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4431 & 4437 TENNYSON STREET DENVER, CO 80212

ROBERT BRATLEY - 541-729-9667 - [email protected] 18 TOWNHOME DEVELOPMENT IN THE PRESTIGIOUS TENNYSON/BERKELEY NEIGHBORHOOD

PRICE REDUCDED

TENNYSON TOWNHOMES

01 Executive Summary

02 Property Description

03 Market Overview

04 Financial Analysis

© 2019 CBRE, Inc. All Rights Reserved.

TABLE OF CONTENTS

01 EXECUTIVE SUMMARY

© 2019 CBRE, Inc. All Rights Reserved.

TABLE OF CONTENTS

EXECUTIVE SUMMARYTHE OFFERINGCBRE is pleased to offer for sale Tennyson Townhomes, an 18-unit development located in the Tennyson/Berkeley neighborhood of northwest Denver.

4

PROPERTY OVERVIEWPROPERTY ADDRESS 4431 & 4437 Tennyson St. Denver, CO 80212

YEAR BUILT 2019

TOTAL BUILDING AREA 34,774 Square Feet

NUMBER OF UNITS 18

AVERAGE UNIT SIZE 1,932

PRICE $12,000,000

PRICE PER SQUARE FOOT $345.09

AVG. MARKET RENT $3,433

AVG. MARKET RENT PER SQUARE FOOT $1.78

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INVESTMENT HIGHLIGHTS

Tennyson Townhomes is a new construction, 18 townhome development located in one of Denver’s best and most sought-after neighborhoods. This luxury, for-sale product will include KitchenAid stainless steel appliances including a microwave and dishwasher, quartz countertops, Concept 32 cabinets with soft close drawers, expansive rooftop decks and balconies, nine-foot ceilings, central heating and cooling, and engineered hardwood flooring.

The property can include optional upgrades such as a gas fire pit, gas grill, outdoor TV, ceiling fans, washers and dryers and more.

Most units at Tennyson Townhomes include a two-car garage which is more than the other townhome developments in the area. In addition, the street-facing units include a large studio space with its own half bath that can serve a multitude of uses.

The property is in heart of the Tennyson/Berkeley neighborhood. With an 89 Walkscore all the concert venues, coffee shops, restaurants, breweries, bars, and boutique shops in the neighborhood are within minutes.

Tennyson Townhomes is located ten minutes from downtown Denver and 133,500 jobs. The property also has great access to Interstate 70 to the Rocky Mountains and commuting throughout the city.

The lack of inventory and high demand for rental units in Tennyson/Berkeley is obvious. Currently the neighborhood has just 177 apartments, and of these there are only 30 two-bedroom units. This disparity will make it very easy to lease these townhomes as rental listings along Tennyson Street are scarce.

In the first quarter 2019 the average vacancy rate in the Denver Northwest submarket for properties with nine to 50 units remained low at 4.2%, well below the metro Denver average of 5.4%. This high demand increased the average two-bedroom rents by 5.0% over the previous year to $2,540 per month.

Tennyson/Berkeley is a very affluent and highly-educated neighborhood. Within one mile of Tennyson Townhomes 56.3% of the population has a bachelor’s degree or higher. The average household income within three miles is $82,953 and is projected to grow to $95,681 by 2023.

* Source: AAMD Q1 2019 Vacancy & Rent Survey

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02PROPERTY DESCRIPTION

PROPERTY DETAILSAddress 4431 & 4437 Tennyson St.

Denver, CO 80212Units 18Total Square Feet 34,774 Square FeetRooftop Square Feet 8,439 Square FeetZoning U-MX-3Lot Size 18,750 Square Feet

CONSTRUCTION DETAILSConstruction Type TownhomeFoundation ConcreteSiding Brick, Stucco & Concrete BoardRoofing EPDM

UTILITIESElectricity Individually meteredGas Individually meteredWater, Sewer & Trash Master metered

PARKINGGarage Parking Spaces 33Parking Ratio 1.83

LEASING DETAILSApplication Fee $50Pet Rent $30Pet Fee $300

PROPERTY DESCRIPTION

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Near multiple RTD bus stops

Steps from Parisi, Firenze A’Tavola, Tenn Street Coffee,

Oriental Theater, The Grateful Gnome, Cozy Cottage, Call To Arms Brewing, De Steeg

