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Home My WebLink About20041569.tiff RESOLUTION RE: ACTION OF THE BOARD CONCERNING PETITION FOR ABATEMENT OR REFUND OF TAXES - RES-0310, C/O TIMOTHY CLANCY WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners of Weld County, State of Colorado, at a duly and lawfully called regular meeting held on the 17th day of May,2004,at which time this matter was continued to June 7, 2004, and WHEREAS, at said meeting on June 7, 2004, there were present the following members: Chair Robert D. Masden,and Commissioners M.J.Geile,William H.Jerke, and David E. Long,with Commissioner Glenn Vaad being excused, and WHEREAS,notice of such meeting and an opportunity to be present has been given to the taxpayer and the Assessor of said County, and said Assessor, Stan Sessions, being represented by Mike Sampson,and taxpayer RES-0310,being represented by Timothy Clancy and Ron Randall, and WHEREAS, the Board of County Commissioners have carefully considered the attached petition, and are fully advised in relation thereto. NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County,Colorado,that the Board concurs with the recommendation of the assessor and the petition be and hereby is, denied, and an abatement or refund not be allowed as follows: CORRECTION TO ASSESSED ABATEMENT TAX VALUATION OR REFUND YEAR $ 0.00 $ 0.00 2001 $ 0.00 $ 0.00 2002 $ 0.00 $ 0.00 2003 2004-1569 AS0057 no , 45, Per ad 7-(7y TAX ABATEMENT PETITION - RES-0310, CIO TIMOTHY CLANCY PAGE 2 The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 7th day of June, A.D., 2004. #�: I 1. 1�� % BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ..,:. $ X4714 Ve�`^X A\U,,D_ °"" asaiRobert D. Masden, Chair Nr, ' • In. Clerk to the Board St1 , ti �I ' /, �s ► William? Jerke, Pro-Tern BY: D�yC� �C�c uy /i'p ty Clerk tot a Board -.�4 / � ��...� M. Geile APP D AS TO: David E. Long n y A orney EXCUSED Glenn Vaad Date of signature: x//72/ 2004-1569 AS0057 PETITION FOR ABATEMENT OR REFUND OF TAXES ££'O*Y 5 5'� Please submit in duplicate copies and answer all questions County Name Weld Date Received RECEIVED Use Assessor's or Commissioner's Date Stamp DEC 3 1 2003 PETITIONER: Complete Section I on this side only Section I: WELD COUNTY ASSESSOR Greeley, Colorado 1. Date: December 31,2003 2. Petitioner's Name: RES-0310,a Colorado limited liability company 3. Petitioner's mailing address: RES-0310, in care of its agent Timothy V.Clancy,822 7th Street, Suite 760 Greeley,CO 80631 4. SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY 0961-20-2-08-024 (Parcel) 3001 8h Avenue, Evans, CO 80620 5. Petitioner states that the taxes assessed against the above property for property tax year(s)2001,2002,and 2003 are incorrect for the following reasons: (Briefly describe the circumstances surrounding the incorrect value or tax. (The petitioner's estimate of actual value must be included.) Attach additional sheets if necessary. See Addendum 6. Petitioner's estimate of actual value$2.850.000(2001), $2.850.000(2002)and$2.850,000(2003) Value Year Value Year Value Year 7. Petitioner requests an abatement or refund of the appropriate taxes associated with a reduction in value. I declare,under penalty of perjury in the second degree,that this petition,together with any accompanying exhibits or statements,has been examined by me,and to the best of my knowledge, information and belief, is true,correct and complete. By: Witwer Oldenbb Barry& Bedingfield, LLP Daytime Phone Number(970)352-3161 -t'e. By: Agent's Signat/ *Letter of agency must be attachedwhen petition is submitted. Every petition for abatement or refund filed pursuant to section 39-10-114,C.R.S., shall be acted upon pursuant to the provisions of this section by the board of county commissioners or the assessor, as appropriate,within six months of the date of filing such petition. 39-1-113(1.7), C.R.S. f:3 I;SI N ±1I Section II: Assessor's Use Only Tax Year .2BQ! —Roca- Tax Year ,2X 3 Value TaxK;aeoz,) Value Tax Original 10e, CU We .2q 770.16 4/413y).280 76 roz ,s2• Corrected /4 020, %'t 41?-20 77e 36 /6, /3/ ,2 50 127t 742.3 Z. Abate/Refund ,?7,9g2?y .9ssesYed t/,alke_ 1'y19Z?, 960 fra TV 070 (FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY) RESOLUTION OF COUNTY COMMISSIONERS Resolution No. Section I: In accordance with 39-1-113(1.5),C.R.S.,the commissioners of County authorize the assessor to review petitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of one thousand dollars or less per tract,parcel,or lot of land or per schedule of personal property. The assessor and petitioner mutually agree to an assessed value and tax abatement/refund of: Tax Year Tax Year Assessed Value Tax Assessed Value Tax Original Corrected AbatelRefund PLEASE NOTE:THE TOTAL TAX AMOUNT DOES NOT INCLUDE ACCRUED INTEREST,PENALTIES,AND FEES ASSOCIATED WITH LATE ANDIOR DELINQUENT TAX PAYMENTS,IF APPLICABLE. PLEASE CONTACT YOUR COUNTY TREASURER FOR FULL PAYMENT INFORMATION. Petitioner's Signature Date Assessor's or Deputy Assessor's Signature Date If Section I is not complete and/or if petition is for more than$1,000,Section II must be completed. Submit an original petition and a copy to the Division of Property Taxation. Section II: Assessor's recommendation: Approved or 1 Approved in part$ No protest filed in or . (If a protest was ed,please a c py of NOD.) �] Denied for the following reason(s): /¢, �'o� attachtrin �i AISt —�Q4 meg- e.. a /on ✓8y c c,,h o o y �u4 �,v ��`q art ,Zoo3 as Y,7 NeV r i1/4001114W/ Imo//�ylu eS —I lext sep ou 3 hu p/4er dun., A'S�/fin% , gar epulyassessorrsaignatuar6 0/1 #S' tmy PMkce LIAR i ft priori 6ea ediva irn a Section III: WHEREAS,The County Commissioners of County,State of Colorado,at a duly and lawfully called regular meeting held on / / ,at which meeting there were present the following mo day yr members: with notice of such meeting and an opportunity to be present having been given to the taxpayer and the Assessor of said County and Assessor (being present/not present)and Name petitioner (being present/not present),and WHEREAS,The said Name County Commissioners have carefully considered the within petition,and are fully advised in relation thereto, NOW BE IT RESOLVED,That the Board(agrees/does not agree)with the recommendation of the assessor and the petition be(approved/denied)and an abatement/refund be(approved/denied)for property tax year(s) and . The taxes to be abated/refunded for property tax year are$ which represents an assessed value of$ and the taxes to be abated/refunded for property tax year are$ which represents an assessed value of$ . Chairperson of the Board of County Commissioners'Signature I, County Clerk and Ex-officio Clerk of the Board of County Commissioners in and for the aforementioned county,do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF,I have hereunto set my hand and affixed the seal of said County at ,this day of , Time Date Month Year County Clerk's or Deputy County Clerk's Signature ACTION OF THE PROPERTY TAX ADMINISTRATOR Denver,Colorado, Month Day Year The action of the Board of County Commissioners,relative to the within petition,is hereby _Approved;C Approved in part$ ; ❑Denied for the following reason(s): Secretary's Signature Property Tax Administrator's Signature G:WSR\...Wa5TBFORMREY1 ar THE NORTHERN COLORADO RE ORT glirs, Volume 9, No. 4 Serving Northern Colorado, Cheyenne and Laramie Nov. 14-27, 2003 Californians could be lookin east By Robert Baun Economist predicts migration to mountains money' to Colorado and all other West_ Business Report em states in coming years." Not scientific by any means, but mid 1990s.At that time, 1.3 million Cal- Supporting Thredgold's analysis is a Workers at the Fort Collins Area another indication that growing num- ifornians left the state, many of them survey conducted recently by the Cali- Chamber of Commerce are hearing the bers of residents in the Golden State are landing in the Rocky Mountain region Forma Business Roundtable, an eco- cry from Californians. frustrated by the economic and political In his recent quarterly newsletter, nomic-development agency. Out of 400 They want out. climate there and are looking for haven Jeff Thredgold, corporate economist for businesses polled by the CBR, 17 per- The chamber routinely sells pack- somewhere else. Vectra Bank Colorado, said California's cent said they planned to move or ages of relocation information about In fact, one leading bank economist budget deficit and other economic mis- expand out of state, the highest ratio in Fort Collins. Of those requests, 17.5 believes California is in the early stages steps "establishes a foundation for the 12-year history of the survey. percent have come from California this of au exodus to mirror the wave of out- another round of California out-migra- I❑ addition, Economy.com, an eco- year, up from 10.9 percent last year. migration experienced in the early and lion of `talented people and their See CALIFORNIA 25A INSIDE S p E C I A L S E C T O N Ex-State Farm i headquarters 4- sold by LA � � so� Li . . , •, Y : , o North Weld Business ` Noah wen County towns D C T 1 Q C M t N 7 r' I'1 1 Il C Un21J8YSZty closing deal c by ,any means, but mid 1990s.At that time, 1.3 million Cal- Supporting Thredgold's analysis is a ion that growing num- ifornians left •the state, many of them survey conducted recently by the Cali- a`in the Golden State are landing in the Rocky Mountain region. fornia Business Roundtable, an eco- e economic and political In his recent quarterly newsletter, nomic-development agency. Out of 400 d are looking for haven Jeff Thredgold, corporate economist for businesses polled by the CBR, 17 per- Vectra Bank Colorado, said California's cent said they planned to move or leading bank economist budget deficit and other economic mis- expand out of state, the highest ratio in is is in the early stages steps "establishes a foundation for the 12-year history of the survey. mirror the wave of out- another round of California out-migra- In addition, Economy.com, an eco- , 'enced in the early and tion of 'talented people and their See CALIFORNIA,25A I A L S E C T I 0 N Ex State Farm � �� Pi; headquarters 3 nos ^'�,=P , G max,- �. .�- . �� ' � sold by ENC Par,,,,„,r,,tril.'41;:si:c.: v--,,,tori-J� It . University closing deal �� y ,i r . rs .� �x d � a�W�; on donated building for less than appraised value f °- k'ircfr m`4544."4141::-.6'n " " By Robert Bann i'..„.„4: ,. „ The Business Report ^_ r 4. c ', ��ty[ "" GREELEY In real estate parlance, � omv t�la, t the University of Northern Colorado f e� ' Foundation is a "motivated seller." I t. �,, f The UNC Foundation expects to sell �) ( b ), —. - the former State Farm Insurance regional headquarters complex in /� +` ` ' Evans—donated to UNC two years ago I' —for less than $5 million. That's a deep discount from the recent asking price of $11.5 million, and well below the appraised value of $10.1 million applied to the facility by the Weld County assessor. 1 UNC Foundation president .Jim IMoore said the property, which includes a 230,000-square-foot building on 16 acres, is under contract. The deal _c is scheduled to close Nov. 18. See UNC,25A iL' G ll'1FORMi T1 a x-........_ I �w C RT LOPaR-014 " 33 174523 NC 506167 78 s approaching retirement in the next few years will likely be much SWne19 F Senators 310 heir predecessors and create more jobs for those who cater tote hir section B. Nssess+a' Weld Np17TH Assessors Office 1GREELEY co 60631-9563 WELD COUNTY, 16k SOFTWARE COMPANIES,22A;ASSISTD-LMNG CENTERS,SB;LONG-TERM FACELMES,9B Nov. 14-27,2003 THE NORTHERN COLORADO BUSINESS REPORT 25A UNC, from 1A get what the facility was appraised at," CALIFORNIA, from 1A Moore said. "Understanding ndin the changes in the economy, we certainly are very appreciative of anything." LtRecognizing the In early October, the UNC Founda- The proceeds from the sale have nomic analysis firm,said 108,500 more tion cut the asking the price on the already been earmarked by the UNC property from $11.5 Californians left the state than arrived million to $5 mil- Foundation. The school's athletic economy we are from other states in 2002, tripling the lion.But Moore said the sale price would department will get 45 percent of the out-migration figures from 2001. be less than that. money. The UNC Kenneth W. Monfort dealing with e we "Recognizing the economy we are College of Business will receive 40 per- Helping hands dealing with, we decided to lower the cent. The balance will go toward an decided to lower the If California businesses are willing to price and did so with the hope of endowed faculty position in real estate move, Colorado's economic developers being able to attract not just users development. » are willing to help. but maybe some investors," Moore The State Farm facility, at 3001 price.95 the CBR survey results, a said. Eighth Ave. in Evans,was built in 1963. group of economic developers from He declined to identify the buyer,but Since then, State Farm expanded and Front Range counties are forming a said the new owner's intent "is to get building several times, most recently in coalition called the Colorado Jobs Ini- some new leases in there and hopefully 1998. When State Farm moved, the dative. The goal of the program: raise bring some new jobs to Greeley." developer of Promontory took over the Jim Moore, $500,000 to launch a marketing cam- Another source familiar with the deal property and made the donation topaign in California about the fruits of said the would-be owner is a Colorado- UNC. UNC Foundation doing business in Colorado. based investor with a track record of State Farm has moved its entire staff Earlier this year, Colorado Gov. Bill redeveloping buildings for multiple out of the building but has continued to Owens and Denver mayor John Hicken- office tenants. use the site for storage. looper led a delegation of business The UNC Foundation appeared to In the interim, UNC decided it several large commercial properties in interests to tour Silicon Valley with the have little choice but to put a clearance couldn't make use of the building for the Greeley area. message that Colorado has set out the price on the property. school purposes. UNC would have Hewlett-Packard Co., which vacated welcome mat. State Farm, which has relocated its been exempt from paying taxes on the its 350,000-square-foot complex in When he recently attended a food- regional offices to the Promontory busi- facility if it was used for academic rea- west Greeley earlier this year, was processing-industry trade show in Las ness park in west Greeley, has been sons. forced to drop its asking leasing the facility for the past two "Initially, that was explored," Moore price from of the, Ron Klaphake,y-Weld Economicpres e CEO Develop- years. The lease payments have said. "But we've got a building on cam- $18 at million to$l n Bmring g on the market r siet m the ction-Weld Develop- defrayed the carrying costs — mainte- pus that's currently empty right now. I isnithef rmility 42,000-square-foot 00-sqtheSys walkedt Action way Partnership,oze said he nance and taxes—of the property. don't know if that was a space(the State building,the former 1450 ykesAve., Sykes walked or future with "a dozen really good Sykes Ave.,vacant near- leads" for business expansion in However, State Farm's lease expires Farm building)that was ever going to be ly two years. Weld County"including some from Cal- Nov. 19.After that,the UNC Foundation suitable for academic purposes." "There are a lot of superior proper- ifornia." becomes responsible for carrying costs The empty building on UNC's cam- ties in the market in Greeley,"said Mark At the crux of California's troubles that Moore estimates at $600,000 per pus is the former University Lab School Bradley,a broker with Realtec Commer- are the state's budget deficit—project- year. complex, which was vacated two years cial Real Estate Services Inc.,explaining ed at $8 billion this year — and a tax At that rate,the donation value of the ago. why the old State Farm property could- environment that makes it one of the property could quickly turn from an UNC's inability to get the appraised n't command a premium price.`They're most expensive states in the country in asset to a liability. value for the property matches the frus- also completing with a lot of vacant which to conduct business. "We would love to have been able to tration experienced by the owners of buildings in Denver." CAIJFORNIA,27A t _ r • o CLERK TO THE BOARD PHONE (970)3364215, EXT.4225 FAX: (970)352-0242 WIIDe. GREELEY, COLORADO 80632 COLORADO k April 5, 2004 TIMOTHY V. CLANCY vs._` ,,A 822 7TH STREET SUITE 760 71 ✓ \� GREELEY, CO 80631 RE: SCHEDULE NUMBER 096120208024 (Tax years 2001, 2002 and 2003) Dear Property Owner / This is to advise you that the Weld Cou Board of Commissioners will hear your petition for abatement or refund of taxes on the prodescribed as:3001 8TH AVENUE,EVANS,CO 80620. The meeting is scheduled for-April 28 004„at9:00 a.m., in the First Floor Meeting Room,Weld County Centennial Center¢,915 10t Street, Greeley, Colorado. The Assessor is recommending that the Board deny your petition. You are not required to be present at this hearing, however,this is your opportunity to have your position heard,especially if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact Carol Harding at (970) 336-7215, extension 4217. Sincerely, ,atQl/Ai% Donald D. Warden Clerk to the Board BY:/E 2/_t: //a- eputy Clerk to a Board cc: Assessor Page 1 of 1 Debra Miller From: Carol Harding Sent: Tuesday, May 04, 2004 3:13 PM To: Mike Sampson; Cyndy Giauque; Anne Pennington; Carol Harding; Debra Miller; Donna Bechler; Esther Gesick; Sharon Kahl Subject: Reschedule Tim Clancy abatement for RES-0310 Originally rescheduled to May 10, 2004, applicant has now requested it be scheduled for May 17, 2004. If no objections to new date, I will schedule it on 05/17/04 at 9:00 a.m. 5/4/2004 WITWER, OLDENBURG, BARRY &JOHNSON, LLP ATTORNEYS AT LAW 822-7TH STREET.SUITE 760 STOW L.WITWER,JR. GREELEY. CO 80631 OF COUNSEL R. SAM OLDENBURG JEFFREY T. BEDINGFIELD JOHN J. BARRY JACQUELINE JOHNSON TELEPHONE: (970)352-3161 PATRICK M.GROOM FACSIMILE(970)352-3165 TIMOTHY V.CLANCY SENDERS E-MAIL ADDRESS: tclancy@wobb-Ilpcom May 5, 2004 Carol Harding Office of the Clerk to the Board P.O. Box 758 Greeley, Colorado 80632 Re: Hearing on petition for Schedule Number 096120208024 Dear Ms. Harding: Thank you for graciously agreeing to extend the hearing date for the above petition by a week. Our witness was required to travel to Texas over this weekend and into next week for personal reasons. We appreciate your cooperation, and that of the Assessor's office, in accommodating us. We look forward to seeing you on the rescheduled date of May 17, 2004 at 9:00 a.m., in the First Floor Meeting Room, Weld County Centennial Center, 915 10th Street, Greeley, Colorado. Yours very truly, WITWER, OLDENBURG, BARRY&JOHNSON, LLP 1/ Timothy V. Clancy l./ TVC/zah pc: Riyann Ziady Ron Randel WITWER, OLDENBURG, BARRY &JOHNSON, LLP ATTORNEYS AT LAW 822-7TH STREET.SUITE 760 STOW L.WITWER.JR. GREELEY, CO 80631 OF COUNSEL R. SAM OLDENBURG JEFFREY T. BEDINGFIELD JOHN J. BARRY JACQUELINE JOHNSON TELEPHONE: (970)352-3161 PATRICK M.GROOM FACSIMILE(970)352-3165 TIMOTHY V.CLANCY SENDER'S E-MAIL ADDRESS: tclancy@wobb-Ilp com May 10, 2004 Office of the Clerk to the Board Attn: Carol Harding P.O. Box 758 Greeley, Colorado 80632 Re: Schedule Number 096120208024 Dear Ms. Harding: Enclosed please find a copy of the documents to be relied on by Petitioner at hearing on May 17, 2004. Petitioner intends to also offer the testimony of Ron Randel, CCIM. I would be happy to make multiple copies of the documents, if you would like. Just let me know and we will have them hand delivered. Please do not hesitate to contact me with any questions. Yours very truly, WITWER, OLDENBURG, BARRY& JO , LLP Timothy V. Clancy TVC/zah Enclosure pc: Weld County Assessor Before the Weld County Board of Commissioners: Petitioner: RES-0301, LLC, a Colorado limited liability company Agent for Petitioner: Witwer, Oldenburg, Barry& Johnson, Timothy V. Clancy, 822-7`h Street, Suite 760, Greeley, Colorado 80631 Schedule Number: 096120208024 Tax Years: 2001, 2002, and 2003 Hearing Date: May 17, 2004 ARGUMENT IN SUPPORT OF PETITION