Mount Vernon Apartments | 8-Unit Multifamily Community ...€¦ · Mount Vernon Apartments has a...

Market Positioning and Pricing Analysis11300 E 16th Ave • Aurora, CO 80010

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OFFERING MEMORANDUMPRICE : $1,000,000

Mount Vernon Apartments | 8-Unit Multifamily Community1578 Macon Street | Aurora, CO 80010

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ALCOTT APARTMENTS5451 Alcott Street • Denver, CO 80221

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Clayton Primm R.B. KeithFirst Vice President Investments AssociateDirector, National Multi-Housing Group National Multi-Housing Group Direct: 303.328.2075 Direct: 303.328.2046Mobile: 303.590.4537 Mobile: [email protected] [email protected] License: CO:FA100024161 License: CO: FA100086243

1225 17th St., Ste. 1800, Denver, CO 80202 | 303.328.2000 | www.marcusmillichap.com

MOUNT VERNON APARTMENTSAurora, COACT ID ZAB0050085

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Non-EndorsementsMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of anycorporation'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 orsubsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information aboutthis listing to prospective customers.

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

DisclaimerTHIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information hasbeen secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. Referencesto square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus &Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

MOUNT VERNON APARTMENTS

INVESTMENT

OVERVIEW

REGIONAL MAP

Clayton Primm | [email protected]



R.B. Keith | [email protected]

LOCAL MAP

Clayton Primm | [email protected] R. B. Keith | [email protected]



AERIAL PHOTO




OFFERING SUMMARY

§ Stabilized, Well-Maintained Eight-Unit Community

§ All Units Have Newer Hard Surface Flooring, Double-Pane Windows and Updated Plumbing

§ Well-Constructed All Brick Building with Pitched Roof; Interior Walk-Up with Secured Entry

§ On-Site Income-Producing Laundry Facility

§ Individually Metered for Electricity

§ Seven Blocks from the Fitzsimons Medical Campus

INVESTMENT HIGHLIGHTS

INVESTMENT OVERVIEW

Built in 1964, Mount Vernon Apartments is an eight-unit apartment community well-located in Aurora Colorado, justseven blocks west of the Fitzsimons Innovation Community and Anschutz Medical Campus. The property consists of asingle building, all brick, with a pitched roof and two-story interior walk-up with secured entry. There are eight one-bedroom units. All units have newer hard surface flooring and double-pane windows. The building is individuallymetered for electric and master metered for gas, water and sewer. There is a central boiler for heat and individual wallair conditioning units for cooling. The building is situated on a 0.17 acre lot with ample off-street parking in the alleyrunning behind the building.

Mount Vernon Apartments has a great central location, walking distance to restaurants, shopping, employment, andpublic transportation. The highly successful, proactive and innovative redevelopments of the Fitzsimons ArmyMedical Campus, Lowry Air Force Base and Stapleton International Airport and the creation of the StanleyMarketplace have combined to generate increase popularity for the area. This growth and popularity seemsunlikely to diminish as more projects continue to draw people to the area and make it one of the most sought afterareas of metropolitan Denver. The closest of these developments to Mount Vernon Apartments is Fitzsimons. Thisarea is home to the CU Anschutz Medical Campus, University of Colorado Hospital, Children's Hospital ofColorado, the Veteran's Affairs Hospital and the site of the developing Fitzsimons Innovation Community, a 125-acre bioscience park for a variety of biomedical research companies. The property is also close to StanleyMarketplace and Stapleton neighborhood to the north and the popular Lowry neighborhood to the southwest.

North Aurora is one of the fastest growing and changing submarkets in the Denver metropolitan area. The populationgrowth in this area has caused vacancy rates to decline and rents to increase.