Brewing, El Chingon, Local 46 and more

Two blocks from Berkeley Lake Park & Cesar

Chavez Park

Proximity to West Highland, Sloan’s Lake, Regis University

and Interstate 70 to the Rocky Mountains

Ten minutes to downtown Denver

COMMUNITY AMENITIES

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NEIGHBORHOOD MAP

Natural GrocersWendell’s

Tennyson TapBerkeley Inn

Denver Biscuit CompanyFat Sully’s

Biju’s Little Curry ShopBerkeley Untapped

The Empourium Brewing Company

Downtown Denver133,500 Employees

Local 46 Beer Garden

30 Minutes to DIA

INTERSTATE

Rocky Mountain Lake Park

Berkeley Lake Park & Berkeley Dog Park Call to Arms Brewing

Company

Broncos Stadium

Highland SquareSweet CowEl CaminoMatador

Three Dogs TavernMondo VinoNovo Coffee

Mead Street Station

Hops & PieVital Root

West End Tap HouseAllegro Coffee Roasters

Cesar Chavez Park

Regis University

Tennyson

44th Ave

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0 2,0001,000Feet

46th Ave

46th Ave

44th Ave

44th Ave

41st Ave

41st Ave

38th Ave

38th Ave

44th Ave

44th Ave

46th Ave

46th Ave

38th Ave

38th Ave

Perry StPerry St

Tennyson StTennyson St Tennyson StTennyson St

Wolff StWolff St

Yates StYates St

Vrain StVrain St

Raleigh StRaleigh St

CeasarChavez Park

CeasarChavez Park

HistoricElitch Carousel

Dome


Dome

HistoricElitch

Theatre

HistoricElitch

Theatre

Smiley BranchLibrary


BerkeleyLakePark

BerkeleyLakePark

366474

NEIGHBORHOOD MAP

TENNYSON TOWNHOMES

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0 2,0001,000Feet

46th Ave

46th Ave

44th Ave

44th Ave

41st Ave

41st Ave

38th Ave

38th Ave

44th Ave

44th Ave

46th Ave

46th Ave

38th Ave

38th Ave

Perry StPerry St

Tennyson StTennyson St Tennyson StTennyson St

Wolff StWolff St

Yates StYates St

Vrain StVrain St

Raleigh StRaleigh St

CeasarChavez Park

CeasarChavez Park


Dome


Dome

HistoricElitch

Theatre

HistoricElitch

Theatre



BerkeleyLakePark

BerkeleyLakePark

366474

03MARKET OVERVIEW

TENNYSON STREET (BERKELEY NEIGHBORHOOD)

Tennyson Street has become one of the most vibrant and attractive areas of Denver. Rapid growth over the past several years from new developments and a wave of restaurants and nightlife has turned the Berkeley neighborhood into one of the most highly south-after markets in metro Denver. Now there are hundreds of restaurants, coffee shops, breweries, bars, boutique stores, art galleries and historic theatre drawing residents to this neighborhood. Among the properties within blocks of Tennyson Townhomes includes Parisi, Firenze A’Tavola, Tenn Street Coffee, Oriental Theater, Call To Arms Brewing Company, De Steeg Brewing, Local 46, Ohana Yoga + Barre, El Chingon, Cozy Cottage, BookBar, Kats-eye Boutique, Denver Biscuit Company, Berkeley Untapped, Empourium Brewing Company, Alto Gallery, Allegro Coffee Roasters, West End Tap House, Hops & Pie, Wendell’s, Berkeley Inn, Tennyson’s Tap, Natural Grocers and many more.

BERKELEY LAKE PARK & LAKESIDE AMUSEMENT PARK

Berkeley Lake Park is located one block north of Tennyson Townhomes. Fishing is permitted in Berkeley Lake and there are tennis courts, basketball courts, picnic areas with grills, the William Scheitler Recreation Center, Berkeley Dog Park and Smiley Branch Library. In addition, the 18-hole Willis Case Golf Course is located just north of the park and across Interstate 70.

Established in 1908, Lakeside Amusement Park is Denver’s oldest amusement park and is still open to the public. Lakeside includes roller coasters, merry-go-round, bumper boats, trains, a drop tower and other classic rides.

MARKET OVERVIEW

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REGIS UNIVERSITY

Founded in 1908, Regis University is a private, Roman Catholic, Jesuit University. With an overall enrollment of 11,411 students and 132 degree programs, the school is most-known for its nursing program that is considered one of the top nursing programs in the region.