FOR ABATEMENT OR REFUND OF TAXES Petitioner, RES-0310, hereby submits its argument in support of its Petitioner for Abatement or Refund of Taxes: FACTUAL BACKGROUND This matter is before the Board on a Petition for Abatement or Refund of Taxes for the property located at 3001-8`s Avenue, Evans, Colorado 80620 (the "Property"). The Property is owned by a Colorado limited liability company created expressly to hold the Property, RES-0310, LLC ("Owner"). See Deed attached as Exhibit 1. The Petition concerns tax years 2001, 2002 and 2003. The chart below outlines the taxes paid since 2000, according to the office of the Weld County Treasurer: Year "Actual Value" "Assessed Value" Mill Levy Taxes Paid 2000 $10,096,418 $2,927,960 95.284 $272,733.62 2001 $10,096,418 $2,927,960 95.284 $278,987.74 2002 $10,096,418 $2,927,960 92.138 $269,776.36 2003 $10,131,280 $2,938,070 92.034 $270,402.32 The Property was formerly owned by State Farm and known as the State Farm Mountain States Regional Office Building in Evans, Colorado. State Farm acquired the Property in the early 1960's and thereafter developed it into an office complex serving only State Farm. But in early 1999, State Farm announced that is was going to vacate the Property and move into a new office park known as Promontory Point Office Park in west Greeley, Colorado. In May 1999, State Farm sold the Property to a group of investors who leased it back to State Farm under a lease that expired on November 19, 2003. See Lease attached as Exhibit 2. The Property was immediately offered for sale, as there was no question but that State Farm would vacate the Property and not renew or extend the lease. Since State Farm vacated the Property, it has remained vacant. On September 30, 2000, the several then-current owners donated the Property to the University of Northern Colorado Foundation, Inc. See Deeds attached as Exhibit 3. Just over three years later, on November 18, 2003, the UNC Foundation sold the Property to the current Owner. As part of their purchase of the Property, the Owner bargained for and received all rights to pursue this petition on behalf of itself as well as the former owner, the UNC Foundation. See Bill of Sale attached as Exhibit 4. As noted in the Petition, the Property was extremely overvalued for the tax years 2001, 2002, and 2003. The Property was designed, developed, and configured by and specifically for a single and particular user, State Farm. It would be virtually impossible for another user to occupy the Property unless and until it is redeveloped at substantial cost fails to account for the events surrounding the tenant (State Farm), and it does not take into consideration the depreciation and obsolescence inherent in the Property. A more accurate Actual Value of the Property during the years at issue is $2,800,000, leaving an Assessed Value of$812,000. -2- ARGUMENT A. THE PROPERTY WAS ERRONEOUSLY OVERVALUED The Colorado Constitution requires the assessment of property based on its actual value. C.R.S. § 39-1-101. The actual value of property "shall be determined by appropriate consideration of the cost approach,the market approach, and the income approach to appraisal." C.R.S. § 39-1-103(5)(a). 1. The Cost Approach is Inapplicable The cost approach is applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land. The Property is a large office complex designed and built by a single user over almost 40 years. Records of the actual cost of construction are not available. Further, the land is not currently utilized at its highest and best use. Rather, as will be revealed by the testimony of Mr. Randel, significant redevelopment are required before the Property may be occupied. 2. The Income Approach Yields a Value of$2.8 million Under the income approach, the estimate of value relates to the present value worth of potential future benefits. There is no dispute that State Farm irrevocably determined that it would not lease or otherwise occupy the property upon expiration of the lease in 2003. Accordingly, while the income approach might be applicable to determine actual value, reliance upon the expiring lease is inappropriate. A review of lease rates for similar buildings must be undertaken. Lease rates of comparable buildings supports at best a $2,800,000 actual value for the Property. See Randel letter and accompanying documents attached as Exhibit 5. Also, with respect to the State Farm lease, it should be noted that the total lease term was for 54 months without a chance for renewal. As the lease grew closer to expiration without a prospective new user in sight, the prospect of significant carrying costs increased. Such costs naturally made the Property less and less attractive to a potential purchaser, further devaluing the Property. 3. The Market Approach Reveals a Value of$2.8 million The market approach produces an estimate of the value of the property by comparing it with similar properties of the same type and class currently offered for sold or recently sold. The market approach might also be utilized to determine the value of the Property. In general, the market approach utilizes a review of comparable properties. On a project such as this Property, due consideration must be given to the size of the facility as well as the costs attendant to reconfiguration for one or more new users. As revealed by the letter and data attached hereto from Mr. Randel, the market approach -3 - gives at best a value of$2,800,000 for the entire period. This value is further confirmed by the fact that the Property has not been occupied by a new user since State Farm began to move out. B. THE ASSESSOR'S RECOMMENDATION SHOULD NOT BE FOLLOWED The Assessor is recommending this Petition be denied for three reasons: (1) "Request for reduction is by company who only purchased in very late 2003,past owners never appealed values; (2)"lease was in place during this time"; and (3) "asking price during this period exceeded our value". See Petition attached as Exhibit 6. Each of these reasons should be rejected. 1. The Owner has standing for all taxes paid since September 13, 2000 Initially, it is important to note that the fact that an owner fails to appeal a valuation does not, in any way, prejudice the owner's right to challenge an erroneous valuation. Colorado law expressly provides that a petition for abatement or refund may be filed for"overvaluation". C.R.S. § 39-10-114. Under Colorado law, the previous owner of property may authorize the new owner to seek an abatement of previous property taxes paid. See Hughey v. Jefferson County, 921 P.2d 76 (Colo.App. 1996). That is exactly what happened in this case, as demonstrated by the bill of sale. Accordingly, the Assessor's first reason for rejecting the Petition should be disregarded. 2. The lease is not helpful to determine the value of the Property The Colorado Constitution requires,the assessment of property based on its actual value. C.R.S. § 39-1-101. The actual value of property "shall be determined by appropriate consideration of the cost approach,the market approach, and the income approach to appraisal." C.R.S. § 39-1-103(5)(a). The Assessor's reference to the existing lease suggests that the income approach was relied upon. The apparent reliance upon the income approach is inappropriate for several reasons. Foremost among those reasons is that the lease was unquestionably going to expire without renewal. State Farm had announced its intention to move, it had undertaken construction of its new facility at Promontory, and it moved people out. Moreover, the lease itself has less than 36 months left on January 1, 2001 (the first year to which this petition is applicable). Consequently, using the current lease to arrive at a value under the income approach is inappropriate. 3. The asking sale price of the facility is of little help The use of the listing price of a property appears to fall most closely within the "market approach" of determining value. While the property was certainly marketed for $11,500,000, the actual sale price of$2,850,000 is much more revealing and relevant. -4- Further, also as noted above, a review of comparable properties for sale in Weld County reveals that the asking price was far too high. Accordingly, the asking price should be disregarded. CONCLUSION The Property is unique and provides many challenges to the current owner. The market approach gives at best a value of$2,800,000 during 2001, 2002, and 2003. The value of over$10,096,418 is unreasonable given the value of comparable properties and the expiring lease. While the Owner agrees that it should pay the appropriate amount of taxes, it has a right to pay taxes only on an accurate valuation. Accordingly, it is respectfully requested that the actual value be adjusted to of$2,800,000 during 2001, 2002, and 2003, and a tax refund be issued. Respectfully Submitted: OWNER: RES-0310 By: its agent: • WITWER, OLDENBURG, BARRY &JOHNSON, LLP Timothy V. Clancy#27232 -5 - CERTIFICATE OF SERVICE I hereby certify that I have delivered a true and correct copy of the foregoing document with exhibits on May 10, 2004, to the following: Donald D. Warden Clerk to the Board P.O. Box 758 Greeley, CO 80632 Weld County Assessor's Office 1400 N. 17th Avenue Greeley, CO 80631 • -6- 11111011111111111111111111111111111111111111111 3129231 11/24/2003 12:50P Weld County,CO 231 1 of 3 R 16.00 0 285.00 Steve Moreno Clerk&Recorder SPECIAL WARRANTY DEED THIS DEED, dated this 18th day of November, 2003, between The University of Northern Colorado Foundation, Inc., a Colorado non proft Corporation of the County of Boulder and State of Colorado, grantor(s) and RES-0310, LLC, a Colorado limited liability company whose legal address is 2505 Walnut Street Suite 303,Boulder of the County of Boulder and State of Colorado,grantee(s): WITNESS, that the grantor(s),for and in consideration of the sum of TWO MILLION EIGHT HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS ($2,850,000.00), the receipt and sufficiency of which is hereby acknowledged, has/have granted, bargained,sold and conveyed,and by these presents do(es) grant,bargain,sell,convey and confirm unto the grantee(s),their heirs and assigns forever,all the real • property,together with Improvements,if any,situate,lying and being In the County of Weld and State of Colorado,described as follows: SEE EXHIBIT A ATTACHED HERETO AND MADE A PART HEREOF also known by street and number as: 3001 East 8th Avenue,Evans,CO assessor's schedule or parcel number: 096120208024 TOGETHER with all and singular the hereditaments and appurtenances thereunto belonging, or in anywise appertaining,the reversion and reversions,remainder and remainders,rents,issues and profits thereof,and all the estate,right,title,Interest,claim and demand whatsoever of the grantor(s),either in law or equity,of,in and to the above bargained premises,with the heredltaments and appurtenances; TO HAVE AND TO HOLD the said premises above bargained and described,with the appurtenances, unto the grantee(s), their heirs and assigns forever. The grantor(s), for its heirs, personal representatives, successors and assigns,do(es)covenant and agree that its shall and will WARRANT AND FOREVER DEFEND the above bargained premises in the quiet and peaceable possession of the grantee(s), their and assigns, against all and every person or persons claiming the whole or any part thereof,by,through or under the grantor(s),except: See Exhibit'B'attached here to and by this reference incorporated herein IN WITNESS WHEREOF,the grantor(s)has/have executed this deed on the date set forth above. The University of Northern Colorado Foundation,Inc.,a Colorado non profit co n BY: a.•- ^1• Uln P -s•..nt ATTEST: Secretary STATE OF olorado COUNTY O The foregoing instrument was acknowledged fore.me this I day of bi by eon b. ass my hand an o cia eaia. I CCQZ Nada.t1.04n f f�#yr (Q 9'_ vALENA L.MULHERN I/ Notary Public NOTARY PUBLIC STATE OF COLORADO My Commission Expires: cy44-Z """y My Commission Expires Sept e.2004 Name and Address of Person Creating Newly Created Legal Description(5 38.35.106.5,C.R.S.) After Recording Return to: Cht'taco ,�V r CAL,3raCIO 1 '<.P—A C g t Vr E. - LA b1 S C-w , `,)J,ck J Z O O File No.: 1373202 titlj_p (y-s t CO 6 O13 T SPECIAL WARRANTY DEED . 111111111111111111111111111111111111111(11110111111111 3129231 11/24/2003 12:60P Weld County, CO 2 of 3 R 16.00 0 285.00 Steve Manna Clerk a Recorder Exhibit 'A. All of those portions of State Farm Subdivision, and Lakeshore Third Addition, all being in the City of Evans,and portions of the Northwest Quarter of Section 20, Township 5 North, Range 65 West of the 6th P.M., County of Weld,State of Colorado,being described as follows: Considering the West line of said Northwest Quarter of Section 20 as monumented with a 3 1/4 inch aluminum cap L.S.#10740 at the northwest corner and a 3 1/4 inch aluminum cap L.S.#11648 at the West Quarter corner as bearing North 00°00'00"East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20;thence along said West line of the Northwest Quarter South 00°00'00" East, 560.87 feet to the North line of said Stroh's Third Addition, as monumented, said North line also being the monumented South line of Lakeshore Addition and Lakeshore Second Addition, to the Town of Evans;said North line also being the North line of that certain parcel of land as described in deed recorded in book 891 at Reception No. 1813428, records of said County:thence along said North line North 89°46'59"East, a distance of 390.79 feet to a#4 rebar(no cap), and again South 33°30'11" East, a distance of 660.65 feet to a #4 rebar with cap L.S. #11399, and again South 88°13'30" East, a distance of 53.27 feet to a#4 rebar with cap L.S.#11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028, records of said County; thence along the North line of said parcel of land South 89°53'04" East, a distance of 46.45 feet toe #4 rebar with cap L.S. #11399 on the West line of State Fami Subdivision, to the town of Evans and the TRUE POINT OF BEGINNING; thence along said West line North 00°22'18" West, a distance of 87.86 feet to a #4 rebar with cap L.S. #17662 at the Northwest corner of said State Farm Subdivision;thence along said North line of State Farm Subdivision North 89°49'37"East,a distance of 489.76 feet to a#4 rebar with cap L.S.#17662 on Southerly prolongation of the East line of Lakeshore Third Addition, to the Town of Evens; thence along said prolongation and said East line North 00°35'30" East, a distance of 572.81 feet to a #4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line South 72°43'26" East, a distance of 440.78 feet to a #4 rebar(no cap), and again North 87°34'22" East, a distance of 19.60 feet to a #4 rebar with cap L.S. #4392 and the East line of that certain parcel of land as described In deed recorded in Book 1083 at Reception No. 2024072, records of said County, said East line also being the West right-of-way line of old U.S. Highway#85 (8th Avenue);thence along said West right-of-way line the following 5 courses and distances: 1) South 0r57'24"East,a distance of 170.01 feet to a#4 rebar with cap L.S.#17662; 2) South 03°08'31"East,a distance of 201.96 feet to a#4 rebar with no cap; 3) South 00°09'41"East,a distance of 39.04 feet to a#4 rebar with cap L.S.#4392; 4) South 01"47'34"East,a distance of 31.01 feet to a#4 rebar with cap L.S.#17662; 5) South 00°46'59" West, a distance of 489.46 feet to a#4 rebar with cap L.S. #4392 on the North line of the Amended Plat of Southgate Subdivision, to the City of Evans; thence along said North line South 89°48'24" West,a distance of 710.81 feet to a#4 rebar with cap L.S.#9714 on the South line of State Farm Subdivision,to the Town of Evans; thence along said South line and the West line of said State Farm Subdivision South 89°38'47"West, a distance of 238.24 feet to a#4 rebar with cap L.S. #7252, and again North 0'39'08"West,a distance of 265.36 feet to a #4 rebar with cap L.S. #11399, and again North 00°17'17" West, a distance of 137.19 feet to the TRUE POINT OF BEGINNING. EXHIBIT "B" 1. Taxes and assessments for the year 2003 and subsequent years, a lien,not yet due or payable. .Aoy.watez wateuights; or-claims thereto,in, or under the land 3. The right of the proprietor of a vein or lode to extract or remove his ore,should the same be found to penetrate or intersect the premises thereby granted and rights-of-way for ditches and canals as reserved in United States Patent recorded March 29, 1881 in Book 20 at Page 296,and any and all assignments thereof or interests therein. 4. Easements,notes, terms,conditions,provisions, agreements and obligations as shown on the plat of State Farm Subdivision recorded January 25, 1962 at Reception No. 1384439. 5. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted to The Department of Highways,State of Colorado,by Deed recorded July 12, 1962 in Book 1619 at Page 610. 6. An easement for communications and other facilities, and incidental purposes granted to Mountain States Telephone and Telegraph Company,by the instrument recorded June 14, 1972 at Reception No. 1591567,upon the terms and conditions set forth in the instrument,over a portion of the land. 7. Easements,notes, terms,conditions,provisions, agreements and obligations as shown on the Land Survey Plat of State Farm Property recorded August 5, 1998 at Reception No.2630932. 8. Terms, conditions,provisions,agreements and obligations specified under, and the effect of the 2000 Official Zoning Map,recorded March 21, 2000 at Reception No.2756850,and the 2002 Official Zoning Map,recorded October 28, 2002 at Reception No. 2999876. 9. 10:Any rights or interests which may exist or arise by reason of the following facts as set forth on the ALTAJASCM Land Title Survey prepared by Landstar Surveying, Inc.,dated October 30,2003, as Job No.136102, to wit: A) The fact that the fences as now located do not coincide with the boundary lines of subject property. B) The fact that electric lines,manholes,valves, down guys, power pads and a storm water box culvert are not located within recorded easements. File: 1373202 3129231 111111111111 llll lll1111111111 Weld Cou1�fl CO liii VIII 3 of 3 R 16.00 0 286.00 Sieve Moreno Clerk h Recorder __ . , cec ,c,rflr ni dd LP:C1 6002 61 fON t LEASE THIS LEASE (hereinafter "Lease") , made as of the 20h day of May, 1999 ("Effective Date") between JPB GREELEY, LLC, a Colorado limited liability company, WBP GREELEY, LLC, a Colorado limited liability company and RGM GREELEY, LLC, a Colorado limited liability company, as tenants in common, with an address at 717 Seventeenth Street, Suite 2000, Denver, Colorado 80202, ("Landlord") , and STATE FARM MUTUAL AUTOMOBILE INSURANCE- COMPANY, its subsidiaries or assigns, with an address of One State Farm Plaza, Bloomington, Illinois 61710-0001, ("Tenant") . ARTICLE 1 1.1 LEASED PREMISES. Landlord hereby leases to Tenant those certain premises (the "Leased Premises") , commonly known as the State Farm Mountain States Regional Office, together with adjoining land parcels, located at 3001 Eight Avenue, Evans, Colorado, more particularly described on Exhibit A attached hereto and incorporated herein by this reference, together with an' exclusive right, subject to the provisions hereof, to use all appurtenances thereunto, including, but not limited to, all building improvements, parking areas and all other areas on the Leased Premises. This Lease is subject to the terms, covenants and conditions set forth herein and Tenant and Landlord each covenant, as a material part of the consideration for this Lease, to keep and perform each and all of said terms, covenants and conditions to be kept and performed by them. Notwithstanding anything set forth herein to the contrary, Landlord, upon written notice to Tenant ("Reduction Notice") shall have the right to terminate this Lease with respect to the Non-Building Area as hereinafter defined. The "Non-Building Area". shall mean those portions of the Leased Premises that are not improved by parking areas or building structures. The Non-Building Area shall not detrimentally impact Tenant 's use and occupancy of the remainder of the Leased Premises. In the event Landlord exercises such right, upon delivery of the Reduction Notice to Tenant, Tenant shall immediately vacate the Reduction Space and deliver possession thereof to Landlord and thereafter this Lease shall be null and void and of no further force or effect with respect to the Reduction Space, except for those provisions hereof which survive Lease termination. In the event Landlord exercises such right, there shall be no reduction in the amount of base rental paid hereunder. • 77274.70.05•Iewi a0TI0p.aEPE400276L.wpas Page 1 1.2 EFFECTIVE DAlt. This Lease shall commence on the tr- Effective Date. ARTICLE 2 2.1 TERM OF LEASE. The term of this Lease shall be for a period of fifty-four (54) months, commencing on the Effective Date and ending on the last day of the month, which is fifty-four months thereafter, unless this Lease is sooner terminated as herein provided. 