Alpen Glow Retail Offering Memorandum

Page 1

ALPEN GLOW RETAIL INVESTMENT OFFERING 601 Lincoln Avenue Steamboat Springs, CO 80487


Brokerage Disclaimer This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owners of the Property (the “Owner�), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Colorado Group Realty, LLC. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this memorandum, certain documents, including Leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or Colorado Group Realty, LLC, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Colorado Group Realty, LLC. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colorado Group Realty, LLC.

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Introduction TABLE OF CONTENTS EXECUTIVE SUMMARY Offering Terms Investment Highlights Location Offering Financial Summary THE PROPERTY Property Summary Floor Plan / Tenants Garage Parking and Storage Layout FINANCIAL ANALYSIS Rent Roll Income & Expenses

PROPERTY TOURS Please schedule all property tours through listing broker and refrain from all tenant dialogue.

EXCLUSIVE MARKET CONTACT: CHRIS PAOLI Colorado Group Realty Owner/Broker 970.819.1432 Chris@mybrokers.com

TENANT DETAILS Rocket Fizz Twisted Trails All That Jazz, Inc. Spa Nails Edward Jones THE MARKET Steamboat Springs Steamboat Springs - Market Information Steamboat Springs - Recent News

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Executive Summary

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Offering Terms Alpen Glow Retail is comprised of five commercial condominiums located in the heart of downtown Steamboat Springs. The subject property is 100% leased to a diverse mix of local and national credit tenants including Rocket Fizz and Edward Jones. Four of the five leases, covering 87% of the leased premises are triple net (NNN) leases whereby tenants are responsible for all expenses. The offering consists of 6,612 leasable square feet on the southwest corner of Lincoln Avenue & 6th Street. Completed in 2008, Alpen Glow is one of the premier developments located in downtown Steamboat Springs, featuring 10 unique residential flats above the street-level retail. The majority of the tenants located at Alpen Glow have lengthy remaining lease terms. Only one of the five tenants has an expiration in the next three years, with 54% of the leasable square footage not expiring until the end of 2019 or later. Spa Nails lease has a termination clause. The potential new owner will have the option to terminate the lease by giving 60 days written notice and replacing them with a new tenant. The offering also includes an option to purchase three deeded parking spaces, which are located underground at Alpen Glow in a heated and secure garage. The market value of the underground parking is currently $55,000 per space. Additionally, there are three commercial storage areas (two closets shown on the site plan and an additional, larger, storage area located in the garage) designated for the exclusive use of the retail tenants. Steamboat Springs, known as Ski Town USA, is an internationally recognized ski resort destination. Howelsen Hill, which sits directly across the Yampa River to the south of Alpen Glow, opened in 1915 and is the oldest continuously operated ski area in Colorado. Howelsen Hill is also the epicenter of the Steamboat Springs mountain bike experience. The city recently committed a $5,000,000 investment in trails over the next

10 years, confirming Steamboat’s commitment to remaining a winter and summer destination and Steamboat’s second title as Bike Town USA Steamboat Springs is located approximately 150 miles northwest of Denver, and can be accessed via Highway 40 or the Yampa Valley Regional Airport, which has inbound flights from 11 major domestic airports. This offering presents an investor with a unique opportunity to acquire a premier asset in an internationally recognized location.

OFFERING TERMS OFFERI N G PR I C E:

PERIO D O F A N A L YS I S :

2, 550, 000 7/1/2015 - 6/30/2016

CURREN T N O I CURREN T C A P R A T E: PRO F O R MA N O I : PRO F O R MA C A P R A T E: RENTA BL E S Q UA R E FEET : PERCE N T A G E L EA S ED : COST PER PA R K I N G S PA C E:

$198, 538 7. 79% $185, 805 7. 29% 6, 612 R S F 100% $55, 000

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Investment Highlights • 100% leased storefront retail in downtown Steamboat Springs, CO

• Internationally recognized location - Top 10 ski resort (Ranked by multiple ski industry magazines)

• 87% of square footage on NNN lease structures • Minimal management requirements with HOA structure • Located on hard corner of 6th Street & Lincoln Avenue • 2008 year of completion; very well maintained • All tenants have annual rent increases throughout remaining term • Minimal near term lease expiration • Three deeded parking spaces available

• New Edward Jones lease with seven year lease term & annual rent increases • City of Steamboat Springs has committed to a large capital investment downtown, including a city park on 6th Street

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Location Located on the hard corner of 6th and Lincoln Avenue, Alpen Glow Retail is a key corner for foot traffic in Steamboat Springs. With the City of Steamboat Springs committed to a new park on 6th and Yampa, the natural traffic pattern for pedestrians will be up 6th onto Lincoln. The City of Steamboat Springs has also committed to a major capital investment on Yampa Street, which will ultimately create the pedestrian flow shown below in yellow. Centally located and surrounded by ample public parking, the retail stores at Alpen Glow are ideally positioned to benefit from the planned investments in downtown Steamboat Springs.