WEST HIGHLAND (HIGHLANDS SQUARE)

Highland Square is located on 32nd Avenue from Perry Street to Speer Boulevard. South of Tennyson Townhomes, this neighborhood is the quieter sibling of the Lower Highland neighborhood near downtown Denver. Lined with boutique shops and restaurants including Blue Pan Pizza, Sassafras, Fire On The Mountain, El Camino, Meade Street Station, Novo Coffee, Salt & Grinder, The Matador, Oasis Brewing Company, Sweet Cow, Pure Barre, Lululemon, CorePower Yoga, Three Dogs Tavern and more.

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LOWER HIGHLAND (LOHI)

In the past ten years LoHi has experienced an unprecedented transformation. Because of the proximity to downtown Denver, this neighborhood has had exponential growth and is renowned for its popular bars and restaurants but also for its walkability to downtown. Some of the perennial best eateries in the city reside here including Linger, El Five, Root Down, Old Major, Little Man Ice Cream, Senor Bear, Uncle and The Bindery. Popular watering holes include Ale House, Williams & Graham, Recess Beer Garden, Avanti Food & Beverage, Highland Tavern, Forest Room 5, Prost Brewing Company & Biergarten, Postino and Zuni Street Brewing Company.

SLOAN’S LAKE PARK

As the second largest park in Denver at 177-acres, Sloan’s Lake Park gives residents options for a variety of recreational activities. The lake is commonly used for canoeing, kayaking and paddle boarding and there is a 2.5-mile walking path around the lake for runners and bikers. Sloan’s Lake Park also has a basketball court, tennis courts, picnic tables, a playground, and more. The park has landscaped seating areas on both sides of the park and boasts some of the best views of downtown Denver to the east and the Rocky Mountains to the west.

MARKET OVERVIEW

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ST. ANTHONY’S HOSPITAL REDEVELOPMENT

Once the St. Anthony’s Hospital Central Campus made the move to Lakewood in 2012, the 18-acre site became one of the largest infill sites in Denver. A master redevelopment planned was formed and now most of the projects have been or are nearing completion. The largest of these is Lakehouse, a 224-unit, 17-story condominium building which will reach completion in 2019. Many of these units are being sold for more than $700 per square foot. Other developments in the infill project include townhomes, office spaces and mixed-use buildings. Many restaurants and retail tenants have moved into the area including Alamo Drafthouse, Sloan’s Tap & Burger, Starbucks, Even Steven’s Sandwiches, F45 Training Gym and more.

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DOWNTOWN DENVERLocated ten minutes southeast of Tennyson Townhomes, downtown Denver is thriving. Employment has reached 133,500 which is an all-time high and a 2.5% increase year-over-year. There are currently $2.8 billion in developments going into downtown Denver which includes 2.5 million square feet of office space, 1,000 hotel rooms and 5,000 residential units.

EDGEWATER PUBLIC MARKETA new food hall concept is under construction one mile from Tennyson Townhomes. Edgewater Public Market is a seven-acre development that will include 75,000 square feet of restaurant and retail space. Some of the 35 vendors include Arepas House, Carnivore, Barbed Wire Reef, Moontime Crepes, Slideshow Sliders, Mac Shack, Lucky Bird, Roger’s Bar, Amethyst Coffee, Velvet Wolf and Zero Market. The property will also have a pedestrian promenade, bike parking, dog park, movie screen plaza and 3,000 square foot rooftop deck.

MARKET OVERVIEW

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04FINANCIALS

PROPERTY OVERVIEWNumber of Units 18 Year Built 2019 Price $12,000,000Price per Unit $666,667Price per Square Foot 345.09Net Rentable Square Feet 34,774 Average Square Feet per Unit 1,932 Average Proforma Rent per Unit $3,433 Average Proforma Rent per SF $1.78

NEW LOAN ASSUMPTIONSInitial Equity $3,600,000Proposed New Loan Amount $8,400,000Loan-to-Value 70%Interest Rate 4.20%Loan Term 5 YearsAmortization 36 Months I/O & 30 Yrs. ThereafterAnnual Payment (Amortized) $492,929Loan Constant (Amortized) 5.87%Debt Service Coverage Ratio (Year One Proforma) 1.23

YEAR ONE OPERATING SUMMARYPer Unit Dollars

Effective Gross Income $41,165 $740,973 Less: Operating Expenses 7,365 132,566Less: Capital Reserves 150 2,700 Net Operating Income $33,650 $605,708Less: Debt Service 19,600 352,800Net Cash Flow (After Debt Service) $14,050 $252,908

FINANCIAL RETURNSProforma Cap Rate 5.05%Proforma Cash-on-Cash Return 6.87%Leveraged IRR5 Year Hold 13.34%10 Year Hold 12.46%All Cash IRR5 Year Hold 7.40%10 Year Hold 7.37%

