OFFERING MEMORANDUM
DENVER MSA SINGLE-TENANT INVESTMENT OFFERING
6930 S. UNIVERSITY BOULEVARD | CENTENNIAL, COLORADO
This Offering Memorandum has been prepared by NKF Capital Markets 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. All projections have been developed by NKF, 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 NKF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although 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 all such information. Further, NKF, Owner and their employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, 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 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 prospective investors.
Owner and NKF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or 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 thereunder have been satisfied or waived.
This Offering Memorandum and the 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 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 advisors 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 NKF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or NKF. If you have no interest in the property, please return the Offering Memorandum forthwith.
AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENT
JUSTIN KAUFMANN Director
303.260.4376
INVESTMENT ADVISOR
NEWMARK KNIGHT FRANK IS PLEASED TO PRESENT THE OPPORTUNITY FOR QUALIFIED INVESTORS TO PURCHASE A NEWLY-CONSTRUCTED, SINGLE-TENANT BUILDING LEASED TO BANK OF AMERICA IN CENTENNIAL, COLORADO.The offering consists of a large, 1.05 acre, land parcel on a long-term ground lease to Bank of America. This investment is a rare opportunity to acquire a Denver MSA asset leased to an investment-grade tenant, that features an exceptionally low risk profile resulting from a superior residual land value driven by an irreplaceable location and fantastic surrounding demographics.
OUTSTANDING TRADE AREA
Hard Corner of
SIGNALIZEDINTERSECTION
Within the
DOMINANT RETAIL CORRIDOR SERVING
THE SUBMARKET
1.4 MILLION SFof retail within a 1-mile radius
of the property
ACROSS FROM ENTRANCE OF STREETS
AT SOUTHGLENN One of Metro Denver’s strongest lifestyle centers that is currently
planned for expansion
$120,607AVERAGE HOUSEHOLD INCOME WITHIN 3-MILES OF PROPERTY
1.05 ACRE PARCEL POSITIONED OFF OF MAJOR ROAD WITH NEARLY 40,000 VEHICLES PER DAY
EXECUTIVE SUMMARY
SECURITY OF INVESTMENT CAPITAL: BANK OF AMERICA CORPORATE STRENGTH
3RD LARGEST BANK IN THE
WORLD BY MARKET CAPITALIZATION
A+ CREDIT RATING
WITH A STABLE OUTLOOK BY S&P $185 BILLION DOLLAR
CASH POSITION
Purchase Price:
$5,150,000
Cap Rate:
4.55%
Average Return Over Primary Term:
5.00%
Year 1 NOI:
$234,350
Primary Term End:
08/31/2035
36930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
PROPERTY & LEASE OVERVIEW
PROPERTY SPECIFICATIONS
ADDRESS 6930 S. University BoulevardCentennial, Colorado
BUILDING TYPE Freestanding Single-Tenant Bank Branch
BUILDING SIZE 3,779 SF
LAND PARCEL SIZE 1.05 AC
YEAR OF CONSTRUCTION 2017
LEASE OVERVIEWYEAR 1 NOI $234,350 (Beginning 9/01/2020)
END OF PRIMARY TERM 8/31/2035
PRIMARY LEASE TERM (YRS) 20.0
PRIMARY LEASE TERM REMAINING (YRS) 15.75
RENT ESCALATIONS 9.0% every 5 Years and options
OPTIONS 8, 5-Year Options
TENANT/GUARANTEE Bank of America, National Association (Corporate)
LEASE TYPE Ground Lease
NEW PROTOTYPE The property was built in 2017 with the newest prototype that fits with company standards for branding and efficiency, ensuring that this building will be useful for Bank of America into the future
NO LANDLORD RESPONSIBILITIES This is structured as a ground lease to Bank of America, N.A. - which has zero landlord responsibilities
LARGE LAND PARCEL The 1.05 acre parcel allows for an efficient drive-thru system for Bank of America, and is large enough to fit most types of retailers, ensuring that this property will retain a high value for generations
46930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
YEAR FOUNDED 1904
NUMBER OF DOMESTIC LOCATIONS 4,400+
MARKET COVERAGE35 countries throughout Europe, the Middle East and Africa, Asia Pacific and the Americas
HEADQUARTERS Charlotte, North Carolina
CREDIT RATING A+: Stable (S&P)
TENANT OVERVIEW: BANK OF AMERICABank of America Corporation, through its subsidiaries, provides banking and financial products and services for individuals, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
Operating in all 50 states, and more than 35 countries, the Company provides a diversified range of banking and non-bank financial services and products through five operating segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, Global Markets, and Legacy Assets & Servicing. Covering 80 percent of the U.S. population, the Bank serves approximately 47 million customers and small businesses via its 4,500 financial centers
Bank of America has the greatest share of the US banking market
when measured by domestic deposits, which equated to a 10.7% market share in 2018.
