boutique hotel / apartment development offering memorandum · club room with kitchen space and...

BOUTIQUE HOTEL / APARTMENT DEVELOPMENT

OFFERING MEMORANDUM3638-3640 NAVAJO STREET | DENVER, CO

ADAM RIDDLECo-Founder/Principal

303.257.7627 | [email protected] |

For More Information Contact

JASON KOCHCo-Founder/Principal


PRICE REDUCED! $1,495,000$1,295,000

CONFIDENTIAL - DO NOT DISSEMINATE.

This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

TABLE OF CONTENTS

Development Highlights

Development Features

Property Renderings

Property Aerial

Area Amenities Map

Area Map

Financials

Floor Plans & Design Board

Location Overview

Demographics

DEVELOPMENTHIGHLIGHTS

Address:

Price:

Description:

Lot Size:

Zoning:

Neighborhood:

Amenities:

Guest Revenues:

Average Occupancy Assumptions:

Retail Lease Revenue

Area Tourism:

Lower Highlands District (LoHI):

3638-3640 Navajo Street | Denver, CO

$1,295,000

Boutique Hotel/Apartment Development in the Lower Highlands District (LoHi). This project is shovel ready for hotel concept with Denver city approval. Possible enterprise zone funding available. SBA 504 or 7a eligible.

6,079 SF

U-MX-3

Top twenty hipster neighborhoods in America. The project is designed by Meridian 105 Architecture and Heltshe, one of Denver's leading architectural and design firms. The site is located approximately one mile from Denver's Lower Downtown (LoDo) neighborhood and the newly renovated Union Station.

Club room with kitchen space and seating on the second floor for hotel guests only

Calculated based on an average charge per person per bed nights. The average price is calculated based on the various room nightly arrangement and the occupancy rate. Maximum bed nights are calculated based on the maximum 91 guests capacity multiplied by the number of days in the period (monthly or yearly).

2018- 72 percent, 2019- 74 percent, 2020-74 percent, 2021-74 percent. Occupancy assumptions are based on the actual 2015 and 2016 occupancy rates as reported by the Colorado Hotel and Lodging Association.

Calculated on the square footage of retail space (2,200 sqft) by the annual minimum rate per square foot of $30, and direct costs equal to 15% of gross revenue. However, the lease will likely include some revenue sharing component and/or annual percentage increases.

Since 2005, Denver has experienced a 48% increase in tourism, growing to a record 14 million overnight visitors in 2013, who spent a record $4 billion. In 2014, 15.4 millionvisitors spent $4.6 billion in Denver.

Connected to downtown by three pedestrian bridges, LoHi has become Denver's "goto” dining neighborhood with a some of the top eateries and breweries. One of the neighborhood's icon and most popular restaurant is Linger, which is housed in an old mortuary and was selected by Travel & Leisure for having one of "America's coolest rooftop bars." The neighborhood has some of the top micro breweries in the city. Avanti Food and Beverage, located a few blocks from site, opened a year ago in an 100-year old printing press building. It has a collection of eight start-up eateries housed in shipping containers roof top bar overlooking the Denver skyline.

DEVELOPMENTFEATURES






This is a boutique hotel and apartment development with a capacity to accommodate 91 guests, offering both private

and shared accommodations to the traveler seeking unique, styled, upscale lodging at an affordable price.

This development will be a newly constructed modern 12,000 square foot three story building located in one of

Denver's hottest urban neighborhood, Lower Highlands (LoHi). Forbes Magazine recently named LoHi one of the top

twenty hipster neighborhoods in America. The project is designed by Meridian 105 Architecture and Heltshe, one of

Denver's leading architectural and design firms. The site is located approximately one mile from Denver's Lower

Downtown (LoDo) neighborhood and the newly renovated Union Station.

Small front desk and office on the first floor. This floor will also include approximately 2,200 square feet dedicated to

a bar and cafe, serving both locals and boutique hotel guests. Under this space is a 1,000 square foot basement for

dry storage, walk-in refrigerator and freezer. The space includes high ceilings, nano doors that open to a side deck

and Navajo Street. The design includes a full kitchen with a grease trap.

First Floor | Front Desk, Food and Beverage

Two rooms with king, two bed bunk

One room with king

One room with four two bed bunks

Four rooms with three two bed bunks

One shared lounge and kitchen area

Second Floor Configurations Eight rooms accommodating a maximum 42 guests.

One room with king, three bed bunk

One room with king, three bed bunk, one murphy bed

One room with king

Our rooms with three three bed bunks

Third Floor ConfigurationsSeven rooms accommodating a maximum 49 guests.

PROPERTYRENDERINGS






W. 37TH AVENUE

MA

RIP

OSA

ST

NA

VA

JO ST

PROPERTYAERIAL






ColumbusPark

The Navajo Street Art District is

located on Navajo Street at 37th

Avenue. This small district is home

to several galleries with a specialty

in modern works featuring many

eclectic, contemporary artists from

Colorado and all over the world.

The famouse Bug Theatre features

a huge variety of theater, film and

comedy events every month.

Across the street in the old Patsy’s

location the new Vespa restaurant

by popular owners of the hornet

restaurant on S Broadway looks to

open soon and add another great

feature to the immediate area. A

few blocks away is some of the best

restuarants in Denver included

Avanti F&B, Root Down and Linger.

