1

Nob HillApartments

Denver, Colorado

Offering Memorandum

Nob Hill Apartments2

NON-ENDORSEMENT AND DISCLAIMER NOTICECONFIDENTIALITY AND DISCLAIMERThe 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. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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TABLE OF CONTENTS

Property Analysis06

Financial Summary12

Comparable Properties18

Market Overview28

Offering HighlightsInvestment Overview

Investment HighlightsProperty Details

Pricing DetailsIncome

ExpensesRent Roll Summary

Sales Comparables OverviewSales Comparables Details

Rent Comparables OverviewRent Comparables Details

Location HighlightsArea Amenities

Demographic HighlightsMarket Highlights

B o o m e r B e a t t yS r . A s s o c i a t e

D e n v e r , C OC e l l 9 4 9 . 6 3 3 . 4 5 5 6

O ff i c e 3 0 3 . 3 2 8 . 2 0 4 1B o o m e r . B e a t t y @ M a r c u s M i l l i c h a p . c o m

L i c e n s e C O 1 0 0 0 5 1 6 9 2 5

P e t e r S t a n d l e yS r . A s s o c i a t e

D e n v e r , C OC e l l 3 1 7 . 6 9 4 . 0 1 1 9

O ff i c e 3 0 3 . 3 2 8 . 2 0 5 3P e t e r . S t a n d l e y @ M a r c u s M i l l i c h a p . c o m

L i c e n s e C O 1 0 0 0 5 6 4 5 6

J o h n S t a n d l e yA s s o c i a t e

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O ff i c e 3 0 3 . 3 2 8 . 2 0 6 5J o h n . S t a n d l e y @ M a r c u s M i l l i c h a p . c o m

L i c e n s e C O 1 0 0 0 7 4 5 8 9

P a y t o n C a l h o u nM a r k e t i n g C o o r d i n a t o r

D e n v e r , C OO ff i c e 3 0 3 . 3 2 8 . 2 0 6 3

P a y t o n . C a l h o u n @ M a r c u s M i l l i c h a p . c o m

PRESENTED BY

PROPERTY ANALYSIS

OFFERING HIGHLIGHTS

Nob Hill Apartments

OFFERING PRICE $3,100,000 CAP

RATE 5.21%

PRICE

CAP RATE

PRICE PER UNIT

PRICE PER SF

RENTABLE SF

$3,100,000

5.21%

$134,783

$229.31

13,519

9

INVESTMENT OVERVIEWMarcus & Millichap is please to present 2700 S Federal Boulevard, or Nob Hill Apartments, a well-maintained 23 unit apartment community just southwest of Denver, Colorado.

The Nob Hill apartments sits on a 0.45-acre corner lot on South Federal and Yale. It is an exterior walk up apartment property that was originally built in 1971 and has a total of 23 units. Seventeen of the units are one-bedroom/one-bathroom measuring 585 square feet, and six of the units are large one bedroom/one-bathroom units measuring 733 square feet. A majority of the units have been updated and contain vinyl plank hardwood floors, updated counter tops, new light fixtures, a/c units, and large open floor plans. Additionally, the exterior of the property has had some upgrades such as new paint, new stairs, and a resurfaced parking lot. Some community amenities include on-site laundry, a small grass area, and ample off-street parking.

Residents at the Nob Hill Apartments have access to many local restaurants, shops and bars that line South Federal. Some nearby stores include Walmart, Kings Soopers, Bear Valley Shopping Center, and Costco. In addition, residents have easy access to many public bus lines, US Highway 285 (Hampden Avenue), and S Santa Fe which allow residents to access Downtown Denver, DTC, and the Mountains.

The investment appeal of this asset is driven by strong employment fundamentals, low vacancy levels, and rapidly expanding rental demand in Denver. This well-located property, just a short drive from downtown Denver, presents an attractive choice for central Colorado renters.

