OFFERINGMEMORANDUM

1098 W. 4TH AVE , DENVER CO 80223OFFICE BUILDING

PRESENTED BY

303 514 9852PRINCIPAL/FOUNDER

303 246 3497PRINCIPAL/FOUNDER

785 231 9124DEVELOPMENT nick@denverbuild.comASSOCIATE

DENVER DESIGN BUILD, LLC100 Kalamath StDenver, CO 80223www.denverbuild.com

CONTENTS

Denver Design Build . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 5

+ Executive Summary

+ Testimonials

Project Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 8

+ Site Plan & Floor Plans

+ Project Summary

+ Project Team

+ LLC Info & Asset Operating Structure

Area Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 - 11

+ City of Denver

+ Metro Area

Project Financials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 - 15

+ ProForma

+ Comps

+ Schedule

+ Budget

. . . . . . . . . . . . . . . . . . . . 16

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 3

EXECUTIVE SUMMARY

Award winning projects and service. Experienced Leadership. Local

expertise. Exceptional returns. These values are what we at Denver

Design Build bring to each and every project we embark on. As Denver

continues to expand and continuously ranks as the top city in the

country across numerous categories, mixed-use and commercial

opportunities have seen a resurgence in recent years.

Denver Design Build has the track record and experience to meet

investment objectives through our mixed-use and commercial

products, strategically placed in Denver’s most thriving neighborhoods.

See the Mile High City for yourself.

DENVER DESIGN BUILD

Denver Design Build is a privately owned, full service design-build

headquartered in Denver, Colorado. DDB opened its doors 2010 and

despite the monumental impact of the economic downturn on the

housing market, managed to show steady growth year after year. The

multi-faceted team includes architects & designers, as well as

senior project managers, general laborers, and everything in between.

The savvy leadership team has over 35 years of combined residential

and commercial projects under the Denver Design Build name.

In the current fast paced Denver economy, the company continues to

Colorado Business Magazine has named us among the top

250 private companies in the state for four years running along with

numerous other nominations and awards accredited to the over

the past several years. To maintain growth, the leadership continues to

seek out new partnerships. Forging strong relationships now will ensure

Denver Design Build and its associates will remain Denver’s premier

developers for many years to come.

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 4

TESTIMONIALS

Our goal is to listen to our client’s wants and needs, creating a

custom solution that incorporates design ideas, location

and budget. We strive to build properties that stand out. We

believe our attention to detail and client service sets us apart

from our competition. We create strong partnerships with each

and every constituent, from project inception, through all

phases of construction. We strive to set ourselves apart with

superior experience and our client testimonials reinforce our

commitment to this goal.

40+ ONLINE REVIEWS WITH

“Professional, creative, timely, I was so pleased with Denver Design Build! ...Clear communication and problem

solving every step of the way. Our building superintendent remarked that he wished all contractors were so

professional. We are delighted with how our project turned out and would absolutely recommend Denver

Design Build! ” - Susan A., Denver, CO

“Denver Design Build was the General Contractor for our 2014-2015 183-unit Class A multifamily renovation.

[They] not only stayed under budget ($4.5 million) but completed the project three months ahead of schedule. I

cannot say enough positive things about how they handled themselves while on my property and the constant

to go above and beyond for the residents and the property. I can say with 100% certainty that I highly

recommend Denver Design and their team, in fact I look forward to working with them again in the future.” - Eric R., Broe Real Estate Group

“Denver Design Build was contracted to do a very high end renovation for my and showroom. They

were a pleasure to work with on all fronts, and I would recommend them to anyone who is looking for a

design build Thank you DDB!” - Chris Allman, Metropolitan Floors, Denver, CO

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 5

PROJECT OVERVIEW

SITE PLAN

FLOOR PLANS

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 6

PROJECT OVERVIEW (CONT.)