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FITZSIMONS INNOVATION DISTRICT

MAJOR EMPLOYERS - AURORA

EMPLOYER # OF EMPLOYEES

University of Colorado- Denver 3,000LDS Church 2,500The Children’s Hospital 2,200Zeledyne LLC 1,750Defense Accounting Center 1,600US Post Office 1,493Colorado Dept Public Health 1,350Police Dept 1,350Walmart 1,343Rose Medical Center 1,265Administrative Services Div 1,200Division For Disease Control 1,200

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles2018 Est. Pop 26,380 168,136 397,5212010 Cens. Pop. 23,607 144,443 344,2132018 Est. HH 8,439 60,838 157,5732010 Census HH 7,613 51,847 135,336Median HH Inc. $38,658 $47,157 $54,701Per Capita Inc. $15,376 $26,295 $32,146Average HH Inc. $44,915 $71,414 $80,429


FITZSIMONS INNOVATION DISTRICT

With the closing of the Fitzsimons Army Medical Center in 1999, a massive redevelopment of the577-acre campus began. It has grown over the last two decades to include the University ofColorado Anschutz Medical Campus, the Children’s Hospital of Colorado, the Rocky MountainRegional VA Medical Center and the Fitzsimons Innovation Campus.

The CU Anschutz Medical Campus includes the University of Colorado Hospital and the Schools ofDentistry, Medicine, Pharmacy, and Public Health as well as the College of Nursing and severalother graduate schools for various biological and biomedical sciences. In complement to thesefacilities is a residential, office, hospitality and retail town center known as Fitzsimons Village.Plans for additional residential and retail construction are ongoing and include hotels, offices, parksand greenspace, shuttle services and an independent pre-K to fifth grade school within the next twoyears.

The Fitzsimons Innovation Campus is an integral part of the redevelopment of Fitzsimons. In 2000,Bioscience 1, a 97,000square foot, three-story building opened as the start of the Colorado Science& Technology Park at Fitzsimons. Over 100 companies have started their operations from thisbuilding since then in pre-built labs, GMP clean rooms, coworking spaces and offices or in customspaces developed to meet tenant needs. Bioscience 2, a 115,000 square foot, four-story buildingopened in 2015. CU Anschutz houses its Bioengineering program on the first two floors and theremaining floors serve as an incubator for a variety of bioscience start-ups. Bioscience 3, a117,000 square foot, three-story building, is expanding on the success of the Park with custom-builtlabs, office and warehouse/manufacturing space.

Over 125-acres are currently available for development. This was previously the golf course of theFitzsimons Army Medical Center. Plans call for this area to act as an incubator to new andexpanding businesses in the field of bioscience. Bioscience 5 is already planned with warehouseand distribution space for these companies. Open space, greenways and transportation corridorsare already being integrated into the design of the area to allow collaboration with the area’s entirebioscience community.

Upon completion, the projects at Fitzsimons are projected at 18.5 million square feet and nearly44,600 employees. $11.5 billion in total economic output is projected annually.


#Clayton Primm | [email protected] R. B. Keith | [email protected]

FITZSIMONS


MOUNT VERNON APTS.

FINANCIAL

ANALYSIS



FINANCIAL ANALYSISRENT ROLL SUMMARYAs of May 2020


CURRENT POTENTIALRENT / RENT / SF / RENT / RENT / SF /

UNIT UNIT TYPE SF MONTH MONTH MONTH MONTH101 1 Bed / 1 Bath 575 $1,000 $1.74 $1,000 $1.74102 1 Bed / 1 Bath 575 $1,000 $1.74 $1,000 $1.74103 1 Bed / 1 Bath 575 $950 $1.65 $1,000 $1.74104 1 Bed / 1 Bath 450 $900 $2.00 $925 $2.06201 1 Bed / 1 Bath 575 $950 $1.65 $1,000 $1.74202 1 Bed / 1 Bath 575 $1,050 $1.83 $1,000 $1.74203 1 Bed / 1 Bath 575 $950 $1.65 $1,000 $1.74204 1 Bed / 1 Bath 575 $950 $1.65 $1,000 $1.74TOTALS / AVERAGES 4,475 $7,750 $1.73 $7,925 $1.77

GROSS ANNUALIZED RENTS $93,000 $95,100


FINANCIAL ANALYSISOPERATING STATEMENTAs of May 2020


INCOME CURRENT POTENTIAL NOTES PER UNIT PER SFGROSS CURRENT RENT $93,000 $95,100 [1] $11,888 $21.25

Total Physical Vacancy (2,697) 2.9% (4,755) 5.0% [2] (594) (1.06)EFFECTIVE RENTAL INCOME $90,303 $90,345 $11,293 $20.19

