LOHI 3022 & 3024 ZUNI STREET DENVER, CO 80211 - APARTMENT HOTEL
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Title
A 21-unit master leased multifamily building in the
Lower Highland neighborhood of Denver, Colorado
LoHi
A P A R T M E N T H O T E L
3022 & 3024 Zuni Street Denver, CO 80211
OFFERING MEMORANDUM | CAPITAL MARKETS
LoHi Apartment Hotel /// 1
LoHi
A P A R T M E N T H O T E L
3022 & 3024 Zuni Street Denver, CO 80211
01 Executive Summary | 3
02 Property Description | 7
03 Area Overview | 14
04 Market Overview | 19
05 Financial Analysis | 26
© 2020 CBRE, Inc. All Rights Reserved.
01 Executive Summary
The Offering
CBRE is pleased to offer for sale LoHi Apartment Hotel, a 21-unit multifamily building located in the
Lower Highland (LoHi) neighborhood of Denver, Colorado. This is a rare opportunity for investors to
purchase a master leased property with long-term income in one of Denver’s best neighborhoods.
Property Overview
Property Address 3022 & 3024 Zuni St. Denver, CO 80211
Year Built November 2019
Total Building Area 11,179 Square Feet
Number of Units (Including 3024 Zuni Office) 21
Average Unit Size 428
Price $8,250,000
Avg. Proforma Rent Per Unit $1,760
Avg. Proforma Rent Per Square Foot $4.11
4 /// LoHi Apartment Hotel
Investment Highlights
The Asset The Location
LoHi Apartment Hotel is a brand-new apartment building located in the LoHi Boasting a 91 Walk Score and Bike Score, LoHi Apartment Hotel is in the heart
of the LoHi neighborhood. Tenants or visitors will love the location within steps
neighborhood of Denver. This is one of Denver’s most highly sought-after
of some of Denver’s best restaurants, nightlife and breweries including Zuni
communities, and a strong operator in Sonder and quality of construction make this Street Brewing, Linger, El Five, Lola, Little Man Ice Cream, Ale House, Highland
an irreplaceable investment opportunity. Tap & Burger, duo, Wooden Spoon Bakery, Tony P’s Pizzeria, Park Burger, Bar
Dough, Forest Room 5, Postino Wine Bar, Recess Beer Garden, The Bindery, Prost
The units at LoHi Apartment Hotel have high-end finishes including stainless steel Brewing Company, Avanti Food & Beverage, Happy Camper Pizza, Root Down
appliances, custom cabinets, quartz countertops, LVT plank flooring, in-unit washers and many more.
and dryers, mini split ductless heating and cooling, keypad entry locks, designer
Downtown Denver and more than 145,077 jobs are less than one mile from the
lighting and fixtures and ample windows for natural lighting. Some units also include property.
garage doors that open to Zuni Street.
The residents or visitors will have the luxury of being a short scooter or Uber
All the units at LoHi Apartment Hotel are functional studio floor plans that are perfect ride from Coors Field and Empower Stadium at Mile High, home of the Colorado
for weekend warriors, weekly business travelers or minimalist renters looking for an Rockies MLB baseball team and the Denver Broncos NFL football team.
affordable option in the LoHi neighborhood.
LoHi Apartment Hotel is a 15-minute walk to Union Station, giving residents
great access to the metropolitan area and Denver International Airport.
The property also includes a rooftop deck with city and mountain views, secured
entrances, first floor office space and a large bike and scooter storage area. The property has excellent highway and interstate access via Interstates 25 and
70 and Highway 6 making an adventure to the Rocky Mountains just minutes
away.
Downtown Denver and more than
145,077 jobs are less than one mile
from the property.
LoHi Apartment Hotel /// 5
The Master Lease & Short-Term Rental Opporunity in LoHi
The master lease tenant, Sonder, is a hospitality startup company founded in 2012
by CEO Francis Davidson. Their business model focuses on bringing their visitors a
high-end hotel customer service while offering unique apartments to stay in with full
kitchens and unit features a hotel doesn’t provide. After a $170 million equity raise in
June 2020, the company is now valued at $1.3 billion and has more than 12,000 units
and 1,000 employees across 28 cities and six countries.
