blake street - loopnet

OFFERING MEMORANDUM

2495-2501B L A K E S T R E E T

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DISCLAIMER: This Offering Memorandum is provided for the sole purpose of allowing a potential investor to evaluate whether there is interest in proceeding with further discussions regarding a possible purchase of or investment in 2495 Blake Street. (“Property”). The potential investor is urged to perform itsown examination and inspection of the Property and information relating to same, and shall rely solely on such examination and investigation and not on this offering or any materials, statements or information contained herein or otherwise provided. Neither Tributary Real Estate, nor the Owner, nor any of theirrespective partners, directors, officers, employees, shareholders and agents (collectively, “Agents”), make any representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this Offering Memorandum or the Property or any materials, statements (including financialstatements and projections) or information contained herein or relating thereto, or as to the accuracy or completeness of such materials, statements or information, or as to the condition, quality or fitness of the Property, or assumes any responsibility with respect thereto. Such materials, statements andinformation have in many circumstances been obtained from outside sources, and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Without limiting the foregoing, in the event thisOffering Memorandum contains information relating to asbestos or any other hazardous, toxic or dangerous chemical, item, waste or substance (“Hazardous Materials”) in relation to the Property, such information shall in no way be construed as creating any warranties or representations, expressed or implied, byoperation of law or otherwise, by Agents or the Owner, as to the existence or non-existence or nature of Hazardous Materials in, under, on or around the Property. This Offering Memorandum is provided subject to errors, omissions, change of price or terms and other changes to the materials, statements andinformation contained herein or relating to the Property, and is subject to withdrawal, all without notice. The contents hereof are confidential and are not to be reproduced or distributed to any person or entity without the prior written consent of Agents or used for any purpose other than initial evaluation asindicated above. Owner may, in its sole discretion, reject any offer to purchase the Property and may terminate negotiations at any time without written notice. Until a written sale agreement that is mutually acceptable to Owner and any investor has been executed by both parties, Owner shall have no bindingobligations to any potential investor.

Ryan [email protected]

Andrew CullenPartner / Managing [email protected]

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s EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . 2

PROPERTY OVERVIEW . . . . . . . . . . . . . . . . . 4

LOCATION OVERVIEW . . . . . . . . . . . . . . . . . 10

COMPARABLES . . . . . . . . . . . . . . . . . . . . . . . . 17

EXECUTIVE SUMMARY

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THE OFFERINGTributary Real Estate is pleased to present to qualified investors, the sale of 2495-2501Blake Street (the "Property"), a unique covered land play for developers who are lookingfor unprecedented access to the heart of Downtown Denver. This investmentopportunity encompasses approx. 79,000 s.f. of land that can be commercially developedup to eight stories in Denver’s highly desirable River North ("RiNo") / Ballpark / LowerDowntown (“LoDo”) neighborhood.

The Property is currently leased by Workplace Elements, LLC (“Seller”). As part of thetransaction, the Seller is willing to lease-back 2501 Blake Street at market rates for aperiod of 24-72 months depending on Buyer’s timeline and desire for the project. 2501Blake Street is the flagship showroom for Workplace Elements, LLC and is arguably oneof the nicest adaptive reuse projects completed in Lower Downtown.

Located in the attractive and development constrained RiNo / Ballpark / LoDoneighborhood, this asset is an extraordinary opportunity to invest in Denver’s mostactive submarket.

2501 BLAKE STREET 2495 BLAKE STREET

Building size (SF) 34,857 14,600

Stories 1 + Mezz 1 + Mezz

Site / land area (SF) 42,092 36,715

Year Built | Renov 1939 | 2002, 2020, 2016 1948

Zoning C-MX-8 I-MX-8

Occupancy 100% 0% - Shell Condition

Lease-Back Opportunity$27.00 NNN | NOI : $941K

CAMs: $12.38/SF Going-in-cap rate: 4%

Vacant Upon SaleTax Carry: $77K /Yr

Potential Lease Rate: $10.00/SF

Purchase Price $23.5M ($298.20/Land Foot)

Potential Cap Rate (Fully Leased): 4.63%

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SITE PLAN – 2501 & 2495 BLAKE STREETPropertyO

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SITE PLAN – 2501 BLAKE STFirst Floor

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SITE PLAN – 2501 BLAKE STMezzanine

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LOCATION OVERVIEW

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DOWNTOWN DENVER LOWER DOWNTOWN (“LODO”) Denver’s central geography has been a key driver of its immense economic success. Thismetro hub is not only located within a two-hour flight from more than two thirds of U.Scities, but it is also just a few hours away from some of the country’s best ski resorts andmountain towns making it a convenient and highly desirable resort destination forvisitors from all over.

With 300 days of sunshine, a walkable downtown, a thriving arts and culinary scene anda view of the famous Rocky Mountains, Denver consistently ranks amongst the mostdesirable places to live and work in the U.S. The affordable mix of urban social life andoutdoor adventure attracts a diversity of talent nationwide, evidenced by variousnotable companies who have enlarged their footprint in the Denver market. CharterCommunications, VF Corp, DaVita, Kaiser Permanente, Charles Schwab, and more areproof of corporate America’s confidence in Denver Metro’s ability to attract a highlytalented workforce.