2.2 BOLDING ArTER TERMINATION. If, after the expiration of the term, Tenant shall .remain in possession of the Leased Premises without a written agreement as to such holding, then such holding over shall be deemed and taken to be holding upon a tenancy from month to month at a base monthly rental of 105% of the monthly payments of the last year of such term hereinafter provided for, with respect to the initial thirty (30) days of such holdover, 115% for the next thirty (30) days and 125% thereafter, payable in advance on the same day of each month as hereafter provided, all other terms and conditions of this Lease remaining the same. ARTICLE'3 3 . 1 BASE RENTAL. Tenant shall pay to Landlord rent for the e. Leased Premises ("Base Rent") , commencing nine (9) months after the Effective Dace as follows: ?eriod (bv month) • Monthly Installment of Base Rent 1-8 $0 9-33 = $87, 5O0 34-54 $72, 728 All installments of Base Rent shall be payable in advance on the first day of each calendar month during the term hereof. Rent for the first and last months of the term shall be prorated based on the number of days during said month that the tease was in effect. All Base Rent and Additional Rent shall be paid without notice, demand, deduction or. offset ac such place as. Landlord may designate. 3 .2 ADDITIONAL RENTAL. Tenant shall pay all costs and expenses relating to the ownership, operation and maintenance of the Leased Premises, includino without limitation real estate • ( 21274.70 OS le 1900 e::lopJEPEAe0.763u.wPDs Page 2 C. .. taxes, assessments, insurance, utility charges, maintenance, repair and replacement expenses relating to the improvements on the-Leased Premises, common area expenses and all other operating expenses of the Leased Premises, which costs and expenses shall be paid • directly by Tenant to the applicable party or service provider entitled thereto; unless such charge or expenses must be paid by Landlord, in which case, Tenant shall pay such amounts directly to Landlord. All such costs and expenses shall constitute Additional Rent and all such other rents, charges and other payments are required to be paid by Tenant hereunder, at the time and place such payments are due. 3.3 LATE CHARGES. If any installment of rent is not paid on or before the fifth day after it is due, Tenant shall pay a late charge of five percent (5t) of said installments. 3.4 IN?E_a_FST fiND A C ti+cva, crr . It is agreed. that all amounts due under this Lease, including late charges, which remain unpaid for ten (10) days after they are due will bear interest at the rate of one percent per month, compounded monthly, and in the event it is necessary for the Landlord to employ an attorney for the collection of any delinquent rentals or to enforce any obligation of the Tenant hereunder or for storage, removal or sale of Tenant's effects, then, if Landlord prevails in such action, reasonable attorneys' fees and other costs of collection will be t taxed as part of the costs of suit brought by Landlord to be payable by Tenant as a part of the judgement in said court action. ARTICLE 4 4.1 CHARACTER OF OCCUPANCY. Tenant agrees that the Leased Premises shall be used and occupied as a business campus for general business purposes. 4.2 USE TO SE LAWFUL. The Leased Premises shall be used only in a manner that complies fully with the laws of the United States and the State of Colorado and city or county ordinances; now in force or hereinafter enacted, and for no improper or questionable purpose whatsoever. Tenant shall immediately deliver to Landlord all notices received from applicable governmental authorities of violations of such laws and Tenant shall correct and remedy such violations within the time period set forth in such notice. In the event such violation notice relates to a violation of environmental laws and/or contamination of the Leased Premises, in addition to remedying such violation, Tenant shall provide Landlord with an 23274.70.05.1s 1999OnopJEPFAOp37636.wpD:s Page 3 Cr, environmental report prepared by a licensed environmental engineer reasonably acceptable to Landlord, which report shall specifically investigate the alleged violation and confirm that such violation has been cured and any environmental contamination of the Leased Premises has been fully remediated. ARTICLE 5 5.1 MAINTENANCE BY TENANT. Tenant shall at the sole cost and expense of Tenant: 5.1.1 Keep the Leased Premises and all improvements on the Leased Premises, including all utility connections, and all structural systems, mechanical systems, roof and foundations in good operating condition, order and repair; 5.1.2 Not obstruct the sidewalks, entries, passages, stairways and elevators; 5.1.3 Properly irrigate and care for all trees, shrubbery and lawn, landscaping and natural vegetation upon or about the Leased Premises; 5.1.4 Keep the sidewalks, driveways and parking areas on the Leased Premises free from ice and snow and said sidewalks, driveways, parking areas and grounds free from the litter, dirt, debris and obstructions; 5.1.5 Keep the Leased Premises secure and clean and in the condition required by the housing, health and police regulations of the city or county and in such a manner as to avoid waste; and 5. 1.6 Keep the Leased Premises in compliance with all laws, rules, regulations and ordinances. 5.1.7 Notwithstanding anything in this Lease to the contrary, in the event Tenant believes repairs/replacements with respect to the building systems and/or the site are not necessary, Tenant shall provide Landlord with written notice thereof, and if Landlord agrees with Tenant by providing written confirmation thereof within ten (10) days after receipt of Tenant 's notice, Tenant shall not be obligated to make such repairs and replacements. If Landlord does not agree with Tenant's determination, then Tenant shall be obligated to make such _0374.70 0l:1619990'_:IOpJEPE.A0017b71.WPD:$ Page4 +`l repairs/replacements. If Landlord fails to respond to Tenant's C' notice, Landlord shall be deemed to have disagreed with Tenant's determination. Landlord shall act reasonably in exercising its rights under this Paragraph. ARTICLE 6 6.1 UTILITIES AND SERVICES. All charges for electric, gas, telephone, cable, water and sewer services, any penalties for improper use of water, and all charges for snow and trash removal and all other maintenance and repair charges relating to the Leased Premises shall be paid by Tenant, and Tenant shall cause all such charges to be billed directly to Tenant. ARTICLE 7 7.1 REAL ESTATE TAXES. Tenant shall pay as Additional Rent, all ad valorem property taxes and assessments on the land and improvements, assessed on the Leased Premises. Such payments shall be made directly to the taxing authority in the name of the Landlord before the same become delinquent, and Tenant shall deliver to Landlord a paid receipt evidencing such payment within twenty (20) days after Tenant receives the receipt from the taxing jurisdiction thereof, and in all events prior to the date upon which such taxes, if not paid, would become delinquent. In the • event the taxes are not paid until they are delinquent, they shall be paid before the Leased Premises is caused to be sold in payment of taxes; provided, however, that in the event such taxes become delinquent, Landlord shall have the right, but not the obligation, to pay the same and Tenant shall reimburse Landlord upon demand therefore, together with interest at the rate set forth in Article 3.4 from the date such taxes were paid by Landlord. It is a default of this Lease for the Leased Premises to be sold for taxes, and subject to the notice and opportunity to cure set forth elsewhere in this. Lease, in the event the default remains uncured, Landlord shall have the remedies for default set forth in this Lease. Tenant shall have the right to contest the amount or validity of any such taxes, provided such proceedings do not cause the sale, attachment or levy upon the Lease Premises. Any imposition relating to a period of the taxing authority,-a-part of which is included within the term of the Lease and a part of which is included in a period of time after termination of the Lease, shall be adjusted between Landlord and Tenant so that Landlord and Tenant each shall pay :hat proportion of the :3274.70.01 161999 02:10pJEPE.A0007676.WPD:7 Page 5 C-i • • • imposition of the entire fiscal period as their own tenancy bears to such period. Landlord and Tenant shall each have the right to contest the amount or validity of any such taxes, provided that such proceedings do not cause the sale or attachment or levy upon the Leased Premises. The party receiving any notices of taxes or any assessments on the Leased Premises shall deliver copies thereof to the other party with- ten (10) days of receipt of such notices. 7.2 OTHER TAXES. Nothing in this Lease shall require Tenant to pay or become obligated to pay any income, estate, inheritance, succession, or transfer tax of the Landlord, even though the same may be or become a lien upon the Leased Premises, and Landlord covenants and agrees to pay all such taxes prior to the time they become delinquent and before any attachment or levy upon the Leased Premises. 7.3 PERSONAL PROPERTY TAns. Tenant shall pay the annual ad valorem (personal property) taxes on the Tenant's improvements, furniture, furnishings, equipment, leases and inventory, as the same become due and shall neither allow nor suffer a lien to be made on the Leased Premises for the payment of such taxes. ARTICLE 8 8.1 REQUIRED IMPROVEMENTS. Tenant agrees throughout the term of the Lease, at Tenant's sole cost and expense, to construct or modify improvements in order to comply with the requirements of all laws, ordinances, orders, rules, and regulations of any federal, state, and municipal government, now existing or hereinafter enacted, so long as such requirements do not effectively prevent or substantially limit Tenant' s ability to operate its intended business on the Leased Premises. Tenant shall have the right to contest, without cost or expense to the Landlord, the validity of any law, ordinance, order, rule, regulation, or requirement, provided that such contest does not subject Landlord to any liability for failure to comply. 8.2 MECHANICS LIENS. Tenant shall exercise reasonable care and diligence to prevent :he filing of any mechanics' lien against Landlord' s title in fee of the Leased ?remises or against the leasehold interest by reason of work, labor, services, or materials supplied or claimed to have been supplied to the Tenant or anyone holding under the Tenant, and nothing in this Lease shall be deemed or construed as constituting the consent or request of the Landlord, expressed or implied, to any contractor, subcontractor, ?1?71.70.0b16999902::10pJEPEA00Y/63tWPD1 Page 6 laborer, or materialman for the furnishing of labor or material for any improvement, alteration or repair of any portion of the Leased Premises. Tenant shall indemnify and save the Landlord harmless from any and all judgment thereon. Tenant shall have the right to contest such lien and defend any enforcement thereof at Tenant' s sole cost and expense. Tenant shall give Landlord at least 5 days written notice before work on any alterations or improvements is to.commence, and Landlord shall be entitled to post and keep posted on the Leased Premises such notice as is required or permitted by law to avoid any lien being valid as against Landlord' s interest in the Leased Premises. Tenant shall be responsible to ensure that all such notices of nonliability remain posted while the construction is continuing. Furthermore, in the event any such lien is filed against the Leased Premises, Tenant shall immediately post bond with the court having appropriate jurisdiction and Tenant shall cause such lien to immediately be released from the Leased Premises. 8.3 MECHANICS LIENS. Tenant shall not make any alterations or additions to the structural or mechanical components of the Leased Premises or any alterations or additions to the nonstructural or nonmechanical components of the Leased Premises costing in excess of Fifty Thousand and no/100 Dollars ($50, 000.00) without obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed. Prior to commencing the construction of any alterations or additions, whether or not Landlord's consent is required, Tenant shall post and maintain, at all times during construction, a notice of nonliability of Landlord with respect to such alterations and the cost thereof. ARTICLE 9 9. 1 HOLD HARMLESS. Tenant agrees to neither hold nor attempt to hold the Landlord liable for any injury or damage to any person coming upon the Leased Premises, unless such injury or damage is attributable to Landlord's own acts, omissions or fault, or that of Landlord' s agents and employees. 9.2 TE'NANT'S INDEMNIFICATION. Tenant will indemnify and save Landlord harmless from any and all claims, suits, actions, damages, and causes of action arising during the term hereof for ,personal, injury, loss of life, property, damage, or defamation sustained in or upon the Leased Premises, or by reason of Tenant's use or occupancy thereof, and from any and all costs, legal fees, investigation expenses, ;udgments, orders, liens, and fines, except • 22271.70.05.16.19990::1011.1EPEA0027631.WPD3 Page 7 those attributable to Landlord's own acts, omissions, or fault, or that of Landlord's agents and employees. 9.3 LANDLORD'S INDEMNIFICATION AND HOLD HARMLESS. Landlord shall indemnify and save Tenant harmless from and against any and all liabilities, claims .and costs (including reasonable attorney's fees, penalties and fines) for death, injury or damages to persons, or property during the term of this Lease, arising from (a) any default by Landlord in the performance of its obligations under this Lease; (b) the manner of Landlord's use and occupancy of the Leased Premises; or (c) any acts, omissions, or negligence of Landlord or its agents, employees, contractors or invitees; unless caused by the acts, omissions or negligence of Tenant, its agents, • employees, contractors or invitees. If any action or proceeding is brought against Tenant based upon any such indemnified claim, the Landlord shall cause such action to be defended, at its expense, by counsel reasonably satisfactory to the Tenant. This hold harmless and indemnity shall survive termination of this Lease. ARTICLE 10 10.1 LANDLORD MAY PERFORM. Tenant agrees that, if at any time Tenant is in default of this Lease, then Landlord may, but is not obligated to, perform such obligations and shall be entitled to collect the reasonable cost thereof from Tenant, together with interest thereon from the date paid by Landlord until reimbursed by Tenant, at the rate set forth in Article 3 .4 as Additional Rent, and any failure by Tenant to pay such amounts within five (5) days after Tenant's receipt of written notice of demand thereof from Landlord, shall be a default under this Lease. ARTICLE 11 11.1 BREACH. If failure be made by the Tenant in the payment of rent or any part thereof, as and when such payment is due, and continues five (5) days after receipt of notice- from Landlord to Tenant, or if the Tenant shall fail to observe or perform any of . the conditions .or agreements of the Lease, and such failure shall continue for a period of thirty (30) days after Tenant' s receipt of written notice thereof from Landlord (provided, however, that if such failure is not capable of cure within such time, this Lease shall continue as long as Tenant commences such cure within said thirty (30) day period and thereafter diligently pursues such cure to completion) , then and in any such event, Tenant shall be in default hereunder and the Landlord may, at the election of the • _rt4.m.0L1b199901:10pJVEA0o:76)LUTDa Page 8 Landlord, exercise any of the following remedies in addition to all other rights and remedies afforded Landlord hereunder or by law or equity: 11.1.1 Terminate this Lease by giving Tenant written notice thereof, in which event, Tenant shall pay to Landlord the sum of (1) all rent accrued hereunder through the date of termination, (2), . all amounts due under Subsection 11. 1.3 hereof, and (3) an amount equal to (A) the total rent that Tenant would have been required to pay for the remainder of the term discounted to present value at per annum rate equal to the "Prime Rate" as published on the date this Lease is terminated-by The Wall Street Journal, Southwest Edition, in its listing of "Money Rates" minus one percent, minus (2) the then present fair rental value of the Leased Premises for such period, similarly discounted. • 11.1.2 Terminate Tenant' s right to possess the Leased Premises without terminating this Lease by giving written notice thereof to Tenant, in which event Tenant shall pay to Landlord (1) all rent and other amounts accrued hereunder to the date of termination of possession, (2) all amounts due from time to time under Subsection 11.1.3, and (3) all rent and other net sums required hereunder to be paid by Tenant during the remainder of the term, diminished by any net sums thereafter received by Landlord 4. - through reletting the Leased Premises during such period, after deducting all reasonable costs incurred by Landlord in reletting the Leased Premises. Landlord shall use reasonable efforts to relet the Leased Premises on such terms as Landlord in its reasonable discretion may determine (including a term different from the term hereof, rental concessions, and alterations to, and improvement of, the Leased Premises) . Landlord shall not be liable for, nor shall Tenant's obligations hereunder be diminished because of Landlord's failure to relet the Leased Premises or to collect rent due for such reletting, provided Landlord uses reasonable efforts to relet the Leased Premises as stated above. Tenant shall not be entitled to the excess of any consideration obtained by reletting over the rent due hereunder, however, such excess shall be applied to any balances on the. accrued and unpaid liability of the Tenant. Reentry by Landlord in the Leased Premises shall not affect Tenant's obligations hereunder for the unexpired term; rather, Landlord may, from time to time, bring an action against Tenant to collect amounts due by Tenant, without the necessity of Landlord's waiting until the expiration of the term. Unless Landlord delivers written notice to Tenant expressly stating that it has elected to terminate this Lease, all actions taken by Landlord to dispossess or exclude .7.74.70.0!/16+190,07:I0pJEPE.A00J76J1.WPD:J Page 9 ( Tenant from the Leased Premises shall be deemed to be taken under this Subsection 11. 1.2. If Landlord elects to proceed under this Subsection 11.1.2, it may at any time elect to terminate this Lease under Subsection 11.1. 1. 11.1.3 Upon any event of default, Tenant shall pay to Landlord all reasonable costs incurred by Landlord (including court costs and reasonable attorneys' fees and expenses) in (1) obtaining possession of 'the Leased Premises, (2) removing and storing Tenant' s or any other occupant's property, (3) repairing, restoring, altering, remodeling, or otherwise putting the Leased Premises into condition acceptable to a new tenant, including without limitation removal of all underground storage tanks, if any (4) if Tenant is dispossessed of the Leased Premises and this Lease is not terminated, reletting all or any part of the Leased Premises (including brokerage commissions, cost of tenant finish work, and other costs incidental to such reletting) , (5) performing Tenant's obligations which Tenant failed to perform, and (6) enforcing, or advising Landlord of, its rights, remedies, and recourses arising out of the event of default. To the full extent permitted by law, Landlord and Tenant agree the federal and state courts of Colorado shall have exclusive jurisdiction over any matter relating to or arising from this Lease and the parties' rights and obligations under this Lease. 