Sonder is backed by many high-profile individuals and companies. Alex Rodriguez’s A-Rod Corporation and Jeff Bezos’ Bezos Expeditions
have invested in the company and Fidelity Investments and WestCap Group invested in the most recent Series E funding round.
While other short-term rental startups fell because of the pandemic, Sonder has shown its strength and become more dominant in the hospitality
space, specifically in Denver. According to The Globe And Mail, Sonder’s occupancy rate was 31 percentage points above the industry average in
the week ending June 20th. In Denver, Sonder’s occupancy rate was an impressive 95% in May and June 2020.
Sonder’s business model results in substantially higher rents for LoHi Apartment Hotel than if they were conventional apartments. The average
studio apartment rent in the LoHi submarket over the past year was $1,451 per month. The Sonder master lease is currently equal to $1,760 per
month which is clearly the highest and best use for the property.
Two Sonder properties have traded hands in the past several months. Both buildings were older product and had shorter leases than LoHi
Apartment Hotel. Their leases ranged from three to seven years, while the LoHi Apartment Hotel lease is for nine years with two seven-year
options.
• The developer will include an extended builder’s warranty on the property for three years. In combination with the expenses paid by
Sonder, this will make the property operate very similar to a single tenant NNN investment with minimal costs to the buyer.
In 2017, Denver was 4th on Rented.com’s “Best Places to Buy a Vacation Rental”. The proximity to Downtown Denver for corporate stays,
hundreds of restaurants, bars, breweries and food halls in LoHi within walking distance, and the easy access to the Rocky Mountains make LoHi
Apartment Hotel the perfect location for Sonder’s short-term rental business strategy.
6 /// LoHi Apartment Hotel
02 Property Description
The Neighborhood Demographics
The following demographics are within a one-mile radius of LoHi Apartment Hotel:
5.45% 55.8 % $129,676
Population growth rate over the past ten Average household income
years (national average is 0.66% (64% higher than metro average)
Of the population are Millennials or
Generation Z, and primarily renters
59.3 %
78.7 %
Renter occupied
housing units
$634,690 Of residents have
White Collar jobs
Average home value
(metro average is $465,466)
71.3 %
4.7 % 4.26 %
Population with a bachelor’s degree or Average actual cap rate for
higher (national average is 32.6%, Colorado comparable multifamily sales in or
Apartment vacant rate for 9 to 50-
41.7%, metro Denver 44.8%) near downtown Denver
unit buildings in the Denver Northwest
submarket in Q2 2020
* Source: CBRE Research, U.S. Census Bureau
** Source: AAMD Q2 2020 Vacancy & Rent Survey
8 /// LoHi Apartment Hotel
Apartment Fundamentals
Property Details
Address 3022 & 3024 Zuni St. Denver, CO 80211
Units (Including 3024 Zuni Office) 21
Building Square Feet 11,179 Square Feet
Zoning G-MX-3
Lot Size 5,053 Square Feet (0.12 Acres)
Construction Details
Construction Type Stick
Foundation Concrete
Siding Brick & Stucco
Roofing Slightly sloped membrane
Utilities
Electricity Individually metered, Tenant Paid
Gas Master metered, Tenant Paid
Water, Sewer & Trash Master metered, Tenant Paid
LoHi Apartment Hotel /// 9
Floor Plans
TYPE 1
TYPE 1
10 /// LoHi Apartment HotelFloor Plans
TYPE 2 TYPE 3
TYPE 4 TYPE 5
LoHi Apartment Hotel /// 11Community Amenities
• Rooftop deck with city and mountain views
• WiFi internet access
• Secured bike and scooter storage area
• Secured entrances
• Keypad access parcel storage
• First floor office space
• 91 Walk Score or “Walker’s Paradise”; 91 Bike Score or “Biker’s Paradise”
• Located in prestigious Lower Highland (LoHi) neighborhood
• Blocks from Denver’s best bars, restaurants and food halls
• Walking distance to Union Station
• One block to multiple RTD bus stops
• Easy interstate access
12 /// LoHi Apartment HotelUnit Features