10 Property AnalysisNob Hill Apartments

INVESTMENT HIGHLIGHTSImmediate Upside in Rents

Majority of Units Are Remodeled

Corner Lot

27 Off-Street Parking Spaces

Seller Owned Laundry

Security System

Large Open Floor Plans

New Exterior Stairs

Close to Retail

11

PROPERTY DETAILS

PROPERTY ADDRESS 2700 S Federal Blvd., Denver, CO 80236

Number of Units 23

Number of Buildings 1

Number of Stories 3

Year Built 1971

Lot Size 0.45 Acres

Type of Ownership Fee Simple

Parking 27 Off-Street Spaces

Utilities: Water Master Metered

Utilities: Electric Individually Metered

Utilities: Gas Master Metered

Utilities: Trash Contracted

Nob Hill Apartments

FINANCIAL SUMMARY

Nob Hill Apartments Financial Summary14

PRICING DETAILS

PRICE $3,100,000

Down Payment 30% $930,000

Number of Units 23

Price Per Unit $134,783

Rentable SqFt 13,519

Price Per SqFt $229.31

Year Built 1971

RETURNS

Cap Rate - Current 5.21%

Cap Rate - Pro Forma 6.32%

FINANCING MARCUS & MILLICHAP CAPITAL CORPORATION

Loan Amount $2,170,000

Loan Type New

Interest Rate 4.75%

Amortization 30 Years

Year Due 2023

*Loan information is subject to change. Contact your Marcus & Millichap Capital

Corporation representative.

# OF UNITS UNIT TYPE SQFT/UNIT CURRENT RENTS MARKET RENTS

17 1 Bed / 1 Bath 545 $804 $900

6 1 Bed / 1 Bath 733 $792 $950

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INCOME

CURRENT YEAR 1 PER SF

Gross Scheduled Rent $222,360 $259,560 $19.20

Less: Vacancy/Deductions (3.0%) ($6,671) (3.0%) ($7,787) ($0.58)

Total Effective Rental Income $215,689 $251,773 $18.62

Other Income $2,616 $10,716 $0.79

Effective Gross Income $218,305 $262,489 $19.42

Less: Expenses (26.1%) ($56,882) (25.3%) ($66,511) ($4.92)