11.2 INSURANCE. 11.2.1 Tenant shall maintain at its sole cost and expense the following insurance on the Leased Premises: 11.2.1. 1 Insurance against loss or damage to the improvements and equipment under a fire and broad form of all risk extended coverage insurance policy (which shall include flood insurance if the Leased Premises is located within a flood hazard area and which shall include earthquake insurance if the Leased Premises is located in an area where earthquake insurance is customarily maintained for similar commercial properties) . Such insurance shall be in amounts sufficient to prevent Landlord or Tenant from becoming a coinsurer under the applicable policies, and in any event in amounts not less than the actual replacement cost of the improvements and equipment (excluding footings and foundations and other parts of the improvements which are not insurable) as determined from time to time at Landlord' s request but not more frequently than once in any 12-month period, by agreement of Landlord and Tenant, or if not so agreed, at Tenant 's 23274.70.054 61999 1999 0]:IQpJEPEA00I7OLWPDi Page 10 ' expense, by the insurer or insurers or by an appraiser approved by r . Landlord. Such insurance policies may contain reasonable exclusions and deductible amounts. 11.2.1.2 Contractual and comprehensive general liability insurance against claims for bodily injury, death or property damage occurring on, in or about the Leased Premises, which insurance shall be written on a so-called "Occurrence Basis, " and shall provide minimum protection with a combined single limit in an amount not less than Five Million Dollars ($5, 000, 000) . 11.2.1.3 Worker's compensation insurance covering all persons employed by Tenant on the Leased Premises in connection with any work done on or about any of the Leased Premises for which claims for death or bodily injury could be asserted against Landlord, Tenant or the Leased Premises. 11.2. 1.4 Insurance against loss or damage from explosion of any steam or pressure boilers or similar apparatus located in or about the Improvements in an amount not less than the actual replacement cost of the Improvements and Equipment (excluding footings and foundations and other parts of the Improvements which are not insurable) . 11.2.2 During such time as (i) no Event of Default is • outstanding hereunder, (ii) the tangible net worth of Tenant (or of the guarantor of Tenant's obligations under this Lease) shall be . not less than One Hundred Million ($100,000, 000.00) Dollars as determined in accordance with generally accepted accounting principles consistently applied, and (iii) Tenant (or the guarantor of Tenant 's obligations under this Lease) has a Standard & Poors rating of BBB or better, Tenant may self-insure all or any portion of the coverage referred to in Section 11.2 .1. 11.2.3 Except as otherwise provided in Section 11.2.2, the insurance required by Section 11.2.1 shall be written by companies authorized to do an insurance business in the State or Colorado, or otherwise agreed to by Landlord. Sums due from Tenant in lieu •of insurance proceeds because of such self-insurance programs shall be treated as insurance proceeds for all purposes under this Lease. The insurance policies (i) shall be in amounts sufficient at all times to satisfy any coinsurance requirements thereof, and (ii) shai: (except for the worker' s compensation insurance referred to in Section 11.2 . 1.3 hereof) name Landlord, Tenant and any mortgagee cf Landlord ("Lender") as additional • p:7J.70.07.9b199902:I0pJEPEA0077671.WPD:$ Page 11 insured parties, as their respective interests may appear. If said (_ insurance or any part thereof shall expire, be withdrawn, become void by breach of any condition thereof by Tenant or become void or unsafe by reason of the failure or impairment of the capital of any insurer, Tenant shall immediately obtain new or additional insurance reasonably satisfactory to Landlord and Lender. 11.2.4. _ Each insurance policy referred to in clauses 11.2.1.1, 11.2. 1.4 and 11.2.1.5 if requested by Lender) of Section 11.2.1, shall contain standard non-contributory mortgagee clauses in favor of any Lender which holds a mortgage on the Leased Premises. Each policy shall provide that it may not be canceled except after 30 days prior notice to Landlord and any Lender. Each policy shall also provide that any losses otherwise payable thereunder shall be payable notwithstanding (i) any act or omission of Landlord or Tenant which might, absent such provision, result in a forfeiture of all or a part of such insurance payment, or (ii) the occupation or use of any of the Leased Premises for purposes more hazardous than permitted by the provisions of such policy.. 11.2.5 Tenant shall pay as they become due all premiums for the insurance required by this Section 11.2, shall renew or replace each policy, and shall deliver to Landlord and Lender a certificate or other evidence (reasonably satisfactory to Lender and Landlord) of the existing policy and such renewal or replacement policy at least thirty days prior to the Policy Expiration Date (as hereinafter defined) of each policy. Each such policy shall provide that it shall not expire until the Landlord and Lender shall receive a notice from the insurer to the effect that a policy will expire on a date (the "Policy Expiration Date") which shall be thirty (30) days following the date of the receipt by Landlord and Lender of such notice. =n the event of Tenant s failure to comply with any of the foregoing requirements of this Section 11.2. within five (5) business days of the giving of written notice by Landlord to Tenant, Landlord shall be entitled to procure such insurance. Any sums expended by Landlord in procuring such insurance shall be Additional Rent and shall be repaid by Tenant, together with interest thereon at the default rate, from the time of payment by Landlord until fully paid by Tenant immediately upon written demand therefor by Landlord. 11.2 .6 Anything in this Section 11.2 to the contrary notwithstanding, any insurance which Tenant is required to obtain pursuant to Section 11.2 .1 may be carried under a "blanket" policy or policies covering ocher properties cr Liabilities of Tenant, :3274.70.05.16 1999 in:iop.5EPL400276D.WPDs Page 12 -- lam/ • provided that such "blanket" policy or policies otherwise comply i with the provisions of this Section 11.2. 11.3 DAMAGE OR DESTRUCTION. If any improvements to the Leased Premises are destroyed or rendered unfit for use by Tenant by fire or ocher cause, Tenant, shall, at its sole cost and expense, rebuild the damaged improvements and Tenant's obligation to pay the Base Rent shall not be .1baced or reduced; provided, however, if such damage occurs in the last twenty-four (24) months of the Lease term, Tenant, at Tenant's option, may not rebuild but, in such event, shall deliver the insurance proceeds to Landlord and this Lease shall then terminate, however, Tenant's obligation to pay the Base Rent shall continue in full force and effect notwithstanding such termination. During any period of remodeling or reconstruction, the Base Rent and Additional Rent required to be paid hereunder shall not be abated or reduced. Notwithstanding the foregoing to the contrary, if the amount of the damage to the improvements on the Leased Premises is equal to or less than Five Hundred Thousand and no/100 Dollars ($500,000.00) , regardless pf the date when such damage occurs.,_Tenant, at its sole cost and expense, shall rebuild and restore the damaged improvements. 11.4 CONDEMNATION. If the whole of the Leased Premises or so much thereof as to render the balance unusable by Tenant for the proper conduct of its business shall be taken under power of eminent domain or transferred under threat thereof, then this Lease, ,at the option of either Landlord or Tenant exercised by either party giving notice to the other of such election within thirty (30) days after such conveyance to or taking possession by the governmental authority, whichever is earlier, shall forthwith cease and terminate and the rent shall be duly apportioned as of the date of such taking or conveyance. No award for any partial or entire taking shall. be apportioned and Tenant hereby assigns to Landlord any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof. Notwithstanding the foregoing, Tenant shall be entitled to seek, directly from the condemning authority, an award for its removable trade fixtures, equipment and personal property and relocation expenses, if any, to the extent Landlord's award is not diminished. In the event of a partial taking which does not result in a termination of this Lease, the Leased Premises so taken shall be excluded from this Lease, and this Lease shall be modified accord- ingly. =n such event, Landlord shall restore the improvements on the Leased ?remises to a leaseable condition. Promptly after • L naaro.os,ie,wwa:iopJRE.x2Tn$.wraa Page 13 `_� obtaining knowledge thereof, Landlord or Tenant, as the case may be, shall notify the other of any pending or threatened condemna- tion or taking affecting the Leased Premises or any portion thereof. If all or any portion of the Leased Premises shall be condemned or taken for governmental occupancy for a limited period, this Lease shall not terminate and Landlord shall be entitled to receive the entire amount of any such award or payment thereof as damages, rent or otherwise. Tenant hereby assigns to Landlord any award which . may be made in such temporary taking, together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof. Tenant shall be entitled to receive an abatement of Base Rent and Additional Rent in proportion to the reduction in the size of the Premises so taken. ARTICLE 12 12. 1 SURR=NDFR OF POSSESSION. The Tenant agrees to deliver up and surrender to the Landlord possession of the Leased Premises at the expiration or termination of this Lease, by lapse of time or otherwise, in as good repair as when the Tenant obtained the same, excepting only ordinary wear and tear and damage by fire and other casualty not required to be repaired pursuant to the terms hereof. f ARTICLE 13 13 .1 REMOVAL OF T=NANT'S PROPERTY. If the Tenant shall fail to remove all of its property Erom the Leased Premises upon the abandonment thereof or upon the termination of this Lease for any cause whatsoever, the Tenant shall be deemed to have abandoned such property to Landlord. Tenant shall have no further right, title or interest in such abandoned property, and Landlord shall have the unfettered right to retain or dispose of such property and retain for Landlord's own account, any and all benefits with respect thereto, including without limitation any proceeds of sale thereof. ARTICLE 14 14 .1 ACCEPTANCE OF PREMISES 3Y TENANT. Tenant is leasing the Leased Premises in its existing "as .s, where is" condition and Landlord shall have no obligation whatsoever to make any improvements to the Leased Premises. The taking possession of the Leased Premises by the Tenant shall be conclusive evidence as a70..oaial999O:Iuo.JEPeeoo_o631.Wroa Page 14 k against the Tenant that the Leased Premises was in good and satisfactory condition when possession of the same was taken. ARTICLE 15 15.1 WAIVER. No waiver by either party of any breach of any one or more of the conditions or covenants of this Lease shall be deemed to imply or- constitute a waiver of any succeeding or other breach hereunder. 15.2 CUMULATIVE REMEDIES. The rights and remedies of the parties hereunder and as provided by law shall be cumulative and no one of them is exclusive of any other right or remedy except as specifically provided in this Lease. Such rights and remedies shall be continuing and none of them shall be exhausted by being exercised on one or more occasions. ARTICLE 16 16.1 CERTIFICATES OF LEASE. Landlord and Tenant each agree that at any time and from time to time, upon not less than 20 days from the date of receipt of written request by the other, to acknowledge and deliver to the other a statement in writing certifying that this Lease is unmodified and in full force and effect or, if there have been modifications, setting forth the modifications, the dates to which the rent and other charges have been paid and whether or not there are existing defaults by the other, it being intended that any such statement delivered may be relied upon by any prospective purchaser or mortgagee of the fee, or assignee or subtenant of the leasehold. 16.2 MEMORANDUM LEASE. If requested at any time by either party, the parties shall execute a short form memorandum of this Lease acceptable to both parties in such form that Landlord or Tenant may record same or file it with any proper person. No party shall record this Lease or a copy thereof. ARTICLE 17 17.1 SUBORDINATION. NON DISTURBANCE AND ATTORNMENT. This Lease, and all rights of Tenant hereunder, are and shall be subordinate in all respects to all present - and future ground leases, overriding leases and underlying leases, now or hereafter existing, and to all deeds of trust and mortgages, including leasehold mortgages, which may now or hereafter affect the Leased ( -7?74.70.051161999 02:100EPLA0027631.WPMS Page 15 Premises, whether or not such deeds of trust or mortgages shall also cover other lands or buildings, to each and every advance made or hereafter to be made under such deeds of trust or mortgages, and to all renewals, modifications, replacements and extension of such leases, deeds of trust and mortgages. The provisions of this paragraph shall be self-operative and no further instrument of subordination shall be required. However, in confirmation of such subordination, Tenant shall promptly execute and deliver to Landlord (or such other party so designated by Landlord) at Tenant's own cost and expense, within ten (10) days after request from Landlord an instrument, in recordable form if required, that Landlord, the lessor of any such lease or the holder of any such deed of trust or mortgage or any of their respective successors in interest or assigns may request evidencing such subordination. Failure by Tenant to comply with the requirements of this Paragraph shall be a default hereunder. The leases to which this Lease is, at the time referred to, subordinate pursuant to this Paragraph are hereinafter sometimes called "superior leases" and the deeds of trust or mortgages to which this Lease is, at the time referred to, subordinate are hereinafter sometimes called "superior deeds of trust" or "superior mortgages" . The lessor of a superior lease or the beneficiary of a superior deed of trust or superior mortgage or their successors in interest or assigns are hereinafter sometimes collectively referred to as a "superior party" . Notwithstanding the foregoing, Landlord shall use its commercially reasonable efforts to obtain from such superior party, for Tenant's benefit, a non-disturbance agreement in the form then being used by such superior party for such purposes, providing that Tenant, notwithstanding a default by Landlord, shall be entitled to remain in possession of the Leased Premises in accordance with the terms of this Lease for so long as Tenant shall not be in default of any • term, condition or covenant of this Lease. Further, Tenant shall attorn to such superior party. Tenant shall take no steps to terminate this Lease, without giving written notice to such superior party, and a reasonable opportunity to cure (without such superior party being obligated to cure) , any default on the part of Landlord under this Lease, provided that the name and address of said superior party has been provided to Tenant by Landlord. ARTICLE 18 18.1 NOTICE. Any notice given by Landlord or Tenant to the other shall be in writing and shall be deemed to have been given • _327470.OS16/1990 O3:IO,JEPtA0037676.WPD:6 Page 16 and effective upon delivery, by hand delivery, by overnight delivery with a nationally recognized delivery service, or by k. certified mail, return receipt requested, postage prepaid, at the address last given by notice to the Landlord or Tenant, as the case may be. Until notice to the contrary is given, the Landlord's address for the giving. of notices and the Tenant ' s address for giving of notices are set forth in the introductory paragraph of this Lease. ARTICLE 19 19.1 INTERPRETATION OF TERMS. Wherever the words "Landlord" and "Tenant" are used in this Lease, they shall include the original Landlord and original Tenant, their respective heirs, successors and assigns, and shall apply to persons, both men and women, companies, joint ventures, partnerships, corporations and other entities, and in reading this Lease the grammatical changes required to make the provisions hereof mean and apply as aforesaid shall be made in the same manner as if written into this Lease.. The headings of the paragraphs of this Lease are for convenience of reference only, and in case of any conflict between the heading and text of any paragraph, the text shall control. If any provision of this Lease is illegal, invalid or unenforceable under present or future laws effective during this Lease, it is the intention of the Landlord and Tenant that the other provisions of this Lease shall not be affected thereby. ARTICLE 20 20. 1 NO RELIANCE. The Tenant acknowledges and agrees that it has not relied upon any statements, representations, agreements or warranties, except such as are expressed herein. ARTICLE 21 21. 1 LANDLORD'S COVENANTS. Subject to the provisions of this Lease, Landlord covenants that Tenant on paying the rent and performing the covenants of this Lease- on its part to be performed shall and may peacefully and quietly have, hold ..and enjoy the Leased Premises for the term of this Lease. Landlord shall not be responsible for the acts or omissions of any other tenant or third party which may interfere with Tenant's use and enjoyment of the • 2227170.0tab199902:I0pJEPEA0O.762t.WPD:! Page 17 Leased Premises. In the event of any transfer or transfers of Landlord's interest in the Leased Premises or in the real property of which the Leased Premises are a part, other than a transfer for security purposes only, the transferor shall be automatically relieved of any and all obligations and liabilities on the part of Landlord accruing from and.after the date of such transfer. ARTICLE 22 22.1 LIMITATION ON LIABILITY. In the event of a sale, transfer or conveyance by Landlord of Landlord's interest in the Leased Premises, the Landlord shall be relieved from all obligations and liabilities accruing thereafter, provided however, that Landlord shall be obligated to surrender to any successor in interest any prepaid and unearned rent, any security deposit, or any other prepaid funds of Tenant to Tenant's credit under the terms of this Lease. ARTICLE 23 23 . 1 ASSIGNMENT. (A) Tenant shall not have the right to assign this Lease or sublet the Leases Premises, in whole or in part, at any time during the initial term or any extended term without obtaining the consent of Landlord; which consent shall not be unreasonably withheld or delayed. Neither the subletting of the Leased Premises nor the assignment hereof shall release Tenant from its obligations hereunder, including without limitation its obligation to pay rentals. Landlord shall be notified of the true name and authorized agent for assignee or subtenant, and shall be provided with a copy of the assumption of this Lease executed by such subtenant or assignee. (B) Landlord may assign its rights and/or obligations under this Lease in whole or in part, provided that such assignment shall not relieve Landlord of its obligations hereunder. Tenant shall be notified of the true name and authorized agent for such assignee(s) . 23 .2 ENTIRE AGREEMENT. This instrument constitutes the entire agreement between the parties hereto and incorporates all of the obligations of the parties. There are no other agreements or understandincs between the parties, either oral or written, with regard to the subject matter of this Lease. 