Century Community Booklet

Arvada Live / Work Study Hometown South, A Century Community

Prepared For

Prepared By

The City of Arvada

David Fried 303.312.4247 David.Fried@cassidyturley.com

1515 Arapahoe Street, Suite 1200, Denver Colorado 80202 T 303.292.3700 F 303.534.8270 cassidyturley.com

Introductions

Services Graphic

About Cassidy Turley

Quick Facts

Full-Service Firm.

Comprehensive Commercial Real Estate Services

• 60 U.S. offices • $22

billion in transaction volume completed for 2012

• 400

million SF managed portfolio on behalf of corporate, institutional and private clients

• 3,800 associates, including more than 970 brokers

Our Core Values Exceptional Results for Our Clients

Find Space

Manage Space

Tenant Representation Site Selection Owner-Occupier Acquisitions

Property Management Facilities Management Property Administration

Integrated Services Build Space Project Management Development Services

Market Research Corporate Services Sustainability Services Investor Services

Market Space Leasing & Subleasing Owner-Occupier Sales Investment Sales

Finance & Structure Capital Markets • Debt & Equity Financing • Sales & Acquisitions

We do whatever it takes, wherever it takes us.

Dedication to Our Communities

Office | Industrial | Retail | Land | Multi-family

We don’t just work in our communities, we belong to them.

Growth for Our Company

We grow to get better, not just bigger.

Energizing Workplace for Our Associates

Table of Contents

Our people are more than assets; they are Cassidy Turley

Introductions

Void Analysis

Cassidy Turley

Proposed Tenants

David Fried

Arvada Overview Demographics

Signage Requirements Tapestry Segmentation / Comparative Analysis

West Arvada Housing Market Data

What is Tapestry Segmentation?

Comparative Analysis Hometown South Arista Peekskill Art Lofts

West Arvada Retail Market Data

Denver Metro Live-Work

Viability Study

Additional Successful Projects

Aerial

Financial Viability

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Arvada Overview

Introductions About David Fried

Demographics

David Fried Senior Vice President

1515 Arapahoe Street, Suite 1200 | Denver, CO 80202 T 303.312.4247 F 303.534.8270 David.Fried@cassidyturley.com | www.cassidyturley.com David has over 31 years’ experience negotiating and closing business and property transactions in the Colorado Commercial Real Estate Market. David’s extensive experience and positive results in the areas of acquisitions, dispositions, sales and leasing make David a consistent top-producing broker. David’s primary focus is the retail market, but he also represents many land owners and other commercial product types. David’s market expertise and his keen understanding of the needs and expectations of various types of buildings, owners and tenants make David an invaluable resource for his clients.

(Esri 2012) 1 Mile

2 Miles

3 Miles

Population

6,751

25,863

47,686

Households

2,439

9,474

17,764

Average HH Income

$123,241

$108,532

$97,267

Average Net Worth

$1,383,628

$1,120,009

$954,394

Average Disposable Income

$95,155

$84,298

$95,957

Total Businesses

588

2,039

3,882

Total Employees

2,670

8,528

19,113

Areas of Expertise Property Sales & Leasing Comparable Market Analysis Property Analysis Rent Analysis Demographic Research Trade Area Overview & Analysis Sale v.s. Lease Comparison Broker Opinion of Value

Seller / Landlord & Buyer / Tenant Representation Targeted Mass Marketing

Recent Closed Transactions (Sale / Lease)

Tenant Criteria Evaluation Showings & Site Tours

Viability Studies Market Feasibility Studies

Lease Review & Analysis

Leasing Status Reports

Other Services

Tapestry Segmentation Research & Analysis Argus & ProCalc Market & Property Research Comparables Studies Investment Services

Cold Calling

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Arvada Overview

Ralston Plaza

Indiana Marketplace

Friendly Square Shopping Center

Cottonwood Business Park

Arvada West Town Center

SITE Hwy 6.