BANK OF AMERICA 5-YEAR STOCK PERFORMANCE VS. S&P500
Bank of America S&P500
REVENUE $92.25 Billion
NET INCOME $28.15 Billion
OPERATING CASH FLOW $39.52 Billion
CASH POSITION $184.90 Billion
TOTAL ASSETS $2.35 Trillion
TOTAL EQUITY $265.33 Billion
MARKET CAPITALIZATION $318 Billion
CORPORATE FINANCIAL PROFILE
56930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
S RACE STS RACE ST
E AR
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S UNIVERSITY BLVDS UNIVERSITY BLVD
E EAS
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E EAS
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AREA MAP
38,698 VPD
47,248 VPD
The area surrounding the site houses all of the national retailers present within the submarket, who position themselves here in an effort to tap into the affluent surrounding demographics. The subject property has excellent visibility across from the main entrance to the Streets at Southglenn, resulting in an exceptionally well-positioned property with additional security from a high residual land value.
CHERRY CHERRY KNOLLS PARKKNOLLS PARK
TM
1 MI RING 3 MI RING 5 MI RINGPOPULATION TREND
2010 TOTAL POPULATION 12,291 96,646 264,270
2018 TOTAL POPULATION 13,742 105,335 298,873
2023 TOTAL POPULATION 14,561 110,117 319,155
HOUSEHOLDS TREND
2010 TOTAL HOUSEHOLDS 5,094 38,960 109,466
2018 TOTAL HOUSEHOLDS 5,301 40,075 117,603
2023 TOTAL HOUSEHOLDS 5,426 40,650 122,535
POPULATION CHANGE TREND
2000 TO 2018 POPULATION CHANGE 6.5% 3.6% 19.0%
2010 TO 2023 POPULATION CHANGE 18.5% 13.9% 20.8%
2018 TO 2023 POPULATION CHANGE 6.0% 4.5% 6.8%
HOUSEHOLD CHANGE TREND
2000 TO 2018 HOUSEHOLD CHANGE 3.1% 2.7% 18.2%
2010 TO 2023 HOUSEHOLD CHANGE 6.5% 4.3% 11.9%
2018 RACE
WHITE ALONE 92.3% 90.4% 87.8%
BLACK OR AFRICAN AMERICAN ALONE .9% 1.3% 1.8%
AMERICAN INDIAN AND ALASKA NATIVE ALONE .8% .8% .7%
2018 INCOME
PER CAPITA INCOME $40,621 $46,121 $47,628
HOUSEHOLD INCOME: MEDIAN $83,409 $91,253 $89,367
HOUSEHOLD INCOME: AVERAGE $104,843 $120,607 $120,459
DAYTIME POPULATION
TOTAL DAYTIME POPULATION 13,508 96,553 372,132
TOTAL EMPLOYEE POPULATION 5,921 39,675 215,620
DEMOGRAPHICS
1-MILE1-MILE
DEMOGRAPHICS
320,0002024 Forecasted Population
Within a 5-Mile Radius
$120,607Average household income within
3-miles of the subject property
$1.39 BILLION Annual Consumer Spending
Within a 3-Mile Radius
3-MILE3-MILE
5-MILE5-MILE
76930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
LOCATION OVERVIEW
Alameda Ave.
