patina 65 ogden st. madison commercial denver, co 80218 … · grm/gim:-sale conditions:-comp id:...

Kyle Malnatic: [email protected]

C e n t r a l D e n v e r M u l t i f a M i l y e x p e r t s

Broker’s Price Opinion

Patina 65 Ogden St.

Denver, CO 80218MADISON COMMERCIAL

Properties, LTD.

Greg Johnsono: [email protected]

Prepared for:

Tom Willisch

February 2016

Photo from boutiqueapartments.com

introduction

Dear Tom,

Madison Commercial Properties is a committed and hands-on brokerage team that delivers superior results in the Central Denver apartment market. We provide expert advice with the highest level of personal service. We will be your brokerage partner that genuinely acts in the best interest of, and as extension of, your investment group.

We are honored to submit this Broker’s Price Opinion (BPO) for 65 Ogden Street. The purpose of this BPO is to recommend the price at which the apartments should be offered for sale in the present marketplace, and to showcase our ability to represent you as your exclusive listing broker.

The Patina Apartments, is not an average apartment community.

Madison Commercial Properties is not a typical multi-family brokerage firm.

In 2011, you purchased 65 Ogden Street for: $869,700

In 2015, we gave you an estimate value of: $1,750,000

Today, we estimate the value has increased to: $2,090,000

That leaves you an estimated profit of: $1,220,300

Will you take advantage of this seller’s market and reap large profits?

We look forward to meeting with you soon to discuss your goals, and our suggestions for your investment. Prepare yourself to experience a fresh new take on commercial brokerage.

Sincerely,

Greg Johnson & Kyle Malnati

Please note, this Broker Opinion of Value is not an appraisal. Madison Commercial Properties, Ltd. are not licensed real estate appraisers. All figures included herein are approximate and all numbers/information were received from and/or developed from sources deemed reliable. However, no guarantee or warranty, expressed or implied, is given. The reader is encouraged to conduct their own independent due diligence effort and to independently verify all information/aspects relating to this report.

6764 Olympus DriveEvergreen, CO 80439

Our PhilsophyMarketing StrategyProperty Overview

Sales CompsFinancial Summary

Broker BiosReferences

table of contents Our Proposal Includes:

som

ethi

ng d

iffer

ent.

Greg digs in deep to solve problems in a deal.

We’ve worked together on 8 transactions over 5 years

and we’ve been able to close each one together. I appreciate

his focus and diligence. Our business relationship has

grown into a special personal friendship.

Paul BooksPalisade Partners

our philosophy

“

”

client-focused

creativeOne size does not fit all - we are a resourceful commercial real estate firm with fully customized efforts for each client

This is not the shallow end - we engage clients at a deeper level and offer a fresh approach to brokerage

connectedOur decade-long experience in the market has createdexposure to a deep pool of investors and entrenched us in the brokerage community

competitive

Failure is not an option - we are committed to delivering the best sales price possible and a smooth transaction process

We are bold in our efforts and empowered to do what it takes to succeed

committed

We work to understand your goals and place your interests before our own. We use our years of experience in brokerage and property management to give you comprehensive service and advice

Madison Commercial is something different.

marketing strategythe buyer will be courtedIt is our belief that Central Denver investors are drawn to buildings that reflect their own personality. Investors understand the subtle differences across Denver neighborhoods. 65 Ogden Street is one-of-a-kind, and potential investors will recognize that quality and exceptional location comes at a price. The ideal Buyer has distinguished taste, and will want to be courted during the marketing process, not herded and corralled in a call-for-offers progression.

marketing plan We will collaborate to customize our marketing plan upon receiving the listing agreement. Our initial thoughts are below:

• Create YouTube Virtual Tour Video

• Create Property Website

• Create Direct Mail Postcard

• Leverage our investor contacts and professional network

• Invite and involve the brokerage community

• Upload Property to:

--> LoopNet

--> Denver Apartment Buildings For Sale

--> Denver MLS

--> Madison & Company Properties’ website

--> CoStar

property overview

Units: Year Built: Building Type: Building Size: Lot Size: Roof: Heat: Parking:

111960Brick

8,162 SF6,250 SF

FlatBoiler System

6 Off-Street

sales comps1 1435 Franklin St - Cheeseman Suites SOLD

5021-08-023

Denver, CO 80218Sale Date:

Pro Forma CapRate:

Price/SF:Sale Price:

Actual Cap Rate:

$184.83$1,735,00001/27/2016 Bldg Type:

Year Built/Age:RBA:

--

Parcel No:

In Progress

Class C Multi-FamilyApartmentsBuilt 1962 Age: 549,387 SF

Denver County

Research Status:

Price/Unit: $144,583 # of Units: 12

GRM/GIM: -Sale Conditions: -

Comp ID: 3509385

2 1139 York St SOLD

5021-28-026


Pro Forma CapRate:


Actual Cap Rate:

$220.85$2,775,000 - Confirmed01/14/2016 Bldg Type:

Year Built/Age:RBA:

-3.73%

Parcel No:

Confirmed


Denver County

Research Status:



Comp ID: 3495874

3 66 S Clarkson St - Chill SOLD

5114-05-010


Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

--

Parcel No:

Confirmed


Denver County

Research Status:



Comp ID: 3411705

4 1444 Saint Paul St SOLD

5011-11-019


Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

5.66%-

Parcel No:

Confirmed


Denver County

Research Status:



Comp ID: 3340250

5 68 Sherman St SOLD

5104-06-069


Pro Forma CapRate:


Actual Cap Rate:


Year Built/Age:RBA:

5.17%-

Parcel No:

Confirmed

Class C Multi-FamilyApartmentsBuilt 1962 Renov 2001 Age: 529,138 SF

Denver County

Research Status:



Comp ID: 3182904

6 1345 Monroe St SOLD

-


Pro Forma CapRate:


Actual Cap Rate:

$181.95$1,895,000 - Confirmed08/25/2014 (56 days on mkt) Bldg Type:

Year Built/Age:RBA:

-5.92%

Parcel No:

Confirmed


Denver County

Research Status:



Comp ID: 3106432

Copyrighted report licensed to Madison & Company - 728769. 2/18/2016

Page 1

Sold by Greg

& Kyle

Sold by Greg

& Kyle

Sold by Greg

& Kyle

Sold by Greg

& Kyle

financial summaryPrice: $4,950,000 #Units UnityType Avg.SqFt CurrentRents ProformaRents

Price/Unit: $275,000 2 Studio 540 $1,190 $1,250

Price/SqFt: $383.54 11 1Br/1Ba 598 $1,455 $1,525

2 2Br/2Ba 940 $1,995 $2,050

2 2Br/2Ba 957 $3,250 $3,250

LoanAmount: $3,465,000 1 2Br/2Ba 1151 $2,713 $3,000

DownPayment: $1,485,000

InterestRate: 3.75%

MonthlyPayment: $10,828 INCOME Current Year1

5-YearFixedRate: I/Ofor3years GrossAnnualRent: $372,624 $394,500

VacancyAllowance: ($26,084) ($27,615)

NetRentalIncome: $346,540 $366,885

Units: 18 OtherIncome: $31,643 $31,643

YearBuilt: 2013 EffectiveGrossIncome: $378,183 $398,528

BuildingSize(SqFt): 12,906

LotSize(SqFt): 7,500 ESTIMATEDEXPENSES Current Year1

PropertyTaxes: $9,954 $20,000

Insurance: $6,466 $6,466

PropertyManagement: $17,288 $17,288

Repairs&Maintenance: $45,111 $30,299

Utilities: $18,985 $18,985

Admin/Misc.: $13,371 $12,566Marketing&Advertising: $4,212 $4,212TotalExpenses: $115,387 $109,816

Expense/Unit: $6,410 $6,101

NetOperatingIncome(NOI) $262,796 $288,712

Current Year1

NOI: $262,796 $288,712

ProjectedDebtService: ($192,563) ($129,938)

BeforeTaxCashFlow: $70,233 $158,775

CAPRate: 5.31% 5.83%

Cash-on-CashReturn: 8.95% 10.69%

PrincipalReduction(yr.1): $65,733 $65,733

TotalReturn: 13.24% 14.98%

FINANCIALANALYSIS

INVESTMENTSUMMARY UNITMIXANDAVERAGERENTSCHEDULE

FINANCING

OPERATINGDATA

PROPERTYDESCRIPTION

SAMP

LE

EXPERIENCE2012 – Present: Commercial Broker, Madison & Company Properties, Denver, CO2004 – 2012: Vice President, Cornerstone Apartment Services, Denver, CO2003 – 2004: Broker, Marcus & Millichap, Denver, CO

