Offering Memorandum - LoopNet · 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

602 PARK POINT DRIVEGOLDEN, COLORADO 80401

Offering Memorandum

N O N - E N D O R S E M E N T & D I S C L A I M E R N OT I C ECO N F I D E N T I A L I T Y & D I S C L A I M E RThe 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N OT I C EMarcus & 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.

A L L P R O P E R T Y S H O W I N G S A R E BY A P P O I N T M E N T O N LY.

P L E A S E CO N S U LT YO U R M A R C U S & M I L L I C H A P AG E N T F O R M O R E D E TA I L S .

602 PA R K P O I N T D R I V E G O L D E N , C O L O R A D O 8 0 4 0 1

E XC LU S I V E LY L I S T E D BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

JACOB ROCKERAssociate Broker

Denver OfficeMobile 480.235.8493Office 303.328.2023

[email protected] CO FA100073333 License AZ SA585017000

DAVID BADERBroker Associate

Denver OfficeCell 720.539.3794

Office [email protected]

License CO FA 100065695

BRANDON KRAMERSenior Associate | Director, NOIPG

Denver OfficeMobile 605.390.1248 Office 303.328.2020

[email protected] CO FA100045203

SHANE NAKIBroker Associate

Denver OfficeMobile 406.579.7625 Office 303.328.2020

[email protected] CO FA 100077785

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EXECUTIVE SUMMARYS E C T I O N 1 Investment Overview • Investment Highlights

COMPE TITIVE COMPARABLESS E C T I O N 4 Sales Comparables • Rent Comparables

PROPER T Y DESCRIPTIONS E C T I O N 2 Property Details • Regional Map • Property Photos

MARKET OVERVIEWS E C T I O N 5 Location Overview • Location Highlights Market Aerial

F INANCIAL ANALYSISS E C T I O N 3 Pricing Details • Operating Data • Rent Roll

TA B L E O F CO N T E N T S

EXCLUSIVELY LISTED BY:

602 PA R K P O I N T D R I V EG O L D E N , C O L O R A D O 8 0 4 0 1

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, as-sumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate

Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap ACT ID Z0000000

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EXECUTIVESUMMARY

602 PARK POINT DRIVE

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O F F E R I N G H I G H L I G H T S

O F F E R I N G P R I C E

$4,250,000C A P R AT E

7.52%

VITAL DATA

Price $4,250,000

Cap Price 7.52%

Price/SF $116.75

Gross Square Feet 36,402 SF

Occupancy 100%

602 PA R K P O I N T D R I V EG O L D E N , C O L O R A D O

F U L LY L E A S E D O F F I C E

I N V E S T M E N T

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I N V E S T M E N T O V E R V I E WMarcus & Millichap is pleased to present the exclusive listing of 602 Park Point Drive, Golden, CO 80401. The 36,402 square-foot, two-story office building has been meticulously maintained and is currently 100% leased to a mix of professional office users.

The property is located just off I-70, 20 minutes from downtown Denver in Genesee Park. Situated in the foothills of the front range, the property’s location allows a buyer to take advantage of Denver’s booming economy and large consumer base while maintaining a tranquil mountain environment. The office is sit-uated next to Genesee Town Center and The Chart House restaurant. The proximity to these amenities of-fers tenants easy access to food, coffee, dry-cleaning, client entertainment and other consumer services.

The two-story office building is currently 100% leased to 14 tenants. Leases are full-service and have staggered expiration dates. The full-ser-vice lease terms allow an investor to add value through improved man-agement costs. Staggered lease expirations will mitigate risk by avoiding significant vacancy in any given year.

The property has been well-maintained and managed. Recent renovations include new exterior paint, interior lobby enhancements, and a fresh seal-coat with stripping on the parking lot. Each unit has its own heat pump which have been replaced as necessary. All cap flashing on parapet walls was recently replaced. Roof is in good working order.

The investment makes for a fundamentally sound real estate investment with strong dynamics and an ability to increase cash flow. The upside cou-pled with reduced risk in a well preforming and underwritten property make this an attractive asset.