Previously an industrial hub, LoDo has been revived into one of Denver’s liveliest retail, office, andentertainment neighborhoods. Its restoration has sparked national interest making it widelyconsidered as a hotspot for real estate investment in all sectors.

Situated in the heart of Downtown, LoDo boasts a surplus of convenient amenities including morethan 150 bars and restaurants in walking vicinity. In recent years, a wide array of award-winningrestaurants, coffee shops, breweries, boutiques, hotels, sports venues, museums, theatres andmore have found their home in LoDo. It’s no surprise that this Denver neighborhood consistentlyranks high nationally as one of the most desirable places to live and one of the most covetedoffice environments for companies both large and small. Its original brick buildings from the late19th century juxtaposed with more contemporary developments give it a unique sense of charmwhile also remaining current, appealing to both older and younger generations.

LoDo is the perfect neighborhood for those seeking an active and social lifestyle. Easy access tothe various modes of public transport allows residents to escape the hustle and bustle of the cityto one of Denver’s numerous outdoor parks conveniently and quickly. The mixture of all of LoDo’sappealing features has led to record breaking rental rates, prices per SF sales and low vacancyrates.

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BALLPARK

RIVER NORTH ("RINO")

Denver’s historic Ballpark district is located on the northern region of the Lower Downtownarea, anchored by Coors Field, home of the Colorado Rockies. Historically, this area revolvedaround Denver’s rail line featuring factories and warehouses. In the past 5 years, however,Ballpark has experienced significant gentrification due to an influx of investment, newresidences, businesses and development. Now, this revitalized district is a popular spot fortrendy brewpubs, antique shops, pizzerias, rooftop bars, authentic Mexican restaurants, jazzclubs and more.

Despite recent developments, most buildings feature the district’s historic brick architecture,preserving the rich history of the area. The demolition of the Broadway viaduct in 2000, pavedway for a more walkable district and allowed for a more direct link to central Downtown.Additionally, it opened up the corridor along Brighton Blvd, prompting new opportunities inthat area as well.

River North, situated just North of LoDo and Ballpark, is one of Denver’s hippest up andcoming areas. Historically, RiNo was comprised of four neighborhoods: Five Points, Cole,Globeville and Elyria-Swansea home to pattern shops and foundries. When those industriesmoved toward the city’s core, the corridor that remained was primarily vacant warehouseswith failing infrastructure.

Redevelopment in the last decade has completely transformed the once empty district into alively neighborhood. The steady land value appreciation occurring in RiNo mirrors exactlywhat transpired in adjacent neighborhoods following past public investment commitments bythe City of Denver. Land prices increased annually in Union Station, LoDo and now RiNo inyears following investment announcements made by the City. Notable public investments inand around RiNo include Brighton Blvd, 38th and Blake Light Rail, National Western StockShow Redevelopment and the National Western Center Pedestrian Bridges.

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The Property is within walking distance of nearly 9,000 hotel rooms and 250 conference and/ormeeting rooms. The recently redeveloped Union Station is home to the boutique, 110-roomCrawford Hotel which is above the more than 22,000 square feet of retail shops, restaurants, bars,and the central “great hall” which acts as the heart of Lower Downtown. Union Station also acts asthe main transportation hub for all of Denver’s light rail and bus circulation.

In what has historically been known as an industrial neighborhood, the River North Art Districtcommonly known as “RiNo,” has transformed into one of Denver’s most desirable submarkets.RiNo features contemporary art galleries, restaurants, breweries and concert venues in repurposedindustrial buildings. Popular restaurants/food hall concepts include Denver Central Market and TheSource, which take a contemporary and eclectic approach to food and drink. RiNo is also knownfor its colorful murals, which have been painted in partnership with the Crush Walls Festival. In2020 alone, over 100 artists painted 40 murals in the RiNo neighborhood.

The Mission Ballroom is a concert venue located in the RiNo Art District neighborhood. Thebuilding was delivered in August 2019 as part of a larger mixed-use development with Westfield.The 60,000 SF, state-of-the-art concert venue has capacity of nearly 4,000 patrons and alsofeatures 16 local artists of various mediums to create a connection between visual and sonic art.

Located one block from 1415 Park Avenue West and completed in 1995 as part of Denver’s sixyear sporting venue upgrade initiative and home of Colorado’s major league baseball team, TheColorado Rockies, Coors field is a 50,000+ seat baseball stadium located in lower downtownDenver (LoDo). The park includes 63 luxury suites and 4,526 club seats. McGregor Square is a new,700,000 square-foot development located in the former West Lot, which is expected to bedelivered in January 2021. The mixed-use development aims to enhance the Ballparkneighborhood, and will include a combination of office, multifamily, retail and a hotel.