EDUCATIONB.S. Finance, Arizona State UniversityM.B.A. University of Virginia

CAREER SUMMARY Greg Johnson is a commercial real estate broker specializing in multi-family and investment sales. With ten years of experience in the Denver market, Greg has successfully brokered the sale of 1,800 apartment units with over $150,000,000 in total sales volume. He joined Madison Commercial Properties in 2012 after serving as Vice President of Cornerstone Apartment Services, central Denver’s largest apartment management firm. Greg brings a wealth of sales, operations, and organizational experience to Madison. The opportunity to develop and cultivate lasting relationships with clients is Greg’s favorite part of the real estate business. Greg is teamed with Kyle Malnati to bring an unparalleled level of service and expertise to apartment investors.

“”

It’s best to DO one thing

really, really well…and we DO Central Denver apartments.

greg johnson

EXPERIENCE2011 – Present: Partner/Shareholder, Madison & Company Properties, Denver, CO2008 – 2011: Senior Advisor, Pinnacle Real Estate Advisors, LLC, Denver, CO2006 – 2007: Advisor, Pinnacle Real Estate Advisors, LLC, Denver, CO2004 – 2006: Broker Associate, Unique Properties, LLC, Denver, CO

EDUCATIONB.S. Finance, University of Wyoming, Laramie, WY

PROFESSIONAL AFFILIATIONSLicensed Real Estate Broker in the State of ColoradoREALTOR® - Member of NAR® and DMCAR

kyle malnati

This isn’t about us. It’s all

about YOU.

“

”

CAREER SUMMARYKyle Malnati is a commercial real estate broker specializing in multifamily and investment sales. He is a partner and shareholder of Madison & Company Properties which is a respected and established boutique real estate firm located in central Denver. Kyle has been fortunate to experience many successes in his brokerage career which includes the following awards: Company Top Producer in 2009, 2012, 2013, 2014; REALTOR Magazine National “30 Under 30” Award Winner in 2012; Denver Business Journal “Heavy Hitter” in 2008, 2009, 2010, 2012, 2013, 2014; Young Broker “Heavy Hitter” in 2008; Company Rookie of the Year in 2007. He attributes his career accomplishments to keeping focused on my clients’ goals, having wonderful mentors, working hard, and becoming an industry specialist.

Paul BooksPalisade Partners605.929.6483pbooks@palisadepartners.comwww.palisadepartners.com

Jason McCoolExecutive Coatings303.901.3830jason@executivecoatings.comwww.executivecoatings.com

Bobby HutchinsonRed Peak [email protected]

How We Served Them:Purchase of 2 Development SitesPurchase of 4 RenovationsSale of 3 Buildings

How We Served Them:Purchase of 4 BuildingsSale of 2 Buildings

How We Served Them:Sale of 39 CondosPurchase of 3 Buildings

references

Norris (Nob) ScottEight South Clarkson, [email protected]

How We Served Them:Purchase of 2 BuildingsSale of 2 BuildingsManagement of 3 Buildings

Madison Commercial Properties | 303-343-83331221 S. Clarkson Street, Suite 400, Denver, CO 80210

This report is being presented by Madison Commercial Properties, a division of Madison & Company Properties, and contains salient facts relevant to the subject properties. The purpose of this report is to estimate the price, in the present marketplace, at which the subject properties should be offered for sale and the probable closed escrow sale price. This report also details how this price may be obtained by virtue of the marketing plan submitted herein.

The authors of this document have personally conducted surveys and interviews with neighborhood Property Managers, Property Owners, Buyers, Sellers and/or Brokers of the properties surveyed with regard to: comparable rents, comparable market properties, comparable sales, current market capital-ization rates, and criteria of investors, as well as actual and projected operational information of the subject property and many of the surrounding properties.

This broker’s price opinion is not an appraisal. Madison & Co. Properties and/or Madison Commer-cial Properties, Ltd. are not licensed real estate appraisers. All figures included herein are approximate and all numbers/information were received from and/or developed from sources deemed reliable. However, no guarantee or warranty, expressed or implied, is given. The reader is encouraged to con-duct their own independent due diligence effort and to independently verify all information/aspects relating to this report.

Madison Commercial Properties | 303-343-83331221 S. Clarkson Street, Suite 400, Denver, CO 80210

a division of Madison & Company Properties

patina 65 ogden st. madison commercial denver, co 80218 … · grm/gim:-sale conditions:-comp id:...

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