• Fully furnished units with high-end furniture, linens, kitchen utilities and show
amenities
• Quartz countertops
• Custom cabinets with slow-close drawers
• Designer finishes and lighting
• Stainless steel appliances with microwave and dishwasher
• 10’ ceilings throughout building
• In-unit washers and dryers
• High-quality LVT plank flooring
• Mini split heating and cooling
• Garage doors providing natural light and open air (in select apartment homes)
LoHi Apartment Hotel /// 1303 Area Overview
Regional Map
LoHi
A P A R T M E N T H O T E L
LoHi Apartment Hotel /// 15Neighborhood Attractions
INTERSTATE
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16 /// LoHi Apartment HotelNeighborhood Attractions
CITY PARK EXISTING
SOUTHEA
GOLF COURSE ST LIGHT
RAIL CORR
IDOR
CENTRAL BUSINESS DISTRICT
145,077 EMPLOYEES
RAIL CORRIDOR 38 MILLION SF OFFICE
EXISTING CENTRAL LIGHT
AURARIA
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A P A R T M E N T H O T E L
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LoHi Apartment Hotel /// 17DOWNTOWN DENVER
145,077 Jobs
18 /// LoHi Apartment Hotel04 Market Overview
Market Overview
Lower Highland Neighborhood (LoHi)
The LoHi neighborhood is one of Denver’s most iconic neighborhoods. The Highland pedestrian bridge easily
connects residents to Commons and Confluence Parks, downtown Denver and Union Station. Many of the city’s
best drink and dining destinations reside in LoHi, including long time staples such as Little Man Ice Cream,
Linger, Root Down, Ale House, Williams & Graham and Lola. Over the past several years the neighborhood’s
growth has been unprecedented. New establishments including Avanti Food & Beverage, El Five, The Bindery,
Ash’Kara, Postino LoHi and Zuni Street Brewing have bolstered the popularity of LoHi, especially for happy
hours and weekend evenings.
Downtown Denver
Located less than one mile from the property, downtown Denver is thriving. Employment has reached 145,077
which is an all-time high and a 4.7% increase year-over-year.
In 2019 Denver was ranked the “3rd Hottest Job Market” by FitSmallBusiness and the “5th Fastest Growing
City” by the Wall Street Journal. There are currently $2.5 billion in developments going into downtown Denver
which includes 1.5 million square feet of office space, 1,000 hotel rooms and 4,500 residential units.
Union Station
Since it’s grand reopening in 2014, Union Station is the transportation hub for The Mile-High City. The RTD light
rail system now connects to Denver International Airport (DIA) and most of the metropolitan area with further
expansions planned.
The Union Station building and surrounding neighborhood of LoDo is booming with new restaurants, shops and
bars opening in every new development and quickly. On weekends in the summer Union Station hosts a farmer’s
market and Terminal Bar inside the main hall is one of the busiest bars in the city.
20 /// LoHi Apartment HotelMarket Overview
Coors Field
Home to the Colorado Rockies, 76-acre Coors Field opened in 1995 and is the beating heart of the Ballpark neighborhood.
In a typical baseball season the Rockies play 81 games per year including several fireworks games, and several live
concerts occur each summer that reach maximum capacity. In 2014 Coors Field removed most of the upper right field
stands to add multiple bars and restaurants, a trend that has now reached many other stadiums across Major League
Baseball (MLB). Although Coors Field is just 25 years old, it is now the third-oldest stadium in the National League.
Broncos Stadium Redevelopment District
In March 2018 the Denver Broncos and city officials announced the Stadium Redevelopment District. This area comprises
52 acres on the south side of the stadium as well as the south parking lots. Planning is still in the early phases but upon
completion the district may contain 3.4 million square feet including 450 hotel rooms, residential, office and retail uses.
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.
