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HOWELSEN PLACE RETAILINVESTMENT OFFERING

703 Lincoln AvenueSteamboat Springs, CO 80487

www.ThePaoliGroup .com

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 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 confidential 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. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Colorado Group Realty, LLC.


Introduction

PROPERTY TOURS

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

EXCLUSIVE MARKET CONTACT:

CHRIS PAOLIColorado Group RealtyOwner/[email protected]

TABLE OF CONTENTS

EXECUTIVE SUMMARYOffering TermsInvestment HighlightsLocationTraffic Counts

THE PROPERTYFloor Plan / TenantsRent RollTenant Information

THE MARKETSteamboat SpringsSteamboat Springs - Market InformationSteamboat Springs in the Media


Howelsen Place - Steamboat Springs , CO


Offering TermsHowelsen Place is home to new, Class A retail space on Steamboat’s highest traffic corner. Four retail condominiums are located at Lincoln and 7th Streets, one block away from Steamboat’s highest volume restaurants. The property is anchored by national retailer Marmot, regional bank Vectra Bank, national owner Steamboat Ski Corp., and two local established businesses.

The City of Steamboat Springs has committed over 10 million dollars to downtown improvements which are currently underway. This is the ideal opportunity to purchase a high quality investment ahead of the positive changes. Large windows and high quality retailers draw the attention of all pedestrians. Located in the same project as two of Steamboat's most popular restaurants, there is always a steady stream of both pedestrian and vehicular traffic.

Howelsen Place is near new construction, completed in 2009 to the highest quality construction standards. All maintenance is handled by the building HOA, including snow melted sidewalks, making it attractive for pedestrians during the busy ski season. Five reserved, dedicated parking spaces are included in the package.

OFFERING TERMSOFFERING PRICE: $4,375,000PRO FORMA NOI $28,738 per monthPRO FORMA CAP RATE: 8.0%OFFERING PRICE PER SF: $450.4

PROPERTY SUMMARYPROPERTY TYPE: Retai l CondosYEAR COMPLETED: 2009 RENTABLE SQUARE FEET: 9,712# OF RETAIL SPACES: 5 spaces in 4 condosPARKING SPACES: 5 included

Snowmelt S idewalks


Investment Highlights• 100% leased retail space in downtown Steamboat Springs, Colorado.

• Located on Lincoln Avenue at 7th Street in Howelsen Place, downtown Steamboat’s premier mixed use project.

• Five reserved, dedicated parking spaces included.

• Ample public parking nearby.

• Internationally recognized location - Steamboat Springs is a Top 10 ski resort as ranked by multiple ski industry magazines.

• Minimal management requirements with HOA structure.

• City of Steamboat Springs has committed funding for over $10 million of capital investments downtown including a city park at 6th & Yampa Street, a pedestrian Promenade, festive lighting along Yampa Street, and improved sidewalks and lighting throughout downtown.

LocationLocated on the prime corner of 7th and Lincoln Avenue, Howelsen Place Retail is the key corner for foot traffic in Steamboat Springs. The City of Steamboat Springs has committed to a major capital investment on Yampa Street, which will ultimately create the pedestrian flow shown in yellow. Centally located and surrounded by ample public parking, the commercial spaces at Howelsen Place are ideally positioned to benefit from the investments in downtown Steamboat Springs.P

P

LINCOLN AVENUE

YAMPA STREET

9TH

ST

RE

ET

6TH

ST

RE

ET

PARKPARK

P P


Location - Traff ic Counts

On Highway 40/L incoln Avenue eastbound of 7th Street: 20,000 cars per dayOn Highway 40/L incoln Avenue westbound of 7th Street: 23,000 cars per day

5th STREET

6th STREET

LINCOLN AVE.YAMPA RIVER

YAM

PA ST.