Ralston Square

Meadowlake Village Center

Westwoods Shopping Center

Arvada Village Center

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Financial Viability

Financial Viability

West Arvada Housing Market Data

West Arvada Housing Market Data

Within a 3-mile radius of Hometown South Site

Within a 3-mile radius of Hometown South Site

Enclave at Boyd Ponds

Leyden Rock Grand Collection

16363 West 63rd Place

17233 West 84th Drive

Arvada, Colorado 80007

Arvada, Colorado 80005

A Century Community with a mix of row homes, single family homes and courtyard homes

A Lennar Community with 10 home designs

1,447 – 2,860 SF

From $418,900’s to $495,900’s

1,874 – 3,432 SF

From mid $200,000’s to mid $300,000’s

Spring Mesa 11651 West 64th Avenue Arvada, Colorado 80004 A D.R. Horton Community with single-story ranch homes, two-story multi-level homes and single-family energy-efficient homes 2,240 – 4,115 SF

Leyden Rock Monarch Collection 17233 West 84th Drive Arvada, Colorado 80005 8 home designs 1,725 – 3,082 SF From $380,000’s to $420,000’s

From $520,000’s to $600,000’s

Candelas

Westwoods Mesa

12650 - 12850 West 64th Avenue

6953 Indiana Court

Arvada, Colorado 80004

Arvada, Colorado 80007

A Century Community with 7 single family home designs

A KB Home Community with 14 two-story paired homes and single-family home designs

1,902 – 2,945 SF

1,288 – 2,900 SF

Mid $300,000’s to mid $400,000’s

High $200,000’s to High $400,000’s

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Financial Viability West Arvada Retail Market Data

West Arvada Retail Market Data

Within a 3-mile radius of Hometown South’s Proposed Site

Within a 3-mile radius of Hometown South’s Proposed Site

Westwoods Shopping Center

Ralston Plaza

15530 West 64th Avenue

12399 - 12379 West 64th Avenue

Arvada, Colorado 80007

Arvada, Colorado 80004

Lease Rate: $20.00 / SF NNN

Lease Rate: $11.00/SF

NNN Estimate: $6.35 / SF

NNN Estimate: $5.46/SF

Total GLA: 71,804 SF *(not including King Soopers & Kohl’s)

Total GLA: 17,000 SF

Percent Vacancy: 16.7%

Major Tenants: The Egg & I, Cricket Wireless

Percent Vacancy: 5.3%

Major Tenants: King Soopers, Ace Hardware, Buffalo Wild Wings, Kohl’s, First Bank, Key Bank

Arvada West Town Center NEC of West 64th Avenue & Indiana Street Arvada, Colorado 80004

Friendly Square Shopping Center

Lease Rate: $20.00 / SF NNN

11651 West 64th Avenue

NNN Estimate: $7.00 / SF

Arvada, Colorado 80004

Total GLA: 57,560 SF *(not including Walmart)

Lease Rate: $8.00 to $16.00 / SF NNN

Percent Vacancy: 30.2%

NNN Estimate: $4.04 / SF

Major Tenants: Walmart, Grease Monkey, Quiznos, Auto Zone, Wendy’s, Compass Bank

Total GLA: 58,679 SF

Meadowlake Village Center

Major Tenants: Dairy Queen

Percent Vacancy: 38.2%

12650 - 12850 West 64th Avenue Arvada, Colorado 80004 Lease Rate: $10.00 to $14.00 / SF NNN NNN Estimate: $7.45 / SF Total GLA: 18,525 SF *(not including Safeway) Percent Vacancy: 7.0%

Arvada Village Center 12345 – 12395 West 58th Avenue Arvada, Colorado 80002

Major Tenants: Safeway, Great Clips, Jimmy John’s, Papa Murphy’s, The UPS Store

Lease Rate: $12.00 / SF NNN

Ralston Square

Total GLA: 9,284

12350 West 64th Avenue Arvada, Colorado 80004

NNN Estimate: $5.92 / SF Percent Vacancy: 12.6% Major Tenants: Arc Donation Center, Domino’s Pizza