RISK ADJUSTED OFFICE INVESTMENT

► Fully Leased

► Stable Cash Flow

► Easy access to I-70

► Competitive Lease Rates

► Low Interest Rate Environment

► Risk Adjusted Lease Expiration Dates

► Well Maintaned and Managed Property

► Ability to Add Value Through Managment

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

MOUNTAIN VIEWS STABILIZED ASSET W/ ABILITY TO ADD VALUE

EASY ACCESS TO DENVER

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S U M M A R Y O F T E R M SI N T E R E S T O F F E R E DMarcus & Millichap has been selected to exclusively market for sale Property name, property description, located in Golden, CO.

T E R M S O F S A L E602 Park Point is offered is offered at $4,250,000 based on a capitalization rate of 7.52%. The net operating income figures for the Property assume a fiscal year starting 2019. Historical operating documentation, third party reports and financial model are avail-able uon request.

P R O P E R T Y TO U R SProspective 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. Please do not contact the tenants, on-site management or staff without prior approval property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site manage-ment or staff be contacted without prior approval.

S U P E R I O R LO C AT I O NE A S Y ACC E S S TO I - 70

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PROPER T YDESCRIPTION


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


Property Address 602 Park Point Drive, Golden, CO 80401

Number of Units 19

Number of Stories 2

Year Built 1981

Lot Size 5.64 Acres / 245,679 sf

Gross Square Feet 36,402

Rentable Square Feet 34,346

Type of Ownership Fee Simple

Parking 131 Pavement / 3.7 : 1000 sf

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602 Park Point Drive

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F INANCIALANALYSIS


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P R I C I N G D E TA I L S

FINANCING 1st Loan

Loan Amount $3,225,000

Loan Type New

Interest Type 4.75%

Amortizaion 30 Years

BUILDING PURCHASE PRICE $4,250,000

Building Reserves $50,000

Total Purchase Price $4,300,000

Down Payment $1,075,000

Down Payment % (Loan to Cost) 75%

Number of Tenants 14

Price Per SqFt (Total Cost) $ 116.75

Rentable Built Area (RBA) 34,346 SF

Lot Size 5.64 Acres

Year Built/Renovated 1981

Occupancy 100%

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O P E R AT I N G DATAINCOME 1/1/19 - 12/31/19

Scheduled Base Rental Income $585,380

Total Reimbursement Income $350

Potential Gross Revenue $585,730

General Vacancy 8.0% ($46,858)

Effective Gross Revenue $538,872

Less: Operating Expenses 40.0% (215,621)

Net Operating Income $323,251

Tenant Improvements ($20,393)

Leasing Commissions ($6,607)

Capital Expenditures ($9,101)

Cash Flow $287,151

Debt Service ($201,878)

Net Cash Flow After Debt Service $85,273

OPERATING EXPENSES 1/1/19 - 12/31/19

CAM $63,298

Insurance $4,845

Real Estate Taxes $63,678

Management Fee $29,287

Utilities $54,513

Total Expenses $215,621

Expenses/RSF $6.28

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TENANT SUITE SQUARE FEET

% BLD SHARE EXP. ANNUAL

RENT/SFTOTAL RENT/

MONTHTOTAL RENT/

YEARCHANGES

ONRENT

INCREASELEASE TYPE

Kraemer North America 100 651 1.90% 5/31/2020 $16.50 $895 $10,741.50 6/1/2019 $17.00 Full Service

Rocky Mountain Labs (Jerry Dukes) 101 1,876 5.46% 3/31/2020 $17.00 $2,658 $31,892.00 4/1/2019 $17.50 Full Service

Rocky Mountain Labs (Jerry Dukes) 106 501 1.46% MTM $16.50 $689 $8,266.50 Full Service

Rocky Mountain Labs (Jerry Dukes) 120 989 2.88% 3/31/2020 $17.00 $1,401 $16,813.00 4/1/2019 $17.50 Full Service

Medical Affaris Professional Society 105 2,134 6.21% 3/31/2019 $18.00 $3,201 $38,412.00 Full Service

J Stevens Zuker Sumaq Exploration 110 832 2.42% 12/31/2018 $17.00 $1,179 $14,144.00 Full Service

UMG 130 5,152 15.00% 7/31/2020 $16.00 $6,869 $82,432.00 Full Service

Van Gogh Phto 140/150 3,301 9.61% 7/31/2019 $15.70 $4,319 $51,825.70 Full Service

R Wooody Daroca 180 1,050 3.06% 7/31/2019 $17.50 $1,531 $18,375.00 Full Service

Tap Rock Recources 200 4,732 13.78% 4/30/2022 $17.50 $6,901 $82,810.00 5/1/2019 $18.00 Full Service


