Auraria Student Lofts

1051 14th Street, Denver, CO 80202

Offering Price $40,145,000

Total Investor Equity $12,920,000

  • Total Loan Amount $27,225,000
  • Loan-to-Value 67.82%
  • Minimum Investment $50,000
  • 1st Year Targeted Cash-on-Cash Return 7.5%

The Auraria Student Lofts are a high-end, fully amenitized student housing property with what we believe to be an ideal location within walking distance to the Auraria Campus in downtown Denver.

1051 14th Street, Denver, CO

The Auraria campus is the largest in the state of Colorado and boasts a current enrollment of over 43,000 students hosting three institutions: the University of Colorado Denver

HIGHLIGHTS

The Auraria Student Lofts are a high-end, fully amenitized student housing property with what we believe to be an ideal location within walking distance to the Auraria Campus in downtown Denver. The Auraria campus is the largest in the state of Colorado and boasts a current enrollment of over 43,000 students hosting three institutions: the University of Colorado Denver, Metropolitan State University and Community College of Denver.

Auraria Student Lofts

  • Number of Units 125
  • Number of Beds 438
  • Number of Stories 30 (Floors 1-16: Curtis Hotel, Floors 17-30: ASL)
  • Year of Construction 1973 (Renovated 2012)
  • Net Rentable SF 114,338 SF

Loan Details

Non-recourse. 10-year loan, 30-year amortization, 3-years interest-only from Ladder Capital. DST structure. The investment is for the Auraria Student Lofts (student housing floors) only and not the attached Hotel.

Offerin g Details

  • 1st Year Targeted Cash-on-Cash Return 7.5%
  • Offering Price $40,145,000
  • Total Loan Amount $27,225,000
  • Total Investor Equity $12,920,000
  • Loan-to-Value 67.82%
  • Minimum Investment $50,000

The City of Denver’s Notable Rankin gs

  • Denver is the #1 city where 25-34 year olds are moving (Brookings Institution, 2011)
  • Denver is the 2nd best city for doing business (Area Development Magazine, 2011)
  • Denver is the 4th best city for recent college graduates (CareerBuilder.com, 2011)
  • 2nd most educated population, by percentage of residents with a BA or higher (U.S. Census Data, 2010)
  • 2nd top state for high-tech business (U.S. Chamber of Commerce, 2012)

Denver Metro Market

During the 4th quarter of 2012, the average vacancy rate in Downtown Denver fell to 4.93%, down from 5.60% in the same quarter of 2011. In addition, rents increased 9.5% year-over-year, to an average of $1.73 per square foot. The Downtown Denver submarket remains one of what we believe to be the strongest in metro Denver as demand grows for young professionals to live downtown.

Source: 4Q 2012 Apartment Insights Metro Denver Market Report.

Detail About Auraria Student Lofts

In 2012, due to the high demand and limited supply for student housing in the downtown area, the Auraria Student Lofts were created as part of a $1.2 million renovation plan at The Inn at Auraria. As a result, the first 14 floors were re-branded as the Curtis Hotel and the upper 16 floors were repurposed for the Lofts.

The Lofts consist of 438 bedrooms and 125 total units consisting primarily of 2 and 4 bedroom units. Each student has his or her own private bedroom and the units are furnished with a full size bed, full size kitchen, loft style accents and beautiful mountain and city views. Average rent per bed is currently $674 per month.

New Renovations and Amenities

In June 2013, an additional $2 million in renovations were used to improve the facade, signage, units, lobby area and common areas. In addition, an impressive variety of new amenities were added to enhance the student experience. These include a new rooftop pool with an outdoor lounge, tanning space, a grill area and turf grass for lawn games. The upgrades also include a brand new state of the art, 2000 square foot fitness center, on-site laundry facilities, a clubhouse with flat screen TVs and a contemporary lobby space was added equipped with a fireplace, lounge area and iMacs.

Location

The Auraria Student Lofts is centrally located in downtown Denver with numerous restaurants, bars, entertainment venues, shopping and nightlife within a few blocks. The property is just two blocks from the 16th street Mall, a pedestrian mall lined with outdoor cafes, historic buildings, sparkling glass-walled skyscrapers, shops, restaurants and retail stores.

Leasing

The Lofts are currently 100% leased for the 2013-14 school year and 99% leased for the 2014-15 school year. All leases are for 12-month terms. As the lease up was stronger than expected this year, management raised rents an additional 12% over previous rents for the last 20% of leases signed.

ABOUT Nelson Brothers

16B Journey | Aliso Viejo, CA 92656 (800) 580-1031

Current Management Portfolio At-A-Glance:

Founded in 2007, Nelson Brothers specializes in what the firm considers to be well-positioned student housing properties. Headquartered in Orange County, CA, Nelson Brothers manages over $500 million in real estate with more than 100 employees.