P

A L PE N GL OW R E TA I L P

P YA M PA S T R E ET

PA RK

6TH STREET

9TH STREET

L I N C OLN AV E N U E

P

PA R K

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Offering Financial Summary Offering Price Square Footage Total GLA (Gross Leasable Area) Commercial Common Area GLA ‐ Excluding Commercial Common Area Proposed Financing LTV Interest Rate Year Amortization Term Years

$2,550,000 6,612 460 6,152 70% 4% 25 7

Down Payment

$765,000

Net Operating Income Current Annualized Pro Forma

$198,538 $185,805

Capitalization Rate Current Annualized Pro Forma Cash Flow After Debt Service Current Annualized Pro Forma Total Return (Including Principal Reduction) Current Annualized Pro Forma Total Cash on Cash Return (%) Current Annualized Pro Forma

7.79% 7.29% $85,475 $72,742 $127,910 $115,177 16.72% 15.06%

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Property Summary PRO P ERT Y S U MMAR Y P RO P E RT Y N A M E :

A lpen Gl ow Ret ai l

P RO P E RT Y T Y P E :

Storef ront Retai l

A D D RE S S :

6 0 1 L i ncol n Avenue Steamboat Spri ngs, C O 80487

LOCATION:

Corner of L i ncol n Avenue & 6 th Street , Steamboat Spri ngs

R E N T A BL E SQUA R E F E E T : 6 ,6 12 SF OC C U P A NCY :

1 0 0 % L eased

Y E A R C O MP LE T E D:

2008

N U MBE R OF UN I T S:

5

P A RK I N G SP A CE S:

3 Und erground Avai l abl e

S T O RA G E UN I T S:

3 (2 C l osets, 1 Underground Uni t)

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Floor Plan/Tenants

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Garage Parking and Storage Layout

UNIT P-13 UNIT UNIT P-13 P-13

UNIT P-14 UNIT UNIT P-14 P-14

UNIT P-12 UNIT UNIT P-12 P-12

UNIT P-11 UNIT UNIT P-11 P-11

UNIT P-15 UNIT UNIT P-15 P-15

UNIT P-18 UNIT UNIT P-18 P-18

ELEV ELEV ELEV

STOR STOR STOR UNIT R-34 UNIT UNIT R-34 R-34

STOR STOR STOR UNIT R-20 UNIT UNIT R-20 R-20 STOR STOR STOR UNIT R-2D UNIT UNIT R-2D R-2D

STOR STOR STOR UNIT R-2E UNIT UNIT R-2E R-2E

LOBBY LOBBY LOBBY

UNIT P-17 UNIT UNIT P-17 P-17

UNIT P-16 UNIT UNIT P-16 P-16

UNIT P-10 UNIT UNIT P-10 P-10

UNIT P-9 UNIT UNIT P-9 P-9

UNIT P-8 UNIT UNIT P-8 P-8

UNIT P-7 UNIT UNIT P-7 P-7

UNIT P-6 UNIT UNIT P-6 P-6

UNIT P-5 UNIT UNIT P-5 P-5

UNIT P-4 UNIT UNIT P-4 P-4

UNIT P-3 UNIT UNIT P-3 P-3

UNIT P-19 UNIT UNIT P-19 P-19

UNIT P-20 UNIT UNIT P-20 P-20

STOR STOR STOR UNIT C-3 UNIT UNIT C-3 C-3

STOR STOR STOR UNIT R-39 UNIT UNIT R-39 R-39

STOR STOR STOR UNIT R-30 UNIT UNIT R-30 R-30

CAPITAL MARKETS TEAM | INVESTMENT SALES & ACQUISITIONS

RETAIL PARKING SPACES 5, 6 & 7 (INCLUDED IN SALE) RETAIL RETAIL PARKING PARKING SPACES SPACES 5, 5, 6 6& &7 7 (INCLUDED (INCLUDED IN IN SALE) SALE)