Net Operating Income $161,423 $195,978 $14.50

Cash Flow $161,423 $195,978

Debt Service $103,075 $103,075

Net Cash Flow After Debt Service 6.27% $58,348 9.99% $92,903

Total Return 6.27% $58,348 9.99% $92,903

Nob Hill Apartments Financial Summary16

EXPENSES

CURRENT YEAR 1 PER UNIT PER SF

Real Estate Taxes $11,771 $14,107 $613 $1.04

Insurance $7,730 $8,625 $375 $0.64

Utilities - Electric $981 $981 $43 $0.07

Utilities - Water & Sewer $5,059 $5,059 $220 $0.37

Utilities - Gas $6,057 $6,057 $263 $0.45

Trash Removal $2,133 $2,133 $93 $0.16

Repairs & Maintenance $8,542 $13,800 $600 $1.02

Internet & Phone $1,511 $0 $0 $0.00

Management Fee $13,098 $15,749 $685 $1.16

Total Expenses $56,882 $66,511 $2,892 $4.92

Expenses/Unit $2,473 $2,892

Expenses/SF $4.21 $4.92

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$0.00 SF

$0.20 SF

$0.40 SF

$0.60 SF

$0.80 SF

$1.00 SF

$1.20 SF

$1.40 SF

$1.60 SF

0100200300400500600700800900

One Bedroom/One Bathroom

Rent p

er SF/M

onthRen

t p

er M

onth

Unit Type

Unit Rent

Rent Rent SF

RENT ROLL SUMMARY

SCHEDULED POTENTIAL

UNIT TYPE# OF

UNITSAVG SF

SCHEDULEDRENTAL RANGE

AVG RENT

AVG RENT/SF

MONTHLY INCOME

AVG RENTAVG

RENT/SFMONTHLYINCOME

1 Bed / 1 Bath 17 545 $695-910 $804 $1.48 $13,668 $900 $1.65 $15,300

1 Bed / 1 Bath 6 733 $725-900 $792 $1.08 $4,752 $950 $1.30 $5,700

COMPARABLE PROPERTIES

Nob Hill Apartments Comparable Properties20

SALES COMPARABLES

PROPERTY NAME PROPERTY ADDRESS SALE DATE SFNUMBER OF

UNITSCAP RATE

Nob Hill Apartments 2700 S Federal Blvd. 13,519 23 5.21%

1. Tropicana Apartments 2930 W Asbury Ave. Under Contract 11,707 18 6.27%

2. Tangiers Apartments 1877 S Federal Blvd. Sep-17 13,894 24 N/A

3. 1860 S Grove Street 1860 S Grove St. Mar-18 12,253 18 6.32%

4. 3605-3615 S Knox Court 3605-3615 S Knox Ct. Feb-18 10,950 18 7.18%

5. Fort Providence Apartments 3600 S Lowell Blvd. Apr-17 18,650 30 6.00%

21

1

3

45

S Federal Blvd

US Highway 285

S Sheridan Blvd

2

CanAm Hwy

Bear Creek Park

Sheridan Recreation Center

Harvey Park

Overland Golf Course

Loretto Heights Park

Yale Ave

Jewell Ave

Nob Hill Apartments Comparable Properties22

NOB HILL APARTMENTS2700 S Federal Blvd., Denver, CO 80236

SALE PRICE $3,100,000

Price Per Unit $134,783

Rentable SF 13,519

Price Per SF $229.31

Year Built 1971

UNIT TYPE NUMBER

1 Bed/1 Bath 23

TROPICANA APARTMENTS2930 W Asbury Ave., Denver, CO 80219

UNDER CONTRACT PRICE $2,695,000

Price Per Unit $149,722

Total SF 11,707

Price Per SF $230.20

Year Built 1962

UNIT TYPE NUMBER

1 Bed/1 Bath 1

2 Bed/1 Bath 17

TANGIERS APARTMENTS1877 S Federal Blvd., Denver, CO 80219

SALE PRICE $2,900,000

Price Per Unit $120,833

Total SF 13,894

Price Per SF $208.72

Year Built 1962

UNIT TYPE NUMBER

1 Bed/1 Bath 24

23

1860 S GROVE STREET1860 S Grove St., Denver, CO 80219

SALE PRICE $2,100,560

Price Per Unit $116,698

Total SF 12,253

Price Per SF $171.43

Year Built 1961

UNIT TYPE NUMBER

Studio 1

1 Bed/1 Bath 12

2 Bed/1 Bath 5

FORT PROVIDENCE APARTMENTS3600 S Lowell Blvd., Denver, CO 80236

SALE PRICE $3,600,000

Price Per Unit $120,000

Total SF 18,650

Price Per SF $193.02

Year Built 1974

UNIT TYPE NUMBER

1 Bed/1 Bath 20

2 Bed/1 Bath 10

3605-3615 S KNOX COURT3605-3615 S Knox Ct., Denver, CO 80236

SALE PRICE $2,100,560

Price Per Unit $116,698

Total SF 10,950

Price Per SF $191.83

Year Built 1977

UNIT TYPE NUMBER

