTION
Total Units 19
Year Built 1971
Building GSF 7,854
Land SF 17,237
Building Type Concrete Block
Roof Flat
HVAC Forced Air
Parking Lot 18
PROPERTY OVERVIEW1901 Kipling StreetLakewood, CO 80215
INVESTMENT SUMMARY
Price $1,225,000
Price/SF $194
FINANCING ASSUMPTIONS
Loan Amount $875,500
Down Payment $367,500
Interest 4.50%
Amortization 30 Years
PROPERTY OVERVIEW
EXECUTIVE SUITES
A new type of office space needed with much less risk! Historically speaking, the big con-cern for investors of Office real estate is TI cost (Tenant Improvement). When large spaces go empty, TI costs are a real factor to the Landlords bottom line. However, if tenant spaces are small – under 500sqft., that concern goes away. With the surge of self-employment on the rise, this type of asset is much more stable.
Momentum Behind Wave of Independent Workers Is Growing Despite Challenges, With 27 Million Expected to Enter Self-Employed Workforce by 2020
FreshBooks, the #1 accounting and invoicing software in the cloud designed exclusively for self-employed professionals and their teams, today announced results from its 2nd annual “Self-Employment Report”. The data suggest a dramatic shift in the American workforce, whereby the number of Americans working for themselves could triple, bringing the total population of self-employed professionals to 42 million by 2020.
A Paradigm Shift in Real Time
“The data suggest that over the next two years, the number of self-employed profession-als in the U.S. could triple,” said Mike McDerment, co-founder and CEO at FreshBooks. “Whether or not change occurs at this pace, it’s clear the mindset of the American worker has shifted. With significantly more people aspiring to work for themselves versus holding a traditional job, it’s critical that we build a world to support them.”
Self-Employment Is on the Rise and Co-Working Fits the Bill for Many Freelancers
The advantages of being a self-employed contractor are well known—being your own boss, having the flexibility to choose your hours and place of work, and the ability to deduct business expenses from income tax are all powerful incentives to choose self-employment, especially given that the traditional “job for life” that many of our parents and grandparents enjoyed has all but disappeared.
Statistics indicate that self-employment is on a steady rise and by 2020, 40 percent of the workforce in the U.S. and 45 percent of the workforce in Canada will consist of freelancers, independent contractors, and on-demand workers.
PROPERTY OVERVIEW
LOCATIONOVERVIEW
1. AREA OVERVIEW
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26 DIFFERENT FEDERAL AGENCIESMaking Lakewood the largest concentration of Federal agencies
outside of Washington D.C.
AREA OVERVIEW
LAKEWOOD
Encompassing approximately 44 square miles in Jefferson County, Lakewood sits between the Rocky Mountains and the heart of Denver. As the 5th largest city in Colorado by population, Lakewood is a key component of the 7 county Denver-Aurora-Lakewood Metropolitan Statistical Area. Surrounded by several major universities and research facilities, including the world renowned Colorado School of Mines, Lakewood has one of the most highly educated workforces in the country with 36% of residents holding a bachelor’s degree or higher. The city has dedicated more than 7,100 acres to parks and open space, with approximately 200 miles of hiking and biking trails.
Lakewood has also become a hotbed for employment in the aerospace, financial services, technology firms and government sectors with corporations such as 1stBank, The Integer Group, and HomeAdvisor holding large employment centers in Lakewood. Government is Lakewood’s most dense employment sector, largely due to the presence of the Denver Federal Center. Home to employees from 26 different Federal agencies, Lakewood boasts the largest concentration of federal agencies outside of Washington D.C. The city also hosts employment concentrations in the mining/oil and gas/energy related, medical device manufacturing, and renewable energy sectors. Recently, Denver’s RTD program has made a concerted effort to bring light rail to Denver’s west suburbs.
Lakewood has become the beneficiary of the RTD W Line which opened in 2013, giving significant boost to local business and commuters living in the city.