Lease Rate: $24.00 / SF NNN NNN Estimate: $6.07 / SF Total GLA: 16,500 SF *(not including King Soopers) Percent Vacancy: 0.0% Major Tenants: King Soopers, Starbucks, Subway, T-Mobile, Floyd’s 99 Barbershop cassidyturley.com / Page 10

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Financial Viability Viability Study

Average Mortgage Payment Average Asking Price

Monthly

Annualy

Annual Housing Savings

Average Annual Retail Space Cost

Live + Work Annual Total

Live + Work Annual Savings

West Arvada Home

$413,000.00

$2,217.07

$26,604.84

N/A

$32,400.00

$59,004.84

N/A

Hometown South Live / Work 1010

$222,000.00

$1,191.74

$14,300.88

$12,303.96

N/A

$14,300.88

$44,703.96

Hometown South Live / Work 1020

$227,000.00

$1,218.59

$14,623.08

$11,981.76

N/A

$14,623.08

$44,381.76

Hometown South Live / Work 1030

$240,000.00

$1,288.37

$15,460.44

$11,144.40

N/A

$15,460.44

$43,544.40

*Calculated based on a 30-year amortization, 5% interest & 20% down *Numbers exclude taxes & insurance Average Live + Work Cost v.s Savings Analysis

Average Housing Cost v.s Savings Analysis

Average West Arvada Home & Retail Rent Compared to Hometown South's Live / Work Community

Average West Arvada Home Compared to Hometown South's Live / Work Community $30,000.00 $70,000.00

Annual Housing Cost

Annual Live + Work Cost

Annual Housing Savings

Annual Live + Work Savings

$60,000.00

$50,000.00

$20,000.00

Cost / Savings (in USD)

Cost / Savings (in USD)

$25,000.00

$15,000.00

$12,303.96

$10,000.00

$11,981.76

$11,144.40

$44,703.96

$44,381.76

$43,544.40

Hometown South Building 1010 2,242 SF

Hometown South Building 1020 2,420 SF

Hometown South Building 1030 2,820 SF

$40,000.00

$30,000.00

$20,000.00

$5,000.00

$10,000.00 $0.00

$0.00 $0.00

$0.00 West Arvada Home 2,484 SF

Hometown South Building 1010 2,242 SF

Hometown South Building 1020 2,420 SF

West Arvada Home 2,484 SF

Hometown South Building 1030 2,820 SF

Community

Community

Certificates of Occupancy Issued

Average West Arvada Grocery-Anchored Center Rents $/SF

NNN Expenses

Gross Annual Rent

Average 1,200 SF Annual Rent

$20.00

$7.00

$27.00

$32,400.000

Year

2011

2012

2013

*2014

Number of Certificates

163

248

325

380 - 395

*Projected Number Data Courtesy of the Arvada Building Department

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Void Analysis

Signage Requirements

There is a good supply of food users and hard and soft goods retail in the immediate trade area.

The following are services that are lacking in the immediate trade area, but are ideal live/work users.

Professional Services

Medical

Fitness

Technology

Attorney

Psychiatrist Psychologist Art / Music Therapist Chiropractor Kinesiologist / Kinesiotherapist Nutritionist / Dietitian Counselor Physical Therapist Ophthalmologist / Optometrist Speech-Language Pathologist Acupuncture

Yoga Instructor

Remote Workers

Golf Fitness Coach

Computer / Phone Repair

Personal Trainer

Video Production Company

Pilates Studio

Photographer

Spin Studio

Website Design

Choreographer

Application Developer

Dance Instructor

SEO Firm

Hair Stylist Consulting Firm Architect Recruiter Tutoring Service Research Firm Insurance Agent

Software Developer

Prominent Building Signage visible from West 64th Avenue

Massage Therapist

Directional Signage within Project

Live/Work Suite Signage

Money Management

Creative

Other Uses

Financial Planner

Marketing / Design Firm

Accountant

Artist

Restaurant Management Office

Small Lending Firm

Advertising Agency

Actuary

Business Development Firm

E-Commerce Office Nonprofit

Graphic Design Firm Repurposed Goods Studio Etsy or similar online retailer Textile Design Writer

Prominent Suite Number cassidyturley.com / Page 14

Door Signage

Unit Signage

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Tapestry Segmentation / Comparative Analysis What is Tapestry Segmentation?