STAIRS STAIRS STAIRS MECH MECH MECH ELEV ELEV ELEV

STOR STOR UNIT R-2A STOR UNIT UNIT R-2A R-2A MECHANICAL MECHANICAL MECHANICAL

UNIT P-2 UNIT UNIT P-2 P-2

MECHANICAL MECHANICAL MECHANICAL

STAIRS STAIRS STAIRS ELECTRIC ELECTRIC ELECTRIC

UNIT P-1 UNIT UNIT P-1 P-1

STAIRS STAIRS STAIRS

THE PROPERTY

BASEMENT PLAT/PARKING AREA

ENDRICKSON OHNSON C-3 STORAGE SPACE C-3 STORAGE C-3 STORAGE SPACE SPACE

ENDRICKSON OHNSON

10 CAPITAL MARKETS TEAM | INVESTMENT SALES & ACQUISITIONS

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Rent Roll

Suite No.

Tenant Name

Rentable SF

Lease Term

Rent Annual

Rent Monthly

Rent / SF

CAM / Insurance Insurance SF Tax Annual Tax / SF Annual / SF

Escalations

CAM Annual

$28.00

12/01/2015 ‐ $29.26 12/01/2016 ‐ $30.14 12/01/2017 ‐ $31.04 12/01/2018 ‐ $31.97

$8,604.35

$5.20

$6,010.52

$3.63

$309.20

$0.19

(1) 5‐Year Option @ Market

$5,807.28

$5.20

$4,056.65

$3.63

$208.69

$0.19

(2) 3‐Year Options @ Market (2) 5‐Year Options @ Market

1,655

6/1/2014 11/30/2019

C2

Twisted Trails Running Company

1,117

03/01/2015 05/31/2020

$32,393.00

$2,699.42

$29.00

03/01/2016 ‐ $30.16 03/01/2017 ‐ $31.37 03/01/2018 ‐ $32.62 03/01/2019 ‐ $33.93

C3

All That Jazz, Inc.

2,219

06/25/2008 08/24/2018

$81,282.00

$6,773.50

$36.63

07/01/2016 ‐ $38.10 07/01/2017 ‐ $39.62

$11,536.58

$5.20

$8,058.82

$3.63

$414.58

$0.19

C4

Spa Nails

840

02/01/2014 04/30/2017

$27,600.00

$2,300.00

$32.86

05/01/2016 ‐ $35

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$30.00

06/01/2016 ‐ $31.20 06/01/2017 ‐ $32.45 06/01/2018 ‐ $33.75 06/01/2019 ‐ $35.10 06/01/2020 ‐ $36.50 06/01/2021 ‐ $37.96

$4,060.42

$5.20

$2,836.38

$3.63

$145.91

$0.19

$30,008.63 $0.00 $30,008.63

$4.54 $0.00 $4.54

$20,962.37 $3.17 $1,078.38 $0.00 $0.00 $0.00 $20,962.37 $3.17 $1,078.38

C1

Rocket Fizz

C5

Edward Jones

781

Leased Vacant Total

6,612 0 6,612

06/01/2015 05/31/2022

$46,340.00

$23,430.00

$3,861.67

$1,952.50

$211,045.00 $17,587.08 $31.92 $0.00 $0.00 $0.00 $211,045.00 $17,587.08 $31.92

Options

(1) 5‐Year Option @ Market

$0.16 $0.00 $0.16

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Income & Expenses Current Annualized $211,045 $2,026 $0 $0 $213,071

Scheduled Lease Income Escalations Parking Revenue Vacancy (1) Net Leased Income CAM Reimbursements CAM Vacancy Tax Reimbursements Tax Vacancy Insurance Reimbursements Insurance Vacancy Total Reimbursments Total Income Expenses Repairs and Maintenance Management Fees (2) HOA Fees Real Estate Taxes Insurance Total Expenses Net Operating Income

Pro Forma $211,045 $2,026 $0 ($10,552) $202,519

$30,009 $0 $20,962 $0 $1,078 $0 $52,049 $265,120

$30,009 ($1,500) $20,962 ($1,048) $1,078 ($54) $49,447 $251,966

$1,500 $0 $30,748 $24,485 $1,327 $58,060

$1,500 $0 $30,748 $24,485 $1,327 $58,060

$207,060

$193,906

(1) 5% Vacancy (2) 4% Management Fee

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Tenant Profiles - Rocket Fizz Lease Date/Executed March 6, 2014 Name of Lessee (Legal) PNUT, Inc. Guaranty Signature Patrick Evans (Individual) Size of Space (SF) 1,655 Current Terms 06/01/2014-11/30/2019