1 Bed/1 Bath 12

2 Bed/1 Bath 6

Nob Hill Apartments Comparable Properties24

RENT COMPARABLES

PROPERTY NAME PROPERTY ADDRESS YEAR BUILT NUMBER OF UNITS

Nob Hill Apartments 2700 S Federal Blvd. 1971 23

1. Williamsburg Community 3120 W Iliff Ave. 1986 56

2. Tangiers Apartments 1877 S Federal Blvd. 1962 24

3. Berkshire Square 2617, 2647 & 2667 W Evans Ave. 1972 126

4. Fort Providence Apartments 3600 S Lowell Blvd. 1974 30

25

S Federal Blvd

US Highway 285

S Sheridan Blvd

CanAm Hwy

Bear Creek Park

Sheridan Recreation Center

Harvey Park

Overland Golf Course

Loretto Heights Park

Yale Ave

Jewell Ave

1

2

3

4

Nob Hill Apartments Comparable Properties26

NOB HILL APARTMENTS2700 S Federal Blvd., Denver, CO 80236

WILLIAMSBURG COMMUNITY3120 W Iliff Ave., Denver, CO 80219

23

TOTAL UNITS

1971

YEAR BUILT

UTILITIES: N/A

PARKING: No Charge

UTILITIES: Utility Reimbursement Included in Rent

PARKING: $30 Per Month

56

TOTAL UNITS

1986

YEAR BUILT

UNIT TYPE

SQFTCURRENT

RENTRENT/

SF

1 Bed/1 Bath 600 $958 $1.60

2 Bed/1 Bath 800 $1,078 $1.35

UNIT TYPE

SQFTCURRENT

RENTRENT/

SF

1 Bed/1 Bath 545 $804 $1.48

1 Bed/1 Bath 733 $792 $1.08

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TANGIERS APARTMENTS1877 S Federal Blvd., Denver, CO 80219

BERKSHIRE SQUARE2617,2647 & 2667 W Evans Ave., Denver, CO 80219

FORT PROVIDENCE APARTMENTS3600 S Lowell Blvd., Denver, CO 80236

UTILITIES: Utility Reimbursement Included in Rent

PARKING: No Charge

UTILITIES: All Utilities Included

PARKING: $35 Per Month

UNIT TYPE

SQFTCURRENT

RENTRENT/

SF

1 Bed/1 Bath 595 $995 $1.60

2 Bed/1 Bath 675 $1,185 $1.76

UTILITIES: Utility Reimbursement Included In Rent

PARKING: No Charge

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TOTAL UNITS

1962

YEAR BUILT

126

TOTAL UNITS

1972

YEAR BUILT

30

TOTAL UNITS

1974

YEAR BUILT

UNIT TYPE

SQFTCURRENT

RENTRENT/

SF

1 Bed/1 Bath 440 $825 $1.88

1 Bed/1 Bath 560 $875 $1.56

2 Bed/1 Bath 610 $950 $1.57

2 Bed/1 Bath 704 $995 $1.41

UNIT TYPE

SQFTCURRENT

RENTRENT/

SF

1 Bed/1 Bath 595 $950 $1.60

MARKET OVERVIEW

Nob Hill Apartments Market Overview30

LOCATION HIGHLIGHTSCostco - 2.5 Miles

Gothic Theater - 2.8 Miles

Swedish Medical Center - 3.3 Miles

Washington Park - 4.6 Miles

Central Business District - 7.2 Miles

Pepsi Center - 6.5 Miles

Red Rocks Amphitheatre - 12.9 Miles

Denver International Airport - 34.8 Miles

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Just southwest of Denver, Nob Hill Apartments sits close to Englewood and Lakewood, two thriving suburbs of Denver that are close enough to enjoy life in the city while providing the perks of a quiet town. The area does not lack necessities, offering countless restaurants and shops, including King Soopers, Costco, Walmart, Home Depot, and more. Bear Valley Shopping Center brings even more shopping options along with nearby movie theaters, bowling alleys, local restaurants, and specialty stores.

The Denver metro prides itself on being home to a huge number of parks, one of which, Loretto Heights Park, is just a couple blocks from Nob Hill Apartments. Just a few minutes away residents can enjoy Harvey Park Lake and Riviera Lake. With so many outdoor recreational areas, residents can easily spend their days taking a walk, running, biking, playing outdoor sports, swimming, or enjoying one of the many close by golf courses.

