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Kevin Calame, Principal303-962-9535
Matt Lewallen, Principal303-962-9561
Investment Contacts:
1450 S Reed StLakewood, CO 80232
REED PARK
Offering Memorandum
This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC (“Pinnacle REA”) 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. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 1450 S. Reed 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 Pinnacle REA or its brokers.
Pinnacle REA 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. Pinnacle REA 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 Pinnacle REA and the Owner of the Property. Pinnacle 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, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA 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. Pinnacle REA 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 Pinnacle REA. 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 Pinnacle REA at your earliest convenience.
DISCLOSURE AND CONFIDENTIALITY AGREEMENT
Kevin [email protected]
Dan HawthorneAssociate [email protected]
Hunter SchaeferAssociate [email protected]
Matt [email protected]
Jack ShermanAssociate [email protected]
Kaila DeeTransaction [email protected]
Investment Contact:
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Table of Contents
Area Overview
Executive Summary
Property Overview
Aerial
Financial Analysis
Market Overview
One Broadway, Suite 300A | Denver, CO 80203Main: 303-962-9555 | www.PinnacleREA.com
Kevin [email protected]
Dan HawthorneAssociate [email protected]
Hunter SchaeferAssociate Advisor [email protected]
Matt [email protected]
Jack ShermanAssociate [email protected]
Kaila DeeTransaction [email protected]
LAKEWOOD, CO
POPULATION MEDIAN AGE MEDIAN HH INCOME
NUMBER OF EMPLOYEES MEDIAN PROPERTY VALUE
1.08% GROWTH 4.86% GROWTH
3.3% GROWTH 10% GROWTH
151,411 38.5 $61,058
82,506 $300,600
ABOUT In 2017, Lakewood, CO had a population of 151k people with a median age of 38.5 and a median household income of $61,058. Between 2016 and 2017 the population of Lakewood, CO grew from 149,793 to 151,411, a 1.08% increase and its median household income grew from $58,227 to $61,058, a 4.86% increase.
The median property value in Lakewood, CO is $300,600, and the homeownership rate is 58.8%.
ECONOMY The economy of Lakewood, CO employs 82.5k people. The largest industries in Lakewood, CO are Retail Trade (9,823 people), Health Care & Social Assistance (9,362 people), and Professional, Scientific, & Technical Services (7,820 people), and the highest paying industries are Mining, Quarrying, & Oil & Gas Extraction ($86,004), Agriculture, Forestry, Fishing & Hunting, & Mining ($63,889), and Utilities ($62,619).
Median household income in Lakewood, CO is $61,058.
Source: https://www.datausa.io/
LOCATION OVERVIEW
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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.
LAKEWOOD DEMOGRAPHICS
Population 153,621
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
RTD LIGHT RAILLAKEWOOD
W LINE
LOCATION OVERVIEW
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BELMAR SHOPPING CENTER
Twelve minutes from downtown Denver, Belmar shopping
and dining district is an outdoor destination with 80+
galleries. The shopping center includes restaurants, an
ice rink, and shops including local boutiques. Belmar is a
destination in Lakewood, Colorado that opened in 2004,
owned by Starwood Capital.
You’ll also find the best national brands including
Nordstrom Rack, Charming Charlie, GUESS, White
House Black Market, and Victorias secret. The mall
hosts many fast food and sit-down dining options
that include P.F. Chang’s China Bistro, Chick-Fil-A,
Ted’s Montana Grill, and Whole Foods Market. With
80+ shops, your next great Belmar outing might be
closer than you think.
LOCATION OVERVIEW
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARYPinnacle Real Estate Advisors is pleased to announce they have been retained as the exclusive marketing advisor for 1450 S. Reed Street. Qualified investors have the opportunity to acquire this 43-unit multifamily property located in the heart of Lakewood. The property was built in 1972 and boasts a rare unit mix of 14 one-bedroom, 1 two-bedroom one-bath & 28 two-bedroom two-bath apartments. The property is located near the popular Belmar Shopping Center as well as Alameda High School.