Name of Lessor Name of Lessee (DBA) Type of Ownership Address (Unit #) Security Deposit

GCP Alpenglow, LLC Rocket Fizz Colorado Corporation 601 Lincoln Ave., Suite C-1 $5,000

B ASE RENT DATE

06/01/2014 12/01/2015 12/01/2016 12/01/2017 12/01/2018

ANNUAL RENT $46,340 $48,425 $49,882 $51,371 $52,910

MONTHLY RENT $3,862 $4,035 $4,157 $4,281 $4,409

SF RENT $28.00 $29.26 $30.14 $31.04 $31.97

OPTIONS/TERMS

(1) 5-Year Option @ Market: Notice to be given at least 12 months, but no more than 15 months prior to the expiration of the Initial Lease Term.

REIMBURSEMENT METHOD

NNN - Tenant’s Proportionate Share (25.03%)

PERMITTED USE

Retail sale of candy and soda pop and other gift items

1. TAXES

NNN - Tenant’s Proportionate Share (25.03%)

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Tenant must provide Landlord quarterly Gross Sales during the preceding three months and an itemization of all permissible deductions therefrom. Annual balance sheets, net worth statements, financial statements and reports, and other financial data regarding the Tenant as Landlord may reasonably request.

2. CAM/OPERATING COSTS

NNN - Tenant’s Proportionate Share (25.03%)

3. FIRE/HAZARD INSURANCE

NNN - Tenant’s Proportionate Share (25.03%)

REIMBURSEMENT CAP

None.

HVAC

Tenant responsible for maintenance, repair, and replacement of HVAC units exclusively serving the Premises.

TENANT RELOCATION PROVISION

Landlord shall have right to relocate tenant with EARLY TERMINATION/ reasonable notice provided there is a Substitute SALES "KICK-OUTS" Premise available approximately the same size as the Premises. Landlord shall reimburse Tenant for all reasonable out of pocket expenses incurred by Tenant in installing leasehold improvements in the Substitute Premises.

SUBLETTING/ ASSIGNMENT

Must receive written consent from Landlord and pay a fee of $750 + reasonable attorney fees for the assignment/subletting process.

N/A

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Tenant Profiles - Twisted Trails Running Lease Date/Executed October 24, 2014 Name of Lessee (Legal) Joshua & Susan Boles Guaranty Signature Joshua & Susan Boles Size of Space (SF) 1,117 Current Terms 03/01/2015-05/31/2020

Name of Lessor GCP Alpenglow, LLC Name of Lessee (DBA) Twisted Trails Running Co. Type of Ownership Individuals Address (Unit #) 601 Lincoln Ave., Suite C-2 Security Deposit $5,000 B ASE RENT

DATE

03/01/2015 03/01/2016 03/01/2017 03/01/2018 03/01/2019

ANNUAL RENT $32,393 $33,689 $35,040 $36,437 $37,900

MONTHLY RENT $2,699 $2,807 $2,920 $3,036 $3,158

SF RENT $29.00 $30.16 $31.37 $32.62 $33.93

OPTIONS/TERMS

(2) 3-Year Options @ Market

REIMBURSEMENT METHOD

NNN - Tenant’s Proportionate Share (16.89%)

PERMITTED USE

Retail sale of clothing and accessories

1. TAXES

NNN - Tenant’s Proportionate Share (16.89%)

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Tenant must provide Landlord quarterly Gross Sales during the preceding three months and an itemization of all permissible deductions therefrom. Annual balance sheets, net worth statements, financial statements and reports, and other financial data regarding the Tenant as Landlord may reasonably request.

2. CAM/OPERATING COSTS

NNN - Tenant’s Proportionate Share (16.89%)

3. FIRE/HAZARD INSURANCE

NNN - Tenant’s Proportionate Share (16.89%)

REIMBURSEMENT CAP

None.

HVAC

Tenant responsible for maintenance, repair, and replacement of HVAC units exclusively serving the Premises.

TENANT RELOCATION PROVISION

Landlord shall have right to relocate tenant with EARLY TERMINATION/ reasonable notice provided there is a Substitute SALES "KICK-OUTS" Premise available approximately the same size as the Premises. Landlord shall reimburse Tenant for all reasonable out of pocket expenses incurred by Tenant in installing leasehold improvements in the Substitute Premises.

SUBLETTING/ ASSIGNMENT

Must receive written consent from Landlord and pay a fee of $750 and reasonable attorney fees for the assignment/subletting process.

