WEST 58TH STREET ARVADA, CO 80002

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1 WEST 58TH STREET ARVADA, CO 80002

2 THE OPPORTUNITY Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to offer the opportunity to acquire Arvada Plaza ( The Property ), a 95,236 square foot, 100% occupied King Soopers anchored shopping center located in the first-ring Denver suburb of Arvada, Colorado. Embedded in the community since 1994, Arvada Plaza presents an investor the opportunity to acquire a grocery anchored center with above-average store sales and future value creation opportunity through potential re-tenanting. Arvada Plaza stands to further solidify its position in the market as the immediate area continues to grow, spurred by robust private and public investment.. PROPERTY SUMMARY ADDRESS: West 58th Avenue Arvada, CO OCCUPANCY: 100% GLA: SITE SIZE: 95,236 SF ~ 7.62 Acres YEAR BUILT: 1966 / 1977 / 1993 PARKING RATIO: PRICE: 4.43/1,000 (422 total spaces) Best Offer 2

3 ROCKY MOUNTAINS BOULDER WEST 58TH AVENUE (23,138 VPD) RALSTON ROAD / INDEPENDENCE STREET (23,551 VPD) 3

4 INVESTMENT HIGHLIGHTS COVETED GROCERY ANCHORED SHOPPING CENTER WITH STRONG ANCHOR TRACK RECORD AND SALES Arvada Plaza provides a coveted opportunity to acquire an asset with King Soopers, Colorado s dominant grocer, as part of the collateral. OPERATING HISTORY King Soopers has operated at the Property for over 23 years and has consistently reported increasing sales year over year. HIGH PERFORMING This location continues to exceed the national average for store sales. OCCUPANCY COST King Soopers operates at an extremely healthy 1.34% occupancy cost ratio. FUEL CENTER The Fuel Center adds significant drawing power to the Property, benefiting tenants and ownership alike. INVESTMENT GRADE TENANT King Soopers, under the Kroger name, has an investment grade credit rating of BBB (S&P). WELL POSITIONED AT DOMINANT COMMERCIAL NODE Arvada Plaza is well positioned, highly visible and easily accessible to the dominant intersection of 58th Avenue and Independence Street, two heavily trafficked arterials experiencing more than 46,500 VPD. POTENTIAL VALUE CREATION OPPORTUNITIES Good Year presents an opportunity to re-negotiate a long term lease with the existing tenant or pursue an accretive re-tenanting scenario as a highly visible restaurant end cap. Additionally, Chase Bank presents an opportunity to renew long term, separately parcel the site and sell for an accretive cap rate. MAJOR PUBLIC AND PRIVATE INVESTMENT Significant private and public investments have been made in the immediate area to include RTD s $600 million G Line, the Ralston road Improvement Plan and multi-family, retail and medical development. Additionally there are 305 multi-family units currently under construction directly across the street from the Property. 4

5 BOULDER INVESTMENT HIGHLIGHTS BRIGHTON EASE OF MANAGEMENT The Property consists of four tenants providing investors with limited management duties. BROOMFIELD WESTMINSTER THORNTON FREE AND CLEAR INVESTMENT OFFERING Arvada Plaza is being delivered free and clear of existing financing, presenting an investor with the opportunity to capitalize on historically low interest rates, favorable market financing terms, and enhance leveraged returns. SYNERGISTIC DEMOGRAPHICS GOLDEN ARVADA DENVER CBD COMMERCE CITY Arvada Plaza currently caters to an upper middle class population of nearly 106,000 with an average household income of $88,500 within a 3 mile radius, statistics that will continue to increase as Arvada densifies. This growth is largely spurred by Arvada s proximity and accessibility to Downtown Denver. EVERGREEN LAKEWOOD ENGLEWOOD AURORA 1-MILE 3-MILE 5-MILE CITY OF ARVADA 2018 POPULATION 16, , , ,651 LITTLETON AVG. HH INCOME $80,090 $88,508 $91,549 $100,949 CENTENNIAL AVG. HOME VALUE $282,475 $318,819 $329,967 $326,330 % BACHELORS DEGREE 30.8% 33.4% 35.9% 37.5% 5

