Burns & McDonnell_Denver RFP Response_FLIP BOOK

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COMPARATIVE ANALYSIS

6. Provide an example of comparative analysis of proposals received from multiple landlords. Below is a link to our template comparative analysis that the Project Team will use to present potential options to the client. This analysis is a comprehensive overview of all quantitative and qualitative factors that should be taken into account when comparing potential buildings and spaces. We include an in depth financial analysis, photos and floorplans for each building, and a qualitative overview of each option that compares signage potential, expansion opportunities, nearby amenities, and a number of other factors that are not reflected in a purely financial comparison. This package allows the client to make informed decisions about each property and ensure that no important component is left out of the decision making process.

PROPOSAL SUMMARY TENANT ADVISORY GROUP

August 16, 2021

PROPOSAL SUMMARY

1900 16th Street - 3rd Floor (estimated) BentallGreenOak

1900 16th Street - 17th Floor

2001 16th Street Invesco (Landlord) DaVita (Sublandlord) 133 Months September 1, 2022 September 30, 2033

PREPARED BY

BentallGreenOak 156 Months September 1, 2022 August 31, 2035

LANDLORD LEASE TERM TARGET COMMENCEMENT DATE EXPIRATION DATE FLOOR / PREMISES RENTABLE SQUARE FOOTAGE

130 Months

STEVE BILLIGMEIER Executive Managing Director +1 303 813 6413 steve.billigmeier@cushwake.com ROB BAIN Director +1 303 813 6452 rob.bain@cushwake.com Suite 800 24,700 SF

September 1, 2022 June 30th, 2033

FINANCIAL ANALYSIS

Suite 1700 23,762 SF

Suite 300 26,443 SF

Month 9/1/2022 - 8/31/2023 9/1/2023 - 8/31/2024 9/1/2024 - 8/31/2025 9/1/2025 - 8/31/2025 9/1/2026 - 8/31/2027 9/1/2027 - 8/31/2028 9/1/2028 - 8/31/2029 9/1/2029 - 8/31/2030 9/1/2030 - 8/31/2031 9/1/2031 - 8/31/2032 9/1/2032 - 8/31/2033 9/1/2033 - 8/31/2034 9/1/2034 - 8/31/2035

$$$ $0.00/RSF, NNN $37.00/RSF, NNN $37.93/RSF, NNN $38.87/RSF, NNN $39.84/RSF, NNN $40.84/RSF, NNN $41.86/RSF, NNN $42.91/RSF, NNN $43.98/RSF, NNN $45.08/RSF, NNN $46.20/RSF, NNN $47.36/RSF, NNN $48.54/RSF, NNN

$$$ $0.00/RSF, NNN $32.00/RSF, NNN $32.80/RSF, NNN $33.62/RSF, NNN $34.46/RSF, NNN $35.32/RSF, NNN $36.21/RSF, NNN $37.11/RSF, NNN $38.04/RSF, NNN $38.99/RSF, NNN $39.96/RSF, NNN $40.96/RSF, NNN

Month 9/1/2022 - 4/30/2023 5/1/2023 - 4/30/2024 5/1/2024 - 4/30/2025 5/1/2025 - 4/30/2026 5/1/2026 - 4/30/2027 5/1/2027 - 4/30/2028 5/1/2028 - 4/30/2029 5/1/2029 - 4/30/2030 5/1/2030 - 4/30/2031 5/1/2031 - 4/30/2032 5/1/2032 - 4/30/2033 5/1/2033 - 9/30/2033

$$$ $0.00/RSF, NNN $33.00/RSF, NNN $33.83/RSF, NNN $34.67/RSF, NNN $35.54/RSF, NNN $36.43/RSF, NNN $37.34/RSF, NNN $38.27/RSF, NNN $39.23/RSF, NNN $40.21/RSF, NNN $41.21/RSF, NNN

Month 9/1/2022 - 6/30/2023 7/1/2023 - 6/30/2024 7/1/2024 - 6/30/2025 7/1/2025 - 6/30/2025 7/1/2026 - 6/30/2027 7/1/2027 - 6/30/2028 7/1/2028 - 6/30/2029 7/1/2029 - 6/30/2030 7/1/2030 - 6/30/2031 7/1/2031 - 6/30/2032 7/1/2032 - 6/30/2033

OPTION 3 - RELOCATE: 2001 16th St, Denver, CO_DaVita Sublease_Sublandlord Response 8.12.21 24.7K SF Sublease - Suite 800: 133 mos

OPTION 1 - RENEW: 1900 16th St - 17th Floor, Denver, CO_Landlord Counter 7.7.21 23.76K SF Renewal Lease - 17th Floor: 156 mos

OPTION 2 - RENEW: 1900 16th St - 3rd Floor, Denver, CO_Landlord Proposal 7.29.21 26.44K SF Renewal Lease - 3rd Floor: 130 mos

FINANCIAL ANALYSIS Denver Lease Options Renew / Relocate

BASE RENT SCHEDULE (SF/MONTH)

Analysis Period Rentable Square Feet Lease Commencement Date Lease Term

Sep'22 - Apr'35 (156 mos) 23,762 sf

Sep'22 - Jun'33 (130 mos) 26,443 sf

Sep'22 - Sep'33 (133 mos) 24,700 sf

9/1/2022

9/1/2022

9/1/2022

No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price rental or other conditions, withdrawal without notice, and to any special listing conditions, imposed by our principals. 156.0 mos 13.0 yrs 8/31/2035

130.0 mos

10.8 yrs

133.0 mos

11.1 yrs

Lease Expiration Date Rent Base Rent Free Rent Free Rent Value Annual Escalation Effective Rent Operating Expense OpEx / Prop Tax