LoHi Apartment Hotel /// 21City Breakdown
River North Arts District (RiNo)
38
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AVE
RIVER NORTH DEVELOPMENT MAP
Located just north of downtown Denver, the RiNo Art District is one of the fastest growing
districts in metro Denver. In the past, the area was highly industrial but an inflow of vibrant INTERSTATE
25
mixed-use developments is taking their place. Now the neighborhood is filled with some
of the best breweries, bars, restaurants and food halls in the city.
e
Lin
G-
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Since 2015 RiNo has experienced nearly 1 million square feet of new developments
between all sectors. This trend is going to continue with more than 1.6 million square feet
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of developments under construction and another 1.6 million in the planning stages. Some N
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of the new developments that have recently opened include the 100,000-square foot
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RIVER NORTH DEVELOPMENT MAP workspace and food hall Zeppelin Station, the 100-room Source Hotel & Market Hall and
20TH ST
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INTERSTATE
the 60,000-square foot music venue The Mission Ballroom.
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Union Station
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Union Station
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© 2018 CBRE, Inc. All Rights Reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify al
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22 /// LoHi Apartment Hotel
BR
CHAMPA ST
STOUT STRiver North
RIVER NORTH Development
DEVELOPMENT MAP Map
3354 Larimer St Collegiate Peaks Bank HUB South North Wynkoop Hotel Reth!nk Coworking Train
1 12 23 34
36 45 56
Address: 3354 Larimer St Address: 3703 Brighton Blvd Address: 3601 Walnut St Address: 4180 Brighton Blvd Address: 3950 Wynkoop St Address: 40th & Walnut St
Size: 21k Office/7k Retail Size: 8,900 SF Size: 250,000 SF Size: 150 Rooms Size: 24,000 SF Size: 459,000 SF
Developer: Daniel Huml Developer: Collegiate Bank Developer: Elevation Dev. Group Developer: Westfield Company Developer: TBD Developer: Acre Development
Est. Delivery: TBD Delivered: Q3 2018 Delivered: Q1 2019 Est. Delivery: TBD Est. Delivery: TBD Est. Delivery: TBD
3800 N Brighton Blvd Denargo Market INDUSTRY Denver North Wynkoop - Mission Ballroom Revolution 360 Vario, Phase I
2 13 24 35 46 57
Address: 3800 N Brighton Blvd Address: 3280 Denargo St Address: 3001 Brighton Blvd Address: 4180 Brighton Blvd Address: 3600 Brighton Blvd Address: 3060 Brighton Blvd
Size: 600 Units/40k Retail Size: 1,500,000 SF Size: 151,000 SF Size: 60,000 SF Size: 130k Office/20k Retail Size: 62,000 SF
Developer: Carmel Developer: Formativ Developer: Cmpbll/Mrns/Wnklr Developer: Westfield Company Developer: Haselden Developer: Mass Equities
Est. Delivery: TBD Est. Delivery: TBD Delivered: Q4 2015 Delivered: Q3 2019 Est. Delivery: Q2 2020 Est. Delivery: Q2 2020
AMLI at RiNo Denver Central Market INDUSTRY RiNo Station North Wynkoop Multi Family RiDE at RiNo Vario, Phase II
3 14 25 36 47 58
Address: 3325 Denargo St Address: 2669 Larimer St Address: 3858 Walnut St Address: 4180 Brighton Blvd Address: 3609 Wynkoop Address: 3060 Brighton Blvd
Size: 390 Units Size: 25,000 SF Size: 110,000 SF Size: 500 Units Size: 84 Units (Studio) Size: 92,000 SF
Developer: AMLI Residential Developer: Barnett Family Trust Developer: Clarion Partners Developer: Hines Developer: McWhinney Developer: Mass Equities
Est. Delivery: Q4 2020 Delivered: Q3 2016 Delivered: Q4 2017 Est. Delivery: TBD Delivered: Q1 2019 Est. Delivery: TBD
AMR Building at Denargo Denver Rock Drill Junction 23 North Wynkoop Office RiNo Food Hall Vario, Phase III
4 15 26 37 48 59
Address: 2901 Broadway Address: 3939 Williams St Address: 2323 Delgany St Address: 4120 Brighton Blvd Address: 2420 Larimer St Address: 3000 Brighton Blvd
Size: 337 Units Size: 650,000 SF Size: 86,000 SF Size: 150,000 SF Size: 42k Office/20k Retail Size: 200,000 SF