• Zone Lot Size: 20,270 (.465 acres)

• 2 stairwells and 1 elevator

• Full Sprinkler System

• 38 Total Parking Spaces

• Landscaped Grounds with Bocce Court

PROJECT TEAM

Owner: 337 Kalamath Partners, LLC

General Contractor: Denver Design Build, LLC

Architect: Pivotal Architecture, PC

Civil Engineer: Martin & Martin

Landscape Architect: Greenline Studio, LLC

Structural Engineer: KL&A, Inc

MEP Engineer: DMCE Engineering

PROJECT SUMMARY

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 7

The proposed project is a 5 story office building including 24,968 gross square feet. The ground

level includes a 625sf retail suite, in addition to five contractor suites equipped with garage door

access. Levels two through four are similar floor- plans consisting of office space with excellent

views of the mountains. Level five is a penthouse with rooftop deck, providing 360 views of the

metro area. Other project details include the following:

LLC INFO & ASSET OPERATING STRUCTURE

OWNERSHIP ENTITY

337 Kalamath, LLC

9085 E. Mineral Circle, #360

Centennial, CO 80112

FUTURE MEMBERS & OWNERSHIP INTEREST

JEFF GATES

JEFF AYRES

LON WELSH

PARTNER

PARTNER

TOTAL 100.00%

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 8

5.00%

5.00%

10.00%

40.00%

40.00%

The current ownership entity of the project is 337 Kalamath, LLC and includes three individuals

with a broad background in real estate brokerage, development, construction, and leasing. Jeff

Gates & Jeff Ayres are co-owners of Denver Design Build, a development and General Contract-

ing business in Denver with nearly 40 employees and a growing portfolio of both residential and

commercial projects. Lon Welsh is the Founder & Chairman of Your Castle Real Estate, the

largest independent real estate brokerage company on the Front Range with more than 750

agents. Existing ownership is seeking additional partners for an 80% interest in the LLC (either

two partners with 40% each, or one partner with 80% interest). The LLC intends to hold the

underlying real estate as a long-term investment opportunity.

CITY OF DENVER

Whether you’re looking for inspiring chef owned restaurants,

unique botiques, art galleries, museums, theme parks, sporting

events, outdoor activities, brewpubs, world class shopping, or

the nation’s second-largest performing arts complex, at an

elevation of 5,280 feet above sea level, Denver is truly a top

class city, and growing.

DEVELOPMENT SPOTLIGHTBAKER NEIGHBORHOOD

The project is in one of Denver’s most dynamic, diverse

neighborhoods located at the literal center of Denver. First

plotted in the 1870s, Baker has been essential to Denver’s

history and continues to serve as the artistic core of the

city. With easy access to mass transit, a thriving cultural

popular nightlife, the Baker neighborhood is highly

coveted by both new Denverites and natives alike.

#1 - Best Places for Business and Careers – Forbes

2015

#1 - Best Places to Live in the USA – U.S. News and

World Report 2016

#5 – America’s Healthiest Cities – The American

Fitness Index 2016

#1 - Best Places for Business and Careers – Forbes

2015

#1 - Best Places to Live in the USA – U.S. News and

World Report 2016

#5 – America’s Healthiest Cities – The American

Fitness Index 2016

Denver receives 300 days of sunshine a year

Denver is the nation’s most highly educated city with the highest percentage of high school and college graduates

Denver brews more beer than any other American city

Denver has the largest city park system in the nation with 205 parks in city limits and 20,000 acres of parks in the nearby mountains

AREA OVERVIEW

9Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com

METRO AREA

Whether in Denver proper or while exploring one of the many

cities in the Metro area, there is never a lack of activities, all

serviced by world class public transportation. With our rocky

mountains less than an hour from downtown, an outdoor

enthusiast is able to enjoy the splendor of the outdoors yet

still return to Denver for an evening on the town.

ECONOMY

Due to its location along the eastern slopes of the Rocky

Mountains, the Metro area is a staple distribution hub for

the western United States. Traditionally home to mining and

energy companies, the area has expanded to include a growing

presence in aerospace, technology & communications, and is

the fast-casual dining capital of the U.S. As the state capitol and

largest city in the state, federal and municipal employment is

the largest sector. Other leading sectors include telecom,

healthcare, and major airlines.

#4 - Best Places for Business and Careers – Forbes 2017

#3 - Best Places to Live in the USA – U.S. News and World Report 2018

#7 – America’s Healthiest Cities – The American Fitness Index 2017

10Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com

TRANSPORTATION The Denver Metro area is served by an extensive and actively

growing public transportation network with more than 150

bus routes, 10 light rail lines including an airport rail, and

more than 80 Park-n-Rides connecting all corners of the

metro area to downtown and the Denver International Airport.