Tap Rock Recources 225 593 1.73% 4/30/2022 $17.50 $865 $10,377.50 5/1/2019 $18.00 Full Service


Tap Rock Recources 235 473 1.38% 9/30/2018 $17.50 $690 $8,277.50 5/1/2019 $18.00 Full Service


Clinical Data Management 215 2,077 6.05% 6/30/2020 $16.25 $2,813 $33,751.25 7/1/2019 $16.50 Full Service

Look Out Mountain Church 230 1,171 3.41% 4/30/2019 $15.88 $1,550 $18,595.48 Full Service

Douglas Turner, PC 240 2,244 6.53% 4/30/2022 $17.75 $3,319 $39,831.00 5/1/2019 $18.25 Full Service

Augustus Parners, LLC 265 817 2.38% 10/31/2018 $16.49 $1,123 $13,472.33 Full Service

Rocky Mountain Benefits 275 620 1.81% 7/31/2020 $17.25 $891 $10,695.00 Full Service

Veradyn 280 788 2.29% 7/31/2018 $16.47 $1,082 $12,978.36 Full Service

Total 34,346 100% $16.97 $48,310.64 $579,727.62

T E N A N T S U M M A R Y

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O P E R AT I N G S TAT E M E N T

OPERATING EXPENSES IN PLACE PER SF BUDGET

Janitorial $13,989.90 $2.46 $13,560

Janitorial Supplies $2,987.75 $11.50 $2,580

Maintenance Person $1,812.00 $18.95 $3,000

Carpet Cleaning $175.00 $196.26 $350

Repairs & Maintenance $8,896.36 $3.86 $9,300

HVAC Contract $4,285.50 $8.01 $5,940

HVAC Repair $13,000.00 $2.64 $7,500

Trash $3,477.52 $9.88 $3,660

Security $402.50 $85.33 $0

Pest Control $1,930.24 $17.79 $780

General Building Expenses $5,414.57 $6.34 $3,713

Electricity $44,874.33 $0.77 $44,040

Gas $4,319.45 $7.95 $4,020

Water & Sewer $1,841.65 $18.65 $6,504

Landscape $3,395.51 $10.12 $5,025

Snow Removal $5,202.53 $6.60 $10,000

Parking Repairs $1,000.00 $34.35 $1,500

HOA $807.00 $42.56 $8

Management $29,287.00 $1.17 $15,996

Property Tax $63,677.92 $0.54 $45,780

Insurance $4,845.00 $7.09 $4,200

Total Operating Expenses $215,621.73 $6.28 $187,456

Expenses as % of EGI 40.00%

Net Operating Income $323,251

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CASH FLOW 0 1 2 3 4 5 6 7 8 9 10

Rent Income $585,380 $602,942 $621,030 $639,661 $658,851 $678,616 $698,975 $719,944 $741,542 f$763,789

Expense Reimbursements $350 $350 $350 $350 $350 $350 $350 $350 $350 $350

Gross Potential Income $585,730 $603,292 $621,380 $640,011 $659,201 $678,966 $699,325 $720,294 $741,892 $764,139

Less: Vacancy 8.0% ($46,858) ($48,263) ($49,710) ($51,201) ($52,736) ($54,317) ($55,946) ($57,624) ($59,351) ($61,131)

Effective Gross Income $513,506 $555,029 $571,670 $588,810 $606,465 $624,649 $643,379 $662,671 $682,541) $703,008

Janitorial ($13,990) ($14,410) ($14,842) ($15,287) ($15,746) ($16,218) ($16,705) ($17,206) ($17,772) ($8,254)

Janitoria Supplies ($2,988) ($3,077) ($3,170) ($3,265) ($3,363) ($3,464) ($3,568) ($3,675) ($3,785) ($3,898)

Maintenance Person ($1,8128) ($1,866) ($1,922) ($1,980) ($2,039) ($2,101) ($2,164) ($2,229) ($2,295) ($2,364)

Carpet Cleaning ($1758) ($180) ($186) ($191) ($197) ($203) ($209) ($215) ($222) ($228)

Repairs & Maintenance ($8,896) ($9,163) ($9,438) ($9,721) ($10,013) ($10,313) ($10,623) ($10,941) ($11,270) ($11,608)