Developer: Argyle Residential Developer: Saunders Construction Developer: EverWest Developer: Westfield Company Developer: Focus Property Group Developer: Mass Equities
Est. Delivery: Q3 2020 Est. Delivery: TBD Delivered: Q1 2018 Est. Delivery: TBD Est. Delivery: TBD Est. Delivery: TBD
Argyle Denargo DriveTrain Larimer30 North Wynkoop Office S*Park Vib Hotel
5 16 27 38 49 60
Address: 3206 Denargo St Address: 3301 Brighton Blvd Address: 2935 Larimer St Address: 4180 Brighton Blvd Address: 25th St & Lawrence Address: 3560 Brighton Blvd
Size: 336 Units Size: 403 Units Size: 15,000 SF Size: 65k Office/23k Retail Size: 91 Condominiums Size: 140 Rooms
Developer: Argyle Residential Developer: Carmel Partners Developer: Littleton Capital Developer: Westfield Company Developer: Treehouse Brokerage Developer: TWC Management
Est. Delivery: TBD Est. Delivery: Q4 2019 Delivered: Q3 2018 Delivered: Q3 2019 Delivered: Q3 2018 Est. Delivery: Q4 2020
Ava RiNo Edison at RiNo Link35 Novel RiNo T3 RiNo Walnut Street Lofts
6 17 28 39 50 61
Address: 1185 26th St Address: 3063 Brighton Blvd Address: 3462 Larimer St Address: 1300 40th St Address: 3500 Blake St Address: 3601 Walnut St
Size: 250 Units Size: 277 Units Size: 66 Units/125k SF Size: 475 Units/10k Retail Size: 250,000 SF Size: 65 Units (Affordable)
Developer: AvalonBay Communities Developer: LYND Developer: Littleton Capital Developer: Crescent Communities Developer: Hines Developer: ULC/Medici
Est. Delivery: TBD Delivered: Q3 2017 Delivered: Q1 2017 Est. Delivery: Q4 2021 Est. Delivery: TBD Est. Delivery: Q1 2020
Backyard on Blake Enterprise Lot Twenty Eight Oxpecker Building The Charlie Blake Watershed
7 18 29 40 51 62
Address: 3040 Blake St Address: 3000 Lawrence Address: 2763 Blake St Address: 3258 Larimer St Address: 3423 Blake St Address: 3555 Brighton Blvd
Size: 15,300 SF Size: 66,000 SF Size: 16k Office/11k Retail Size: 11,400 SF Size: 90,000 SF Size: 154k Office/13k Retail
Developer: Invent Dev. Partners Developer: Focus Property Group Developer: Formativ Developer: Westbrook Developer: Infinity Developer: Koelbel
Delivered: Q1 2015 Delivered: Q1 2017 Delivered: Q4 2018 Delivered: Q4 2017 Est. Delivery: TBD Est. Delivery: Q3 2021
Blake Street Mine Flight at TAXI Modera River North Paradigm River North The Collective World Trade Center Denver
8 19 30 41 52 63
Address: 3501 Blake St Address: 3575 Ringsby Ct Address: 2850 Blake St Address: 3400 Walnut St Address: 3201 Walnut St Address: 3860 Blake St
Size: 31,000 SF Size: 140,000 SF Size: 180 Units Size: 189K Office/12K Retail Size: 50,000 SF Size: 300k Office/30k Retail/
240 Rooms
Developer: Leuthold Commercial Developer: Zeppelin Developer: Mill Creek Residential Developer: Jordon Perlmutter & Co. Developer: Parkhill Development Co. Developer: Kemmons Wilson/Formativ
Est. Delivery: TBD Delivered: Q2 2018 Delivered: Q2 2018 Est. Delivery: Q1 2022 Delivered: Q2 2018 Est. Delivery: Q1 2022
Camden RiNo Giambrocco National Western Center Pegasus The Current Zeppelin Station
9 20 31 42 53 64
Address: 3200 Walnut Address: 3600 Wynkoop Address: 4655 Humboldt St Address: 3770 Walnut St Address: 3615 Delgany St Address: 3501 Wazee St
Size: 233 Units Size: 178,000 SF (Land) Size: 270 Acres Size: 160 Rooms Size: 200,000 SF Size: 100,300 SF
Developer: Camden Prop. Trust Developer: Tributary RE Developer: TBD Developer: Pk/Kaplan/Slpstrm Developer: Schnitzer West Developer: Zeppelin
Est. Delivery: Q1 2020 Est. Delivery: TBD Est. Delivery: TBD Est. Delivery: Q1 2020 Est. Delivery: 2021 Delivered: Q1 2018
Canvas Gold Star Sausage Renovation Natural Grocers Post River North The Foundry Globeville Landing Park
10 21 32 43 54 65
Address: 2800 Walnut St Address: 3757 Brighton Blvd Address: 1859 28th St Address: 3750 Walnt St. Starting in late 2017, the city expects to start
Address: 2401 Blake St
Size: 347 Units/11k Retail improvements; new turf areas, new bike/
Size: 241 Units Size: 48,000 SF Size: 15,000 SF Size: 359 Units
walking paths, easier visibiity and easier acess
Developer: Lennar Multifamily Developer: Pathfinder Partners Developer: Equity Ventures Developer: Mill Creek Developer: McWhinney
to the South Platte River.
