OFFERINGMEMORANDUMPARK AVENUE APARTMENTS1550 LAFAYETTE STDENVER, CO 80206

GUNNAR WILSONInvestment Advisor

gwilson@nexus-cr.com970.306.3787

NIK MACCARATERSr. Investment Advisor

nmaccarter@nexus-cr.com303.909.2900

BRANDON KAUFMANSr. Investment Advisor

bkaufman@nexus-cr.com303.547.7357

TABLE OF CONTENTS

• EXECUTIVE SUMMARY

• PROPERTY OVERVIEW

• FINANCIAL OVERVIEW

• LOCATION OVERVIEW

01EXECUTIVE SUMMARY

PROPERTY HIGHLIGHTS

28 unit property with diverse unit mix.

Opportunity to own one of a kind, iconic Denver

property.

Excellent location, three blocks north of Cheesman

Park.

PROPERTYOVERVIEW

BUILDING DETAILS

Units: 28

Building SF: 16,705

Parking: N/A

Land: 12,490

Zoning: G-RO-3

Year Built: 1907

SYSTEMS

Gas / Elec Meters: Master / Individual

Water: Master

Trash: Waste Management

Roof: Pitched

Heating: Boiler

Cooling: None

AREA STREET MAP

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DENVER ZOODENVER ZOOST. JOSEPHST. JOSEPHHOSPITALHOSPITAL

CHEESEMAN PARKCHEESEMAN PARK

CONGRESS PARKCONGRESS PARK

AREA MAP

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NEIGHBORHOOD MAPDINING

1 Taco Bell

2 Burger King

3 Pete’s Kitchen

4 Chipotle Mexican Grill

5 Las Margs Tavern

6 Papa John’s Pizza

RETAIL

7 Marczyk Fine Foods

8 Argonaut Wine & Liquor

9 Natural Grocers

10 Walgreens

11 Family Dollar

12 Tattered Cover Book Store Colfax

LIFESTYLE

13 Cheesman Park

14 Denver Zoo

15 Denver East High School

16 DC-21

17 Saint Joseph Hospital

18 Rocky Mountain Hospital forChildren

19 Ramada by Wyndham Denver Downtown

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02PROPERTY OVERVIEW

PHOTOS1550 LAFAYETTE ST

PHOTOS1550 LAFAYETTE ST

UNIT MIX & CURRENT RENTS

Unit Type Unit Amount Unit SF Current Ave. Rent Current Rent / SF Market Rent Market Rent / SF

Studio 3 250 $833 $3.33 $1,050 $4.20

1 Bed / 1 Bath 2 350 $975 $2.79 $1,150 $3.29

Medium 1 Bed / 1 Bath 4 425 $873 $2.05 $1,225 $2.88

Large 1 Bed / 1 Bath 7 546 $1,189 $2.18 $1,392 $2.55

Attic 1 Bed / 1 Bath 2 525 $1,037 $1.98 $1,150 $2.19

1 Bed / 1 Bath + Loft 2 550 $1,387 $2.52 $1,550 $2.82

2 Bed / 1 Bath 6 600 $1,516 $2.53 $1,675 $2.79

Carriage House 3 Bed / 2.5 Bath

1 1,800 $2,100 $1.44 $2,600 $1.44

Carriage House 1 Bed / 1 Bath

1 1,100 $1,350 $1.64 $1,800 $1.64

Total / Average 28 558 $1,202 $2.34 $1,427 $2.80

03FINANCIAL OVERVIEW

INVESTMENT SUMMARYPurchase Price: $5,850,000

Units: 28

Price Per Unit: $208,929

Total SF: 16,705

Price Per SF: $350

T12 Cap Rate: 5.00%

Year 1 Cap Rate: 6.06%

Year 1 Cash Flows: $133,766

5 Year IRR: 24.14%

DEBT SUMMARYLoan to Value: 70.00%

Loan Amount: $4,095,000

Loan Term: 60 Months

Interest Rate: 3.50%

Interest Only Period: 12 Months

Amortization: 30 Years

CASH FLOWPROJECTIONS

T12 Year 1 Year 2 Year 3 Year 4 Year 5

REVENUE

Gross Potential Revenue $405,540 $479,400 $493,782 $508,595 $523,853 $539,569

Vacancy ($12,166) ($23,970) ($24,689) ($25,430) ($26,193) ($26,978)

Rental Revenue $393,374 $455,430 $469,093 $483,166 $497,661 $512,590

Other Residential Income $6,240 $6,240 $6,427 $6,620 $6,819 $7,023

Effective Gross Revneue $399,614 $461,670 $475,520 $489,786 $504,479 $519,614

EXPENSES

Repairs and Maintenance ($22,036) ($22,036) ($25,272) ($26,030) ($26,811) ($27,615)

Utilities ($26,678) ($26,678) ($27,478) ($28,303) ($29,152) ($30,026)