HVAC Contract ($4,286) ($4,414) ($4,546) ($4,683) ($4,823) ($4,968) ($5,117) ($5,271) ($5,429) ($5,592)

HVAC Repair ($13,000) ($13,390) ($13,792) ($14,205) ($14,632) ($15,071) ($15,523) ($15,988) ($16,468) ($16,962)

Trash ($3,478) ($3,582) ($3,689) ($3,800) ($3,914) ($4,031) ($4,152) ($4,277) ($4,405) ($4,537)

Security ($403) ($414) ($427) ($440) ($453) ($467) ($481) ($495) ($510) ($525)

Pest Control ($1,930) ($1,988) ($2,048) ($2,109) ($2,173) ($2,238) ($2,305) ($2,374) ($2,445) ($2,519)

General Building Expenses ($5,415) ($5,577) ($5,744) ($5,917) ($6,094) ($6,277) ($6,465) ($6,659) ($6,859) ($7,065)

Electricity ($44,874) ($46,221) ($47,607) ($49,035) ($50,506) ($52,022) ($53,582) ($55,190) ($56,845) ($58,551)

Gas ($4,319) ($4,449) ($4,583) ($4,720) ($4,862) ($5,007) ($5,158) ($5,312) ($5,472) ($5,636)

Water & Sewer ($1,842) ($1,897) ($1,954) ($2,012) ($2,073) ($2,135) ($2,199) ($2,265) ($2,333) ($2,403)

Landscape ($3,396) ($3,497) ($3,602) ($3,710) ($3,822) ($3,936) ($4,054) ($4,176) ($4,301) ($4,430)

Snow Removal ($5,203) ($5,359) ($5,519) ($5,685) ($5,855) ($6,031) ($6,212) ($6,398) ($6,590) ($6,788)

Parking Repairs ($1,000) ($1,030) ($1,061) ($1,093) ($1,126) ($1,159) ($1,194) ($1,230) ($1,267) ($1,305)

HOA ($807) ($831) ($856) ($882) ($908) ($936) ($964) ($993) ($1,022) ($1,053)

Management ($29,287) ($30,165) ($31,070) ($32,002) ($32,962) ($33,951) ($34,970) ($36,019) ($37,099) ($38,212)

Property Tax ($63,678) ($65,588) ($67,556) ($69,583) ($71,670) ($73,820) ($76,035) ($78,316) ($80,665) ($83,085)

Insurance ($4,845) ($4,990) ($5,140) ($5,294) ($5,453) ($5,617) ($5,785) ($5,959) ($6,138) ($6,322)

Total Cost / Expenses ($215,621) ($222,090) ($235,615) ($235,615) ($242,684) ($249,964) ($257,463) ($265,187) ($273,143) ($281,337)

NOI/EBITDA $323,251 $332,939 $353,195 $353,195 $363,781 $374,685 $385,916 $397,484 $409,399) $421,671

CapEx ($9,101) ($9,374) ($9,655) ($9,944) ($10,243) ($10,550) ($10,866) ($11,192) ($11,528) ($11,874)

Tenant Improvements ($20,393) ($28,413) $0 ($26,730) $0 ($20,393) ($28,413) $0 ($26,730) $0

Leasing Commisisons ($6,607) ($9,206) $0 ($8,661) $0 ($6,607) ($9,206) $0 ($8,661) $0

Debt Service ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878)

Sale Price $5,440,914

Less: Cost of Sale ($326,455)

Less: Loan Amount ($2,603,298)

NCF to Equity - Leveraged ($1,075,000) $85,273 $84,069 $131,385 $105,983 $151,661 $135,258 $135,554 $184,414 $160,602 $2,719,080

Project Level Cash Flows ($4,300,000) $287,151 $285,947 $333,262 $307,860 $353,539 $337,135 $337,431 $386,291 $362,480 $5,524,256

Debt Service Coverage Ratio 1.60 1.65 1.70 1.75 1.80 1.86 1.91 1.97 2.03

Return on Cost (Cap Rate) 7.52% 7.74% 7.97% 8.21% 8.46% 8.71% 8.97% 9.24% 9.52%

Return on Equity/Cash on Cash 7.93% 7.82% 12.22% 9.86% 14.11% 12.58% 12.61% 17.15% 14.94%