Aside from outdoor activities, Lakewood and Englewood are home to incredible cultural and arts centers. In Lakewood, beautiful live performances can be seen at Lakewood Cultural Center and countless artifacts can be found near Lakewood’s 10 historic buildings. Outdoor amphitheaters and parks host concerts, movie nights, and so much more.

Being so close to Englewood, Lakewood, and Downtown Denver means some of the city’s best events are incredibly close. Small, local events for any kind of activity can be found in Lakewood and Englewood’s town centers. Annual events include Festival Italiano, Colorado Garden & Home Show, and Earth Day celebrations. Denver’s best annual events include Cinco de Mayo Festival, Denver Day of Rock, Denver Comic Con, Cherry Blossom Festival, Slow Food Nations, and A Taste of Colorado.

If residents wish to seek out city excitement, they are within minutes of Denver’s greatest attractions. Options only start with cheering on the Avalanche at the Pepsi Center, the Rockies at Coors Field, or the Broncos at Sports Authority Field at Mile High. Between Red Rocks Amphitheatre, Marquis Theater, Ogden Theater, and Fillmore Auditorium, music fans can enjoy their favorite musicians from the world’s biggest names to lesser-known, up-and-coming artists. Denver neighborhoods such as LoDo, Uptown, Colfax, and LoHi dominate nightlife in the city and are just a quick drive from Nob Hill Apartments.

When the quieter neighborhood around Nob Hill Apartments is too much excitement, residents are minutes away from US Highway 285, offering easy access to Denver’s backyard: The Rocky Mountains. Colorado’s best skiing is always near and in warmer months residents can spend their days hiking, mountain biking, white water rafting, or simply enjoying Colorado’s beautiful outdoors.

Nob Hill Apartments Market Overview32

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AREA AMENITIESWalmart Supercenter - 0.9 Miles

King Soopers - 1.0 Miles

Harvey Park Lake - 1.4 Miles

Pho 95 - 1.7 Miles

Hampden Hall, Englewood Civic Center - 2.5 Miles

Breakfast on Broadway - 2.7 Miles

Kaladi Coffee Roasters - 2.8 Miles

2.4 Miles FromNixon’s Coffee House

0.4 Miles FromLoretto Heights Park

10.2 Miles FromGreen Mountain

5.7 Miles FromLakewood Heritage Center

Nob Hill Apartments Market Overview34

DEMOGRAPHIC HIGHLIGHTS

POPULATION 1 MILE 3 MILES 5 MILES

2022 ProjectionTotal Population

20,775 151,372 397,348

2017 EstimateTotal Population

21,008 153,191 397,427

2010 CensusTotal Population

18,307 139,266 361,747

2000 CensusTotal Population

17,917 137,228 355,205

Daytime Populations2017 Estimate

22,373 152,122 419,477

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2022 ProjectionTotal Households

7,096 58,625 168,862

2017 EstimateTotal Households Average (Mean) Household Size

7,0392.83

57,5532.57

165,0052.33

2010 CensusTotal Households

6,276 53,104 151,281

2000 CensusTotal Households

6,434 52,910 148,162

Growth 2015 - 2020 0.81% 1.86% 2.34%

25.52%

$45,095

10.92%

POPULATION WITHIN ONE MILE 20-34 YEARS OLD

3Q17 MEDIAN HOUSEHOLD INCOME

POPULATION WITHIN 1 MILE COLLEGE EDUCATED

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HOUSING UNITS 1 MILE 3 MILES 5 MILES

Occupied Units2022 Projection 7,096 58,625 168,8622017 Estimate 7,105 58,283 167,482Owner Occupied 3,385 31,662 87,308Renter Occupied 3,654 25,892 77,697Vacant 66 729 2,477