Colfax Ave.
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112th Ave.
144th Ave.
144th Ave.
88th Ave.
80th Ave.
72nd Ave.
64th Ave.
58th Ave.
44th Ave.
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Mineral
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Rocky Mountain Arsenal
Wildlife Refuge
Cherry Creek State Park
ChatfieldState Park
Bowles
Morrison
6th Ave.
Alameda
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Mississippi
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DenverTech Center
LowryRedevelopment
Area
DenverInternational
Airport
StapletonRedevelopment
Area
InvernessBusiness
ParkCentennial
Airport
MeridianBusiness
Park
To Colorado Springs
MONTBELLO
ADAMS COUNTY
ARAPAHOE COUNTY
DOUGLAS COUNTY
COUNTY
LARIMERCOUNTY
WELDCOUNTY
JEFFERSONCOUNTY
ADAMS COUNTY
AURORA
DOWNTOWN
ENGLEWOOD
BOULDER
GREELEY
FORTCOLLINS
Golden
LITTLETON
Ken Caryl Ranch
Sedalia
Franktown
PARKER
Castle Rock
Cherry Hills Village
MorrisonEvergreen
Highlands Ranch
Lone Tree
Surrey Ridge
GreenwoodVillage
LAKEWOOD
ARVADA
WESTMINSTER
Northglenn
Broomfield
Superior
Louisville
Lafayette
Longmont
Loveland
THORNTON
CommerceCity
DENVER
Brighton
MIDTOWN
WheatRidge
Bear Creek Park
Rocky Mountain Metropolitan Airport
InterlockenBusiness
Park
Erie
NiwotFort Lupton
Dacono
Frederick
Firestone
Valmont
BOULDERCOUNTY
JEFFERSON
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470
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DOWNTOWN DOWNTOWN DENVERDENVER
S UNIVERSITY BLVD
S UNIVERSITY BLVD
E ARAPAHOE RDE ARAPAHOE RD
The subject site sits on a generous 1.05 acre parcel across from the entrance to the Streets at Southglenn - one of the premier lifestyle centers within the Denver MSA. The property features outstanding visibility fronting S. University Boulevard, near its intersection with E. Arapahoe Rd which has daily traffic counts close to 100,000 vehicles per day.
86930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
BANK OF AMERICA LOCATIONS | DENVER, CO
This map was produced using reliable private and government sources. This information is provided without representation or warranty. 1122//2277//22001199
Bank of America LocationsDenver, CO
Label Location City
1 1965 28th Street Boulder
2 1801 16th St Denver
3 370 17th St Fl 55 Denver
4 100 Filmore Street Denver
5 1175 S Havana Street Aurora
6 5117 S. Yosemite Street Englewood
7 23930 East Smoky Hill Road Aurora
8 6930 S. University Blvd Littleton
9 9137 Westview Rd Lone Tree
10 1112 Cpl Max Donahue Lane Littleton
11 1351 New Beale St Castle Rock
Source: Newmark Knight Frank Research
Dividing the Denver MSA into market territories by the areas geographically closest to each branch illustrates why this location is strategically important to Bank of America:
133,000 People
$110,000 Average Household Income
36,000 Owner-Occupied Housing Units
96930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
PROPOSED PARTIAL REDEVELOPMENT OF THE STREETS AT SOUTHGLENN
REDEVELOPMENT OF MACY’S PARCEL REDEVELOPMENT OF SEARS PARCEL
Looking North on Gaylord St. Looking South towards Gaylord St.
Looking North on Gaylord St. Looking South towards Gaylord St.
106930 S. UNIVERSITY BOULEVARD, CENTENNIAL, COLORADO
DENVER MSACENTENNIAL, COLORADO
JUSTIN KAUFMANN Director
303.260.4376
INVESTMENT ADVISOR