W. 37TH AVENUE

W. 38TH AVENUE

PEC

OS ST.

NA

VA

JO ST.

THE VESPA

FUTURECOFFEE

SHOP

AREAAMENITIES

ColumbusPark

3638-3640 NAVAJO ST

20TH STREET

BR

OA

DW

AY

ST.

7 minutes

Ballpark Neighborhood

7 minutes

5 minutes

LoHi

AREAMAP






FINANCIALS






YEAR1

YEAR2-5

72% 74%

The projected guest revenues are based on the average occupancy rates reported by the Rocky Mountain Lodging Report for 2015 and 2016.

Land Cost

Furniture Fixtures & Equipment

Construction Costs

Total Estimated Start-up Costs

$1,295,000

$425,000

$3,309,140

$5,029,140

START-UP AND FUNDING SUMMARY

FINANCIALS

2018 2019 2020 2021 2022

Revenue $1,207,568 $1,506,927 $1,638,494 $1,653,511 $1,653,511

Direct Costs $327,588 $409,063 $445,338 $447,592 $447,592

Gross Margin $879,980 $1,097,864 $1,193,156 $1,205,918 $1,205,918

Gross Margin % 73% 73% 73% 73% 73%

Operating Expenses

Salary Employee $115,834 $126,000 $132,300 $138,915 $145,860

Related Expenses $32,434 $35,280 $37,044 $38,896 $40,841

Accounting / HR $18,000 $18,000 $18,000 $18,000 $18,000

Insurance Property $6,000 $9,500 $15,600 $15,600 $1,680

Insurance Business $6,000 $6,000 $6,000 $6,000 $6,000

Internet / Cable $16,500 $18,000 $18,000 $18,000 $18,000

Software Subscriptions $3,000 $3,000 $3,000 $3,000 $3,000

Trash Removal $6,000 $6,000 $6,000 $6,000 $6,000

Credit Card Processing $19,413 $24,266 $26,458 $26,458 $26,459

Cleaning Supplies $5,367 $6,709 $7,315 $7,315 $7,315

Paper Goods $6,966 $8,707 $9,494 $9,494 $9,494

Utilities $16,558 $20,697 $22,568 $22,567 $22,568

Laundry $32,089 $40,109 $43,734 $43,735 $43,734

Maintenance $10,734 $13,418 $14,630 $14,630 $14,630

Marketing / PR $10,963 $13,703 $14,941 $14,941 $14,941

Office Supplies $2,170 $2,712 $2,957 $2,957 $2,957

Other Expenses $57,098 $71,369 $77,818 $77,819 $77,820

Initial Marketing& P / R $25,000

Property Taxes $3,000 $3,000 $15,000 $30,000 $30,000

Total Operating Expenses $393,125 $426,469 $470,859 $494,328 $489,298

Operating Income $486,854 $671,395 $722,297 $711,590 $716,620

RETAIL/PARKING FLOOR PLAN

LEVEL 2 FLOOR PLAN

FLOORPLANS






FLOORPLANS






LEVEL 3 FLOOR PLAN

DESIGNBOARD

LoDo, Denver's oldest neighborhood, is home to some of the city’s best-known restaurants, galleries, shops and boutiques. Located in the heart of downtown, businesses ranging from finance and real estate to retail and start-ups can be found here. LoDo's family-friendly attractions and businesses entice visitors and locals alike, making it the country's most vibrant neighborhood.

LoDo, Denver is the lower downtown area of Denver, Colorado, is one of the oldest settlements of the city of Denver. It is a mixed-use historic district, known for its nightlife, and serves as an example of success in urban reinvestment and revitalization. The current population is approximately 21,145. Land in the Lower Downtown Historic District is zoned B-7, which includes building height limitations and encourages mixed-use development and provides strict design guidelines for rehabilitation and new construction. Projects must go through an architectural design review, which allows LoDo to retain its pedestrian scale and historic character as it continues to densify.

The 70+ bars and restaurants in the historic district provide a positive economic impact for the city. LoDo's combination of contemporary architecture sprinkled among historic buildings, beautiful mountain views, access to Cherry Creek and nearby parks, plus its proximity to two major sporting venues, make it an attractive location for television and movie filming.

LOCATIONOVERVIEW






2016 Summary

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

2021 Summary

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

1 Mile

21,558

10,100

4,057

2.06

4,043

6,057

33.4

$58,146

$91,040

1 Mile

24,689

11,691

4,628

2.05

4,606

7,085

33.8

$67,187

$103,098

3 Miles

167,668

82,038

29,379

1.96

29,187

52,851

33.7

$48,702

$71,506

3 Miles

185,482

90,943

32,399

1.96

32,147

58,796

34.1

$51,375

$79,343

5 Miles

414,391

187,310

82,587

2.16

78,580

108,730

34.7

$49,258

$74,076

5 Miles

451,266

204,252

89,422

2.16

85,125

119,127

35.2

$51,912

$81,456

5 MILES

3 MILES

1 MILE

DEMOGRAPHICS









3638-3640 NAVAJO STREETDENVER, CO



NEXUS COMMERCIAL REALTY800 W 8th Ave. Ste 104

Denver, CO 80204

boutique hotel / apartment development offering memorandum · club room with kitchen space and...

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