6 INCREDIBLE OPPORTUNITY Arvada Plaza offers investors an opportunity to buy a shopping center anchored by King Soopers, the market dominant grocer, with strong, above-average sales and a King Soopers Fuel Center adding significant drawing power to the Property, benefiting tenants and ownership alike. Arvada Plaza remains a staple in the community that stands to benefit further from the ARVADA continued PLAZA residential and commercial growth underway in the immediate trade area. 6

7 Colorado based thrift store with 27 locations across the Front Range. Expanded into an additional 2,790 SF in 2009 showing commitment to this location. Has one 5 year option remaining. Goodyear has been at this location for 50+ years and is expected to renew. With no remaining lease options, an investor has the ability to execute a value-add strategy with this end cap to re-tenant or reconfigure space if they choose. This location had $36.4 Million in annual deposits for 2017, which was second amongst other branches within a 4 mile radius. New owner could potentially separately parcel the Chase Bank site, renew long term and sell for an accretive cap rate. High-performing King Soopers has been embedded in the community for over 23 years. Strong sales, long tenure and an occupancy cost of 1.34% solidifies this as a strategic position for King Soopers in the market. FUEL King Soopers Center provides a competitive advantage offering customers a one stop shop for gas and grocery on West 58th Avenue, a busy east-west corridor. $91,500+ AVG HOUSEHOLD INCOME 275,000+ PEOPLE IN A 5-MILE RADIUS OVER 89K HOUSEHOLDS IN THE TRADE AREA 7

8 SITE PLAN SUITE TENANT SF I N DEP E N DEN C E ST R E E T 01 KING SOOPERS 65, ARC THRIFT STORE 18, GOODYEAR 7,037 OTLB CHASE 4,332 FUEL KING SOOPERS FUEL STATION 3,036* TOTAL 95,236 *Fuel Center is not included in Gross Leasable Area N. A. P W. 58T H A V E NUE N. A.P 8

9 DENVER AREA OVERVIEW D e nve r co n sis te ntly r a n k s a s h avi n g th e n ati o n s h ig h e s t q u a lit y of life, a n d is o n e of th e m os t d e si r a b l e citi e s i n th e co u ntr y d u e to it s o utd o o r o ri e nte d a n d e nvi ro n m e nt a lly f ri e n d ly cu ltu re. I t s a b ilit y to at tr a c t i n d ivi d u a ls f ro m a ll ove r th e wo rl d h a s trig g e re d a b o o m i n p o p u l ati o n th at h a s f u e l e d a ro b u s t e co n o my su p p o r te d by a d ive r s e s et of i n d u s tri e s. D e nve r h a s e s t a b lish e d it se lf a s a p ri m a r y i nve s tm e nt m a r ket d rive n by o n e of th e n ati o n s m os t e d u c ate d wo r k fo rce s with o n e of th e h e a lth i e s t e co n o m i e s i n th e co u ntr y. 9

10 ARVADA, COLORADO The City of Arvada is situated in the northwest part of Metro Denver, approximately seven miles from the Denver CBD. Established in 1870, Arvada enjoys a rich history, tree-lined neighborhoods, and a robust mix of commerce. Arvada s diverse economic base, highly educated workforce, low crime rate, and superb quality of life have helped shape it into one of the most attractive and competitive cities in the state of Colorado. Light rail plus three proximate interstate highways provide easy access to the greater metro. Historic Olde Town Arvada attracts people with its numerous restaurants, bars, breweries, galleries, and shops. Award winning business retention programs, recreational and cultural activities, and quality educational venues. 90 parks within city limits hosting festivals and farmers markets nearly every weekend. 10

11 TH STREET, SUITE 2540 DENVER, CO HFFLP.COM INVESTMENT ADVISORS FINANCING ANALYTICAL SUPPORT CHAD MURRAY MARK WILLIFORD LEON MCBROOM ANDREW YAROMA DIRECTOR DIRECTOR DIRECTOR REAL ESTATE ANALYST ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIANAPOLIS LONDON LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND SAN DIEGO SAN FRANCISCO SEATTLE TAMPA WASHINGTON D.C.