Delivered: Q3 2019 Delivered: Q4 2017 Delivered: Q3 2017 Delivered: Q3 2017 Est. Delivery: TBD
Catalyst HUB North North Wynkoop - Westfield Office Ramble Hotel The Source Hotel River North Park
11 22 40
33 44 55 66
Address: 3513 Brighton Blvd Address: 3650 Blake St Address: 4201 Brighton Blvd Address: 2450 Larimer St Address: 3330 Brighton Blvd Elements of the park include a storm water
Size: 24,000 SF garden, several large lawns, community
Size: 140k Office/13k Retail Size: 98,000 SF Size: 50 Rooms Size: 100 Rooms
vegetable garden, groves of trees, children’s
Developer: Koelbel Developer: Elevation Dev. Group Developer: Westfield Company Developer: Gravitas Dev. Group Developer: Zeppelin play areas, and direct river access.
Delivered: Q2 2018 Est. Delivery: Q3 2020 Delivered: Q3 2018 Delivered: Q1 2018 Delivered: Q3 2018
© 2020 CBRE, Inc. All Rights Reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at
your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
LoHi Apartment Hotel /// 23Restaurants and Retail
LoHi
A P A R T M E N T H O T E L
24 /// LoHi Apartment HotelOffice Inventory
LoHi
A P A R T M E N T H O T E L
LoHi Apartment Hotel /// 2505 Financial Analysis
Financial Analysis / Cash Flow
LoHi Apartment Hotel
Denver, Colorado
PROPERTY OVERVIEW 2021 PROFORMA OPERATING SUMMARY
Number of Units (Includes 3024 Zuni Office) 21 PER UNIT TOTAL
Year Built 2019 Effective Gross Income $21,115 $443,412
Price $8,250,000 Less: Operating Expenses 1,641 34,452
Price per Unit $392,857 Net Operating Income $19,474 $408,960
Gross Building Square Feet 11,179 Less: Debt Service 8,643 181,500
Average Square Feet per Unit 428 Net Cash Flow (After Debt Service) $10,831 $227,460
Average Proforma Rent per Unit $1,760
Average Proforma Rent per SF $4.11
FINANCIAL RETURNS FINANCING ASSUMPTIONS PROPOSED NEW LOAN
2021 Proforma Cap Rate 4.96% Initial Equity $3,712,500
2021 Proforma Cash-on-Cash Return 6.05% Proposed New Loan Amount $4,537,500
Loan-to-Value 55%
Interest Rate 4.00%
Loan Term 5 Years
Amortization 12 Months I/O & 30 Yrs. Thereafter
Annual Payment (Amortized) $259,953
Loan Constant (Amortized) 5.73%
Debt Service Coverage Ratio (Year One Proforma) 1.57
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
LoHi Apartment Hotel /// 27Historical Analysis
LoHi Apartment Hotel
Denver, Colorado
2021 PROFORMA 2022 PROFORMA
INCOME
Gross Scheduled Rent $443,412 $453,884
Less: Gain/Loss-to-Lease 0 0
Gross Potential Income $443,412 $453,884
Less: Vacancy 0.0% $0 0.0% $0
TOTAL RENTAL INCOME 100.0% $443,412 100.0% $453,884
EFFECTIVE GROSS INCOME $443,412 $453,884
EXPENSES * per unit Proforma Exp. per unit Proforma Exp.