Floor Plan/Tenants


Pro Forma Rent Roll

Suite No. Tenant Name Rentable SF Lease Term Rent Annual

Rent Monthly Escalations CAM Annual Tax Annual

CAM & Tax Reimbursment Net Cash Flow

Total 9,712 $ 349,918 $ 29,160 ($46,820) ($42,409) $89,229 $0

$0

$0

$0

$0

$10,943 $9,561 $20,503 MarmotB103A 2,101 NNN Lease

4/1/2016 thru 8/31/2019

$4,144 $8,886 B103B JMP 960

NNN Lease 11/1/2015

thru 10/31/2020

CPI on each anniversary of Commencement Date (3% Min ‐ 6% Max) One 5 Year

Option @ Market

$4,743

$9,220 $9,557 $18,777 B104 GCP Sales Center 2,215 NNN Lease

Closing Date + 12 Months

No Escalations or options

$24,391.08

B105SKI AND RESORT

CORP1,801

NNN Lease 9/30/2013

thru 4/30/2017

CPI + 1% on each anniversary of

Commencement Date (2 ‐ 5 Year Options @ Market

Rent)

$ 13,017.48 $11,373.60 B106 VECTRA BANK 2,635

NNN Lease 12/15/2008

thru 2/14/2019

4/30/2016 ‐ $68,438 (No Options)

$8,897 $7,774 $16,671

Disc la imer: This informat ion is accurate to the best of our knowledge. I t i s your responsib i l i ty to check a l l informat ion and insure i ts accuracy. We take no l iabi l i ty for any numbers or ca lculat ions which are incorrect .

• Property can be sold as a whole or as indiv idual condos. • Property i s fu l ly managed by a property management company.• Sales Center-B104, se l ler wi l l lease back for 12 months at a rate of $30 per square foot , NNN.


Tenant Profiles - Vectra Bank

Name of Lessee (Legal) Vectra Bank Colorado, NAGuaranty Signature N/A Size of Space (SF) 2,578 SFLease Term 12/3/2007-2/14/2019

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Vectra Bank Colorado, NAType of Ownership Colorado Corporation Address (Unit #) 703 Lincoln Ave., B-106

BASE RENT

OPTIONS/TERMS (2) 5 Year Options @ Market: Notice to be given at least 6 months, but no more than 15 months prior to expiration of the Initial Lease Term.

PERMITTED USE Bank branch and all uses associated therewith

REPORT SALESVOLUMES AND/ORPERCENTAGE RENT

N/A

Per Lease:

$6,874.67 per month to increase on each anniversary of commence-ment date by annual percentage increase of CPI + 1%

Current

Annual $97,251Monthly $8,104.27Per Square Foot $36.91

Tenant Profiles - Vectra Bank


Tenant Profiles - Steamboat Ski & Resort Corp

Name of Lessee (Legal) Steamboat Ski & Resort Corp Guaranty Signature N/ASize of Space (SF) 1,801 SFLease Term 9/30/2013-4/30/2017

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Steamboat Ski &Resort CorpType of Ownership Delaware CorporationAddress (Unit #) 703 Lincoln Ave., Ste. B-105

BASE RENT

OPTIONS/TERMS None.

PERMITTED USE Retail sale of summer and winter outdoor related merchandise and gifts.


Tenant must provide Landlord quarterly gross sales during the preceding 3 months.

To 4/30/2014


To 4/30/2015


To 4/30/2016


To 4/30/2017



Tenant Profiles - Sales Center Name of Lessee (Legal) GCP-Steamboat, LLCGuaranty Signature N/ASize of Space (SF) 2,215 SFLease Term 1/1/2017-12/31/2017

Name of Lessor GCP-Steamboat, LLCName of Lessee (DBA) Ski Town LP Sales CenterType of Ownership Address (Unit #) 703 Lincoln Ave., Ste. B-104

BASE RENT

$36 per square foot Leased to GCP-Steam-boat, LLC with t r iple A credit as the Howelsen

Place Sales Center.

Tenant Profiles - Sales Center

OPTIONS/TERMS 1 year lease

PERMITTED USE Sales CenterREPORT SALESVOLUMES AND/ORPERCENTAGE RENT

N/A


Tenant Profiles - JMPName of Lessee (Legal) JMP Holdings, LLCGuaranty Signature John Stephen Smithson and Mary J Smithson, jointly and severally (Individuals)Size of Space (SF) 960 SFLease Term November 1, 2015 - October 30, 2020

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Mary Jane'sType of Ownership Colorado LLCAddress (Unit #) 703 Lincoln Ave., Ste. B-103B

BASE RENT

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

PERMITTED USE Retail sale of jewelry and related accessoriesREPORTING SALESVOLUMES AND/ORPERCENTAGE RENT

Quarterly copies of sales and use tax returns required to be submitted for state and local sales tax purposes showing Gross Sales; Annual copy of federal income tax form; Annual upon request: balance sheets, net worth statements and other financial data

