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
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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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