Parker Plaza Associates, LLC
Denver, CO

The Parker Plaza I, II and III properties are three contiguous office buildings of approximately 25,000 square feet each. The buildings are of wood frame construction built in the 1960's and were designed for small tenants. The buildings contain 79 tenants ranging in size from 350 to 8500 square feet. The tenant profile includes health services, finance, consulting and entertainment. The properties are of below average quality and currently receive average rental rates of $10.44 per square foot per year in a market that averages $11.00 to $12.00. Current market rent for the property is approximately $10.50 to $12.00 and 70 percent of the space is vacant, on a month to month rental arrangement or is due for renewal within one year. We assume in our projections that this space will be rented at the $10.35 per square foot rate compared to the $10.50 rate that was recently achieved in the buildings from two tenants. A three year lease at this rate was signed in April of this year for 2190 square feet to a mortgage company.

The buildings are located in the city of Denver a half block from the city line of Aurora. From a practical point of view, the properties are a part of the Aurora office market which is ten miles East of downtown Denver. Aurora is bisected by Highway 225, which goes North to Denver International Airport (DIA) and South to the Denver Tech Center and Colorado Springs. Aurora has been the fastest growing city in the nation several times during the last twenty years, and is expected to be a growth center for Colorado in the future due to its proximity to DIA and the new highway serving that facility.