C A S H F LO W P R O J E C T I O N

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A S S U M P T I O N S & R E T U R N S

RE TURNS YEAR 1

CAP Rate 7.52%

Cash-on-Cash 7.93%

Debt Coverage Ratio 1.60

IRR (Leveraged) 17.33%

NPV (Leveraged) $1,125,833

IRR (Unleveraged) 8.96%

NPV (Unleveraged) $642,121

CASH FLOW 0 1 2 3 4 5 6 7 8 9 10

Rent Income $585,380 $602,942 $621,030 $639,661 $658,851 $678,616 $698,975 $719,944 $741,542 f$763,789

Expense Reimbursements $350 $350 $350 $350 $350 $350 $350 $350 $350 $350

Gross Potential Income $585,730 $603,292 $621,380 $640,011 $659,201 $678,966 $699,325 $720,294 $741,892 $764,139

Less: Vacancy 8.0% ($46,858) ($48,263) ($49,710) ($51,201) ($52,736) ($54,317) ($55,946) ($57,624) ($59,351) ($61,131)

Effective Gross Income $513,506 $555,029 $571,670 $588,810 $606,465 $624,649 $643,379 $662,671 $682,541) $703,008

Janitorial ($13,990) ($14,410) ($14,842) ($15,287) ($15,746) ($16,218) ($16,705) ($17,206) ($17,772) ($8,254)

Janitoria Supplies ($2,988) ($3,077) ($3,170) ($3,265) ($3,363) ($3,464) ($3,568) ($3,675) ($3,785) ($3,898)

Maintenance Person ($1,8128) ($1,866) ($1,922) ($1,980) ($2,039) ($2,101) ($2,164) ($2,229) ($2,295) ($2,364)

Carpet Cleaning ($1758) ($180) ($186) ($191) ($197) ($203) ($209) ($215) ($222) ($228)

Repairs & Maintenance ($8,896) ($9,163) ($9,438) ($9,721) ($10,013) ($10,313) ($10,623) ($10,941) ($11,270) ($11,608)

HVAC Contract ($4,286) ($4,414) ($4,546) ($4,683) ($4,823) ($4,968) ($5,117) ($5,271) ($5,429) ($5,592)

HVAC Repair ($13,000) ($13,390) ($13,792) ($14,205) ($14,632) ($15,071) ($15,523) ($15,988) ($16,468) ($16,962)

Trash ($3,478) ($3,582) ($3,689) ($3,800) ($3,914) ($4,031) ($4,152) ($4,277) ($4,405) ($4,537)

Security ($403) ($414) ($427) ($440) ($453) ($467) ($481) ($495) ($510) ($525)

Pest Control ($1,930) ($1,988) ($2,048) ($2,109) ($2,173) ($2,238) ($2,305) ($2,374) ($2,445) ($2,519)

General Building Expenses ($5,415) ($5,577) ($5,744) ($5,917) ($6,094) ($6,277) ($6,465) ($6,659) ($6,859) ($7,065)

Electricity ($44,874) ($46,221) ($47,607) ($49,035) ($50,506) ($52,022) ($53,582) ($55,190) ($56,845) ($58,551)

Gas ($4,319) ($4,449) ($4,583) ($4,720) ($4,862) ($5,007) ($5,158) ($5,312) ($5,472) ($5,636)

Water & Sewer ($1,842) ($1,897) ($1,954) ($2,012) ($2,073) ($2,135) ($2,199) ($2,265) ($2,333) ($2,403)

Landscape ($3,396) ($3,497) ($3,602) ($3,710) ($3,822) ($3,936) ($4,054) ($4,176) ($4,301) ($4,430)

Snow Removal ($5,203) ($5,359) ($5,519) ($5,685) ($5,855) ($6,031) ($6,212) ($6,398) ($6,590) ($6,788)

Parking Repairs ($1,000) ($1,030) ($1,061) ($1,093) ($1,126) ($1,159) ($1,194) ($1,230) ($1,267) ($1,305)

HOA ($807) ($831) ($856) ($882) ($908) ($936) ($964) ($993) ($1,022) ($1,053)

Management ($29,287) ($30,165) ($31,070) ($32,002) ($32,962) ($33,951) ($34,970) ($36,019) ($37,099) ($38,212)

