CORPORATELY GUARANTEED OFFICE-FLEX …...developed by Bartell and Company, Owner and designated...

NET LEASE OFFERING

Offering Memorandum

CORPORATELY GUARANTEED OFFICE-FLEX BUILDING 5630 WARD ROAD, ARVADA, COLORADO

5630 WARD ROAD - ARVADA, COLORADO 80002

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INVESTMENT SUMMARY

PRICE $5,908,514

CAP RATE (starting) 5.50%

NOI FOR OFFERING $324,968


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5630 WARD ROAD, ARVADA, CO

BUILDING SIZE 21,278 sf

PARCEL SIZES 2.19 Acres

PARKING 4.0 spaces / 1,000 sf

CEILING HEIGHT CLEAR Office- 9-10 Feet Warehouse -14 Feet

DOCKS - DRIVE-INS (1) Drive-in

TRAFFICE COUNT (58th & Ward Rd)

31,000 per day (2018) CDOT

YEAR BUILT 2009

LEASE EXPIRATION

Sonsio, LLC March 31, 2026

Original Lease Commencement

June 4, 2008

TICKER SYMBOL or

PRIVATE

Strong Private Company

Regional Credit

LEASE TYPE NNN

ANNUAL NOI

Sonsio, LLC

$324,968 4/1/20 - 3/31/21


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Current Owner

Location Building Type - Tenant

Sq. Ft.

Annual NOI

Annual Rent

Increases

Lease Expirati

on

56 WR B4 LLLP

5630 Ward Road,

Arvada, Colorado

Office - Flex

Sonsio, LLC

21,278 $324,968 see OM see OM

RENT ROLL

Cap Rate Annual Sequence with Rent Increases:

Investment Start 5.50%

Year 2 5.63%

Year 3 5.78%

Year 4 5.92%

Year 5 6.07%

Year 6 6.22%

Average 5.85%


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INVESTMENT OVERVIEW

Bartell & Company Net Lease Property Group is pleased to offer to qualified investors a 100% fee-simple interest in 5630 Ward Road (the “Property”) located in Arvada, Colorado. The Property is a 21,278 rentable square foot office-flex property, situated on 2.19 acres in Arvada, Colorado, within Jefferson County. Sonsio, LLC leases 100% of the Property. The lease is NNN, with Landlord responsibility for typically capitalized replacements. Sonsio has recently entered into its second lease renewal of the original June 4, 2008 lease. Unique to this office-flex investment is the power capacity and source, having dual, redundant “Heavy” power. This means that if the facility’s power goes down for any reason, an alternative power grid is used to maintain power continuity. The tenant paid the entire cost of the system and so is heavily invested in the site for financial and practical reasons.

Sonsio LLC is the nation’s largest provider of warranty products and related services to the automotive aftermarket. They help over 55,133 different automotive facilities throughout the United States and Canada distinguish themselves in their marketplace with their proprietary warranty-marketing methodology. As such, Sonsio programs protect more than 79.5 million vehicles with repair specific coverage, and over 38 million tires with our road hazard protection programs

ANNUAL RENTAL INCREASES

The lease includes 2.5% annual rental increases each year throughout the term.

LEASE OPTIONS

One seven (7) year option at prevailing market rate.

LOCATION

The Property is ideally located in the Northwest office and office-flex market in the long-standing and active Ward Road corridor, approximately one mile North of Interstate 70, in Arvada, Colorado. The property is a short 10 minute drive to the heart of both Golden, Colorado and the entrance to Rocky Mountain foothills by way of I-70. 5630 Ward Road represents a pride of Ownership asset located in the Class B, 2-4 Star (Costar) Office and Flex Industrial markets, with management free in-place cash flow and very strong potential for tenant retention and lease extension.

DISCOUNT TO REPLACEMENT COST AND PRIDE OF OWNERSHIP CURB APPEAL:

Rising construction costs, limited land supply in the immediate trade areas, and restrictive development regulations pose high barriers to entry that should continue to limit new supply, and result in continued rental growth for the Property in the medium to long-term. The limited downside risk allows the Landlord to compete effectively in the long-term leasing market. See above re: Redundant Power, and electrical specs, below.


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Legend

5630WardRd

5mi

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©2018Google

©2018Google

©2018Google


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Map data ©2019 Google 1 mi

5630 Ward Rd


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PROPERTY OVERVIEW

5630 WARD ROAD, is a one story building (14ft clear in warehouse) totaling 21,278 rentable square feet on 2.19 acres in Arvada, Colorado. LOCATION

The Property is located on Ward Road in Arvada, Colorado. It’s legal address is: 621625 RAINBOW RIDGE OFFICE PARK LOT 5 2ND AMD MINOR JEFFERSON COUNTY, COLORADO AMENITIES

Van Bibber Park and Trail system lie across the street and adjacent to the Property, respectively. The Trail is a 5.3 mile moderately trafficked loop trail located near Arvada, Colorado that features beautiful wild flowers and is good for all skill levels. The trail offers a number of activity options and is accessible year-round. Dogs are also able to use this trail. PARKING, PAVING, & SIDEWALKS

The Property shares surface parking spaces including handicap accessible requirements, through a cross easement, resulting in approximately 4.0 spaces per 1,000 rentable square feet. Surface parking and drive areas for the tenant are asphalt paved. Sidewalks are cast-in-place concrete and generally have a broom finish. SITE ACCESS

Vehicular ingress/egress to the site is providing from two drive entries off Ward Road. ZONING

PUD LANDSCAPING

Landscaping consists of mature trees, grass areas, flowering plants, shrubs, and ground-cover.