Repairs & Maintenance $0 $0 $0 $0
Contract Services 0 0 0 0
Administrative 100 2,100 100 2,100
Utilities 0 0 0 0
TOTAL VARIABLE EXPENSES $100 $2,100 $100 $2,100
Taxes 1,191 25,002 1,519 31,905
Insurance 350 7,350 350 7,350
TOTAL EXPENSES $1,641 $34,452 $1,969 $41,355
NET OPERATING INCOME $408,960 $412,530
* Proforma includes a 3-year extended builder’s warranty.
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
28 /// LoHi Apartment Hotel95+5
+70+10
UNIT MIX, PROFORMA & ACTUAL RENTS
LoHi Apartment Hotel
Denver, Colorado
UNIT
DESCRIPTION
NUMBER OF
UNITS % TYPE UNIT S.F.
MONTHLY
PROFORMA
RENTS
PROFORMA
RENT/SF
MONTHLY
PROFORMA
RENT
TOTAL
ANNUAL
PROFORMA
RENT TOAL
MONTHLY
ACTUAL
RENT
TOTAL
ACTUAL
RENT/SF TOTAL S.F.
STUDIO
STUDIO 2 9.5% 483 $1,760 $3.64 $3,519 $42,230 $1,760 $3.64 966
STUDIO 15 71.4% 403 1,760 4.37 26,394 316,723 $1,760 4.37 6,045
STUDIO 2 9.5% 467 1,760 3.77 3,519 42,230 $1,760 3.77 934
STUDIO 1 4.8% 602 1,760 2.92 1,760 21,115 $1,760 2.92 602
OFFICE (CAN BE CONVERTED TO APARTMENT)
3024 ZUNI OFFICE 1 4.8% 443 $1,760 $3.97 $1,760 $21,115 $1,760 $3.97 443
TOTAL/AVERAGE 21 100.0% 428 $1,760 $4.11 $36,951 $443,412 $1,760 $4.11 8,990
BY BEDROOM TYPE BY SQUARE FEET
OFFICE 5%
STUDIO 95% 403 / 71.4%
483 / 9.5%
467 / 9.5%
443 / 4.8% 602 / 4.8%
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
LoHi Apartment Hotel /// 29Tax Analysis
LoHi Apartment Hotel
Denver, Colorado
DENVER COUNTY
PARCEL MILL LEVY FULL CASH VALUE ASSESSMENT RATIO ASSESSED VALUE TAX
2019 Taxes Payable 2020 & 2020 Taxes Payable 2021*
02283-07-004-000 0.072116 $4,848,900 7.15% $346,696 $25,002
$4,848,900 $346,696 $25,002
Valuation Per Unit: $230,900 Taxes Per Unit: $1,191
2021 Taxes Payable 2022 & 2022 Taxes Payable 2023**
02283-07-004-000 0.072116 $6,187,500 7.15% $442,406 $31,905
$6,187,500 $442,406 $31,905
Valuation Per Unit: $294,643 Taxes Per Unit: $1,519
*2019 Taxes Payable 2020 & 2020 Taxes Payable 2021 are based on the Assessor’s Appraised Value of $230,900 per unit.
**2021 Taxes Payable 2022 & 2022 Taxes Payable 2023 are based on a sales price of $392,857 per unit discounted to 75% and the assumption that the Mill Levy and Assessment Ratio will
remain the same as in 2019. Landlord’s obligation to pay taxes is capped at $65,000 annually.