EXECUTIVE SUMMARY

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

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INCOME ASSUMPTIONS ANNUALGross Scheduled Rent 3.0% $763,848 Less: Gain/Loss-to-Lease (1.0%) (7,638)Gross Potential Income $756,210 Less: Vacancy (5.0%) ($38,192)TOTAL RENTAL INCOME 94.0% $718,017

Plus: Other Income $370 $6,654 Plus: Utility Income 399 7,182 Plus: Parking Income 507 9,120

EFFECTIVE GROSS INCOME $740,973 EXPENSES PER UNIT PROFORMA EXP. Repairs & Maintenance $500 $9,000 Contract Services 100 1,800 Turnover Costs 200 3,600 Payroll 200 3,600 Administrative 200 3,600 Marketing 50 900 Utilities 400 7,200 TOTAL VARIABLE EXPENSES $1,650 $29,700 Taxes 3,156 56,817Insurance 500 9,000 Management Fee 5.0% 37,049 Capital Reserves 150 2,700 TOTAL EXPENSES $7,515 $135,266Net Operating Income $605,708

YEAR ONE PROFORMA


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UNIT DESCRIPTION

UNIT TYPE

# UNITES % TYPE

UNITSQUARE

FEET

MONTHLY PROFORMA

RENTS

PROFORMA RENT/SF

MONTHLY PROFORMA RENT TOTAL

ANNUAL PROFOMA

RENT TOTAL

MONTHLY ACTUAL

RENT TOTAL

ACTUAL RENT/

SF

TOTAL SF

TWO BEDROOM

2 Bed / 3.5 Bath Interior 12 66.7% 1,870 $3,417 $1.83 $41,000 $492,000 $3,417 $1.83 22,444

2 Bed / 3.5 Bath Alley 3 16.7% 1,899 3,333 1.76 10,000 120,000 3,333 1.76 5,697

2 Bed / 3 Bath / Studio Street 3 16.7% 2,211 3,600 1.63 10,800 129,600 3,600 1.63 6,633

TOTAL/AVERAGE 18 100.0% 1,932 $3,433 $1.78 $61,800 $741,600 $3,433 $1.78 34,774

UNIT MIX

BY SQUARE FEET

ALLEY16%

1,899 SF

STREET17%

2,211 SFINTERIOR67%

1,870 SF

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.26

OTHER INCOME


SERVICE AND OTHER INCOME YEAR ONE

PROFORMAApplication Fees 18u x 40% relets x 175% x $50 $35 $630

Other Income 167 3,000

Non-Refundable Pet Fee 18u x 40% relets x 35% pets x $300 42 756

Monthly Pet Rent 18u x 35% pets x $30 x 12 mo. 126 2,268

TOTAL SERVICE AND OTHER INCOME $378 $6,654

UTILITY INCOME

Utility Income 18u x $35 x 12 mo x 95% occ. $399 $7,182

TOTAL UTILITY INCOME $399 $7,182

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SALES COMPARABLESADDRESS UNIT TYPE SF PRICE PRICE/SF BUILT STATUS

Tennyson Townhomes 2BR/3.5BA 1,932 $666,667 $345.09 2019 ---

3946 Vrain St. 3BR/3BA 1,953 $777,000 $397.85 2013 5/1/19

4478 Tennyson St. 6 2BR/3BA 1,544 $603,000 $390.54 2014 7/6/18

4355 Raliegh St. 3BR/4BA 2,124 $826,870 $389.30 2017 6/29/18

4521 Tennyson St. 7 2BR/3BA 1,490 $576,900 $387.18 2018 10/8/18

3962 Vrain St. 3BR/3BA 1,926 $732,000 $380.06 2012 11/1/18

4030 Stuart St. 3BR/4BA 2,297 $869,900 $378.71 2019 5/24/19

4545 Tennyson St. 2BR/3BA 1,526 $575,100 $376.87 2019 Active

4521 Tennyson St. 1 2BR/3BA 1,784 $659,900 $369.90 2018 3/1/19

TOTAL/AVERAGE 1,831 $702,584 $383.82

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ADDRESS UNIT TYPE SF PRICE PRICE/SF BUILT STATUS

Tennyson Townhomes 2BR/3.5BA 1,932 $666,667 $345.09 2019 ---

3946 Vrain St. 3BR/3BA 1,953 $777,000 $397.85 2013 5/1/19

4478 Tennyson St. 6 2BR/3BA 1,544 $603,000 $390.54 2014 7/6/18

4355 Raliegh St. 3BR/4BA 2,124 $826,870 $389.30 2017 6/29/18

4521 Tennyson St. 7 2BR/3BA 1,490 $576,900 $387.18 2018 10/8/18

3962 Vrain St. 3BR/3BA 1,926 $732,000 $380.06 2012 11/1/18

4030 Stuart St. 3BR/4BA 2,297 $869,900 $378.71 2019 5/24/19

4545 Tennyson St. 2BR/3BA 1,526 $575,100 $376.87 2019 Active

4521 Tennyson St. 1 2BR/3BA 1,784 $659,900 $369.90 2018 3/1/19

TOTAL/AVERAGE 1,831 $702,584 $383.82

SALES COMPARABLES

15 6

8

7