13171.70.0S:I6199903:I0P.IEPEA0027631.WPD:S Page 18 23.3 AMENDMENTS. This Lease may not be amended, modified or altered except by the written consent of the parties hereto. 23 .4 FINDING LEASE. The covenants and Provisions hereof shall extend to and be binding upon the parties hereto, their respective heirs, executors, administrators, successors and assigns. 23 .5 LANDLORD'S LIABILITY. The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease shall be limited to Tenant's actual direct, but not consequential, damages therefor and shall be recoverable only from the fee simple interest of Landlord in the Leased Premises, and Landlord shall not be personally liable for any deficiency. • 23.6 No Offset. Tenant shall not be entitled to offset any Base Rent or other payments payable to Landlord hereunder against any obligation of Landlord to Tenant under this Lease or any other obligation of Landlord or Westfield Development Company, Inc. to Tenant. This Lease is executed and effective as of the Effective Date set forth above. LANDLORD: SPB GREELEY, LLC, a Colorado Limited Liability Company By: 19 hn P. aB x, er WBP GREELEY, LLC, a Colorado Limited Liability Company By: William B. Paula, Manager RGM GREELEY, LLC, a Colorado Limited Liability company By: Y1tt Richard G. McClintock, manager .m4.m.9t/1d19999u10pJEPeAu9neu.9no:s Page 19 C : TENANT: • STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Attest: `( By: • ( 1 Its: Rolfr.`��%�11 V, nla et,rMemiTreas rv; Jena Kuntz,Assistant Secretary • f. • • • :3271.70.OS'I6 I9900::JOPJEPE.AO02763S,WPD.S Page 20 • • EXHIBIT A =AL DSSC2IFTIDN All of thnsa portions of Stata Far= Subdivision, St+ohrs Fiizi, Second and Third Additlo.ns the Aaandad Plat of Southgate Subdivision and. Lakaah ra Third Addition, all being is this City et Evans, and portions tbs NW1f 4 of seoion 20, Township 5 North, Ricer a 63 West of the County of Wald, Stata of Colorado, haing deacr..bad as a whole as fall= C0naidarinq the West line of said NW1/4 of Siltation 20 as mcianmmunted wit a 3 1/4R aluminum Gap L.S. #10740 at the Northwest corner and a 3 1 4" • aluminum cap L.S. #11548 at the Was= Carter C:nar as bearing Nort 00 degraas 00 rinntaa 00 seconds East and with all bearings c=stained here relative thereto. Cpnaancinq at said Norrhwan= copier of said Section 20; than= along said West line of tea NW1/4 South 00 degrees 00 minutes 00 seconds East 560.87 fast to the Noy z:h line of said SL...Gih's Third Additi as nonumantad, said fla t, line also twins the manta:anted South lino of Lakeahara Addition and Lakeshore Second Addition to the Town of Evans; said North lima also being the North line of that cattain parcsj of lam as dascribed in dead recorded in Book 891 at Racapticn No. 1813428 records of said County; thanca along said North line North 89 =grams 46 minutes 59 seconds Ears a. distance of 390.79 fast to a #4 rah= (no airrSouth 33 diagrams 30 ninnies ZZ seconds East. a ditancspo= 660,65 feat #4 mbar with cap L.S. 11399, and a i= South 88 dawns* 13 30 seconds East, a distance of 53.27 feat to a #4 mbar with [ Pal of and the Northwest corner of that certai„ cap L.S. ZIi deed recardad in Book 990 at8 r ace aste..__ at at esibad said in FZecaptibA Na. 1919028 r County; thence along the North line of said parcel of land South 89 degrees 53 minutes 04 seconds East, a distance of 46.45 feat to a #4 rabar with ca L.S. 11.399 on tea West line of State Farm Subdivision to the Town of Evans; thence along said West.line Nash 00 degrees 22 rumen, 18 seconds West, a distance of 87.86 fast-to a #4 mbar with cap L.S. 17662 at the Northmast corner of said state Farm Subdivision; thence along said Hflrth line of state Farr subdivision North 99 degrees 49 minutes 37 seconds fit, a distances of 489.76 feet to a #4 rebar with cap L.S. 17662 an Southerly prolongation of the East line of. Lakeshore Third Addition to the Town of Evans; thencees 30 se �icg saaidsprolongation. and said East line North 00 degree: 35 3`p (Nunbar obi itaratad) on the�Southca rrighht-of-way line of 17.S. 7.S.<r with a Highway than= along said South right-of-way line South 72 =gram; 43 minutas 26 seconds, a distance of 440.78 feat to a #4 rebar (no cap) , and again 'forth 87 degrees 34 minutes 22 seconds East, a distances of 19.60 fast to • Page Ice 3 • LEG1L DESCIZPTEDS a 04 rebar with can L.S. 4392 and the East line of that certain pascal land as descrihad i.^s Dasd recorded in Book 1083 as Rpctption No. 202407 records of said County; said East line also being the art right-at-way line of old U.S. Highway #85 (8th Avenue) ; then ca along said West right-of-way line e following 6 courses and 1) South 02 ideograms 57 minutes 24 seconds East, a distance px 170.01 ft to a. #4 mbar with cap L.S. 17662; 2) South 03 degrees 08 minutes 31 second East, a distance at 201.96 fez to a 04 rabar with no cap; 3) South 00 degrees 09 minutes 41 seconds East, a distance of 39.04 fel to a 04 run= with cap L.S. 4392; 4) south 01 dsgrses 47 minutes 34 seconds, a distance of 31.01 feat to 14 rabar with cap L.S. 17662; 5) South 00 degrees 46 minutes 59 seconds West, a distance of 429.46 fast to a 04 rebar with cap L.S. 4392; 6) South 00 degrees 13 minutes 01 seconds West, a. distance of- 170.24 re feat to a 04 bar with cap L.S. 17662 on the North right-of-way lit of Southgate Drive; thence along said North right-of-way line and the West and south right-et-way limas of said Southgata Drive the following 5 courses and distances: 1) South 89 degrees 52 minutes 28 seconds West, a distance of 450.12 fiat to a 04 tuber with no cap 2) and the beginning of a curve connate to the Southaatt, having a radius of 60.00 feat and a central angle of 90 degrees 00 minutes 00 seconds and being subtended by a chord which bears South 44 digress 37 minutes 39 seconds West 84.85 feet; - thane Westerly, Southwesterly, and Southariy along said. cuxve, a distance of 94.25 feat to a 04 rabar with cap L.S. 4392; 3) South 00 degrees 18 minutes 55 seconds East, a distance of 360.02 feat to a #4 rebar with cap L.S. 17662 4) and-the-beginning of a-curve tangent to said line; trance Southerly, Southeasterly, and Easterly, a distance of 94.21 feet along the curt concave to the Northeast, having a radius of 60.00 fest and a teats. , angle of 89 degrees 57 r_inutas-4l- seconds to a 04-rebar with cap L.S 4392: 5) North 89 degrees-28 minutes 16 seconds East, a distance of 67.15 feel to a 04 rebar with cap L.S. 4392 on the East line of Lot 8 of the Amended Plat of Southgate Subdivision to the Town of Evans; thanes along said East line South 00 degrees 08 rinutes 31 seconds East, a distance of 209.96 feet to a 04 rebar with no cap on the South line of Page 2 at 3 L ZN said Lot 8t thanes along said South line and the South line of Lot 7 of said subdivision North 89 degrees 50 minutes 24 seconds West. a distance of 175.61 feat to a 04 rrhxr with no cap on the East inr of Lot 12 of sa. ?mended Plat of Southgate Subdivision; thence along said East line South 00 degrees 21 41 saconds East a distance of 295.03 feet to a 04 rebar with tap L.S. 10835 an the Sort right-of-way Linn of 31st Street; • i thence along said North line North 89 degrees 52 t&nutss 19 seconds Was wades oof ot said a147.59 fast to a. 04 roil= with cap L.S. 4322 as the West Flat of Southgate Snbdivi.sian; thanes ale woo! a said P 04 rabarwith cap L.S. 4392 line North 00 degrees 27 =Juntas a a Seat line of State Farm Subdivision to the Toms of Evans; thence along said South line and this West line of said State Farm Subdivision South 89 degrees 38 minutes 47 sacoads Nast, a. distance of 238.24 feat to a #4 mbar with cap L.S. 07232. and again North 00 degrs 39 minutes 08 seen-Ms West, a distant* of 265.36 feet to a 04 =bar wit cap L.S. 11399 on the North line of Sunny View Subdivision to the Town Evans: thence along said North line North 87 degrees 55 minutes 13 seconds Was a. distance of 101.93 feet to a 04 =bar with cap L.S. 11399 on the East tins of that curtain parcel of land as described in Aced recorded in Bo 1018 at Itaception No. 1933679 records of said County; • thence along said East lino and the North line at said parcel North 00 degrees 10 minutes 06 Bards Fairy a distanca of 13.57 feat- t0 a 04 mbar with cap L.S. 11399, and again North 88 diagrams 24 minutes 06 seconds West, a distance of 754.29 feet to said West line at the NW1/4 , Section 20; thence along said Wass line North 00 degrees 00 minutas 00 seconds East a distance of 650.06 feet to the True point of Beginning. • • • paga 3 of 3 • • FIRST AMENDMENT TO LEASE This First Amendment to Lease("Amendment") is entered into this_day of January, 2000,by and among JPB GREELEY,LLC,a Colorado limited liability company, WBP GREELEY, LLC,a Colorado limited liability company and RGM GREELEY,LLC,a Colorado limited liability company,as tenants in common(collectively"Landlord")and STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, its subsidiaries or assigns("Tenant"). RECITALS • A. Landlord and Tenant are parties to that certain Lease effectively dated May 20, 1999("Original Lease"). - B. The parties desire to amend certain terms and provisions of the Original Lease. NOW,THEREFORE,for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties agree as follows: I. All capitalized terms used herein shall have the same meaning as set forth in the Original Lease. The Original Lease and this Amendment are hereinafter referred to collecti'ely as the"Lease." 2. Base Rent for the period January 20,2000 through and including June 30,2000 in the amount of$471,370.97 shall be due and payable in full on June 1,2000. 3. All other terms and provisions of the Original Lease remain in full force and effect and are hereby ratified in their entirety. 4. In the event of a conflict or inconsistency between the terms and provisions of this Amendment and the terms and provisions of the Original Lease,the terms and provisions of this Amendment shall control and govern. LANDLORD: JPB GREELEY.LLC,a Colorado Limited Liability Company ohn P. Box, er 23271.70.MM I I:OOtMIUI.A0 W 7t0t.W PD:1 • WBP GREELEY,LLC,a Colorado Limited Liability. Company By: William B. Pains.Manager RGM GREELEY,LLC,a Colorado Limited Liability Company By: Richard G.McClintock.Manager • :1174.70.116r1000 I I:03i M}IfLA0W710t.Wp , ? C� TENANT: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Attest. e. - By.Ketuteth P. Cook k � P. ,'' Its: ice resiaen - per ` :3274.70.1/6/1000 II:O)&MHFl.A00d7{O4.W?D I 3 SECOND AMENDMENT TO LEASE This Second Amendment to Lease ("Second Amendment") is entered into this I S{' day of June, 2000, by and among JPB GREELEY, LLC, a Colorado limited liability company, WBP GREELEY, LLC, a Colorado limited liability company and RGM GREELEY, LLC, a Colorado limited liability company, as tenants in common (collectively "Landlord") and STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, its subsidiaries or assigns("Tenant"). RECITALS A. Landlord and Tenant are parties to that certain Lease effectively dated May 20, 1999 ("Original Lease"), as amended by that certain First Amendment to Lease dated January, 2000 ("First Amendment"). The Original Lease and the First Amendment are hereinafter collectively referred to as the "Existing Lease". B. The parties desire to amend certain terms and provisions of the Lease. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the panics agree as follows: 1. All capitalized terms used herein shall have the same meaning as set forth in the Existing Lease. The Existing Lease, as modified by this Second Amendment, is hereinafter referred to collectively as the"Lease". 2. Base Rent for the period January 20, 2000 through and including August 31, 2000 in the amount of$646,370.97 shall be due and payable in full on August 1, 2000. 3. All other terms and provisions of the Existing Lease remain in full force and effect and are hereby ratified in their entirety. 4. In the event of a conflict or inconsistency between the terms and provisions of this Second Amendment and the terms and provisions of the Existing Lease, the terms and provisions of this Second Amendment shall control and govern. I. {23274.70.6 /200D 01:31p.BBUR.A005B005.DOC;1) LANDLORD: JPB GREELEY, LLC, • a Colorado limited liability company By: J P. Box, Cr WBP GREELEY,LLC, a Colorado limited liability company By: William B. Pau s, Manager ROM GREELEY, LLC, a Colorado limited liability company Richard G.G. McClintock,Manager TENANT: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY Attester ^ 1 (J4LLiL{By: X ` E.A. Moskalski Its: Regional Vice President [Tripointe/Sublease) ASSIGNMENT AND ASSUMPTION OF LEASE FOR AND IN CONSIDERATION of the sum of Ten Dollars (310.00) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, JPB GREELEY,LLC,a Colorado limited liability company,WBP GREELEY,LLC,a Colorado limited liability company and RGM GREELEY,LLC, a Colorado limited liability company, each having • an address at do Frederick Ross Company, 717 Seventeenth Street,Suite 2000,Denver,Colorado 8020Z (collectively, "Assignor"), hereby sell, transfer, assign and set over to TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT, having an address at c/o Grimshaw &Harting, P.C., 1700 Lincoln Street.Suite 3800,Denver,Colorado 80203("Assignee"),all of Assignor's right, title and interest in and to that certain lease,as landlord thereunder,referred to in Exhibit A annexed hereto and made a part hereof(the "Lease"), which Lease affects and relates to the real property commonly known as 3001 Eighth Avenue,Evans,Colorado,from and after the date hereof. TO HAVE AND TO HOLD the same unto Assignee, its successors and assigns, forever, subject to the terms,covenants,conditions and provisions of the Lease. Assignee hereby accepts said assignment and assumes and agrees to perform and comply with all of the covenants, duties and obligations of Assignor as landlord under the Lease to be performed from and after the date hereof. Said assignment is made by Assignee without representation or warranty,express or implied, of any type,kind,character or nature. This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Assignment may be executed in one or more counterparts,each ofwhich shall constitute an original,but all of which,when taken together,shall constitute but one Assignment. 70731Alen/2000 01:22 PM.MSFRA0064SII.WPD:I IN WITNESS WHEREOF,the parties hereto have executed this Assignment as of the day of , 2000. ASSIGNOR: - .TPB GREELEY, LLC, a Colorado limited liability company By:. ;/ //7/ Its: ger WBP GREELEY, LLC, a Colorado limited liability company By: Its: Manager RGM GREELEY, LLC, a Colorado limited liability company J, I- W.(LI . Its: Manager ASSIGNEE: TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT By: • Its: 24-k44...-74,47 30751.4.1/211D0001'22PM.MSP A606141/.WPD:1 2 IN WITNESS WHEREOF,the parties hereto have executed this Assignment as ofthe day of , 2000. ASSIGNOR: JPB GREELEY, LLC, a Colorado limited liability company By: Its: Manager WBP GREELEY, LLC,a Colorado limited liability • company By: Its: Manager RGM GREELEY,LLC, a Colorado limited liability company By: Its: Manager ASSIGNEE: TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT By: Its: 007SIA.V2N20000I:22 PM.MSFtA00644It.WPD:i 2 EXHIBIT A Lease Tenant Lease Date State Farm Mutual Automobile Insurance Company May 20, 2000, as amended in January 2000 and on June 1, 2000 • 30751.4.S/2W=01:22 PM.PASER.A0064411.WPD:1 A-I AMENDED AND RESTATED OVERLEASE THIS AMENDED AND RESTATED OVERLEASE("Lease"), made as of the 13ih day of September, 2000 ("Effective Date") between UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having an address at University of Northern Colorado, Judy Farr Center, Greeley, Colorado 80639 ("Landlord"), and TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT, having an address at c/o Grimshaw & Hawing, P.C., 1700 Lincoln Street, Suite 3800,Denver, Colorado 80203 ("Tenant"). RECITALS A. JPB GREELEY, LLC, a Colorado limited liability company ("JPB"), WBP GREELEY, LLC, a Colorado limited liability company ("WBP") and RGM GREELEY, LLC, a Colorado limited liability company("RGM"), as lessor, entered into that certain Overlease dated - - September 13, 2000(the "Overlease") with JPB, WBP and RGM, as lessee, covering the Leased Premises (hereinafter defined). B. Landlord has acceded to the interest of JPB,WBP and RGM, as lessors,under the Overlease. C. Tenant has acceded to the interest of JPB, WBP and RGM, as lessees, under the Overlease. AGREEMENTS NOW,THEREFORE,in consideration of the premises and mutual covenants and agreements herein contained,and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree with each other as follows: ARTICLE 1 1.1 LEASED PREMISES. Landlord hereby leases to Tenant those certain premises(the "Leased Premises"),commonly known as the State Farm Mountain States Regional Office,together with adjoining land parcels, located at 3001 Eighth Avenue, Evans, Colorado, more particularly described on)exhibit A attached hereto and incorporated herein by this reference,together with an exclusive right, subject to the provisions hereof,to use all appurtenances thereunto,including,but not limited to,all building improvements,parking areas and all other areas on the Leased Premises. This Lease is subject to the terms,covenants and conditions set forth herein and Tenant and Landlord each covenant, as a material part of the consideration for this Lease,to keep and perform each and all of said terms, covenants and conditions to be kept and performed by them. 1.2 EFFECTIVE DATE. This Lease shall commence on the Effective Date. 30751.4.9/13/!000 11:44 AM.BBURA0065662.WPD:1 ARTICLE 2 2.1 TERM OF LEASE. The term of this Lease shall commence on the Effective Date and end on November 19, 2003, unless this Lease is sooner terminated as herein provided. 2.2 HOLDING AFTER TERMINATION. If, after the expiration of the term, Tenant shall remain in possession of the Leased Premises without a written agreement as to such holding, then such holding over shall be deemed and taken to be holding upon a tenancy from month to month at a base monthly rental of 105% of the monthly payments of the last year of such term hereinafter provided for, with respect to the initial thirty(30) days of such holdover, 115% for the next thirty (30) days and 125% thereafter, payable in advance on the same day of each month as hereafter provided, all other terms and conditions of this Lease remaining the same. ARTICLE 3 3.1 PROVISIONS OF SUBLEASE. 3.1.1 The terms, covenants and conditions of the Sublease are incorporated herein by reference so that, except to the extent that they are inapplicable or in conflict with this Lease and except as otherwise provided in this Section 3.1,each and every term, covenant and condition of the Sublease binding or inuring to the benefit of the landlord thereunder shall, in respect of this Lease, bind or inure to the benefit of the Landlord, and each and every term,covenant and condition of the Sublease binding or inuring to the benefit of the tenant thereunder shall,in respect of this Lease,bind or inure to the benefit of the Tenant, with the same force and effect as if such terms, covenants and conditions were completely set forth in the Lease. Tenant shall not be required to pay any"Base Rent"due under the Sublease except as expressly provided in this Lease. Sections 1.1, 1.2,2.1,2.2, 3.1, 4.1, 9.3, the first paragraph of Section 11.1 (but not Sections 11.1.1, 11.1.2 and 11.1.3), 11.4, 14.1, 17.1, 19.1, 20.1 21.1 23.1,23.2,23.3,23.4, and 23.6 of the Sublease shall be deemed deleted for the purpose of incorporation by reference in this Lease. If any of the express provisions of this Lease shall conflict with any of the provisions incorporated by reference, such conflict shall be resolved in every instance in favor of the express provisions of this Lease. 3.1.2 Any obligation of Tenant which is contained in this Lease by the incorporation by reference of the provisions of the Sublease may be observed or performed by Tenant's using reasonable efforts to cause the Sublessee to observe and/or perform the same,and Tenant shall have a reasonable time to enforce its rights to cause such observance or performance,but Tenant shall not be required to incur any expense or liability in causing such observance or performance. 