Union Terrace

12596 Bayaud

84,145 SF multi-tenant office with medical building

Lakewood, CO

RRC - 12569 Bayoud, LLC

We are excited to introduce to you Recentric’s next acquisition: Union Terrace, 12596 Bayaud Ave., Lakewood, CO.

All private placement memorandum, operating agreement and subscription agreements will be completed by early November.  You can find the attached Term Sheet for more specific deal terms such as waterfall, timing of investment and exit strategies, along with relative securities disclosures and a personal video summary from Darren Nakos, the managing partner. As you review, please let me know if you would like setup a call to discuss in person.

Recentric Investment
RRC - 12569 Bayoud, LLC Lobby

Under Contract

An 84,145 SF multi-tenant office with medical building in a vibrant part of the west Denver Metro area. This opportunity meets our strict investment criteria, conservative underwriting, and long-term goals of providing equity upside and cash flow. Additionally, Recentric will seek to maximize passive “paper losses” for our investment group through accelerated depreciation and bonus depreciation on this asset.

Element

Investment Highlights

  • Property Type: Office with Medical
  • Purchase Price: $8,675,000
  • Strategy: Medical conversion/Value-add
  • Hold Period: 5 years
  • Equity Structure: $5,900,000
  • Acquisition Capital Call #1: November 22nd – 63% or $3,700,000
  • Value-add Strategy Capital Call #2: Q1-2025 – 37% or $2,200,000
  • Recentric Co-invest 10% or $590,000
  • Minimum Investment: $200,000 (subject to managers discretion)
  • Preferred Cumulative Annual Return: 8%
  • Projected Annual Internal Rate of Return: 19.37%
  • Projected MOIC (multiple on invested capital): 2.1X
  • Projected Quarterly Distributions: 7% average annual

Debt Structure

  • 60% LTV or $5,205,000
  • 120-month loan term, 30-year Amort.
  • 7.5% fixed rate for 60 months, Prime +0.25 remainder, I/O for 12 months
  • No prepayment penalty
UNION TERRACE

Building Highlights

  • Building Size: 84,145 SF
  • Purchase Price: $8,675,000 or $103.10/SF
  • In Place NOI: $938,679 (Going in Cap Rate: 10.82%)
  • Tenant Occupancy: 81.6%
  • Strong leasing activity and momentum both internally and externally
  • WALT (weighted average lease term): 3.52 years
  • 12 professional tenants (14% medical, 86% office)
  • Preferred Cumulative Annual Return: 8%
  • Projected Annual Internal Rate of Return: 19.37%
  • Projected MOIC (multiple on invested capital): 2.1X
  • Projected Quarterly Distributions: 7% average annual

Debt Structure

  • 60% LTV or $5,205,000
  • 120-month loan term, 30-year Amort.
  • 7.5% fixed rate for 60 months, Prime +0.25 remainder, I/O for 12 months
  • No prepayment penalty

SEEKING ACCREDITED INVESTOR EQUITY COMMITMENTS

We are seeking accredited investor equity commitments by November 15th, 2023, or until this opportunity is 100% subscribed. The first 63% of the capital will be due November 22nd, 2023. The remaining 37% will be called in Q1-2025 as we begin to execute our value-add strategy in earnest.

To learn more about Recentric’s track record of performance and industry expertise, please click here: ABOUT RECENTRIC.pdf

This is not an official offering or solicitation for funds at this time.  We will send a follow up email with the private placement memorandum and subscription agreement for accredited investors only. In the meantime,  if you would like to discuss this opportunity, please contact me directly at 970-389-5599 / dnakos@recentric.com or schedule a meeting on my calendar link - Book time to meet with me. 

I look forward to sharing with you our value-add strategy and discussing your participation.