Persons In Units2017 Estimate Total Occupied Units

7,039 57,553 165,005

1 Person Units 25.94% 30.70% 35.54%2 Person Units 27.84% 30.54% 31.99%3 Person Units 16.55% 14.72% 13.44%4 Person Units 13.52% 11.28% 9.99%5 Person Units 7.94% 6.48% 4.96%6+ Person Units 8.20% 6.17% 4.08%

HOUSEHOLDS BY INCOME 1 MILE 3 MILES 5 MILES

2017 Estimate$200,000 or More 0.72% 2.49% 6.07%$150,000 - $199,000 1.51% 3.02% 4.51%$100,000 - $149,000 10.80% 11.86% 13.09%$75,000 - $99,999 11.51% 12.58% 12.66%$50,000 - $74,999 21.48% 21.77% 19.50%$35,000 - $49,999 13.07% 14.39% 13.44%$25,000 - $34,999 11.16% 10.80% 9.61%$15,000 - $24,999 11.53% 10.70% 9.24%Under $15,000 18.21% 12.39% 11.87%

Average Household Income $55,009 $66,589 $83,475Median Household Income $45,095 $51,820 $56,722Per Capita Income $18,708 $25,171 $34,932

POPULATION PROFILE 1 MILE 3 MILES 5 MILES

Population By Age2017 Estimate Total Population 21,008 153,191 397,427Under 20 28.76% 25.43% 23.06%20 - 34 Years 25.52% 25.00% 26.77%35 - 39 Years 7.29% 7.56% 7.49%40 - 49 Years 12.90% 12.63% 12.46%50 - 64 Years 16.42% 17.08% 17.39%Age 65+ 9.11% 12.31% 12.85%Median Age 32.60 34.75 35.11

Population 25+ by Education Level2017 Estimate Population Age 25+ 13,530 104,253 278,112Elementary (0-8) 11.07% 8.14% 5.30%Some High School (9-11) 14.15% 12.11% 8.65%High School Graduate (12) 31.34% 27.51% 22.15%Some College (13-15) 19.95% 20.43% 19.57%Associate Degree Only 6.53% 5.64% 5.61%Bachelors Degree Only 10.92% 16.30% 23.74%Graduate Degree 4.37% 7.91% 13.61%

Population by Gender2016 Estimate Total Population 21,008 153,191 397,427Male Population 51.16% 50.38% 50.08%Female Population 48.84% 49.62% 49.92%

Nob Hill Apartments Market Overview36

MARKET HIGHLIGHTS

Share of 2016 Total Employment

165,000NEW RESIDENTS EXPECTED IN DENVER-METRO IN THE NEXT 5

YEARS

34.832017 DENVERMEDIAN AGE

15,2932017 DENVER POPULATION

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Manufacturing

Professional and Business Services

Government

Leisure and Hospitality

Financial Activities

Trade, Transportation, and Utilities

Construction

Education and Health Services

Information

Other Services

37

165,000

34.832017 DENVERMEDIAN AGE

2017 DENVER POPULATION

NUGGETS

BRONCOS

ROCKIES

AVALANCHE

UNIVERSITY OF DENVER

UNIVERSITY OF COLORADO

COMMUNITY COLLEGE OF DENVER

METROPOLITAN STATE UNIVERSITY OF DENVER

DENVER ART MUSEUM

ELITCH GARDENS

DENVER BOTANIC GARDENS

DENVER MUSEUM OF NATURE & SCIENCE

MAJOR TRANSPORTATION CENTER

EMPHASIS ON SKILLED JOBS

GROWING ALTERNATIVE ENERGY SECTOR

CONSISTENTLY RISING MARKET

Boomer Be at t yOff ice 303.328.2041

Boomer .Beatty@mmreis .com

Peter StandleyOff ice 303.328.2053

Peter .Standley@mmreis .com

J ohn StandleyOff ice 303.328.2065

John .Standley@mmreis .com

Payton CalhounOff ice 303.328.2063

Payton .Calhoun@mmreis .com

Nob Hill Apartments