Insurance ($8,826) ($8,826) ($9,091) ($9,364) ($9,644) ($9,934)

Real Estate Taxes ($28,262) ($28,262) ($29,110) ($29,983) ($30,883) ($31,809)

Property Management ($21,172) ($21,172) ($21,807) ($22,461) ($23,135) ($23,829)

Total Expenses ($106,974) ($106,974) ($112,758) ($116,141) ($119,625) ($123,214)

Expenses Per Unit ($3,821) ($3,821) ($4,027) ($4,148) ($4,272) ($4,400)

Net Operating Income $292,640 $354,696 $362,762 $373,645 $384,854 $396,400

Cap Rate 5.00% 6.06% 6.20% 6.39% 6.58% 6.78%

Debt Service - Yr 1 ($143,500) ($220,930) ($220,930) ($220,930) ($220,930) ($220,930)

Total Cash Flow $149,140 $133,766 $141,832 $152,715 $163,924 $175,470

Cash on Cash Return 8.50% 7.62% 8.08% 8.70% 9.34% 10.00%

HISTORICALANALYSIS

T12

REVENUE

Gross Potential Revenue $405,540

Vacancy ($12,166)

Rental Revenue $393,374

Other Residential Income $6,240

Effective Gross Revneue $399,614

EXPENSES

Repairs and Maintenance ($22,036)

Utilities ($26,678)

Insurance ($8,826)

Real Estate Taxes ($28,262)

Property Management ($21,172)

Total Expenses ($106,974)

Expenses Per Unit ($3,821)

Net Operating Income $292,640

Cap Rate 5.00%

SOLD COMPS

Property Address Units SF Price $Price Per

UnitPrice Per

Foot

(subject) 28 16,705 $5,850,000 $208,929 $350

1 12 11,417 $3,195,000 $266,250 $280

2 25 13,870 $5,200,000 $208,000 $375

3 14 13,455 $3,525,000 $251,786 $262

4 16 12,056 $3,800,000 $237,500 $315

5

1550 Lafayette St

1100 E 10th Ave

1114 Acoma St

1165 Columbine St

1435-1445 Jersey St

1575 Lafayette St 41 23,600 $9,525,000 $232,317 $404

Averages $5,049,000 $239,171 $327

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04LOCATION OVERVIEW

DEMOGRAPHICS

Census 2019 Summary .25m .5m .75m

Population 859 4,369 11,138

Households 400 1,945 4,847

Families 185 827 2,128

Average Household Size 2.15 2.06 2.09

Owner Occupied Housing Units 267 1,167 2,968

Renter Occupied Housing Units 133 778 1,879

Median Age 36.3 33.3 33.6

Median Household Income $105,481 $98,241 $103,941

Average Household Income $129,071 $125,154 $138,063

Census 2024 Summary .25m .5m .75m

Population 910 4,598 11,815

Households 421 2,042 5,131

Families 195 871 2,259

Average Household Size 2.16 2.07 2.11

Owner Occupied Housing Units 287 1,247 3,156

Renter Occupied Housing Units 134 795 1,976

Median Age 38.5 34.9 34.6

Median Household Income $117,494 $110,960 $117,408

Average Household Income $149,738 $144,008 $157,142

.25 MILE

.5 MILE

.75 MILE

CHEESMAN PARK

Cheesman Park is bounded by Colfax to the north, Eighth Avenue to the

South, York Street to the east Downing Street to the west, and right

between Capitol Hill and Congress Park. Cheesman Park is a tranquil

residential area that centers on its namesake green space, with expansive

lawns, shady jogging trails, a dramatic neoclassical pavilion. With one of

the best green spaces Denver has to offer, it is also within biking distance

to City Park and Congress Park. Just east of the park, Denver Botanic

Gardens features themed areas and an amphitheater for popular summer

concerts.

Casual pizzerias, relaxed coffeehouses, and hip craft-cocktail bars dot the

streets around the park, including:

• Marion Street Tavern

• Pete's Kitchen

• Voodoo Doughnut

• Lik's Ice Cream

• Illegal Pete's

• Tacos Tequilla Whiskey

You can find a variety of housing options in Cheesman Park, though this

highly sought-after neighborhood is mostly known for its mansions and

luxury high-rise towers. The median price per square foot in Cheesman

Park is $374, which is higher than the Denver average of $345.

Denver Zoo

Denver Museum of Nature and Science

Fillmore Auditorium.

LTO

UPTOWN DENVER

Uptown Denver is a hip district located just three miles southeast of

Downtown Denver. Uptown is Denver’s oldest residential neighborhood

and is bounded by Broadway to the west, 23rd Avenue to the north, Park

Avenue and Downing to the east, and Colfax Avenue to the south. Uptown

includes Colfax Avenue, where renovations and new retail, residential, and

office development is changing the landscape and revitalizing the area.