N/A

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Tenant Profiles - All That Jazz, Inc. Lease Date/Executed Name of Lessee (Legal) Guaranty Signature Size of Space (SF) Current Terms

September 6, 2007 All That Jazz, Inc.; Assigned to KWH Music, Inc. Joseph Kboudi; Assigned to Kimberly Haggarty 2,219 06/25/2008-08/24/2018

Name of Lessor GCP Alpenglow, LLC Name of Lessee (DBA) All That Jazz Type of Ownership Individual Address (Unit #) 601 Lincoln Ave., Suite C-3 Security Deposit $0

B ASE RENT DATE

07/01/2014 07/01/2015 07/01/2016 07/01/2017

ANNUAL RENT $78,153 $81,282 $84,544 $87,917

MONTHLY RENT $6,513 $6,773 $7,045 $7,326 REIMBURSEMENT METHOD

SF RENT $35.22 $36.63 $38.10 $39.62

OPTIONS/TERMS

(2) 5-Year Options @ Market: Notice to be given at least 15 months, but no more than 24 months prior to the expiration of the original term.

NNN - Tenant’s Proportionate Share (33.56%)

PERMITTED USE

Retail sale of music, greeting cards, gifts, apparel, 1. TAXES and other goods as may be approved by Landlord, such approval shall not e unreasonably withheld. Business to be conducted under the trade name All That Jazz.

NNN - Tenant’s Proportionate Share (33.56%)

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Tenant must provide Landlord quarterly Gross Sales during the preceding three months and an itemization of all permissible deductions therefrom.

2. CAM/OPERATING COSTS

NNN - Tenant’s Proportionate Share (33.56%)

3. FIRE/HAZARD INSURANCE

NNN - Tenant’s Proportionate Share (33.56%)

REIMBURSEMENT CAP

None.

HVAC

Tenant responsible for maintenance, repair, and replacement of HVAC units exclusively serving the Premises.

SUBLETTING/ ASSIGNMENT

Must receive written consent from Landlord and pay a fee of $750 + reasonable attorney fees for the assignment/subletting process.

EARLY TERMINATION/ SALES "KICK-OUTS"

N/A

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Tenant Profiles - Spa Nails Lease Date/Executed February 1, 2014 Name of Lessee (Legal) My Nguyen; Assigned to Qingqing Wen Guaranty Signature Qingqing Wen Size of Space (SF) 840 Current Terms 02/01/2014-04/30/2017

Name of Lessor GCP Alpenglow, LLC Name of Lessee (DBA) Angel's Nails; Assigned to Spa Nails Type of Ownership Individual Address (Unit #) 601 Lincoln Ave., Suite C-4 Security Deposit $2,000

B ASE RENT DATE

02/01/2014 05/01/2015 12/01/2016

ANNUAL RENT $25,800 $27,600 $29,400

MONTHLY RENT $2,150 $2,300 $2,450

SF RENT $30.71 $32.86 $35.00

OPTIONS/TERMS

None.

REIMBURSEMENT METHOD

Gross Lease

PERMITTED USE

Operation of a nail salon

1. TAXES

N/A - Gross Lease

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Tenant must provide Landlord copies of any and all sales and use tax returns and any other monthly or quarterly reporting form or forms for the preceding calendar quarter required to be submitted by Tenant for state and local sales tax purposes.

2. CAM/OPERATING COSTS

N/A - Gross Lease

3. FIRE/HAZARD INSURANCE

N/A - Gross Lease

REIMBURSEMENT CAP

N/A - Gross Lease

HVAC

Tenant responsible for maintenance, repair, and replacement of HVAC units exclusively serving the Premises.

SUBLETTING/ ASSIGNMENT

Must obtain Landlord consent, which can be granted or withheld at Landlord’s sole discretion.

LANDLORD RIGHT TO TERMINATE

Landlord has an ongoing termination right throughout term of the lease.

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Tenant Profiles - Edward Jones Lease Date/Executed Name of Lessee (Legal) Guaranty Signature Size of Space (SF) Current Terms

Name of Lessor Name of Lessee (DBA) Type of Ownership Address (Unit #) Security Deposit

January 15, 2015 Edward D. Jones & Co., L.P. None 781 TBD - 05/31/2022

GCP Alpenglow, LLC Edward Jones Limited Partnership 601 Lincoln Ave., Suite C-5 $0

B ASE RENT DATE

TBD 06/01/2016 06/01/2017 06/01/2018 06/01/2019 06/01/2020 06/01/2021

ANNUAL RENT $23,430 $24,367 $25,342 $26,355 $27,410 $28,506 $29,646

MONTHLY RENT $1,953 $2,031 $2,112 $2,196 $2,284 $2,376 $2,471

SF RENT $30.00 $31.20 $32.45 $33.75 $35.10 $36.50 $37.96

OPTIONS/TERMS

(1) 5-Year Option @ Market: Notice to be given at least 6 months, but no more than 9 months prior to the expiration of the Initial Lease Term.