Property Tax ($63,678) ($65,588) ($67,556) ($69,583) ($71,670) ($73,820) ($76,035) ($78,316) ($80,665) ($83,085)

Insurance ($4,845) ($4,990) ($5,140) ($5,294) ($5,453) ($5,617) ($5,785) ($5,959) ($6,138) ($6,322)

Total Cost / Expenses ($215,621) ($222,090) ($235,615) ($235,615) ($242,684) ($249,964) ($257,463) ($265,187) ($273,143) ($281,337)

NOI/EBITDA $323,251 $332,939 $353,195 $353,195 $363,781 $374,685 $385,916 $397,484 $409,399) $421,671

CapEx ($9,101) ($9,374) ($9,655) ($9,944) ($10,243) ($10,550) ($10,866) ($11,192) ($11,528) ($11,874)

Tenant Improvements ($20,393) ($28,413) $0 ($26,730) $0 ($20,393) ($28,413) $0 ($26,730) $0

Leasing Commisisons ($6,607) ($9,206) $0 ($8,661) $0 ($6,607) ($9,206) $0 ($8,661) $0

Debt Service ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878) ($201,878)

Sale Price $5,440,914

Less: Cost of Sale ($326,455)

Less: Loan Amount ($2,603,298)

NCF to Equity - Leveraged ($1,075,000) $85,273 $84,069 $131,385 $105,983 $151,661 $135,258 $135,554 $184,414 $160,602 $2,719,080

Project Level Cash Flows ($4,300,000) $287,151 $285,947 $333,262 $307,860 $353,539 $337,135 $337,431 $386,291 $362,480 $5,524,256

Debt Service Coverage Ratio 1.60 1.65 1.70 1.75 1.80 1.86 1.91 1.97 2.03

Return on Cost (Cap Rate) 7.52% 7.74% 7.97% 8.21% 8.46% 8.71% 8.97% 9.24% 9.52%

Return on Equity/Cash on Cash 7.93% 7.82% 12.22% 9.86% 14.11% 12.58% 12.61% 17.15% 14.94%

ASSUMPTIONS YEAR 1

Total Building SF 36,402

Total Acreage 5.64

Total Land SF 245,678

NNN Income $0

Annual Increase in Lease Rates 3.00%

Brokerage Fee 6.0%

Management Fee (% of Revenue) 5.0%

General Vacancy 8.0%

Leasing Commission (L/C) 6.0%

Tenant Improvements $10

Disposition Cap Rate 7.75%

Cost of Sale at Disposition 6.0%

Discount Rate for NPV 7.0%

Cap Ex / SF $0.25

Renewl Probability 75%

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COMPARABLEPROPERTIES


S A L E S CO M PA R A B L E S – S U M M A R YAccording to the comparable sales study conducted in May 2018, there were three comparable sales of similar size and location. The average price per square foot and cap rate are comparable to both construction quality and the return associated with investment properties. Based on this study, we believe our suggested list price is correct and we can expect offers within the suggested price range.

PROPERTY NAME PRICE SQUARE FOOT PRICE PER/SF CAP RATE

602 Park Point Dr, Golden, CO $4,250,000 36,402 $116.75 7.52%

433 Park Point Dr, Golden, CO $2,985,000 25,023 $119 8.56%

523 Park Point Dr, Golden, CO $5,977,300 59,773 $100 Owner/User

25528 Genesee Trail, Golden, CO $1,300,000 9,172 $142 Owner/User

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1602 PARK POINT

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433 PA R K P O I N T D RGolden, CO


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S A L E S CO M PA R A B L E S

SALES PRICE $4,250,000

Sale Date TBD

Year Built 1981

Cap Rate 7.52%

Price Per SF $116.75


Sale Date Oct - 2016

Year Built 1986

Cap Rate 8.56%

Price Per SF $119

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25528 G E N E S E E T R A I L R DGolden, CO 80227


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Sale Date Dec - 2016

Year Built 2000

Cap Rate N/A

Price Per SF $100


Sale Date Aug - 2017

Year Built 1984

Cap Rate N/A

Price Per SF $142

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MARKE TOVERVIEW


O F F I C E M A R K E T O V E R V I E WThe Denver Office market ended the fourth quarter 2017 with a vacancy rate of 10.5%. The vacancy rate was up over the previous quarter, with net absorption totalingpositive 32,956 square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,906,860 square feet. Rental rates ended the fourth quarter at $26.32, an increase over the previous quarter. A total of 11 buildings deliv-ered to the market in the quarter totaling 482,174 square feet, with 5,233,168 square feet still under construction at the end of the quarter.