To supplement this extensive network, free downtown

shuttles, bicycle and car sharing programs, along with pedi-

cabs and over 85 miles of paved bike trails provide residents

access to it all.

METRO DENVER ECONOMIC INDICATORS (2017)

Metro Population 3.17 Million Median Age: 37

College Attainment 44.3% Unemployment Rate 3.1%

Median Household Income: $60,810

PEDICAB

BIKE PATHSCAR SHARING

LIGHT RAIL

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 11

PROFORMA

Denver Design Build has delivered a predictable return for investors through the in-depth understanding of costs by our design and construction teams, long-term relationships with local trades, and excellent marketing performance by trusted realty teams. This results in outstanding products for the end user, exceptional investor returns, and illustrates Denver Design Build’s commitment to all stakeholders.

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 12

PROFORMA CONT.

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 15

SCHEDULE

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 16

BUDGET

OWNER:ADDRESS:

DESCRIPTION:ESTIMATOR: ABSARCHITECT:

DESIGNER:DATE:

COST % of Cost01 - General Requirements 224,600.00$ 5.62%02 - Site Construction 210,849.50$ 5.28%03 - Concrete 221,546.25$ 5.55%04 - Masonry 286,000.00$ 7.16%05 - Metals 755,000.00$ 18.91%06 - Wood & Plastics 172,170.00$ 4.31%07 - Thermal & Moisture Protection 221,369.00$ 5.54%08 - Doors & Window 3s 21,644.00$ 8.05%09 - Finishes 558,748.00$ 13.99%10 - Specialties 26,300.00$ 0.66%11 - Equipment 6,000.00$ 0.15%12 - Furnishings -$ 0.00%13 - Specialty Construction 102,409.00$ 2.56%14 - Conveying Systems 145,000.00$ 3.63%15 - Mechanical 492,000.00$ 12.32%16 - Electrical 250,000.00$ 6.26%

3,993,635.75$ 100.00%

COST NOTES00-100 | Permit & Plan Review Fee 23,000.00$ ALLOWANCE

00-150 | Insurance 29,952.27$ 0.75%00-200 | Architecture / Engineering / Design Provided by Others -$ -00-300 | Contingency -$ 0.00%00-400 | Overhead & Profit 323,808.30$ 7.50%00-500 | Agreement / Legal Services -$ -

-$ --$ -

376,760.57$

4,370,396.32$

Pivotal Architecture

CSI DIVISION

TOTAL - PROJECT

DIRECT COSTMonday, April 16, 2018DDB

DIRECT COST - SUMMARY

CONTRACTING REQUIREMENTS - SUBTOTAL

2. This is a retainer estimate. Final selections, scope, and team/sub walk throughs are necessary to solidify final cost. As such, this should be considered approximate. If design is not complete, selections could further impact the accuracy of initial numbers.

3. While a construction contingency is not included in this estimate, it is recommended to maintain one. Once we have final construction numbers, labor and material overruns of up to 5% are possible. Additionally, change orders may occur, either through necessary or voluntary scope changes, that may add an additional 5% to the overall budget.

1. This estimate is good for 30 days

PLEASE NOTE

CONTRACTING REQUIREMENTSCSI DIVISION

PROJECT INFORMATION

5-Story Office Building1098 4th St.DDB

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 17

CONFIDENTIALITY & DISCLAIMER

The information contained in this Offering Memo is proprietary

and strictly It is intended to be reviewed only

by the party receiving it from Denver Design Build, LLC and

should not be made available to any other person or entity

without the written consent of Denver Design Build, LLC.

This Offering Memo has been prepared to provide a summary,

information to prospective lenders, 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. Denver Design Build,

LLC has not made any investigation, and makes no warranty

or representation, with respect to the sample proforma

provided, or the future project performance of any investment.

The information contained in this Offering Memo has been

obtained from sources we believe to be reliable; however,

Denver Design Build, LLC has not and will not verify,

any of the information contained herein, nor has Denver

Design Build, LLC conducted any investigation regarding these

matters and makes no warranty or representation whatsoever

regarding the accuracy or completeness of the information

provided. All potential lenders must take appropriate

measures to verify all of the information set forth herein.

Denver Design Build LLC 100 Kalamath St., Denver, CO 80223 | www.denverbuild.com 18