3.1.3 Tenant shall not be bound by or be deemed to have made any warranties or representations made by Sublessee in the Sublease. 36751.4.9/13/20001:23 altumamnoa666LWPO1 Page 2 3.1.4 If any obligation, covenant or undertaking of Tenant under this Lease shall relate to the same subject matter as, or shall be substantially similar in purpose to, art obligation, covenant or undertaking of Sublessee under the Sublease, then Tenant's obligation, covenant or undertaking shall be no greater than, and shall be limited in scope by, the actual performance by Sublessee of such obligations, covenant or undertaking. ARTICLE 4 4.1 BASE RENTAL. Tenant shall pay to Landlord rent for the Leased Premises("Base Rent")in the amount of One Thousand Dollars ($1,000.00), in advance on the Effective Date. All Base Rent and additional rent shall be paid without notice,demand,deduction or offset at such place as Landlord may designate. ARTICLE 5 5.1 CHARACTER OF OCCUPANCY. Tenant agrees that the Leased Premises shall be used and occupied for the purpose set forth in the Sublease. 5.2 LANDLORD'S INDEMNITY. Landlord shall indemnify Tenant from and against any and all liability, damage or expense arising form the gross negligence or willful misconduct of landlord. ARTICLE 6 6.1 BREACH. If Tenant shall fail to observe or perform any of the conditions or agreements ofthis Lease,and such failure shall continue for a period ofthirty(30)days after Tenant's receipt ofwritten notice thereof from Landlord(provided however that if such failure is not capable of cure within such time,this Lease shall continue as long as Tenant commences such cure within said thirty (30) day period and diligently pursues such cure to completion), then and in any such event, Tenant shall be in default hereunder. Notwithstanding anything to the contrary contained herein, in the event Tenant shall be in default hereunder, Landlord shall have no right to exercise the right of termination of this Lease or repossession of the Leased Premises provided for herein unless and until the Sublessee shall be in default under the Sublease and this Sublease has been terminated as a consequence thereof. 6.2 CONDEMNATION. If the whole of the Leased Premises or so much thereof as to render the balance unusable by Tenant for the proper conduct of its business shall be taken under power of eminent domain or transferred under threat thereof,then this Lease, at the option of either Landlord or Tenant exercised by either party giving notice to the other of such election within thirty (30) days after such conveyance to or taking possession by the governmental authority, whichever is earlier, shall forthwith cease and terminate and the rent shall be duly apportioned as of the date of such taking or conveyance. No award for any partial or entire taking shall be apportioned and Tenant hereby assigns to Landlord any award which may be made in such taking or condemnation,together 3076IA.9/MOM 11:23 AMBaus.Auo66662.WPD,I Page 3 • with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof. Notwithstanding the forgoing,(a)in the event of a taking or the whole or materially all of the Leased Premises, Tenant shall be entitled to receive that portion of the award that represents a value arrived at by capitalizing the aggregate of the base rent due over the remaining term of the Sublease at eight percent (8%) per annum, and (b) Tenant shall be entitled to seek, directly from the condemning authority, an award for its removable trade fixtures,equipment and personal property and relocation expenses, if any, to the extent Landlord's award is not diminished. In the event of a partial taking which does not result in a termination of this Lease, the Leased Premises so taken shall be excluded from this Lease, and this Lease shall be modified accordingly. In such event, Landlord shall restore the improvements on the Leased Premises to a leaseable condition. Promptly after obtaining knowledge thereof,Landlord or Tenant,as the case may be,shall notify the other of any pending or threatened condemnation or taking affecting the Leased Premises or any portion thereof. If all or any portion of the Leased Premises shall be condemned or taken for governmental occupancy for a limited period,this Lease shall not terminate and Landlord shall be entitled to receive the entire amount of any such award or payment thereof as damages,rent or otherwise. Tenant hereby assigns to Landlord any award which may be made in suchdemporary taking,together with any and all rights of Tenant now or hereafter arising in or to the same or any part thereof. Tenant shall be entitled to receive an abatement of Base Rent and Additional Rent in proportion to the reduction in the size of the Premises so taken. ARTICLE 7 7.1 ACCEPTANCE OF PREMISES BY TENANT.Tenant is leasing the Leased Premises in its existing "as is,where is"condition and Landlord shall have no obligation whatsoever to make any improvements to the Leased Premises. The taking possession of the Leased Premises by the Tenant shall be conclusive evidence as against the Tenant that the Leased Premises was in good and satisfactory condition when possession of the same was taken. ARTICLE 8 8.1 NON-DISTURBANCE ANDATTORNMEN7'.Landlord covenants and agrees that, notwithstanding a default by Tenant hereunder, Sublessee shall be entitled to remain in possession of the Leased Premises in accordance with the terms of the Sublease for so long as Sublessee shall not be in default of any term, condition or covenant of the Sublease,provided that Sublessee shall, at the request of Landord, attom to Landlord. ARTICLE 9 9.1 NOTICE. Any notice given by Landlord or Tenant to the other shall be in writing and shall be deemed to have been given and effective upon delivery, by hand delivery, by overnight 50751.4.9Nf10001123 AMBBUAA006366zwPo;l Page 4 delivery with a nationally recognized delivery service, or by certified mail, return receipt requested, postage prepaid, at the address last given by notice to the Landlord or Tenant, as the case may be. Until notice to the contrary is given,the Landlord's address for the giving of notices and the Tenant's address for giving of notices are set forth in the introductory paragraph of this Lease. ARTICLE 10 10.1 INTERPRETATION OF TERMS. Wherever the words"Landlord"and"Tenant"are used in this Lease,they shall include the original Landlord and original Tenant,their respective heirs, successors and assigns,and shall apply to persons,both men and women, companies,joint ventures, partnerships, corporations and other entities, and in reading this Lease the grammatical changes required to make the provisions hereof mean and apply as aforesaid shall be made in the same manner as if written into this Lease. The headings of the paragraphs ofthis Lease are for convenience of reference only, and in case of any conflict between the heading and text of any paragraph, the text shall control. If any provision ofthis Lease is illegal,invalid or unenforceable under present or future laws effective during this Lease,it is the intention of the Landlord and Tenant that the other provisions of this Lease shall not be affected thereby. ARTICLE 11 11.1 NO RELIANCE. The Tenant acknowledges and agrees that it has not relied upon any statements, representations, agreements or warranties, except such as are expressed herein. ARTICLE 12 12.1 LANDLORD'S COVENANTS. Subject to the provisions of this Lease, Landlord covenants that Tenant on paying the rent and performing the covenants of this Lease on its part to be performed shall and may peacefully and quietly have, hold and enjoy the Leased Premises for the term of this Lease. ARTICLE 13 13.1 ASSIGNMENT. Tenant shall not have the right to assign this Lease or further sublet the Leases Premises, in whole or in part, at any time during the initial term or any extended term without obtaining the consent of Landlord; provided however such consent shall not be unreasonably withheld or delayed.Neither the subletting of the Leased Premises nor the assignment hereof shall release Tenant from its obligations hereunder,including,without limitation,its obligation to pay rents. Landlord shall be notified of the true name and authorized agent for assignee or subtenant, and shall be provided with a copy of the assumption of this Lease executed by such subtenant or assignee. 30751 A.9/13/2000 11:23 AMBBURA0065662WPD,1 Page 5 13.2 ENTIRE AGREEMENT. This instrument constitutes the entire agreement between the parties hereto and incorporates all ofthe obligations of the parties.There are no other agreements or between the parties, either oral or written, with regard to the subject matter of this Lease. 13.3 AMENDMENTS. This Lease may not be amended,modified or altered except by the written consent of the parties hereto. 13.4 BINDING LEASE. The covenants and provisions hereof shall extend to and be binding upon the parties hereto, their respective heirs, executors, administrators, successors and assigns. 13.5 NO OFFSET. Tenant shall not be entitled to offset any Base Rent or other payments payable to Landlord hereunder against any obligation of Landlord to Tenant under this Lease. 13.6 BROKERS. Landlord and Tenant represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with the negotiation of this Lease and/or the consummation of the transaction contemplated hereby,and that no broker or other person, firm or entity is entitled to any commission or finder's fee in connection with such transaction. Tenant and Landlord hereby each agree to indemnify and hold the other harmless from and against liability for compensation or charges which may be claimed by any broker, finder or other similar party by reason of any dealings or actions of the indemnifying party, including any costs, expenses, and attorney's fees reasonably incurred with respect thereto. 13.7 NO MERGER Notwithstanding that Tenant may at any time also be the owner or holder of all or any part of the fee estate in the Leased Premises, it is the intention of the parties hereto that no part of the interest of Tenant in the Lease shall merge with the interest of any such owner of holder of all or any part of the fee estate in the Leased Premises, and that such interests shall,at all times, remain separate and distinct interests. 13.8 COUNTERPARTS. This Lease may be executed in one or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one agreement. 30751A 9/13/2000 11.23 AMBBURAaos5662WPR1 Page 6 This Lease is executed and effective as of the Effective Date set forth above. LANDLORD: UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation By: Ce4e-re-X-- Its: TENANT: TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT By: Its: 3075!.4.9/13/2000 11:27 AMnBURA0065662WPI3:I Page 7 fLot I-State Farm Farrell EXHIBIT.A Leeal Description All of :nose portions of STAT! FARM SUBDIVISION. and LAKESHORE THIRD ADDITION, ail being -n the City of Evans, and portansof the NW1/4 cf Section 23. Township 5 North. Range 65 west of one 6th P.M., County of Weld. State of Colorado. being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. *10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as bearing N00°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest tuner of said Section 20: thence along said West line of the . NW1/4 500.00'00" E. 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumented. said North line also being the.monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION. to the Town of Evans; said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 ac Reception No. 1813428, records of said county; thence along said North line N89.46'59° East. a distance of 390.79 feet to a #4 rebar (no cap) , and again 533.30'11" East. a distance of 660.65 feet to a #4 rebar with cap L.S. *11399. and again S88°13'30" East, a distance. of 53.27 feet to a #4 rebar with cap L.S. *11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028. records of said county: thence along the North line of said parcel of Land S89°53'04• East. a.distance of 46.45 feet to a #4 rebar with cap L.S. 411399 on the West line of STATE FARM SUBDIVISION. to the Town of Evans and the .True Point of Beginning; thence along said West line N00°22'18" West. a distance of 87.86 feet to a #4 rebar with cap L.S. #17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89.49'37" East, a distance of 489.76 feet to a #4 rebar with cap L.S. 17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said Ease line No0.35'30" East. a distance of 572.91 feet co a #4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34, thence along said South right-of-way line S72°43'26" East. a distance of 440.78 feet to a 44 rebar ino cap) , and again N87°34' 22" Ease. a distance of 19.60 feet to -a 44 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072. records of said county, said East line also being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) 503°57'24" East. a distance of 170.01 feet co a #4 rebar with cap L.S. *17662; 2) 503°08'31" East. a distance of 201.96 feet to a #4 rebar with-no cap: 3) S00.09'41" East. a distance of 39.04 feet to a #4 rebar with cap L.S. #4392; 41 501°47'34" East, a distance of 31.01 feet co a #4 rebar with cap L.S. #17662: 5) 300.46'59" West. a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the Nor= line of the AMENDED ?LAT CF SOUTHGATE SUBDIVISION. to the City of Evans: thence along said Norm Line 589°48'24" West. a distance of 7:0.81 feet (continual) Exhibit A(Page 1 of 2) [Lot 1-State Farm Parcel] to a #4 rebar with cap L.S. 49714 on :he South line cf ST.TZ FARM SUBDIVISION. to the Town of Evans; thence along said South. line and :ae West line of said STAT= FARM SUBDIVISION S89038,47" Weac, a distance of 238.24 feet :o a #4 railer with cap L.S. 47252. and again 10.39.08• West. a distance of 265.36 feet to a #4 rebar with cap L.S. 411399, and again 100.17•/7+ West, a distance of 137.19 feet to the True Point of Beginning. Exhibit A(Page 2 of 2) [Tripointe/Overlease] ASSIGNMENT AND ASSUMPTION OF LEASE FOR AND IN CONSIDERATION of the sum of Ten Dollars($20.00) and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, JPB GREELEY,LLC,a Colorado limited liability company,WBP GREELEY,LLC,a Colorado limited liability company and RGM GREELEY. LLC, a Colorado limited liability company, each having an address at do Frederick Ross Company, 717 Seventeenth Street, Suite 2000,Denver,Colorado 80202 (collectively, "Assignor"), hereby sell, transfer, assign and set over to TRIPOINTE_ _ - COMMERCIAL METROPOLITAN DISTRICT, having an address at do Grimshaw&Harting, P.C., 1700 Lincoln Street.Suite 3800,Denver,Colorado 80203("Assignee"),all of Assignor's right, title and interest in and to that certain lease,as tenant thereunder,referred to in Exhibit A annexed hereto and made a part hereof(the "Lease"), which Lease affects and relates to the real property commonly known as 3001 Eighth Avenue,Evans,Colorado, from and after the date hereof. TO HAVE AND TO HOLD the same unto Assignee, its successors and assigns,forever, subject to the terms,covenants,conditions and provisions of the Lease. Assignee hereby accepts said assignment and assumes and agrees to perform and comply with all of the covenants, duties and obligations of Assignor as tenant under the Lease to be performed from and after the date hereof. Said assignment is made by Assignee without representation or warranty,express or implied, of any type, kind,character or nature. This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Assignment may be executed in one or more counterparts,each of which shall constitute an original,but all of which,when taken together,shall constitute but one Assignment. 30751.4.8a42000 01:20 PM.VCOLA006M21.WPO:I • IN WITNESS WHEREOF,the parties hereto have executed this Assignment as ofthe day of , 2000. ASSIGNOR: : JPB GREELEY,LLC, a Colorado limited liability company By: Its: M ager WBP GREELEY, LLC, a Colorado limited liability company By: Its: Manager RGM GREELEY,LLC,a Colorado limited liability company By: 1th Its:Manager ASSIGNEE: TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT By: Its: cat uar r �— • 30751.4.1=000 01:20 PM.VCOLA0064421.WPD:1 2 IN WITNESS WHEREOF,the parties hereto have executed this Assignment as ofthe day of , 2000. AS SIGNOR: JPB GREELEY, LLC, a Colorado limited liability company By: Its: Manager WBP GREELEY, LLC, a Colorado limited liability company By: Its: Manager RGM GREELEY, LLC, a Colorado limited liability company By: Its: Manager ASSIGNEE: TRIPOINTE COMMERCIAL METROPOLITAN DISTRICT By: Its: 307S1.4.I/2112000 01:20 PM.VCnLA0064421.WPD 1 2 EXHIBIT A Lease Tenant Lease Date JPB Greeley, LLC, WBP Greeley, LLC and RGM Greeley, LLC , 2000 30751AIQV100001:20 PM.VCOLA0064Q1.WPD:1 A-1 OVERLEASE THIS OVERLEASE ("Lease") , made as of the /3J day of Serf-umber , 2000 ( "Effective Date") between JPB GREELEY, LLC, a Colorado limited liability company ("JPB") , WE? GREELEY, LLC, a Colorado limited liability company ("WBP") and RGM GREELEY, LLC, a Colorado limited liability company ("RGM") , as tenants in common, with an address at 717 Seventeenth Street, Suite 2000, Denver, Colorado 80202, (collectively, "Landlord" ) , and JPB, WPB, and RGM, ("Tenant") . RECITALS A. Landlord, as lessor, has entered into a Lease dated as of May 20, 1999 (the "Sublease") with State Farm Mutual Automobile Insurance Company, as lessee (the "Sublessee") , covering the Leased Premises (hereinafter defined) . B. By assignment and assumption agreement of even date herewith, Landlord has assigned its right, title and interest, as lessor, in and to the Sublease to Tenant, and Tenant has assumed the obligations of lessor thereunder. C. The lessor' s interest in the Sublease is, pursuant to the terms of the Sublease, freely assignable without the consent of Sublessee. D. The Sublease is, by its terms, subject and subordinate to any overlease, underlying lease or master lease entered into at any time with respect to the Leased Premises. E. Landlord desires to enter into an overlease with respect to the Leased Premises in favor of Tenant and Tenant desires to accept such overlease, upon the terms and conditions more particularly provided hereinafter. F. Landlord and Tenant desire that the Sublease shall be a sublease with respect to the Leased Premises, subject and subordinate to this Lease . it 30731.4.8/21/2000 12:33 PM.MSFR.A0060768.W PD:3 • AGREEMENTS NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree with each other as follows : ARTICLE 1 1.1 LEASED PREMISES. Landlord hereby leases to Tenant those certain premises (the "Leased Premises") , commonly known as the State Farm Mountain States Regional Office, together with adjoining land parcels, located at 3001 Eighth Avenue, Evans, Colorado, more particularly described on Exhibit A attached hereto and _ incorporated herein by this reference, together with an exclusive right, subject to the provisions hereof, to use all appurtenances thereunto, including, but not limited to, all building improvements, parking areas and all other areas on the Leased Premises. This Lease is subject to the terms, covenants and conditions set forth herein and Tenant and Landlord each covenant, as a material part of the consideration for this Lease, to keep and perform each and all of said terms, covenants and conditions to be kept and performed by them. 1.2 EFFECTIVE DATE. This Lease shall commence on the Effective Date. ARTICLE 2 2. 1 TERM OF LEASE. The term of this Lease shall commence on • the Effective Date and end on November 19, 2003, unless this Lease is sooner terminated as herein provided. 2 .2 HOLDING AFTER TERMINATION. If, after the expiration of the term, Tenant shall remain in possession of the Leased Premises without a written agreement as to such holding, then such holding over shall be deemed and taken to be holding upon a tenancy from month to month at a base monthly rental of 105% of the monthly payments of the last year of such term hereinafter provided for, with respect to the initial thirty (30) days of such holdover, 115% for the next thirty (30) days and 125% thereafter, payable in advance on the same day of each month as hereafter provided, all other terms and conditions of this Lease remaining the same. 00751.4.7/241200001:37 PM.MSFRA006076S.WPDS Page 2 ARTICLE 3 3 . 