CONSTRUCTION DETAIL

FOUNDATION The foundation system is concrete spread footings and isolated column pads, the floor is 5” thick concrete slab on grade. SUPERSTRUCTURE

Building consist of prestressed concrete double tee roof panels, prestressed concrete inverted tee beams and columns. EXTERIOR WALLS

The exterior walls consist of site cast concrete tilt-up wall panel construction, with a mild textured painted surface finish. WINDOWS AND DOORS

Doors typically consist of conventional aluminum storefront type assemblies. Windows are fixed double pane, with high energy efficiency. ROOF

Roofing material is a 60 Mil. EPDM, ballasted roof system, over 4-1/2” of rigid insulation directly applied to the prestressed concrete roof deck.


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SYSTEMS - 5630 WARD ROAD, ARVADA, CO

UTILITIES SERVICE PROVIDER

Water & Sewer City of Arvada

Electricity Xcel Energy

FIRE & LIFE SAFETY SYSTEMS Wet pipe system

HVAC SYSTEMS Multiple Packaged Rooftop HVAC units, constant volume for the office area. Complete specs are available upon request.

ELECTRICAL 480/277v, 3 phase, 4 wire, with 600 Amp Main Distribution Ctr., braced for 65,000 AIC, with redundant-dual power sources

PLUMBING ConventionalDRIVE-IN DOORS 1 tot./approx. 10’w x 12’h grade level.

CEILING HEIGHT 9-10 Feet Office - 14 Feet Warehouse

BUILDING HEIGHT Approx. 20 Feet


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“Coronavirus shutdowns will have less of a negative impact on the industrial sector than in the retail or office segments. Many industrial tenants conduct operations that are considered essential and are more likely to stay open amid widespread shutdowns. E-commerce and 3PL tenants are likely to see an uptick in activity due to the stay-at-home nature of consumers during the pandemic. For example, Amazon leased 700,000 SF in Aurora in mid-March as part of its plan to hire an additional 175,000 workers across the U.S. A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. The robust demand in this regional market with strong economic growth this cycle is stemming from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, emergence of the marijuana industry's presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than 6 million SF of deliveries. Entering 2020, around 5.5 million SF was under construction. Industrial rents are more than 60% above the peak of the previous cycle, one of the best performances in the nation. However, rent growth in 2019 noticeably moderated from outsized figures in previous years, when the market routinely posted annual gains of more than 7%. Investors remained enthusiastic about Denver's industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year. Pricing continues to climb upward, albeit at a more modest pace than in past years”. According to Costar’s Pricing Trends.

12 Month Deliveries SF

12 Month Absorption SF

Vacancy Rate 12 Month Rent Growth

3.3M 1.8M 5.4% 3.2%

DENVER METRO MARKET OVERVIEW - INDUSTRIAL

DENVER METRO INDUSTRIAL KEY INDICATORS - FLEX

RBA Vacancy Rate

Market Rate

Availability Rate

Net Absorption SF

Deliveries SF

Under Construction

34,567,432 5.3% $13.61 8.0% (22,766) 0 340,314


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Analytics: Southwest, West, Northwest, 2010+ Flex


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Analytics: Southwest, West, Northwest, 2010+ Flex (CON’T)

Inventory SF Under Construction

12 Mo. Net Absorption SF

Vacancy Rate Market Rent PSF

Current Period

10.2 M 0 (36,000 K) 3.9% $13.99

Prior Period 10.2 M 0 204 K 3.0% $13.74


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Forecast: Southwest, West, Northwest, 2010+ Flex

Forecast Report

Forecast Report

Delivery Assumption: Known Construction Activity Absorption Assumption: 100% of Previous 5-Year Average

Copyrighted report licensed to Bartell and Company Real Estate - 56152.4/24/2020

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DISCLAIMER

This Offering Memorandum has been prepared by Bartell and Company for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. Any projections have been developed by Bartell and Company, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by Bartell and Company or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future performance of the Property and its tenants. While the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying any and all such information. Further, Bartell and Company, Owner and its employees disclaim any and all liability for representations and warranties, express and implied, within the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient.

The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property, it’s tenants or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospect investors

Owner and Bartell and Company each expressly reserves the right, at their sole discretion, to reject any or all expressions of interest for offers regarding the Property and to terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until such offer is approved by Owner, a written agreement for the purchase of the Property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner there under have been satisfied or waived.

This Offering Memorandum and its contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest of confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisers retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or Bartell and Company and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. You will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of the Owner or Bartell and Company. If you have no interest in the Property, please return the Offering Memorandum forthwith.


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5630 WARD ROAD ARVADA, COLORADO

80002

INVESTMENT SALES ADVISORS

BARTELL & COMPANY

DAN BARTELL

303.753.9100 OFFICE 303.691.1600 CELL

600 SOUTH CHERRY STREET, SUITE 1125 DENVER, COLORADO 80246

[email protected] www.bartellre.com

mailto:[email protected]

http://www.bartellre.com

mailto:[email protected]

http://www.bartellre.com

CORPORATELY GUARANTEED OFFICE-FLEX …...developed by Bartell and Company, Owner and designated...

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