In all three projects, the top three LifeMode Groups represented are as follows:

Tapestry Segmentation is a 65-segment system that classifies US neighborhoods based on their socioeconomic and demographic compositions. Tapestry Segmentation is a powerful tool that allows you to profile consumers in a number of ways. We profiled the proposed Hometown South location and two other successful suburban live / work projects using a 3-mile radius from the live / work project and conducted a comparative analysis based on demographic data and the Tapestry Segmentation’s LifeMode profile.

What is a LifeMode Group?

Tapestry Segmentation groups neighborhoods based on similarities between the 65 market segments. There are 12 LifeMode Summary Groups, which are based on your selected population’s lifestyle and lifestage composition.

LifeMode Group: Residents of the seven High Society neighborhoods are affluent and well educated. They represent slightly more than 12 percent of all US households but generate nearly one-quarter of the total US income. Most households are married couple families who live in affluent neighborhoods where the median home value is $320,065. Although this is one of the least ethnically diverse groups in the United States, it is one of the fastest growing, increasing by more than 2 percent annually since 2000. Residents of High Society are affluent and active—financially, civically, and physically. They participate in a wide variety of public activities and sports and travel extensively.

Try the Internet or radio instead of television to reach these markets.

LifeMode Group:

Live / Work Projects Profiled • Proposed Hometown South Site • Arista • Peekskill Art Lofts

The three projects analyzed, Hometown South, Arista and Peekskill Art Lofts are each located in suburban areas. Pages 21 and 22 show examples of urban live / work projects in the Denver Metro Area. Urban live /work is more common than suburban live / work, so while the urban examples are helpful, our goal was to find less common suburban live / work projects experiencing success and to compare their demographic makeup to the demographic makeup of Hometown South’s proposed location.

Findings As you will see on the following pages, the Tapestry Segmentation LifeMode makeup for all three projects is strikingly similar.

In addition, the demographics in each location are similar within a one, two and three-mile radius of each project, with one exception; Hometown South has a substantially higher average household income within a one and two-mile radius of the project.

Prosperity is the overriding attribute shared by the seven segments in Upscale Avenues. Residents have earned their success from years of hard work. Similar to the High Society segments, many in this group are also well educated with above-average earnings. Prosperous domesticity also characterizes the lifestyle in Upscale Avenues. They invest in their homes; the owners work on landscaping and home remodeling projects, and the renters buy new furnishings and appliances.

They play golf, lift weights, go bicycling, and take domestic vacations. Although they are partial to new cars, they also save and invest their earnings.

LifeMode Group: Residents in the six segments of the Metropolis group live and work in America’s cities. They live in older, single-family homes or row houses built in the 1940s or earlier. Those living in larger cities tend to own fewer vehicles and rely more on public transportation; however, workers in most of the Metropolis segments commute to service-related jobs. Their lifestyle is also uniquely urban and media oriented. They like music, especially urban and contemporary formats, which they listen to during their commutes. They watch a variety of TV programs, from news to syndicated sitcoms, and would rather see movies than read books.

Hometown South’s West Arvada location is highly desirable as evidenced by the 325 Certificates of Occupancy issued in 2013.

The high cost of living and working in West Arvada make Hometown South’s live / work proposal a financially viable vehicle for bringing much-needed service retail to the area while drastically reducing the cost of living and working.

Arista in Broomfield, Colorado and Peekskill Art Lofts in Peekskill, NY share a comparable suburban live / work scenario and demographic and Tapestry LifeMode characteristics with Hometown South, which speaks to Hometown South’s live / work imminent success.