COORS FIELD

UNION STATION

RINO ART DISTRICT

MISSION BALLROOM

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Larimer Square is Denver’s oldest and most historic block located Lower Downtown. Built in thelate 1800s, the block was at risk of demolition before Denverite Dana Crawford developed theLarimer Associates in 1965, whose mission was to refurbish the Square to its original glory.Historical buildings line both sides of the street with bustling shops and restaurants, making it adesirable destination for visitors and locals alike.

Host to the 2012 ULI (Urban Land Institute) conference and the 2008 Democratic NationalConvention, the Colorado Convention Center (CCC) is a 2.2 million square foot multi-purposeconvention center located in Denver’s central business district. The CCC includes several meetingrooms, two ball rooms, and an indoor amphitheater. Host to more than 400 events per year, theCCC is adjacent to the Denver Center for Performing Arts

The Denver Center for Performing Arts (the DPCA) is the second largest performing arts complexin the country. The DCPA is a four-block, 12-acre site containing ten performance spaces with over10,000 seats connected by an eighty-foot-tall glass enclosed walkway.

Also known as “The Can,” the Pepsi Center is a multi-purpose arena located adjacent to theAuraria Campus in Denver’s Lower Downtown. Completed in 1999 as part of a Denver’s six-yearsporting venue upgrade initiative, the building is home to the National Basketball Association’sDenver Nuggets, the National Hockey League’s Colorado Avalanche, and the National LacrosseLeague’s Colorado Mammoth. When not being used as a sports venue, the building frequentlyserves as a concert venue with a capacity of 20,000.

Designed by Pei Cobb Freed & Partners, and opened in 1982, the 16th Street Mall is a 1.25 milepedestrian and transit mall that runs along 16th Street in Denver’s central business district. Themall begins at the intersection of Civic Center Station (16th and Broadway), and ends at Denver’sUnion Station. It is home to over 300 locally owned & chain stores, 50 restaurants, and the DenverPavilions. The MallRide is a free shuttle bus service, which uses hybrid-electric busses and isoperated by the Regional Transportation District (RTD). The buses stop at every intersectionbetween the Civic Center Station and Denver’s Union Station.

LARIMER SQUARE

COLORADO CONVENTION CENTER/DENVER CENTER FOR PERFORMING ARTS

PEPSI CENTER

16TH STREET MALL

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REGIONAL BUS SERVICE

MALLRIDE

LIGHT RAIL

The new bus facility is 22 bays, below grade. There are 16 bays for RTD regional service, 4 for the new DowntownDenver Circulator, and 2 for commercial carriers (Greyhound regional) and/or future RTD service. The RTD bus systemoperates 365 days a year, offering service at more than 9,000 bus stops across 8 counties in the Denver metroarea. Whether you're commuting to work, school, running errands, or just meeting friends, we've got you covered. Withlocal, regional, and airport bus routes, you can get where you're going fast and hassle-free on RTD.,

Running every five minutes, the MallRide is a free shuttle bus service, which uses hybrid-electric busses and is operatedby the Regional Transportation District (RTD). The buses stop at every intersection between the Civic Center Station andDenver’s Union Station, making it easy to navigate Denver’s Lower Downtown and Central Business District.

The RTD rail system operates 365 days a year with light and commuter rail lines to more than 50 stations throughoutthe metro area. The RTD system is divided into four fare zones: A, B, C, and Airport. Fares which range from $3.00-10.50depending on your ride.

TRANSPORTATION2501 & 2495 Blake Street is within a convenient walking or biking distance to Union Station. Union Stationsits at the heart of lower downtown and is the central connector to reaching all of metro Denver via Denver’s progressive transportation system. Significant upgrades have been made over the last 5 years, making Union Station not only a mode for transportation, but a place to gather and enjoy the scenic downtown.

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COMPARABLES

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Sale Comparables

–Land Value

SALE COMPARABLES – LAND VALUE

3 7 1 2 - 3 7 8 0 D O W N I N G S TSale Date: Sept 2020

Size (SF) Bldg | Land: - | 34,940

Sale Price: $9.72M

Price PSF Bldg | Land: $ - | $278.05

Zoning: C-MX-8 | Multifamily

Sale Date: Dec 2019

Size (SF) Bldg | Land: 11,173 | 27,878

Sale Price: $7.19M

Price PSF Bldg | Land: $643.52 | $257.91

Zoning: C-MX-12 | Multifamily

3 9 3 0 B L A K E S T

Sale Date: Jan 2020

Size (SF) Bldg | Land: 33,462 | 16,553

Sale Price: $4.15M


Zoning: I-MX-5 with 16-Story Overlay

Sale Date: Nov 2019

Size (SF) Bldg | Land: 19,839 | 80,624

Sale Price: $18.7M


Zoning: C-MX-12 | Office

3 9 5 0 W Y N K O O P S T

3 1 0 0 - 3 1 2 0 B R I G H T O N B L V D

Sale Date: Sept 2019

Size (SF) Bldg | Land: 31,75 | 38,925

Sale Price: $12M


Zoning: C-MX-12 | Condos

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For additional information or to schedule a tour, please contact:

Ryan [email protected]

Andrew CullenPartner / Managing [email protected]

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