REIMBURSEMENT METHOD

NNN - Tenant’s Proportionate Share (11.81%)

PERMITTED USE

General office space in connection with investment brokerage, insurance sales and related financial services.

1. TAXES

NNN - Tenant’s Proportionate Share (11.81%)

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

N/A

2. CAM/OPERATING COSTS

NNN - Tenant’s Proportionate Share (11.81%)

3. FIRE/HAZARD INSURANCE

NNN - Tenant’s Proportionate Share (11.81%)

HVAC

Tenant responsible for maintenance, repair, and replacement of HVAC units exclusively serving the Premises.

REIMBURSEMENT CAP

N/A

SUBLETTING/ ASSIGNMENT

Must receive written consent from Landlord and pay a fee of $750 + reasonable attorney fees for the assignment/subletting process.

EARLY TERMINATION/ SALES "KICK-OUTS"

Lessee shall, from and after the date that is 48 months following the Commencement Date, have an ongoing right to cancel this Lease by giving at least 6 months prior written notice of the effective date of such cancellaton; Early Termination Fee equaling the total amount of monthly Base Rent and Additional Rent that would have otherwise been due during the 6 months next occuring in the Lease Term after the Early Termination Date, plus the unaccrued rent abatement received by Lessee, the unaccrued construction allowance, and the portion of Broker’s commissions determined by multiplying the number of calendar days between the Early Termination Date and the first scheduled Expiration Date of the Lease and the denominator of which is the number of days in the initial Lease Term.

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Steamboat Springs

Overview Also called Ski Town, USA速 and known for its World Class skiing facilities, Steamboat Springs was originally a summer resort. Travelers in the early 1900's visited Steamboat Springs in the summer months for the natural hot springs and vast hunting and fishing opportunities. Today, summer activities span the spectrum, with three championship golf courses, an indoor-outdoor tennis center, biking, hiking, kayaking, fly fishing, and horseback riding right in town. Howelsen Hill, which sits directly across the Yampa River to the South of Alpen Glow, opned in 1915 and is the oldest continuously operated ski area in Colorado. The complex has the largest and most complete natural ski-jumping complex in North America. Howelsen Hill is also the home of the Steamboat Springs Winter Sports Club, the oldest ski club west of the Mississippi. The club provides training in alpine, Nordic, freestyle, and snowboarding for athletes of all skill levels.

Population (2013 Census) City of Steamboat Springs: 12,100 Routt County: 23,513

Location Steamboat Springs is located approximately 150 miles northwest of Denver, and can be accessed via Highway 40 or the Yampa Valley Regional Airport, which has inbound flights from 11 major airports.

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Steamboat Springs - Market Information LABO R FOR C E S T A T I ST I C S - R OUTT CO U N T Y 2 0 1 4 L A B O R F O R CE :

15,523

EM P L O Y E D :

15,059

U N E MP L O Y ED : U N E MP L O Y ME N T R A T E :

464 3.0%

A CCO M MO D A T I O NS - ST E A M BOAT SP RIN G S 2 0 1 4 N U MBE R O F P I LLO WS:

20,542

N U MBE R O F BE DS:

11,411

N U MBE R O F UN I T S:

3,390

Steamboat Signature Events: • • • • • • • • • • •

Winter Carnival Pro Rodeo Series Weekly Farmers Market July 4th Celebration and Parade First Friday Art Walk Free Concert Series Mustang Rally Balloon Rodeo Art In The Park Triathlon and Running Series Town Challenge Bike Race Series

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Steamboat Springs - Recent News

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www.ThePaoliGroup.com


Exc lusive Market Co ntacts

Chris Paoli

Colorado Group Realty Owner/Broker 970.819.1432 Chris@mybrokers.com

Randi Fox

Colorado Group Realty Broker Associate 970.819.5916 Randi@mybrokers.com

Amy Brown

Colorado Group Realty Broker Associate 970.846.2116 AmyBrown@mybrokers.com

www.ThePaoliGroup.com


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