6/30/2033

9/30/2033

$3.08 sf/mos

$37.00 sf/yr

$2.75 sf/mos

$33.00 sf/yr

$2.67 sf/mos

$32.00 sf/yr

2.5% 12 Months Gross Rent $20.46/SF

2.5%

2.5% 8 Months Gross Rent $25.73/SF

ANNUAL BASE RENT INCREASES FREE RENT EST. 2022 OPEX & TAXES T.I. ALLOWANCE EST. UP FRONT COSTS AVERAGE ANNUAL OPERATING EXPENSE PARKING RATIO

First 12 mos Free - Gross

First 10 mos Free - Gross $1,167,877

First 8 mos Free - Gross

10 Months Gross Rent $20.46/SF $80.00/SF

$1,353,006

$956,966

2.50%

2.50%

2.50%

$110.00/SF FINANCIAL ANALYSIS $39.26 sf/yr $2.84 sf/mos

$3.27 sf/mos

$34.13 sf/yr

$2.82 sf/mos

$33.89 sf/yr

$100.00/SF $475,240 $1,606,333 1.30:1,000 SF

$1.70 sf/mos

$20.46 sf/yr

$1.70 sf/mos

$20.46 sf/yr

$2.14 sf/mos

$25.73 sf/yr

$1,057,720

$247,000

NNN

NNN

NNN

$1,642,188

$1,622,158

$0.33 sf/mos

$3.98 sf/yr

$0.32 sf/mos

$3.87 sf/yr

$0.25 sf/mos

$3.01 sf/yr

OpEx - Parking 1

31 spaces (1.3 / 1,000): $220/mos - Unreserved, $285/mos - Reserved

1.14:1,000 SF 34 spaces (1.3 / 1,000): $220/mos - Unreserved, $285/mos - Reserved

28 spaces (1.14 / 1,000): $225/mos - Unreserved.

1.30:1,000 SF

Capital Items

OPTION 3 - RELOCATE: 2 01 16th St, Denver, CO_DaVita Sublease_Sublandlord Response 8.12.21 24.7K SF Sublease - Suite 800: 133 mos

Buildout Requirement Total Capital Items

$120.00 sf $120.00 sf $100.00 sf $20.00 sf

$2,851,440 $2,851,440 $2,376,200

$120.00 sf $120.00 sf $80.00 sf $40.00 sf

$3,173,160 $3,173,160 $2,115,440 $1,057,720 4 mos 31-Dec-22 Stub Period

$120.00 sf $120.00 sf $110.00 sf $10.00 sf 2 mos 31-Dec-24

$2,964,000 $2,964,000 $2,717,000 12 mos $247,000 31-Dec-26

LL Provided TI Allowance

Analysis Period

133 mos

12 mos

12 mos

12 mos

12 mos

12 mos

12 mos

12 mos

12 mos

9 mos

31-Dec-23

31-Dec-25

31-Dec-27

31-Dec-28

31-Dec-29

31-Dec-30

31-Dec-31

31-Dec-32

31-Dec-33 Stub Period

Fiscal Year Ended

Year 1: Net 1-Time Expense / Capital

$475,240

24,700 SF

Cash Cost

total

total

$247,000 $18,447,919 $12,365,369 total $1,642,188 $1,039,799 $1,556,564 ($823 6 3) ($694,446) ($81,135) $0 $0

CASH

Nom $s Total

(Expense) / Income

$21,357,565 $13,371,095 $475,240

$18,631,100 $12,801,041

NOM Pre Tax $'s NPV Pre Tax $'s

24.7K SF Sublease - Suite 800: 133 mos Rent: NNN

($9,276,727)

($0)

($526,933)

($803,573)

($844,254)

($865,361)

($886,995)

($909,169)

($931,899)

($955,196)

($979,076)

($750,608)

Day 1 Cash Cost - Net of TI 2023 Cash Operating Cost 2 2024 Cash Operating Cost - Stabilized Yr 2 Avg Annual Operating Cost 3 [1] Model assumes parking spaces at 50/50 split between reserved and unreserved pricing. No LL provided split. DaVita assumes all unreserved as no reserve mentioned. [2] Operating Cost includes Rent, OpEx/Tx and Parking. Free rent is captured in Year 1 amount. No Capital or 1-Time expense included. [3] Avg Annual Operating Cost is average of Rent, OpEx/Tx and Parking over the life of the lease. Free rent is included in this calc as well. No Capital or 1-Time expense included. $1,622,158 $1,566,032 $1,606,333 $1,502,486 $557,321 $1,057,720 $820,366 Free Rent: Gross OpEx / Prop Tax - NNN ($7,945,629) Parking ($978,563) ($24,750) Total Buildout Required ($2,964,000) ($2,964,000) Tenant Improvement Allowance $2,7 7,000 $2,717,000 Pre Tax Cash Flow ($18,447,919) Net Present Value: 7% disc rate ($12,365,369)

Captured in Rent and OpEx Stream

$0 ($436,388)

($674,219) ($78,772)

($715,279) ($83,569)

($736,737) ($86,076)

($758,840) ($88,658)

($781,605) ($91,318)

($805,053) ($94,058)

($829,204) ($96,879)

($854,081) ($99,786)

($659,777) ($77,085)

($76,478)

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

V11.0_8.13.21

($271,750) ($1,039,799) ($1,556,564) ($1,599,243) ($1,643,102) ($1,688,174) ($1,734,493) ($1,782,092) ($1,831,009) ($1,881,280) ($1,932,942) ($1,487,470)

V11.0_8.13.21

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Rubin Brown_Exist vs Proposed_Denver_V11.0_8.13.21

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Rubin Brown_Exist vs Proposed_Denver_V11.0_8.13.21

33 RFP for Real Estate Services BURNS & MCDONNELL

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