Major employers in the area include St. Joseph Hospital, Presbyterian/St.

Luke’s Medical Center, and Kaiser Permanente, which together employ

more than 10,000 people. Uptown’s convenient location and ample

amenities make it a highly desirable neighborhood, attracting young

professionals, active singles, and urbanites alike.

This highly walkable neighborhood is characterized by an eclectic mix of

old and new, including older brick rowhouses and new upscale condos, as

well as picturesque places of worship, trendy eateries, popular watering

holes, and lots of patios. Anchoring the neighborhood is Restaurant Row,

which runs along 17th Avenue from Broadway to City Park. Restaurant Row

is lined with cafes, bistros, pubs, and fine dining establishments.

Other attractions in the area include:

CITY OF DENVERNOTABLE RANKINGS

#2 BEST PLACES TO LIVE(U.S. NEWS & WORLD REPORT 2019)

#1 IN ECONOMIC& JOB GROWTH

(AREA DEVELOPMENT, 2015)

4th BEST PLACE IN AMERICA FOR

BUSINESS & CAREERS(FORBES, 2019)

(LONELY PLANET, 2016)

TOP 10 PLACESIN THE U.S. TO TRAVEL

6TH FASTEST GROWING METROAREA IN THE U.S.

(FORBES, 2016)

3RD BEST CITY FOR COLLEGE GRADS

(RENT.COM, 2015)

3RD HEALTHIEST CITYIN THE NATION

(FORBES, 2016)

#1 IN THE NATION FOR LARGEST INCREASE IN

RESIDENTS WITH COLLEGE DEGREES

(U.S. CENSUS BUREAU, 2014)

4TH BEST CITYFOR BIKE RIDING

IN THE U.S.(WALK SCORE, 2015)

7TH BEST STATEIN WHICH TO

MAKE A LIVING(FORBES, 2016)

#1 IN ECONOMIC RANKING

(USNEWS.COM, 2019)

DENVER METRO

Located on the front range of the Rocky Mountains, the

Denver Metro is a thriving urban epicenter famous for its

breathtaking views, world-class dining, champion sports teams,

exhilarating recreation, and eclectic arts and entertainment. It’s no

wonder this metropolis is one of the biggest in the nation!

ATTRACTIONS:

Denver Art Museum

Denver Museum of Nature and Science

Denver Zoo

Denver Aquarium

Six-Flags Elitch Gardens

Hyland Hills Water World

Denver Aquarium

SPORTS

Basketball: Denver Nuggets

Hockey: Colorado Avalanche

Football: Denver Broncos

Baseball: Colorado Rockies

Soccer: Colorado Rapids

*Some of this information sourced from denverpost.com

DENVER GROWTH

Ranked as the top place to live in the U.S. by U.S. News & World Report,

the city of Denver is home to over 705,439 residents (as of May 2019). An

estimated 2.9 million people live in Denver Metro as a whole, with more

people moving to the area each year, as this number is expected to grow by

12.6 percent over the next five years, compared to 3.7 percent nationally.

Currently 100+ people are immigrating to the city each day. The Denver

Metro accounts for over half of the population in the entire state of

Colorado, which is home to an estimated 5.5 million people.

CONSTRUCTION

As one of the fastest-growing metros in the nation, Denver is thriving with

new construction. This new construction will help accommodate the

population growth throughout the metro. Some current projects include:

17th & Peal Apartments, a 315-unit apartment with 9,000 sq. ft. of

retail.

Alexan 20th St Station, a 358-unit apartment with street level retail.

Block 162, a full block project that included a 680,000 sq. ft. office

tower and separate tower hotel.

Tabor Center Tower Two, a 33 story 700,000 sq. ft. office tower

would be the largest development in Denver since 1985.

1144 Fifteenth St, a 40 story office tower with

street level retail.

EMPLOYERS IN THEDENVER METROThe Denver metro is a hub for various industries, including

aviation, health, business, finance, and technology. Outside of

city, state, and school services, major employers in the Denver

metro area include:

In 2017, Amazon opened up a 1 million sq. ft. fulfillment center in Aurora, creating

nearly 1,000 full-time jobs. Google is building a $131 million, four-acre, state-of-the art

facility in Boulder, potentially bringing more jobs to the area.

Many companies choose to relocate to or expand in the Denver Metro, especially tech

and startup companies. Between 2007-2015, approximately 9,000 companies chose

to relocate from California to Denver. These employers are attracted to the

innovative culture, economic environment, exceptional talent, and deep sense of

social responsibility that characterizes the Denver Metro. Forbes ranks Denver as

#1 in the nation for business and careers, and Area Development ranks Denver as

#1 in the nation for economic and job growth.

Denver metro is home to many fast-growing startups, with 113 local

companies making the Inc. 5000 list of the nation’s fastest-growing private

companies for the year 2017.