TENANT RELOCATIONPROVISION

21 Days notice to Substitute Premises of similar size; Landlord may terminate lease in six months if tenant declines relocation

Through 9/16


Through 10/17


Through 10/18


Through 10/19


Through 10/20



Tenant Profiles - Marmot

BASE RENT

Name of Lessee (Legal) Steamboat Ski & Resort Corp. Guaranty Signature N/A Size of Space (SF) 2,101 SFLease Term April 1, 2016-August 31, 2019

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Marmot Type of Ownership Address (Unit #) 703 Lincoln Ave., Ste. B-103A

Through 8/17

Annual $79,838 Monthly $6,653Per Square Foot $38

Through 8/18


Through 8/19


OPTIONS/TERMS Option to renew for additional 3 years at pre-vailing market rate for comparable space and renewed terms.

PERMITTED USE Retail sale of outdoor related merchandise.


Quarterly copies of sales and use tax returns required to be submitted for state and local sales tax purposes showing Gross Sales.


Steamboat Springs

Overview

Often referred to as Ski Town, USA,® 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, including 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 Howelsen Place, 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.

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.


Steamboat Springs - Market Information

LABOR FORCE STATIST ICS - ROUTT COUNTY 2015LABOR FORCE: 14,458EMPLOYED: 13,852UNEMPLOYED: 606UNEMPLOYMENT RATE: 4.2%

ACCOMMODATIONS- STEAMBOAT SPRINGS 201NUMBER OF PILLOWS: 20,542NUMBER OF BEDS: 11,411NUMBER OF UNITS: 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

Source: Yampa Val ley Data Partners

Source: Steamboat Spr ings Chamber


Steamboat Springs - Market Overview

WHY STEAMBOAT?

• Between 280,000 and 330,000 v is i tors come to Steamboat Spr ings annual ly. (Source: Steamboat Spr ings Chamber)

• Steamboat is Colorado's f i f th largest sk i resort based on sk iable acreage and ranks second in the state for the most number of t ra i l s .

• Eight month tour ist season with balanced winter and summer seasons.• Downtown Steamboat restaurant sa les have increased 4.1% annual ly

over the past f ive years and are 20% above their pre-recess ion peak.• Steamboat is the seat of Routt County and has an est imated 12,260

res idents . Routt County has an est imated 23,865 res idents .• A v ibrant , h istor ic Downtown distr ict i s home to 127 reta i l shops,

inc luding 43 restaurants .• Future tour ism draw and upside from Steamboat 's current development

of the Yampa Street Promenade.

POPULATION 5 MILES 10 MILESTOTAL POPULATION: 6,513 19,974MEDIAN AGE: 37.5 37.9MEDIAN AGE (MALE): 36.1 36.5MEDIAN AGE (FEMALE): 38.9 39.4

HOUSEHOLDS & INCOME

5 MILES 10 MILES

TOTAL HOUSEHOLDS: 2,816 7,515# PERSONS PER HH: 2.3 2.3AVERAGE HH INCOME: $83,101 $82,989AVERAGE HOUSE VALUE:

$619,280 $631,221


Steamboat Springs - Recent News

http://www.boulderweekly.com/art icle-13984-sk i -town-usa-grows-up.html#_blank

http://www.forbes.com/pictures/ehkj45egihd/steamboat-spr ings-co-2/

http://nypost.com/2015/03/02/steamboat-spr ings-colorados-best-stop-for-sk i -seasons- last-cal l/

http://www.nyt imes.com/2015/02/15/travel/off-the-s lopes- in-steamboat-spr ings.html?_r=0#_blank

http://www.nyt imes.com/interactive/2015/01/11/travel/52-places-to-go-in-2015.html?_r=0




http://www.steamboattoday.com/news/2014/ju l/06/r ise-yampa-street-how-quiet-d irt-road-turned-chaot/

http://www.steamboattoday.com/news/2014/oct/08/move-steamboat-downtown-makeover/


Exclus ive Market Contacts

ThePaoliGroup.comA division of Colorado Group Realty

Chris PaoliAmy Brown • Randi Fox

Kelly Conway • Chris Sias970.819.1432

ThePaoliGroup.comA division of Colorado Group Realty

Chris PaoliAmy Brown • Randi Fox

Kelly Conway • Chris Sias970.819.1432

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