7,100 ACRES Dedicated to parks and open space with
approximately 200 mile of hiking and biking
LAKEWOOD DEMOGRAPHICS
Population 152,621
Population Growth 2010-2016 7.4%
Households 67,482
Household Growth 2010-2016 9.2%
Median Age 40
Total Employment 77,626
Average Household Income $76,206
Median Home Value $289,628
AERIAL
1901 Kipling Street
FINANCIAL ANALYSIS
FINANCIAL ANALYSIS // UNIT MIX
UNIT TYPE NO. OF UNITS APPROX. SF CURRENT RENT CURRENT MONTHLY
INCOME MARKET RENT MARKET MONTHLY INCOME
Small Office 15 157 SF $419 $6,282 $575 $8,625
Medium Office 3 328 SF $590 $1,770 $728 $2,184
Large Office 1 2200 SF $2,800 $2,800 $2,800 $2,800
Total 19 5,541 SF $10,852 $13,609
INCOME: CURRENT MARKET
Gross Scheduled Rent $127,581 $192,288
Less: Vacancy ($6,379) ($9,614)
Gross Rental Income $121,202 $182,674
Sign Income $1,080 $1,080
Other Income $1,080 $1,080
Effective Gross Income $122,282 $183,754
EXPENSES:
Water-Consolidated Mutual $600 $600
Storm Sewer - Lakewood $360 $360
Taxes $10,216 $10,216
Trash $300 $300
Internet/Phone $3,300 $3,300
Grounds/Snow Removal $1,800 $1,800
Repairs/Maint. (2%) $2,062 $2,062
Janitorial $3,900 $3,900
Xcel Electric & Gas $6,612 $6,612
Management $- $-
Insurance $2,778 $2,778
Total Operating Expenses $31,927 $31,927
Expenses/SF $4.38 $4.38
NET OPERATING INCOME $90,355 $151,826
FINANCIAL ANALYSIS // CURRENT AND ONE-YEAR PROJECTIONS
FINANCIAL ANALYSIS CURRENT MARKET
Net Operating Income $90,355 $151,826
Projected Debt Service ($52,138) ($59,586)
Before Tax Cash Flow $38,217 $92,240
CAP Rate 7.4% 10.8%
Cash-on-Cash Return 10.4% 22.0%
VALUE-ADD OPPORTUNITY
1901 Kipling StreetLakewood, CO 80215
This space has a unique value-add opportunity. Not only has the building been renovated: new flooring, interior and exterior paint,
added conference room, stair treads, break room and more, there is potential to add $40,944 per year in rent by adding 3
additional offices. Turning the additional 1,850 sqft will cost approximately $175,000. Adding these 3 offices will increase your NOI by 47% or 22% Return on your $175,000 equity
investment.
MARKET OVERVIEW
1901 Kipling Street Lakewood, CO 80215
Number of Units 19
Year Built 1971
Building Size 7,854 SF
Price/SF $159
Actual Cap Rate 7.4%
Tentants Multi
MARKET OVERVIEW // COMPARABLE SALES
SUBJECT PROPERTY
1000 10th Street Golden, CO 80401
Sale Date 3/31/2017
Price $1,782,000
Building SF 5,942
Price/SF $300
Year Built 1971
Tenants 1
607 19th Street Golden, CO 80401
Sale Date 11/28/2017
Price $3,300,000
Building SF 12,301
Price/SF $274
Year Built 1985
Tenants 1
#2#1 15485 W 44th Avenue Golden, CO 80403
Sale Date 11/9/2018
Price $833,000
Building SF 4,500
Price/SF $367
Year Built 1981
Tenants Multi
#3 1200 Arapahoe Street Golden, CO 80401
Sale Date 11/21/2016
Price $950,000
Building SF 3,457
Price/SF $275
Year Built 1967
Tenants Multi
#4
DISCLOSURE AND CONFIDENTIALITY AGREEMENT
This confidential Offering Memorandum, has been prepared by AQYRE Real Estate Advisors, LLC (AQYRE Real Estate Advisors) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. AQYRE Real Estate Advisors recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 1901 Kipling Street Lakewood, CO (the “Property”) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by AQYRE Real Estate Advisors or its brokers.
AQYRE Real Estate Advisors makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. AQYRE Real Estate Advisors has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the AQYRE Real Estate Advisors and the Owner of the Property. AQYRE Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, AQYRE Real Estate Advisors and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, AQYRE Real Estate Advisors and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. AQYRE Real Estate Advisors shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request.
This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of AQYRE Real Estate Advisors. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to AQYRE Real Estate Advisors at your earliest convenience.
INVESTMENT CONTACTS:
Kevin Calame Principal 720.738.1939 [email protected]
Matt Lewallen Princial 720.738.1940 [email protected]
Kaila Dee Operations Manager 720.738.1948 [email protected]
Dan Hawthorne Advisor 720.738.1941 [email protected]
Hunter Schaefer Advisor 720.738.1942 [email protected]
Jack Sherman Advisor 720.738.1942 [email protected]
1720 S Bellaire St. Suite 701 Denver, CO 80222 720.738.1949 • aqyre.com