*Some information was sourced from: https://choosecolorado.com/

• Kaiser Permanente

• Liberty Tax Service

• Western Union

• University of Colorado

• Children’s Hospital

• Wells Fargo.

• Denver International Airport

• Lockheed Martin

• Health ONE Corporation

• Centura Health

• SCL Health Systems

• Comcast

• CenturyLink·

The Regional Transportation District (RTD) operates 365 days a year to

quickly connect travelers to their destination. As part of RTD, the 58-mile

rail system features nine rail lines servicing 62 stations along the Denver

metro’s North, East, Southeast, Southwest, and West rail corridors.

Popular destinations include:

• Denver International Airport (DIA)

• Theatre District

• Convention Center

• Sports Authority Field at Mile High

• Pepsi Center

• 16th Street Mall

• Park Meadows Mall.

RTD’s rail system has transformed people’s commutes and the

communities they live in. The 23-mile stretch from Downtown Denver to

DIA is now just a 30-minute ride via light rail. The light rail is also

attributed with revitalizing neighborhoods across the Denver metro,

including Five Points and West Colfax. An average of 64,000 people

utilize the light rail each day, making it eighth-largest system in the

country, even though Denver is 21st in the nation in terms of population.

LIGHT RAIL

DENVERINTERNATIONAL AIRPORT (DIA)Denver International Airport (DEN), also known as DIA, opened to the public on

February 28, 1995 and at 34,000 acres, remains the largest and newest commercial

airport in the United States, and the 2nd largest airport in the world by size and the

20th busiest airport in the world. It’s known around the world for its striking tented

roof structure and technologically advanced operations. Over the past twenty years,

DIA has established itself as the primary employer and economic driver in the

Denver metro, supporting nearly 190,000 jobs and generating more than $26 billion

in annual revenue. Served a record setting 64.5 Million passengers in 2018.

The airport serves over 170 destinations including 20 international cities in nine

countries.

DIA is just 30 minutes from Union Station via the East Rail line. DIA has room to

double its current capacity to remain competitive in the growing global aviation

marketplace. DIA broke ground in May of 2018 on a $2.0 billion gate expansion

project. The project will add 39 gates across all three concourses in the next four

years, bringing the total to 150.

The expansion will utilize the airport’s original “telescoping” design by expanding

eastward and westward at the ends. The expansion is

expected to be completed by the end of 2022.

DIA is among the first airports in North America to secure

internationally recognized accreditation for measuring and

reducing carbon emissions.

*Some of this information sourced from denverpost.com

JASON KOCHCo-Founder/Principal

303.918.8909jkoch@nexus-cr.com

ADAM RIDDLECo-Founder/Principal

303.257.7627 ariddle@nexus-cr.com

BRANDON KAUFMANSr. Investment Advisor

303.547.7357bkaufman@nexus-cr.com

SEAN HOLAMONSr. Investment Advisor

303.588.2119 sholamon@nexus-cr.com

NIK MACCARTERSr. Investment Advisor

303.909.2900nmaccarter@nexus-cr.com

ANTHONY BOBAYInvestment Advisor

720.297.6667abobay@nexus-cr.com

JEFF DIMMENInvestment AdvisorColorado Springs

719.459.5756jdimmen@nexus-cr.com

PAT KNOWLTONInvestment AdvisorColorado Springs

719.648.0423pknowlton@nexus-cr.com

AUSTIN SMITHSr. Investment Advisor

303.868.9096 asmith@nexus-cr.com

LEE WAGNERInvestment Advisor

Colorado Springs

417.459.2155 lwagner@nexus-cr.com

TRAVIS HODGESr. Investment Advisor

404.459.5756 thodge@nexus-cr.com

GUNNAR WILSONInvestment Advisor

970.306.3787 gwilson@nexus-cr.com

NEXUS BROKERS

CONFIDENTIALITY DISCLAIMERThis confidential Offering Memorandum, has been prepared by Nexus Commercial Realty 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. Nexus Commercial Realty recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property (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 Nexus Commercial Realty or its brokers.

Nexus Commercial Realty 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. Nexus Commercial Realty 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 Nexus Commercial Realty and the Owner of the Property. Nexus Commercial Realty 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, Nexus Commercial Realty and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further Nexus Commercial Realty 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. Nexus Commercial Realty 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 Nexus Commercial Realty. 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 Nexus Commercial Realty at your earliest convenience.

PARK AVENUE APARTMENTS1550 LAFAYETTE ST DENVER, CO 80206

GUNNAR WILSONInvestment Advisor

gwilson@nexus-cr.com970.306.3787

BRANDON KAUFMANSr. Investment Advisor

bkaufman@nexus-cr.com303.547.7357

NIK MACCARTERSr. Investment Advisor

nmaccarter@nexus-cr.com303.909.2900