Utility Bill-Back 0 2,280 [3] 285 0.51 All Other Income 1,378 1,200 [4] 150 0.27

TOTAL OTHER INCOME $1,378 $3,480 $435 $0.78

EFFECTIVE GROSS INCOME $91,681 $93,825 $11,728 $20.97

EXPENSES CURRENT POTENTIAL PER UNIT PER SFReal Estate Taxes 6,016 6,016 [5] 752 1.34 Insurance 3,311 3,311 [6] 414 0.74 Utilities - Gas & Electric 3,341 3,341 [7] 418 0.75 Utilities - Water & Sewer 3,931 3,931 [8] 491 0.88 Trash Removal 1,021 1,021 [9] 128 0.23 Repairs & Maintenance 4,761 5,600 [10] 700 1.25 Office & Administrative 649 800 [11] 100 0.18 Management Fee 5,501 6.0% 5,630 6.0% [12] 704 1.26

TOTAL EXPENSES $28,531 $29,650 $3,706 $6.63 EXPENSES AS % OF EGI 31.1% 31.6%NET OPERATING INCOME $63,150 $64,176 $8,022 $14.34


FOOTNOTES[1] Current is based on the current rent roll annualized vs. market rent annualized.[2] Current vacancy based on trailing twelve-month P&L (T12) vs. market vacancy of 5%.[3] Utility reimbursement is currently $0, Potential is $25/unit/month flat fee.[4] Additional Income is based on T12 vs. Potential.[5] Property Tax is 2019 taxes due in 2020. [6] Current Insurance cost.[7] Gas & Electric cost is based on T12.[8] Water & Sewer cost is based on T12.[9] Trash cost is based on current monthly cost of $95.05.[10] Maintenance & Repair cost is based on T12 vs. market average.[11] Office & Administrative cost is based on T12 vs. market average.[12] Management cost is estimated at 6%. Property is currently self-managed.

FINANCIAL ANALYSIS


PRICING DETAIL

OPERATING DATA

INCOME CURRENT POTENTIALGROSS SCHEDULED RENT $93,000 $95,100Less: Vacancy/Deductions 2.9% $2,697 5.0% $4,755Total Effective Rental Income $90,303 $90,345Other Income $1,378 $3,480Effective Gross Income $91,681 $93,825Less: Expenses 31.1% $28,531 31.6% $29,650NET OPERATING INCOME $63,150 $64,176Cash Flow $63,150 $64,176Debt Service $41,323 $41,323Net Cash Flow After Debt Service 7.28% $21,827 7.62% $22,853Principal Reduction $11,801 $12,312TOTAL RETURN 11.21% $33,628 11.72% $35,165

EXPENSES CURRENT POTENTIALReal Estate Taxes $6,016 $6,016Insurance $3,311 $3,311Utilities - Gas & Electric $3,341 $3,341Utilities - Water & Sewer $3,931 $3,931Trash Removal $1,021 $1,021Repairs & Maintenance $4,761 $5,600Office & Administrative $649 $800Management Fee $5,501 $5,630TOTAL EXPENSES $28,531 $29,650

EXPENSES / UNIT $3,566 $3,706EXPENSES / SF $6.38 $6.63

SUMMARYPRICE $1,000,000Down Payment $300,000 30%Number of Units 8Price Per Unit $125,000Price Per SF $223.46Rentable SF 4,475Lot Size 0.17 AcresApprox. Year Built 1964

RETURNS CURRENT POTENTIALCAP RATE 6.32% 6.42%GRM 10.75 10.52Cash-on-Cash 7.28% 7.62%Debt Coverage Ratio 1.53 1.55

FINANCING FIRST LOANLoan Amount $700,000Loan Type NewInterest Rate 4.25%Amortization 30 YearsYear Due 2025

# OF UNITS UNIT TYPE SF / UNIT SCHEDULED RENTS MARKET RENTS8 1 Bedroom/ 1 Bath 559 $969 $991



MARKET

DEMOGRAPHICS

SALES

COMPARABLES&


SALES COMPARABLES MAPMOUNT VERNON APARTMENTS

(SUBJECT)

1610 Boston Street

Stanley Flats

Rosa Gardens

1350 Macon Street

1389 Quari Street

Moline Flats

SALES COMPARABLES

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2

3

4

5

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PROPERTY NAMEMOUNT VERNON APARTMENTS