1 PROVISIONS OF SUBLEASE. 3 . 1 . 1 The terms, covenants and conditions of the Sublease are incorporated herein by reference so that, except to the extent that they are inapplicable or in conflict with this Lease and except as otherwise provided in this Section 3 .1, each and every term, covenant and condition of the Sublease binding or inuring to the benefit of the landlord thereunder shall, in respect of this Lease, bind or inure to the benefit of the Landlord, and each and every term, covenant and condition of the Sublease binding or inuring to the benefit of the tenant thereunder shall, in respect of this Lease, bind or inure to the benefit of the Tenant, with the same force and effect as if such terms, covenants and conditions were completely set forth in the Lease. Tenant shall not be required to pay any "Base Rent" due under the Sublease except as expressly provided in this Lease. Sections 1. 1, 1.2, 2 .1, 2.2, 3 . 1, 4.1, 9.3, the first paragraph of Section 11.1 (but not Sections 11. 1.1, 11.1.2 and 11.1.3) , 11.4, 14.1, 17. 1, 19. 1, 20.1 21.1 23 . 1, 23 .2, 23 .3, 23 .4, and 23 . 6 of the Sublease shall be ' deemed deleted for the purpose of incorporation by reference in this Lease. If any of the express provisions of this Lease shall conflict with any of the provisions incorporated by reference, such conflict shall be resolved in every instance in favor of the express provisions of this Lease. 3 .1.2 Any obligation of Tenant which is contained in this Lease by the incorporation by reference of the provisions of the Sublease may be observed or performed by Tenant 's using reasonable efforts to cause the Sublessee to observe and/or perform the same, and Tenant shall have a reasonable time to enforce its rights to cause such observance or performance, but Tenant shall not be required to incur any expense or liability in causing such observance-or performance. 3 . 1. 3 Tenant__shall_ not be bound by or be deemed to have made any warranties or representations made by Sublessee in the Sublease. 3 . 1.4 If any obligation, covenant or undertaking of Tenant under this Lease shall relate to the same subject matter as, or shall be substantially similar in purpose to, an obligation, covenant or undertaking of Sublessee under the Sublease, then Tenant ' s obligation, covenant or undertaking shall be no greater 3075IA7/24200001:J7PM.MSFR.A0060766.WPD:2 Page 3 than, and shall be limited in scope by, the actual performance by Sublessee of such obligations, covenant or undertaking. ARTICLE 4 4 .1 BASE RENTAL. Tenant 'shall pay to Landlord rent for the Leased Premises ( "Base Rent" ) in the amount of One Thousand Dollars ($1, 000. 00) , in advance on the Effective Date. All Base Rent and additional rent shall be paid without notice, demand, deduction or offset at such place as Landlord may designate. ARTICLE 5 5.1 CHARACTER OF OCCUPANCY. Tenant agrees that the Leased Premises shall be used and occupied for the purpose set forth in the Sublease. 5.2 LANDLORD' S INDEMNITY. Landlord shall indemnify Tenant from and against any and all liability, damage or expense arising form the gross negligence or willful misconduct of landlord. ARTICLE 6 6.1 BREACI;. If Tenant shall fail to observe or perform any of the conditions or agreements of this Lease, and such failure shall continue for a period of thirty . (30) days after Tenant's receipt of written notice thereof from Landlord (provided, however, that if such failure is not capable of cure within such time, this Lease shall continue as long as Tenant commences such cure within said thirty (30) day period and diligently pursues such cure to completion) , then and in any such event, Tenant shall be in default hereunder. Notwithstanding anything to the contrary contained herein, in the event Tenant shall be in default hereunder, Landlord shall have no right to exercise the right of termination of this Lease or repossession of the Leased Premises provided for herein unless and until the Sublessee shall be in default under the Sublease and this Sublease has been terminated as a consequence thereof. 6.2 CONDEMNATION. If the whole of the Leased Premises or so much thereof as to render the balance unusable by Tenant for the proper conduct, of its business shall be taken under power of eminent domain or transferred under threat thereof, then this Lease, at the option of either Landlord or Tenant exercised by either party giving notice to the other of such election within 30751.4.7RII200001:37 PM.MSFR.A00607611.WPD:2 Page 4 thirty (30) days after such conveyance to or taking possession 'by the governmental authority, whichever is earlier, shall forthwith cease and terminate and the rent shall be duly apportioned as of the date of such taking or conveyance. No award for any partial or entire taking shall be apportioned and Tenant hereby assigns to Landlord any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising 'in or to the same or any part thereof. Notwithstanding the forgoing, (a) in the event of a taking or the whole or materially all of the Leased Premises, Tenant shall be entitled to receive that portion of the award that represents a value arrived at by capitalizing the aggregate of the base rent due over the remaining term of the Sublease at eight percent (8%) per annum, and (b) Tenant shall be entitled to seek, directly from the condemning authority, an award for its removable trade fixtures, equipment and personal property and relocation expenses, if any, to the extent Landlord' s award is not diminished. In the event of a partial taking which does not result in a termination of this Lease, the Leased Premises so taken shall be excluded from this Lease, and this Lease shall be modified accord- ingly. In such event, Landlord shall restore the improvements on the Leased Premises to a leaseable condition. Promptly after obtaining knowledge thereof, Landlord or Tenant, as the case may be, shall notify the other of any pending or threatened condemna- tion or taking affecting the Leased Premises or any portion thereof. If all or any portion of the Leased Premises shall be condemned or taken for governmental occupancy for a limited period, this Lease shall not terminate and Landlord shall be entitled to receive the entire amount of any such award or payment thereof as damages, rent or otherwise. Tenant hereby assigns to Landlord any award which may be made in such temporary taking, together with any and all rights of Tenant now or hereafter arising in or to -the same or any part thereof. Tenant shall be entitled to receive an abatement of Base Rent and Additional Rent in proportion to the reduction in the size of the Premises so taken. ARTICLE 7 7. 1 ACCEPTANCE OF PREMISES BY TENANT. Tenant is leasing the Leased Premises in its existing "as is, where is" condition and Landlord shall have no obligation whatsoever to make any improvements to the Leased Premises . The taking possession of the 70761.4.7/24/200001:37 PM.MSFR.A0060766.WPD:2 Page 5 Leased Premises by the Tenant shall be conclusive evidence as against the Tenant that the Leased Premises was in good and satisfactory condition when possession of the same was taken. ARTICLE 8 8 . 1 NON-DISTURBANCE AND ATTORNMENT. Landlord covenants and agrees that, notwithstanding a default by Tenant hereunder, Sublessee shall be entitled to remain in possession of the Leased Premises in accordance with the terms of the Sublease for so long as Sublessee shall not be in default of any term, condition or covenant of the Sublease; provided that Sublessee shall, at the request of Landord, attorn to Landlord. ARTICLE 9 9. 1 NOTICE. Any notice given by Landlord or Tenant to the other shall be in writing and shall be deemed to have been given and effective upon delivery, by hand delivery, by overnight delivery with a nationally recognized delivery service, or by certified mail, return receipt requested, postage prepaid, at the address last given by notice to the Landlord or Tenant, as the case may be. Until notice to the contrary is given, the Landlord's address for the giving of notices and the Tenant's address for giving of notices are set forth in the introductory paragraph of this Lease. ARTICLE 10 10 .1 INTERPRETATION OF TERMS. Wherever the words "Landlord" and "Tenant" are used in this Lease, they shall include the original Landlord and original Tenant, their respective heirs, successors and assigns, and shall apply to persons, both men and women, companies, joint ventures, partnerships, corporations and other entities, and in reading this Lease the grammatical changes required to make the provisions hereof mean and apply as aforesaid shall be made in the same manner as if written into this Lease. The headings of the paragraphs of this Lease are for convenience of reference only, and in case of any conflict between the heading and text of any paragraph, the text shall control . If any provision of this Lease is illegal, invalid or unenforceable under present or future laws effective during this Lease, it is the • 307514.724200001:37 PM.MSFR.A0060761.WPD:2 Page 6 intention of the Landlord and Tenant that the other provisions of this Lease shall not be affected thereby. ARTICLE 11 11 . 1 NO RELIANCE. The Tenant acknowledges and agrees that it has not relied upon any statements, representations, agreements or warranties, except such as are expressed herein. ARTICLE 12 12 . 1 LANDLORD'S COVENANTS. Subject to the provisions of this Lease, Landlord covenants that Tenant on paying the rent and performing the covenants of this Lease on its part to be performed shall and may peacefully and quietly have, hold and enjoy the Leased Premises for the term of this Lease. ARTICLE 13 13 .1 ASSIGNMENT. Tenant shall not have the right to assign this Lease or further sublet the Leases Premises, in whole or in part, at any time during the initial term or any extended term without obtaining the consent of Landlord; provided, however, such consent shall.not be unreasonably withheld or delayed. Neither the subletting of the Leased Premises nor the assignment hereof shall release Tenant from its obligations hereunder, including, without limitation, its obligation to pay rents. Landlord shall be notified of the true name and authorized agent for assignee or subtenant, and shall be provided with a copy of the assumption of this Lease executed by such subtenant or assignee. 13 .2 ENTIRE AGREEMENT. This instrument constitutes the entire agreement between the parties hereto and incorporates all of the obligations of the parties. There are no other agreements or between the parties, either oral or written, with regard to the subject matter of this Lease. 13 .3 AMENDMENTS. This Lease may not be amended, modified or altered except by the written consent of the parties hereto. 13 .4 BINDING LEASE. The covenants and provisions hereof shall extend to and be binding upon the parties hereto, their respective heirs, executors, administrators, successors and assigns. 30751A124/200001:37 P.M.MSFRA00607611.WPD:2 Page 7 13 .5 NO OFFSET. Tenant shall not be entitled to offset any Base Rent or other payments payable to Landlord hereunder against any obligation of Landlord to Tenant under this Lease. 13 .6 BROKERS. Landlord and Tenant represent and warrant to the other that it has had no dealings with any person, firm, broker or finder in connection with the negotiation of this Lease and/or the consummation of' the transaction contemplated hereby, and that no broker or other person, firm or entity is entitled to any commission or finder' s fee in connection with such transaction. Tenant and Landlord hereby each agree to indemnify and hold the other harmless from and against liability for compensation or charges which may be claimed by any broker, finder or other similar party by reason of any dealings or actions of the indemnifying party, including any costs, expenses, and attorney's fees reasonably incurred with respect thereto. 13 . 7 NO MERGER. Notwithstanding that Tenant may at any time also be the owner or holder of all or any part of the fee estate in the Leased Premises, it is the intention of the parties hereto that no part of the interest of Tenant in the Lease shall merge with the interest of any such owner of holder of all or any part of the fee estate in the Leased Premises, and that such interests shall, at all times, remain separate and distinct interests . 13 .8 COUNTERPARTS. This Lease may be executed in one or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one agreement. 30751.4.11/2112000 11.09 AM.MSFR.A0060766.WPD:2 Page 8 - This Lease is executed and effective as of the Effective Date set forth above . LANDLORD: JPB GREELEY, LLC, a Colorado Limited Liability pa /ohn P. Bo , Manager WBP GREELEY, LLC, a Colorado Limited Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company By: Richard G. McClintock, Manager TENANT: JPB CREEL , LLC, a Colorado Limited Liabil ' P BY: ohn P. Bo , Manager WBP GREELEY, LLC, a Colorado Limited • Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company By: Richard G. McClintock, Manager 30751.41/2112000 IJ:JJ PM.MSPRA0060761.WPDa Page 9 This Lease is executed and effective as of the Effective Date set forth above. LANDLORD: JPB GREELEY, LLC, a Colorado Limited Liability Company By: John P. Box, Manager WBP GREELEY, LLC, a Colorado Limited Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company By: Richard G. McClintock, Manager TENANT: JPB GREELEY, LLC, a Colorado Limited Liability Company By: John P. Box, Manager WBP GREELEY, LLC, a Colorado Limited Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company By: Richard G. McClintock, Manager 30731.4.V2&200012:33 PM.MSFRA0060766.WPD2 Page 9 . -- This Lease is executed and effective as of the Effective Date 'set forth above. LANDLORD: JPB . GREELEY, LLC, a Colorado Limited Liability Company By: John P. Box, Manager • WBP GREELEY, LLC, a Colorado Limited Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company Ey: ..�.:...X Richard G. McClintock, Manager TENANT: JPB GREELEY, LLC, a Colorado Limited Liability Company By: John P. Box, Manager WBP GREELEY, LLC, - a Colorado Limited • Liability Company By: William B. Pauls, Manager RGM GREELEY, LLC, a Colorado Limited Liability Company By: k�.,%..„;".;\ L-- Richard G. McClintock, Manager 30751.4.2/21/2000 12.33 PM.MSPRA0060769.WPD:2 Page 9 [Lot 1-State Farm Parcel[ EXHIBIT A, Legal Description All of those portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION. all being in the City of Evans, and portions of the NW1/4 of Section 20, Township 5 North, Range 65 West of the 6th P.M. . County of Weld. State of Colorado. being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4• aluminum cap L.S. X10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. 411648 at the West Quarter corner as bearing N00°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest earner of said Section 20; thence along said West line of the NW1/4 S00°00'00" E, 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumenced, said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION. to the Town of Evans; said North line also being the North line o₹ that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records of said county; thence along said North line N89°46'59• East. a distance of 390.79 feet to a *4 rebar (no cap) , and again S33°30'11" Easy, a distance of 660.65 feet to a #4 rebar with cap L.S. *11399. and again 588°13'30" East. a distance. o₹ 53.27 feet co a *4 rebar with cap L.S. #11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028, records of said county; thence along the North line of said parcel of land 589°53'04" East. a distance of 46.45 feet co a #4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION, to the Town of Evans and the True Point of Beginning; thence along said West line NO0°22.18" West, a distance of 87.86 feet .to a #4 rebar with cap L.S. *17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89.49'37" East. a distance o₹ 489.76 feet co a #4 rebar with cap L.S. #17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans; thence along said prolongation and said East 1.ine NO0°35'30" East, a distance of 572.81 feet to a #4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34: thence along said South right-of-way line S72°43'26" East, a distance of 440.78 feet to a #4 rebar (no cap) , and again N87°34'22" East. a distance of 19.60 feet co a e4 rebar with cap L.S. #4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also being the west right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said west right-of-way line the following 5 courses and distances: 1) S03°57'24" East, a distance of 170.01 feet to a *4 rebar with cap L.S. #17662; 2) 503.08'31" East. a distance of 201.96 feet to a *4 rebar with no cap; 3) S00°09'41" East, a distance of 39.04 feet co a *4 rebar with cap L.S. #4392; 4) S01°47'34" East, a distance of 31.01 feet to a *4 rebar with cap L.S. #17662; 5) S00°46'59" West. a distance of 489.46 feet to a *4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION. to the City of Evans: thence along said North :the S89°48'24" west. a distance cf 7:0.81 feet (continued) Exhibit A(Page 1 of 2) [Lot 1-State Farm Parcel) to a 44 rebar with can L.S. #9714 on the South line of STMT FARM SUBDIVISION. co the Town of Evans; thence along said South line and cure West line of said STATE FARM SUBDIVISION 589°38.47• West. a distance of 238.24 feet to a *4 rebar with cap L.S. #7252, and again NO°39.08" West, a distance of 265.36 feet co a #4 rebar with cap L.S. #11399, and again N00°17'17" West, a distance of 137.19 feet to the True Point of Beginning. • Exhibit A(Page 2 of 2) 111111111111111►111III 111111111 1111111 1111111111111111 2793736 09/13/2000 04:05P JA Sold Tsukamoto 1 of 8 R 40.00 D 0.00 Weld County CO [UNC] • • _ C�ECIAL Wd Rw'7 i 7 THIS SPECIAL WARRANTY DEED 2000, is entered into between THE PARTY(I SET"), dated FORTH s of the l_E daY of . A ACHED HERETO AND MADE A PART HEREOF("Grantor"), UNIVERSITY SCHEDT LO I NORTHERN COLORADO FOUNDATION, INC.; a Colorado corporat n, having a address at University of Northern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESSETH,that the Grantor, for and in consideration of the sum of Ten Dollars ($10.00)and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in c edu a grant,bargain, if any, mon situate, lyingng ,in all the real property,together with improvements, described on E S A attached hereto and County of incorporated herein by thisreference "Property"). the Weld, State of rpbyColorado, particularly (the p rty») TOGETHER with an undivided tenant -in-co 1, in (i) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all Y moron interest,as set forth in c u • easements and rights-of--way appurtenant to or otherwise benefitting the Property fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise P rtY or the buildings, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in appertaining, and the reversion and reversions, interest, claim and demand whatsoever of the Grantor, either or equity,the estate,o right,t title, Property, with the hereditaments and appurtenances; of, in and to the SJECT se matters set forth on Eghath herein by this refCerreence(collleectively, the "Permitted Exceptions"),attached hereto and incor porated TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT FOREVER DEFEND said interest in the Property in the quiet and peaceable possessin rantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: 30751.18:22.?000 µL07 PM.MSFR.A0062585.WPD:3 1 111111111111111111111 11114111111111 11111111111111 2793735 09/13/2000 04:06kl Tsukamoto JA CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: a e: 5075 1 4 8122/2000 04 07 PM.MSFR.A0062585.WPD;I - 2 - 1111111111111111AI III 11111 INII 1111111 III 11111 1111 1111 2793735 09/13/2000 04:05P JA Said Tsukamoto 3 of 8 R 40.00 D 0.00 Weld County CO STATE OF COLORADO SS. CITY AND COUNTY OF DENVER) The foregoing instnm nt was acknowledged before me this day of ,„,,foratei2000bySohn My commission expires: 4. 