Property Features:
• Completely remodeled units with new kitchens, cabinets, & appliances
• Two acres with private oasis-like common grounds
• On site laundry
• 50 off-street parking spaces
• Increased demand for this property type after recent ordinance limited residential growth
Offering Summary
Address: 1450 S. Reed Street
Building Size: 33,957 SF
Units: 43
Price: $8,750,000
Price/Unit: $203,488
Price/SF: $258
Year Built: 1972
Parking: 50 Off-Street Spaces
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PROPERTY OVERVIEW
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PROPERTY OVERVIEW
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1450 S. Reed Street Lakewood, CO 80232
PROPERTY OVERVIEW
PROPERTY DESCRIPTIONTotal Units 43Year Built 1972Zoning M-R-SBuilding GSF 33,957 Land SF 84,462 Building Type Brick/Block Roof Flat HVAC Hot Water
INVESTMENT SUMMARYPrice $8,750,000Price/Unit $203,488 Price/SF $258
FINANCING - Existing Freddie Mac LoanLoan Amount $5,724,000 Down Payment $3,026,000 Interest Rate 4.15%Interest Only Period Through 1/31/21Principal & Interest 2/1/21 - 1/1/28Prepayment Penalty Yield MaintenanceAssumption Fee 1%
Note: loan is required to be assumed
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AERIAL OVERVIEW
1450 S REED STREET
S W
AD
SW
OR
TH
BO
UL
EV
AR
D
ALAMEDA INTERNATIONAL
HIGH SCHOOL
W ALAMEDA AVENUE
W MISSISSIPPI AVENUE
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 7,577
3 mile 60,497
5 mile 147,630
HOUSEHOLDS
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $82,663
3 mile $70,099
5 mile $74,195
AVERAGE HH INCOME
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 17,571
3 mile 162,260
5 mile 372,632
POPULATION
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FINANCIAL ANALYSIS
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UNIT MIX
Unit Type No. of Units Approx. SF Current Rent Monthly Income ProForma Rent ProForma Monthly Rent ProForma Rent/SF
1Bd/1Ba 14 594 $1,114 $15,602 $1,198 $16,772 $2.02
2Bd/1Ba 1 819 $1,290 $1,290 $1,290 $1,290 $1.58
2Bd/2Ba 28 819 $1,303 $36,486 $1,350 $37,800 $1.65
Total 43 Units 33,957 $53,378 $55,862
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FINANCIAL ANALYSIS Current ProformaNet Operating Income $459,896 $509,039
Projected Debt Service* ($237,546) ($333,895)Before Tax Cash Flow $222,350 $175,144 CAP Rate 5.3% 5.8%Cash-on-Cash Return 7.3% 5.8%
INCOME: Current ProForma
Gross Scheduled Rent $640,536 $670,344 Less: Vacancy 5% ($32,027) ($33,517)Gross Rental Income $608,509 $636,827
Laundry $10,594 $10,594 Pet Rent $4,877 $4,877 Lease Termination $9,734 $- Late Fees $3,514 $- Month-to-month $5,371 $5,371 Misc. $3,923 $3,923 Application/Admin Fee $4,274 $4,274 Storage Space $551 $551 RUBS $43,574 $43,574 Cleaning & Damage $5,022 $- Total Other Income $91,434 $73,164
Effective Gross Income $699,943 $709,991
EXPENSES: T12 ProformaProperty Tax $33,422 $33,422 Insurance $15,223 $15,050 Gas/Electric $20,931 $20,931 Water/Sewer $27,334 $27,334 Trash $5,343 $5,343 Internet $3,698 $3,698 Lawn/Snow $6,346 $6,346 Management $48,055 $44,578 Repairs/Maint. $71,113 $32,250 Admin/Misc. $8,582 $12,000 Total Operating Expenses $240,047 $200,952
Expenses/Unit $5,582 $4,673 NET OPERATING INCOME $459,896 $509,039
CURRENT AND YEAR ONE PROJECTIONS
FINANCIAL ANALYSIS
*The current debt service and cash flow are based on today’s inter-est only term. Proforma is based on a 30 year amortization, which will take place February 1, 2021.
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MARKET OVERVIEW
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Price: $2,340,000SF: 8,837Price/SF: $265Price/Unit: $195,000Year Built 1969Unit Mix: 12 - 2Bd
Price: $4,050,000SF: 13,950Price/SF: $290Price/Unit: $213,158Year Built 1962Unit Mix: 1 - Studio
6 - 1Bd12 - 2Bd
Price: $6,900,000SF: 31,500Price/SF: $219Price/Unit: $191,667Year Built 1969Unit Mix: 36 - 2Bd
Price: $2,045,000SF: 6,780Price/SF: $302Price/Unit: $204,500Year Built 1959Unit Mix: 1 - 1Bd
9 - 2Bd
1220 Allison StLakewood, CO 80214
3705-3721 Yukon CtWheat Ridge, CO 80033
COMPARABLE SALES
2 3 4 5
2655 Depew StEdgewater, CO 80214
1516 Perry StDenver, CO 80204
List Price: $8,750,000SF: 33,957Price/SF: $258Price/Unit: $203,488Year Built 1972Unit Mix: 14 - 1Bd/1Ba
1 - 2Bd/1Ba28 - 2Bd/2Ba
1450 S. Reed StLakewood, CO 80232
SUBJECTPROPERTY
Price: $3,430,000SF: 16,442Price/SF: $209Price/Unit: $190,556Year Built 1959Unit Mix: 3 - 1Bd
15 - 2Bd
8220 W 16th PlLakewood, CO 80214
1
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Kevin CalamePrincipal [email protected]
Matt [email protected]
Dan Hawthorne Associate [email protected]
Jack ShermanAssociate Advisor [email protected]
Kaila DeeTransaction Manager [email protected]
Hunter SchaeferAssociate Advisor [email protected]
One Broadway | Suite 300ADenver | Colorado | 80203www.PinnacleREA.com