SALES COMPARABLESSALES COMPARABLES

IN ESCROW COMPARABLES

SALES COMPS AVG

IN ESCROW COMPS AVG


Avg. 6.11%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

1610 BostonStreet

StanleyFlats

RosaGardens

1350 MaconStreet

1389 QuariStreet

MolineFlats

AVERAGE CAP RATE

Avg. $238.32

$0.00

$30.00

$60.00

$90.00

$120.00

$150.00

$180.00

$210.00

$240.00

$270.00

$300.00

1610 BostonStreet

StanleyFlats

RosaGardens

1350 MaconStreet

1389 QuariStreet

MolineFlats

AVERAGE PRICE PER SQUARE FOOT

Avg. $134,827

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

1610 BostonStreet

StanleyFlats

RosaGardens

1350 MaconStreet

1389 QuariStreet

MolineFlats

AVERAGE PRICE PER UNIT

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


SALES COMPARABLES IN ESCROW COMPARABLES

UNITS UNIT TYPEOffering Price: $1,000,000 8 1 Bdr

Price/Unit: $125,000

Price/SF: $223.46

CAP Rate: 6.42%

GRM: 10.52

Total No. of Units: 8

Year Built: 1964

MOUNT VERNON APARTMENTS1578 Macon St, Aurora, CO, 80010

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UNITS UNIT TYPEClose Of Escrow: 10/18/2019 1 Studio Bath

Sales Price: $1,175,000 7 1 Bdr 1 Bath


Price/SF: $273.26

CAP Rate: 7.84%


Year Built: 1970

1610 BOSTON STREET1610 Boston Street, Aurora, CO, 80010

UNITS UNIT TYPEClose Of Escrow: 9/13/2019 4 1 Bdr 1 Bath



Price/SF: $256.15

CAP Rate: 6.00%


Year Built: 1955

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STANLEY FLATS2216-2224 Dayton Street, Aurora, CO, 80010


PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1






Price/SF: $230.00

CAP Rate: 5.59%


Year Built: 1955

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ROSA GARDENS1377-1397 Lansing Street, Aurora, CO, 80010

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Price/SF: $229.23


Year Built: 1972

1350 MACON STREET1350 Macon Street, Aurora, CO, 80010




Price/SF: $224.37

CAP Rate: 5.00%


Year Built: 1970

5

1389 QUARI STREET1389 Quari Street, Aurora, CO, 80011


PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1






Price/SF: $216.92

CAP Rate: 6.12%


Year Built: 1969

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MOLINE FLATS1437 Moline Street, Aurora, CO, 80010


PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

POPULATION 1 Miles 3 Miles 5 Miles§ 2023 Projection

Total Population 25,459 173,161 407,065§ 2018 Estimate

Total Population 26,380 168,136 397,521§ 2010 Census

Total Population 23,607 144,443 344,213§ 2000 Census

Total Population 25,313 128,406 308,798§ Daytime Population

2018 Estimate 23,503 167,770 403,780HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2023 Projection

Total Households 8,453 64,501 164,506§ 2018 Estimate

Total Households 8,439 60,838 157,573Average (Mean) Household Size 3.03 2.64 2.46

§ 2010 CensusTotal Households 7,613 51,847 135,336

§ 2000 CensusTotal Households 8,295 47,091 125,109

Growth 2015-2020 0.17% 6.02% 4.40%HOUSING UNITS 1 Miles 3 Miles 5 Miles§ Occupied Units

2023 Projection 8,453 64,501 164,5062018 Estimate 8,739 62,225 160,288Owner Occupied 3,013 27,499 77,040Renter Occupied 5,426 33,339 80,532Vacant 300 1,388 2,715

§ Persons In Units2018 Estimate Total Occupied Units 8,439 60,838 157,5731 Person Units 27.68% 32.72% 34.91%2 Person Units 23.88% 26.67% 29.05%3 Person Units 14.21% 13.88% 13.58%4 Person Units 12.05% 12.35% 11.08%5 Person Units 9.86% 7.16% 5.92%6+ Person Units 12.32% 7.22% 5.47%