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
30 /// LoHi Apartment HotelCash Flow Schedule
LoHi Apartment Hotel
Denver, Colorado
CASH FLOW SCHEDULE 2021 CASH FLOW SCHEDULE 2022 CASH FLOW SCHEDULE
ANNUAL MONTHLY PER UNIT MONTHLY PER UNIT MONTHLY PER UNIT
Year 1 $319,458 $26,621 $1,268 January $36,379 $1,732 January $37,237 $1,773
Year 2 $446,846 $37,237 $1,773 February $36,379 $1,732 February $37,237 $1,773
Year 3 $457,403 $38,117 $1,815 March $36,379 $1,732 March $37,237 $1,773
Year 4 $443,701 $36,975 $1,761 April $36,379 $1,732 April $37,237 $1,773
Year 5 $454,793 $37,899 $1,805 May $37,237 Year 2 Start $1,773 May $38,117 Year 3 Start $1,815
Year 6 $466,163 $38,847 $1,850 June $37,237 $1,773 June $38,117 $1,815
Year 7 $477,817 $39,818 $1,896 July $37,237 $1,773 July $38,117 $1,815
Year 8 $478,386 $39,866 $1,898 August $37,237 $1,773 August $38,117 $1,815
Year 9 $478,969 $39,914 $1,901 September $37,237 $1,773 September $38,117 $1,815
October $37,237 $1,773 October $38,117 $1,815
November $37,237 $1,773 November $38,117 $1,815
December $37,237 $1,773 December $38,117 $1,815
$443,412 $36,951 $1,760 $453,884 $37,824 $1,801
* Assumes 3024 Zuni office rent is paid in full starting 05/01/2020 at $1,635 monthly with 2.5% rent increases annually
You are solely responsible for independently verifying the information in this confidential memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.
LoHi Apartment Hotel /// 31Disclaimers
AFFILIATED BUSINESS DISCLOSURE DISCLAIMER
CBRE, Inc. operates within a global family of companies with many subsidiaries and related This Memorandum contains select information pertaining to the Property and the Owner,
entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses and does not purport to be all-inclusive or contain all or part of the information which
including, but not limited to, brokerage services, property and facilities management, prospective investors may require to evaluate a purchase of the Property. The information
valuation, investment fund management and development. At times different Affiliates, contained in this Memorandum has been obtained from sources believed to be reliable,
including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent but has not been verified for accuracy, completeness, or fitness for any particular purpose.
clients who have competing interests in the same transaction. For example, Affiliates or All information is presented “as is” without representation or warranty of any kind. Such
their clients may have or express an interest in the property described in this Memorandum information includes estimates based on forward-looking assumptions relating to the
(the “Property”), and may be the successful bidder for the Property. Your receipt of this general economy, market conditions, competition and other factors which are subject to
Memorandum constitutes your acknowledgement of that possibility and your agreement uncertainty and may not represent the current or future performance of the Property.
that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ All references to acreages, square footages, and other measurements are approximations.
interest or involvement in the sale or purchase of the Property. In all instances, however, This Memorandum describes certain documents, including leases and other materials, in
CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ summary form. These summaries may not be complete nor accurate descriptions of the
length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its full agreements referenced. Additional information and an opportunity to inspect the
Affiliates will conduct their respective businesses in a manner consistent with the law and Property may be made available to qualified prospective purchasers. You are advised to
all fiduciary duties owed to their respective client(s). independently verify the accuracy and completeness of all summaries and information
contained herein, to consult with independent legal and financial advisors, and carefully
CONFIDENTIALITY AGREEMENT investigate the economics of this transaction and Property’s suitability for your needs. ANY
RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
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 The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions
you desire to express further interest in the acquisition of the Property, (ii) you will hold of interest or offers to purchase the Property, and/or to terminate discussions at any
it in the strictest confidence, (iii) you will not disclose it or its contents to any third party time with or without notice to you. All offers, counteroffers, and negotiations shall be
without the prior written authorization of the owner of the Property (“Owner”) or CBRE, non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or
Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to obligation except as set forth in a fully executed, definitive purchase and sale agreement
the Owner or CBRE, Inc. delivered by the Owner. PMStudio_August2020
If after reviewing this Memorandum, you have no further interest in purchasing the Property,
kindly return it to CBRE, Inc.LoHi A P A R T M E N T H O T E L 3022 & 3024 Zuni Street Denver, CO 80211 ROBERT BRATLEY +1 541 729 9667 robert.bratley@cbre.com © 2020 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_August2020
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