3

4431 Tennyson St

3946 Vrain St.

4478 Tennyson St. 6

4355 Raliegh St.

4521 Tennyson St. 7

3962 Vrain St.

4030 Stuart St.

4545 Tennyson St.

4521 Tennyson St. 1

1

5

6

7

8

4

3

2

2

29

RENT COMPARABLES

PROPERTY NAME ADDRESS CITY SF MARKET RENT

MARKET RENT/SF

EFFECTIVE RENT

EFFECTIVE RENT/SF UNIT TYPE

Tennyson Townhomes 4431 & 4437 Tennyson St. Denver 1,870 $3,417 $1.83 $3,417 $1.83 2BR/3.5BA

Tennyson Townhomes 4431 & 4437 Tennyson St. Denver 1,899 $3,333 $1.76 $3,333 $1.76 2BR/3.5BA

Tennyson Townhomes 4431 & 4437 Tennyson St. Denver 2,211 $3,600 $1.63 $3,600 $1.63 2BR/3BA+Studio

Average 1,932 $3,433 $1.78 $3,433 $1.78

4539 Tennyson St. 4539 Tennyson St. Denver 1,530 $3,200 $2.09 $3,200 $2.09 2BR/3BA

1807 Irving St. 1807 Irving St. Denver 1,765 $3,650 $2.07 $3,650 $2.07 2BR/2.5BA

3647 Lipan St. 3647 Lipan St. Denver 1,500 $3,695 $2.46 $3,695 $2.46 2BR/2.5BA

2118 W. 31st Ave. 2118 W. 31st Ave. Denver 1,649 $3,400 $2.06 $3,400 $2.06 2BR/3BA

3170 Vallejo St. 3170 Vallejo St. Denver 1,569 $3,389 $2.16 $3,389 $2.16 2BR/2.5BA

3319 W. Moncrieff Pl. 3319 W. Moncrieff Pl. Denver 2,155 $4,400 $2.04 $4,400 $2.04 3BR/2.5BA

3444 Navajo St. 3444 Navajo St. Denver 2,147 $4,200 $1.96 $4,200 $1.96 3BR/3.5BA

1755 Central St. 1755 Central St. Denver 2,105 $4,450 $2.11 $4,450 $2.11 3BR/2BA

2215 Julian St. 2215 Julian St. Denver 1,900 $3,500 $1.84 $3,500 $1.84 3BR/2BA

TOTAL/AVERAGE 1,813 $3,765 $2.08 $3,765 $2.08

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RENT COMPARABLES

4431 TENNYSON ST

4539 Tennyson St.

1807 Irving St.

3647 Lipan St.

2118 W. 31st Ave.

3170 Vallejo St.

3319 W. Moncrieff Pl.

3444 Navajo St.

1755 Central St.

2215 Julian St.

1

4 8

56

3

7

2

9

1

4

3

2

5

6

7

8

931

Affiliated Business Disclosure

CBRE, Inc. operates within a global family of companies with many sub-sidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, broker-age services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, includ-ing CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agree-ment that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confi-dence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in pur-chasing the Property, kindly return it to CBRE, Inc.

Disclaimer

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, com-pleteness, or fitness for any particular purpose. All information is pre-sented “as is” without representation or warranty of any kind. Such in-formation includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not repre-sent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approxi-mations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements ref-erenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and complete-ness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investi-gate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORAN-DUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to re-ject any or all expressions of interest or offers to purchase the Prop-erty, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any le-gal commitment or obligation except as set forth in a fully execut-ed, definitive purchase and sale agreement delivered by the Owner. PMStudio_November2019

33

ROBERT BRATLEY541-729-9667

[email protected]

4431 & 4437 TENNYSON STREET DENVER, CO 80212

TENNYSON TOWNHOMES

price reducded - loopnet · moontime crepes, slideshow sliders, mac shack, lucky bird, roger’s...

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