ULI Low Density Apartment Presentation

Alta Aspen Grove

Littleton, CO

May 2012

Timothy M. McEnteeDirector(303) 468-7450tmm@woodpartners.com

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Map

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EXECUTIVE SUMMARY

• Tied up site in 2008, secured 50% LTC institutional equity in 2009 and could not secure conventional debt. Went HUD 221d4 in late 2009

• Closed into construction in September 2010

• 280 unit 2 & 3 story attached garage product

• 60% 1 bedrooms; 36% 2 bedrooms; 4% three bedrooms

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Site Plan

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Overview

• 1,003 Average Square Footage

• Planned Phase II of 275k square foot DDR Regional Lifestyle Mall

• First tied up site in 2000, took subsequent buyer in 2004 three and a half years to rezone

• TOD site with both a light rail park and ride and regional bus module

• Adjacent to a 680 acre park preserve

• Unimpeded Western mountain views over park preserve receiving $150-180 view premiums

• Littleton is a very high barrier to entry established submarket of Denver. $2-4 million homes in exclusive Polo Club and Polo reserve within ½ mile of site

• Regional detention provided

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Cost

• Land approximately $27k per unit on 18 d/u per acre (very low density)

• Hard Cost ~ $85k per unit (caught market in trough)

• High Impact Fees of $12k per unit

• All in cost per unit ~ $165k

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Leasing Performance

• Turned first units in June 2011, will stabilize 280 units by June 2012

• 21 unit absorption per month at $1.45 -$1.50 gross rents

• One of highest water marks for garden product in Denver Metroplex

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Financing

• Yield on cost in 2008 was 8.25% going in free and clear

• Proforma exit of 7.00% (today’s market closer to 4.75% - 5.25%)

• Will have significant discount for HUD loan currently 5.71% with MIP

• 2 year lockout, 8 year pay down

• Assumable, nonrecourse loan

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Alta Aspen Grove

• Alta Aspen Grove was designed for low-impact living and reduced reliance on automobile transportation. It is within walking distance of a major transportation/light rail station, offering numerous ride options daily

• Alta Aspen Grove is located next door to Aspen Grove shops, a walkable outdoor shopping area with a small community ambiance and weekly entertainment events

• The project is on the Littleton park system offering bike trails and walking, not only in open space along the South Platte river and beyond, but to more nearby community resources

• Alta Aspen Grove blends into the park border with beautifully integrated native grass, native trees and other mature native species mirroring those found right over the project boundary in the park itself

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Energy Star & LEED Silver Certification

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• Roof runoff was managed and diverted to contribute to landscape soil moisture levels and 79% of the impermeable surfaces are directed to landscape features that absorb storm water keeping it out of the sewer system

• The landscaping is 98% drought tolerant with irrigation designed to be shut off completely once plantings are established. Even the drought-tolerant turf is kept to a minimal 26% of the total landscaping

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Alta Aspen Grove

Any Questions???

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