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Tapestry Segmentation / Comparative Analysis

Hometown South

Demographics

NEC West 64th Avenue and McIntyre Street Arvada, Colorado 80007

(Esri 2012)

Arista

1 Mile

2 Miles

3 Miles

11546 Colony Row

Population

6,751

25,863

47,686

Broomfield, Colorado 80021

Households

2,439

9,474

$123,241

$108,532

Average HH Income

Demographics

(ESRI 2012) 1 Mile

2 Miles

3 Miles

Population

3,079

28,648

67,341

17,764

Households

1,359

11,043

25,725

$97,267

Average HH Income

$55,541

$79,933

$88,072

Community Information

Community Information

Year of Construction: Proposed late 2014 start with construction phases lasting 3 years

Year of Construction: 2008 Total Number of Units: 358

Total Number of Units: 299

Number of Live / Work Units: 13

Number of Live / Work Units: 18

Unit Options: One and Two Bedroom

Unit Options: Two and Three Bedrooms

SF Available: 1,630 – 3,015

SF Available: 2,242 – 2,820

Price / month: $3,000 / month

For Sale: $225,000 to $325,000 before any buyer-selected upgrades

Lease Type: FSG For Sale: 2,687 SF units for $469,000 ($175/SF)

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Tapestry Segmentation / Comparative Analysis

Denver Metro Live-Work Hometown South Live Artspace 140 West Third Street Loveland, Colorado 80537 Year of Construction: In development (2014) # of Live / Work Units: 30 Total # of Units: 300 SF Available: N/A Lease Rate: $340 - $1,000/month (dependent on income)

910 Arts

Peekskill Art Lofts

Demographics

815 Central Avenue Peekskill, NY 10566

(Esri 2012)

910 Santa Fe Drive Denver, Colorado 80204 Year of Construction: 1953 # of Live / Work Units: 7 Total # of Units: 23 SF Available: 952 SF Lease Rate: $940/mo ($1/SF) $1,026/mo ($1.10/SF)

1 Mile

2 Miles

3 Miles

Population

17,684

28,214

41,998

Sales Price: $161,000 - $165,000 ($172/SF

Households

6,547

10,665

15,294

Block 32 at RiNo

$62,734

$77,193

$89,164

3200 Brighton Boulevard Denver, Colorado 80216 Year of Construction: Finished in 2013 # of Live / Work Units: 5 Total # of Units: 205 SF Available: 705 SF & 1,037-1,093 SF Lease Rate: $1,800-$2,600/mo ($2.50-$3.50/SF)

Average HH Income

Community Information Year of Construction: 2002

Lease Type: FSG

Total Number of Units: 28 Number of Live / Work Units: 28

Silver Square Lofts 3309 – 3377 Blake Street Denver, Colorado 80205 Year of Construction: 1909 # of Live / Work Units: 58 Total # of Units: 58 SF Available: 800 – 4000 SF (typ. size 1200sf) Lease Rate: Varies by Owner Lease Type: 6/12 month

Unit Options: One and Two Bedroom SF Available: 1,200 – 2,000 Price / month: $1,195 - $1,680 Lease Type: FSG

Sales Price: Varies by Owner

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Denver Metro Live-Work Hometown South Live Taxi II 3455 Ringsby Court Denver, Colorado 80216 Year of Construction: 2005 # of Live / Work Units: 44 Total # of Units: 44 SF Available: 1bed-600 SF, 2bed-1200 SF Lease Rate: 1bed-$1300/mo, 2bed-$2000/mo

LIVE

Lease Type: FSG

Fire Clay Lofts 3101 Blake Street Denver, Colorado 80205 Year of Construction: 2000 # of Live / Work Units: 128 Total # of Units: 128 (12 bldgs) SF Available: 1,300 – 1,600 SF Lease Rate: Dependent on Owner of unit Lease Type: FSG

WORK

Sales Price: Varies by Owner

Lowry Steamplant Rowhomes 7777 East 1st Place Denver, Colorado 80230 Year of Construction: 2006 # of Live / Work Units: 4 Total # of Units: 10 SF Available: 3,000 – 3,285 SF Sales Price: $800,000’s (±$190.50/sf)

Watertower Lofts 2960 Inca Street Denver, Colorado 80202 Year of Construction: Refurbished in 2002 L/W SF Available: 1,800 SF Lease Rate: $2,400 / mo ($1.40/SF)

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