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Confidential Offering Memorandum
HERITAGE HOUSE15500 E. 13TH AVENUE I AURORA, CO 80011
Table of Contents
Heritage House15500 E. 13th Avenue | Aurora, CO 80011
Executive Summary
Financial Analysis
Location Overview
Josh [email protected]
Barton ThompsonSenior [email protected]
Rachel EdsonTransaction Manager720-638-5415
Lindsey SantaulariaDirector of Team [email protected]
One Broadway, Suite A300Denver, Colorado 80203303.962.9555www.PinnacleREA.com
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EXECUTIVE SUMMARY
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Heritage House15500 E. 13th Avenue, Aurora, CO 80011
Units: 28
Year Built: 1972
List Price: $3,500,000
Price/Unit: $125,000
Price/SF: $205.11
Building Type: Brick
Building Size: 17,064 SF
Lot Size: 1.91 Acres
Roof: Pitched
Heating: Hot Water Boilers
Parking: 62 Off-Street Parking
Current CAP Rate: 5.50%
Pro Forma CAP Rate: 7.01%
Property Features
• 7.01% Pro Forma CAP Rate Through Bringing Rents to Market
• Well-Maintained Asset in Up-Trending Market
• Just 1 Mile from Fitzsimons Medical Campus
• All Brick Buildings, Pitched Roofs, Double-Paned Windows
• Large 1.91 Acre Lot With 62 Off-Street Parking Spaces
• Beautifully Landscaped with In-Ground Irrigation
• Great Location Close to Restaurants & Shopping
Property Overview
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Property Overview
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FINANCIAL ANALYSIS
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Income & Expenses Analysis
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.
UNIT MIX AND AVERAGE RENT SCHEDULE
UNIT TYPENo. of Units
Approx. SF
Current Rent
Monthly Income
Current Rent/SF
Pro Forma Rent
Monthly Income
Pro Forma Rent/SF
Studio 3 450 $808 $2,425 $1.80 $925 $2,775 $2.061 Bed 1 Bath 25 600 $913 $22,830 $1.52 $1,050 $26,250 $1.75
TOTAL 28 16,350 $25,255 $29,025
INCOME Pro FormaGross Potential Rent $303,060 $348,300Other Income
Utility Reimbursement (Actual - Trailing 9 Months Annualized/ Estimated: $50/Unit/Month) $3,247 $16,800Laundry Income (Actual - Trailing 9 Months Annualized) $1,452 $1,452Tenant Liability Insurance (Actual - Trailing 9 Months Annualized) $349 $349Tenant Fees (Actual - Trailing 9 Months Annualized) $7,151 $7,151Pet Deposit (Actual - Trailing 9 Months Annualized) $400 $400Deposit Forfeit (Actual - Trailing 9 Months Annualized) $1,333 $1,333
Total Other Income $13,933 $27,486Gross Potential Income $316,993 $375,786Vacancy/Collection Loss (Estimated) 5.00% ($15,153) 5.00% ($17,415)EFFECTIVE GROSS INCOME $301,840 $358,371
EXPENSESTaxes (Actual - 2020) $22,080 $22,080Insurance (Actual - 2020) $11,344 $11,344Gas & Electric (Actual - 2018) $10,052 $10,052Water & Sewer (Actual - 2018) $20,818 $20,818Trash (Actual - Trailing 9 Months Annualized) $1,755 $1,755Maintenance & Repairs (Estimated: $650/Unit/Year) $18,200 $18,200Snow Removal/Landscaping (Actual - Trailing 9 Months Annualized) $2,855 $2,855Management Fee (Estimated: 7%) $21,129 $25,086Office & Administrative (Estimated) $1,000 $1,000TOTAL EXPENSES $109,232 $113,189Expenses per Unit $3,901 $4,042Expenses per SF $6.68 $6.92% OF EGI 36.2% 31.6%NET OPERATING INCOME $192,607 $245,181
Current
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Pricing Analysis
Price: $3,500,000 CASH FLOW INDICATORS CASH FLOW INDICATORS
Price/Unit: $125,000 Net Operating Income $192,607 Net Operating Income $245,181
Price/SF: $205.11 Debt Service ($145,881) Debt Service ($145,881)
Pro Forma CAP Rate: 7.01% Net Cash Flow 5.34% $46,726 Net Cash Flow 11.35% $99,300
Principal Reduction $48,268 Principal Reduction $48,268
Total Return 10.86% $94,994 Total Return 16.86% $147,568
Loan Amount: $2,625,000
Down Payment: $875,000
Interest: 3.75% CAP Rate 5.50% CAP Rate 7.01%
Amortization: 30 Years Price Per Unit $125,000 Price Per Unit $125,000
Monthly Payment: ($12,157) Price Per Foot $205.11 Price Per Foot $205.11
Proposed Financing
VALUE INDICATORS
Pro FormaInvestment Summary Current
VALUE INDICATORS
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LOCATION OVERVIEWLOCATION OVERVIEW
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Location Overview
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 6,105
3 mile 44,510
5 mile 132,490
HOUSEHOLDS
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile $57,818
3 mile $60,475
5 mile $71,658
AVERAGE HH INCOME
POPULATION RESIDENTIAL COUNT AVERAGE HH INCOME
1 mile 18,264
3 mile 124,672
5 mile 366,201
POPULATION
Heritage House
E COLFAX AVENUEE COLFAX AVENUE
13th Avenue 13th Avenue StationStation
Fitzsimons MedicalFitzsimons MedicalCampusCampus
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Disclaimer
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 located at 15500 E 13th Avenue, Aurora, CO 80011 (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.
Investment Contacts:
Josh Newell, Principal303.962.9559 | [email protected]
Bart Thompson, Senior Advisor303.407.9789 | [email protected]
Rachel Edson, Transaction Manager720.638.5415 | [email protected]
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Confidential Offering Memorandum
HERITAGE HOUSE15500 E. 13TH AVENUE I AURORA, CO 80011