Net absorption for the overall Denver office market was positive 32,956 square feet in the fourth quarter 2017. That compares to positive 257,788 square feet in the third quarter 2017, positive 1,047,678 square feet in the second quarter 2017, and negative (165,073) square feet in the first quarter 2017.

The Class-B office market recorded net absorption of negative (76,960) square feet in the fourth quarter 2017, compared to negative (122,480) square feet in the third quarter 2017, positive 599,628 in the second quarter 2017, and positive 471,414 in the first quarer 2017.

The Class-C office market recorded net absorption of negative (95,198) square feet in the fourth quarter 2017 compared to positive 14,796 square feet in the third quarter 2017, positive 30,075 in the second quarter 2017, and positive 39,691 in the first quarter 2017. Net absorption for Denver’s central business district was positive 33,431 square feet in the fourth quarter 2017. That compares to positive 259,271 square feet in the third quarter 2017, positive 30,198 in the second quarter 2017, and negative (305,214) in the first quarter 2017.

Net absorption for the suburban markets was negative (475) square feet in the fourth quarter 2017. That compares to negative (1,483) square feet in third quarter 2017, positive 1,017,480 in the second quarter 2017, and positive 140,141 in the first quarter 2017.

The office vacancy rate in the Denver market area increased to 10.5 percent at the end of the fourth quarter 2017. The vacancy rate was 10.3 percent at the end of the third quarter 2017, 10.5 percent at the end of the second quarter 2017, and 10.2 percent at the end of the first quarter 2017. Class-B projects reported a vacancy rate of 9.9 percent at the end of the fourth quarter 2017, 9.8 percent at the end of the third quarter 2017, 9.6 percent at the end of the second quarter 2017, and 9.6percent at the end of the first quarter 2017. Class-C projects reported a vacancy rate of 4.1 percent at the end of the fourth quarter 2017, 3.9 percent at the end of third quarter 2017, 4.0 percent at the end of the second quarter 2017, and 4.1 percent at the end of the first quarter 2017.

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► 1-MILE HHI $165,000

► Adjacent Retail Amenities

► Genesee Park

► Amazing Mountain Views

► Located in a Well Known Office Park

► 20 Minutes from Downtown Denver

LO C AT I O N H I G H L I G H T S

COMPETITIVELEASE RATES

ICONIC LOCATION WELL POSITIONED OFFICE ASSET 6

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LO C A L AT T R AC T I O N S

► Genesee Country Store 0.3 Miles from site

► Chart House 0.2 Miles from site

► Pines at Genesee 0.1 Miles from site

► Mountain Threads 1.1 Miles from site

► Clear Creek Canyon Park 16 Miles from site

► Genesee Mountain

► Herd 0.5 Miles from site

► Ralston Elementary 1.0 Miles from site

► The Rescue Institute 0.3 Miles from site

► Genesee Academy 0.4 Miles from site

► Genesee Mountain Park 2.8 Miles from site

► Katherine Craig Park 1.2 Miles from site

R E TA I L & R E S TAU R A N T S

PA R K S & R E C R E AT I O N

S C H O O L S

L A N D M A R K S

Genesee Mountain Park

Clear Creek Canyon Park

Genesee Mountain

Genesee Country Store

The Rescue Institute

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Ralson Elementary

Mt Vernon Canyon Club

Subject Property

Herd

Mountain Threads

Pines at Genesee

Chart House Genesee Academy

Katherine Craig Park

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W E L L - M A I N TA N E D A N D M A N AG E D O F F I C E A S S E T

E X C L U S I V E L Y L I S T E D B Y


JACOB ROCKERAssociate BrokerDenver OfficeMobile 480.235.8493Office [email protected] CO FA100073333 License AZ SA585017000

BRANDON KRAMERSenior Associate | Director, NOIPGDenver OfficeMobile 605.390.1248 Office [email protected] CO FA100045203

DAVID BADERBroker Associate Denver OfficeCell 720.539.3794 Office [email protected] CO FA 100065695

SHANE NAKI Broker Associate Denver OfficeCell 406.579.1625 Office [email protected] CO FA 100077785

Documents

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