HOUSEHOLDS BY INCOMEÇ 1 Miles 3 Miles 5 Miles§ 2018 Estimate

$200,000 or More 0.37% 4.29% 5.54%$150,000 - $199,000 1.57% 4.06% 4.78%$100,000 - $149,000 5.70% 10.24% 12.04%$75,000 - $99,999 10.18% 10.82% 12.71%$50,000 - $74,999 18.19% 17.83% 19.02%$35,000 - $49,999 18.46% 15.36% 14.28%$25,000 - $34,999 14.66% 11.79% 10.56%$15,000 - $24,999 15.08% 12.07% 9.96%Under $15,000 15.79% 13.55% 11.10%

Average Household Income $47,915 $71,414 $80,429Median Household Income $38,658 $47,157 $54,701Per Capita Income $15,376 $26,295 $32,146POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age

2018 Estimate Total Population 26,380 168,136 397,521Under 20 31.55% 28.99% 26.85%20 to 34 Years 25.59% 25.84% 25.40%35 to 39 Years 8.29% 8.63% 8.34%40 to 49 Years 13.26% 13.52% 13.25%50 to 64 Years 14.10% 13.58% 15.32%Age 65+ 7.21% 9.44% 10.83%Median Age 31.07 32.44 33.78

§ Population 25+ by Education Level2018 Estimate Population Age 25+ 16,140 107,854 265,180Elementary (0-8) 14.54% 9.21% 6.26%Some High School (9-11) 15.05% 10.27% 7.77%High School Graduate (12) 33.88% 28.39% 23.67%Some College (13-15) 17.74% 18.37% 19.74%Associate Degree Only 5.80% 6.16% 6.71%Bachelors Degree Only 7.60% 15.49% 20.79%Graduate Degree 2.73% 9.68% 13.41%

§ Population by Gender2018 Estimate Total Population 26,380 168,136 397,521Male Population 52.82% 50.79% 49.43%Female Population 47.18% 49.21% 50.57%


INCOMEIn 2019, the median household income for your selected geography is$38,658, compare this to the US average which is currently $58,754.The median household income for your area has changed by 18.95%since 2000. It is estimated that the median household income in yourarea will be $42,006 five years from now, which represents a changeof 8.66% from the current year.

The current year per capita income in your area is $15,376, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $47,915, compare this to the USaverage which is $84,609.

POPULATIONIn 2019, the population in your selected geography is 26,380. Thepopulation has changed by 4.22% since 2000. It is estimated that thepopulation in your area will be 25,459.00 five years from now, whichrepresents a change of -3.49% from the current year. The currentpopulation is 52.82% male and 47.18% female. The median age of thepopulation in your area is 31.07, compare this to the US averagewhich is 37.95. The population density in your area is 8,384.88 peopleper square mile.

HOUSEHOLDSThere are currently 8,439 households in your selected geography. Thenumber of households has changed by 1.74% since 2000. It isestimated that the number of households in your area will be 8,453five years from now, which represents a change of 0.17% from thecurrent year. The average household size in your area is 3.03persons.

EMPLOYMENTIn 2019, there are 5,223 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that38.56% of employees are employed in white-collar occupations in thisgeography, and 61.47% are employed in blue-collar occupations. In2019, unemployment in this area is 5.95%. In 2000, the average timetraveled to work was 32.00 minutes.

RACE AND ETHNICITYThe current year racial makeup of your selected area is as follows:48.79% White, 15.19% Black, 0.38% Native American and 2.83%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 60.02% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

PROPERTY NAME

MARKETING TEAM


HOUSINGThe median housing value in your area was $155,644 in 2019,compare this to the US average of $201,842. In 2000, there were4,114 owner occupied housing units in your area and there were 4,182renter occupied housing units in your area. The median rent at thetime was $502.

Source: © 2019 Experian

DEMOGRAPHICS


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DEMOGRAPHICS


www.MarcusMillichap.com

Clayton PrimmFirst Vice President InvestmentsDirector - National Multi-Housing GroupDenver OfficeTel: (303) 328-2075Fax: (303) [email protected]: CO FA100024161

Brodey KeithAssociateNational Mutli-Housing GroupDenver OfficeTel: (303) 328-2046Fax: (303) [email protected]: CO FA.100086243

E X C L U S I V E L Y L I S T E D B Y

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