4- 200(4' �,�PP'"`�� '••.,lam { N tary Public CP Zi Eakins j salon • )ur5 P 4 77.!00004:07 PM.MSFR.A006?586.WPD:I - 3 - as 111111111111 PINE f1111111111111111 III 11111 III!1111 • 2793736 09/13/2000 04:06P JA Sold Tsukamoto 4 of 8 R 40.00 D 0.00 Weld County CO [Lot 1-State Farm Parcel] EXHIBIT A Legal Descrintiort All of chose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the Cicy of Evans, and portions of the NW1/4 of Section 20. Township 5 North, Range 65 west of the 6th P.M. , County of Weld, State of Colorado. being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4' aluminum cap L.S. #10740 at the Nortnwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as'bearing N00°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said West line of the NW1/4 500.00. 00" E. 560.87 feet co the North line of said STROH'S THIRD ADDITION, as monumented, said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans; said North line also being the North line of chat certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records of said county; thence along said North line N89°46'59• East, a distance of 390.79 feet co a *4 rebar (no cap) , and again S33°30'11" East, a distance of 660.65 feet to a #4 rebar with cap L.S. #11399, and again S88°13'30" East, a distance. of 53.27 feet co a *4 rebar with cap L.S. #11399 and the Northwest corner of chat certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028, records of said county; thence along the North line of said parcel of land 589"53.04" East, a distance of. 46.45 feet to a *4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION, to the Town of Evans and the True Point of Beginning; thence along said West line N00°22' 18" west. a distance of 87.86 feet co a *4 rebar with cap L.S. *17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49'37" East. a distance of 489.76 feet to a *4 rebar with cap L.S. *17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, co the Town of Evans; thence along said prolongation and said East line NOO°35'30" East, a distance of 572 .81 feet to a *4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line 572°43.26" East, a distance of 440.78 feet to a *4 rebar (no cap) , and again N87.34'22" East, a distance of 19.60 feet co a *4 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also being the West right-of-way line of old U.S. Highway #85 (6th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) S03°57'24" East, a distance of 170.01 feet to. a #4 rebar with cap L.S. .#17662;. 2) 503°08'31" East, a distance of 201.96 feet to a #4 rebar with no cap; 3) S00°09.41" East, a distance of 39.04 feet co a #4 rebar with cap L.S. #4392; 4) 501°47'34" East, a distance of 31.01 feet co a #4 rebar with cap L.S. #17662; 5) S00°46.59' West, a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION, to the City of Evans; thence along said Nortn line S89°48'24" West, a distance of 710.81 feet (continued) Exhibit A( Page 1 of 2) 1111111111111111111111!MINIM 1111111111 1111111 IIII 2793735 09/13/2000 04:05P JA Sold Tsukamoto 5 of 8 R 40.00 D 0.00 Weld County CO [Lot I-State Farm Parcel) to a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, co the Town of Evans; thence along said South line and the West line of said STATE FARM SUBDIVISION S89°38'47' West, a distance of 238.24 feet co a #4 rebar with cap L.S. #7252, and again N0°39.08' West. a distance of 265.36 feet to a #4 rebar with cap L.S. #11399, and again NO0°17.17' West, a distance of 137.19 feet co the True Point of Beginning. Exhibit A ( Page 2 of 2) • I111111111111111111III11111111111111111III11111IIII101 26793735R 13/200.00000.00 SPWetdJA Sukiunty Is kamoto CO EXHIBIT B Permitted Exceptions I. General real estate taxes and assessments for 2000 and subsequent years,a lien but not , yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. 5. Matters arising by,through or under Grantee. 6. Right of the public and adjoining owners in highways, streets, roads and lanes bounding or abutting the Property. • 7. Overlease of even date herewith from JPB Greeley,LLC, WBP Greeley, LLC and RGM, Greeley, LLC to JPE Greeley, LLC, WBP Greeley, LLC and RGM,Greeley,LLC. 8. Lease dated May 20,2000 from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title co water in, on or under the land. 10 The right of the proprietor of a vein or lode co extract or remove his ore, should the same be found to penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. It. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as grantedThe Department of Highways, State of Colorado, by Deed recorded July edrecordedJuly 12, 1962 in Book 1619 at Page 610. (continued) 30151.4.8/23/200008'.48 AM.MSFA.A0062585 WPD.I Exhibit B (Page I of 2) 111111" 1lilli! III!I!0!1!!I !11!11! III II!!!!!" "I' 7of 8 R 40.00 0p 0.04 Weld CountyCO kamoto 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981. in Book 949 a: Reception No. 1871004 . c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. Western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No. 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. • 30751 A.81241200011:11 AM.MSFR.A006258$WPD:I Exhibit B (Page 2 of 2) 11111111111111111111111111111111111111111111111111121111 8 of 7T35 8 R 40 0 2000 04:05P D 0.00 weldJA Sukl County CO Tsukamoto SCHEDULE I Donor Name Tenancy-in-Common Interest John P. Box 27.2735% 10751.4.8/24/2000 1133 AM.MSFR.AO062585.WPDll SC'I [NM 111111111101NIIID11111 MIME 11111111 2793738 09/13/2000 04:05p JA Suki Tsukamoto 1 of 8 R 40.00 D 0.00 Weld County CO (UNC] • SPECIAL WARRANT�DEED THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the din day of 2000, is entered into between THE PARTY SET FORTH ON WHEDULE I ATAT A HERETO AND MADE A PART HEREOF("Grantor"),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University ofNorthem Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESSETH,that the Grantor, for and in consideration of the sum of Ten Dollars (510.00)and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest, as set forth in chedule r,in all the real property, together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference(the "Property"). TOGETHER with an undivided tenant st,as set forth in&tows ►, in (i) all buildings, fixtures and improvements located th thereon on toreattached thereto; easements and rights-of-way appurtenant to or otherwise benefitting the Propertyort (ii) all • fixtures or improvements located thereon; and (iii) all and singular the he edits entstand • appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in chedu a in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances;SUBJECT herein by this reference TO those(collectively, the "Permitted Perms set tted Exceptions"). rth on Exhibit B attached hereto and incorporated TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions.' • • 30751.4.82722000 04:07 PM.M SPR.A0062785.WPCs I 1111111 IIIII 011111 IB 11111111111111111 III 1111111111111 2793738 09/13/2000 04:05P JA Solo Tsukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: • N e: • • 3075 I.a%"L100000:07 PM.MSFR.A0O62585.wppq - 2 111111111111 gill 11111111111111111111111IIIIIill!il11 ' 2793736 09/13/2000 04:06P JA Saki Tsukamoto 3 of 8 R 40.00 0 0.00 Weld County CO STATE OF COLORADO ) SS. CITY AND COUNTY OF DENVER) The foregoin inst ment was acknowledged before me this�H day of .52002118/2000 by it C • 3Q a c My commission expires: l.{-.t( , DoO c = EAPLINE ,}� /Notary Public auuct te) i0'lI4.12220000k02 PM.MSFRA00625$$.WPD:I - 3 111111 IIIII 1111111 1131111111E 11111111111111 III 11111 IIII 1111 . 2793738 09/13/2000 04:05P JA Sul('Taukamoto 5 of 8 R 40.00 D 0.00 Weld County CO (Lot 1-State Farm Parcel( co a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the West line cf said STATE FARM SUBDIVISION S89°38.47• west. a distance of 238.24 feet to a #4 rebar with cap L.S. #7252, and again NO"39.08^ West, a distance of 265.36 feet to a #4 rebar with cap L.S. #11399, and again N00017.17• West, a distance of 137.19 feet to the True Point of Beginning, Exhibit A( Page 2 of 2) I1O10111111111111III IIIII IIIIIIIIIIII III IIIII111(IIII • 2793736 09/13/2000 04:05P JA Sold Taukamolo 6 of 8 R 40.00 D 0.00 Weld County CO EXHIBIT B Permitted Exceotion6 I. General real estate taxes and assessments for 2000 and subsequent years,a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants,restrictions,easements and reservations of record. • 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways, streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley, LLC, WBP Greeley,LLC and RGM, Greeley, LLC to JPB Greeley, LLC, WBP Greeley, LLC and RGM,Greeley, LLC. 8. Lease dated May 20,2000 from JPB Greeley, LLC,WBP Greeley,LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9- Any water rights or claims or title to water in, on or under the land. 10- The right of the proprietor of a vein or lode co extract or remove his ore, should the same be found to penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 ac Page 296, and any and all assignments thereof or interests therein. 11. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted to The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 3081.4.JP3/200008.48AM.MSFR.A0062385.wpD.J Exhibit B (Page I of 2) 111111111111111111 I!I Ilill 111111111111 III 1011 III!1111 2793736 09/13/2000 04:05P JA Suki Tsukamoto 7 of 8 R 40.00 0 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 at Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No. 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. • • 30751A.224/200011:11 AM.MSFR.A00625t5.WPD:1 Exhibit B (Page 2 of 2) its 1111111111111111111 1111111111111111141111M 11ll!1111111 111 111111111 III! 2793736 09/13/2000 04:05P JA Suki Tsukamoto 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULE I Donor Name Tenancy-in-Common Interest Donald Slack 6.666% • 30751.184?/7000 Oa:07 PM.MSFR.A006S595.WPD:I SC-I 1111111111111111111 III 1111111111 Mil III 11111(111 Jilt 2793737 09/13/2000 04:05P JA Suki Tsukamoto 1 of 8 R 40.00 0 0.00 Weld County CO • [UNC] • SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the / 4 day of , e f eark , 2000, is entered into between THE PARTY SET FORTH ON SCHEDULE I ATTACHED HERETO AND MADE A PART HEREOF("Grantor"),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University of Northern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESSETH,that the Grantor,for and in consideration of the sum of Ten Dollars ($10.00)and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in Schedule I,in all the real property,together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference(the "Property"). TOGETHER with an undivided tenancy-in-common interest,as set forth in Schedule I, in 0) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all • easements and rights-of-way appurtenant to or otherwise benefitting the Property or the buildings, • fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in Schedule I, in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances; SUBJECT TO those matters set forth on Exhibit B attached hereto and incorporated herein by this reference (collectively, the "Permitted Exceptions"). TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: 30751 1.8:224000 0:07 PM.MSFR.A0062585.WPD:1 111111111111111111 III 11111 111111111111 III 11111 Iill lilt 2793737 09/13/2000 04:05P JA Suki Tsukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. • GRANTOR: Name: )075 d.&22/200004.07PM.MSFR.A006258S.WPD;1 - 2 - 1111111111111111111 III 11111 110111 IU 11111 IIII IIII 2793737 09/13/2000 04:05P JA Suld Tsukamolo 3 of 8 R 40.00 0 0.00 Weld County CO STATE OF COLORADO ) SS. CITY AND COUNTY OF DENVER) Th ��//, i /�fori inst env acknowledged before me this 3i day of' i L. , 2000 bey GG My commission expires: 49 o?lb/ .E .Nye._ `Ai3TAR .N Y.. : N5:7:42/47,+e) Public Statee," "+v COMMISSION EXPIRESt TUNE 12.?24" JU$I 4e 22.200004.07 PM.MSFR.A0062585.WPD:1 - 3 — 111111111111111 011111111111 1111111111 11111 1111 2793737 09/13/2000 04:05P JA Suki Tsukamoto 4 of 8 R 40.00 D 0.00 Weld County CO [Lot 1-State Farm Parcel) )EXHIBIT A Legal Description All of those portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the City of Evans, and portions o₹ the NW1/4 of Section 20, Township 5 North, Range 65 West of the 6th P.M. , County of Weld, State of Colorado, being described as follows: Considering the West line of said NWl/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. #10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as 'bearing N00°00'00" East and with all bearings contained herein relative thereto. Commencing ac said Northwest corner of said Section 20; thence along said West line of the NW1/4 S00°00'00" E. 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumented, said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans: said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records o₹ said county; thence along said North line N89°46'59" East, a distance of 390.79 feet to a #4 rebar (no cap) , and again S33"30' ll" East, a distance of 660.65 feet to a #4 rebar with cap L.S. #11399, and again S88°13'30" East, a distance of 53.27 feet to a #4 rebar with cap L.S. #11399 and the Northwest corner of chat certain parcel of land as described in deed recorded in Book 990 ac Reception No. 1919028. records of said county; thence along the North line of said parcel of land 589°53'04" East, a distance of- 46.45 feet to a #4 rebar with cap L.S. $11399 on the west line of STATE FARM SUBDIVISION, to the Town of Evans and the True Point of Beginning; thence along said West line Noo°22' 18" West, a distance of 87.86 feet co a #4 rebar with cap L.S. #17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49' 37" East, a distance of 489.76 feet to a #4 rebar with cap L.S. X17662 :n southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said East line N00°35'30" East, a distance of 372.31 feet to a #4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line 572°43.26" East. a distance o₹ 440.78 feet to a #4 rebar (no cap) , and again N87°34'22" East. a distance of 19.60 feet co a *4 rebar with cap L.S. #4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) 503°57'24" East, a distance of 170.01 feet to a #4 rebar. with cap L.S. #176624 .. 2) S03°08'31" East, a distance of 201.96 feet to a #4 rebar with no cap; 3) S00°09'41" East, a distance of 39.04 feet co a #4 rebar with cap L.S. #4392; 4) S01°47'34" East, a distance of 31.01 feet to a #4 rebar with cap L.S. #17662; 5) 500°46' 59" West, a distance of 489.46 feet to a #4 rebar with cap L.S. #4392 on the Nor_: line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION, to the City of Evans: thence along said North line 589°48'24" West, a distance of 710.81 feet (continued) Exhibit A( Page 1 of 2) 1 MIN Ililli1 III 1110 IIIII 1111111 III MEN UII ' 2793737 09/13/2000 04:05P JA SuId Tsukamoto 5 of 8 R 40.00 D 0.00 Weld County CO [Lot 1-State Farm Parcel) co a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the west line of said STATE FARM SUBDIVISION S89.38.47" West, a distance of 238.24 feet to a #4 rebar with cap L.S. *7252, and again NO°39 08° West, a distance of 265.36 feet co a #4 rebar with cap L.S. *11399, and again N00"17.17" West. a distance of 137.19 feet to the True Point of Beginning. Exhibit A (Page 2 of 2) 111111111111111111111111111111001 111 111111111111! 2793737 09/13/2000 04:05P JA Suitt Tsukamoto 6 of 8 R 40.00 D 0.00 Weld County CO EXHIBIT B Permitted Exceptions 1. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants,restrictions, easements and reservations of record. 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways, streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley,LLC. 8. Lease dated May 20, 2000 from JPB Greeley, LLC, WBP Greeley,LLC and ROM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. • 9. Any water rights or claims or title co water in, on or under the land. • 10 The right of the proprietor of a vein or lode co extract or remove his ore. should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296. and any and all assignments thereof or interests therein. 11. each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted to The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 307S t.4.8/23/2000 AM.MSFR.A0062585 WPD.I Exhibit B (Page 1 of 2) 111111111111111111 111 I1I!I u1I!)lgull 111��l t111 lilt 7 of 8 R 40.00 D 0.00 Weld County 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association. Inc. recorded October 5, 1981, in Book 949 a Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 ac Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. 30751.+.8.24120001I-II AM.MSFR.A00l2585.WPD:1 Exhibit B (Page 2 of 2) 7 S • Ill Hill 8111111111111111111 lull III Nil IIII Jill 2793737 09/13/2000 04:05P JA Suki Tsukamoto 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULE Pont Name Tenancy-in-Common Interest William B. Pauls 10.980% • • 3075148x2210000407 PM MSPR.A0062S85.WPD.I SC-I s+v wd• 1 11111111111111111111111111111111111111 III 1111111Q 1111 2793738 09/13/2000 04:05P JA Sold Tsukamoto 1 of 8 R 40.00 0 0.00 Weld County CO [UNC] SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the Lab Se e(4)6 � , 2000, is entered into between THE PARTY SET FORTH ON SCH Dd Fo A ACHED HERETO AND MADE A PART HEREOF("Grantor),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University ofNorthern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESS ETH,that the Grantor,for and in consideration of the sum of Ten Dollars ($10.00)and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in Sc edule I,in all the real property,together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference(the "Property"), TOGETHER with an undivided tenancy-in-cone on interest,as set forth in Slit I, in (i) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all easements and rights-of-way appurtenant to or otherwise benefitting the Property or the buildings, fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in Schedule (, in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances; SUBJECT TO those matters set forth on Exhibit B attached hereto and incorporated herein by this reference(collectively, the "Permitted Exceptions"). TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: 30751.4.8!2'2000 04 07 PM.MSFR.A0062585.W PO:1 1111111 1111 Hull III 1111111111111111111111111 I I I I I I I I 2793738 09/13/2000 04:05P JA Sold Tsukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: PAU • • 307514&22/20000407 PM.MSFR.A0061585.WPD:1 - 2 - I11111111111111111111I11111111111111111III11111IIII1111 • 2793738 09/13/2000 04:05P JA Suki Tsukamoto 3 of 8 R 40.00 I) 0.00 Weld County CO STATE OF COLORADO ) ) SS. CITY AND COUNTY OF DENVER) G P The for ojng ipstrument was acknowledged before me this 6Y da of i fy,,S , 2000 by_ tcs • Y My commission expires:, , alb , • O\IONt Nlll/o, `J\� U�vQC �, �OTaRys N Public a -o-o-o- Ausuc. _ MY COMMISSION EXPIP«' JUNE 12,200! • o%i 14 5 22 20000+01 PNI NISFR A0062585 WPD.1 - 3 - 1111111 11111 1111111 111 11111111111 1111111111110 NUN 2793738 09/13/2000 04:05P JA Suki Tsukamoto • 4 of 8 R 40.00 D 0.00 Weld County CO [Lot I-State Farm Parcel) EXHIBIT A Legal Description All of chose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION. all being in the City of Evans, and portions of the NW1/4 cf Section 20, Township 5 North. Range 65 west of the 6th P.M. , County of Weld, State of Colorado, being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. 410740 at the Northwest corner and a 3 1/4" aluminum cap L.S. *11648 at the West Quarter corner as 'bearing NOO°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said West line of the NW1/4 S00°00'00" E, 560.87 feet co the North line of said STROH'S THIRD ADDITION, as monumenced. said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, co the Town of Evans; said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 ac Reception No. 1813428. records of said county; thence along said North line N89°46'59" East, a distance of 390.79 feet to a *4 rebar (no cap) , and again S33°30'11" East. a distance of 660.65 feet to a *4 rebar with cap L.S. *11399, and again S88°13'30" East, a distance of 53.27 feet to a *4 rebar with cap L.S. #11399 and the Northwest corner of chat certain parcel of Land as described in deed recorded in Book 990 at Reception No. 1919028, records of said county; thence along the North line of said parcel of land S89°53.04" East, a distance of. 46.45 feet to a #4 rebar with cap L.S. $11399 on the West line of STATE FARM SUBDIVISION. to the Town of Evans and the True Point of Beginning; thence along said Wesc line N00°22' 18" West, a distance of 87.86 feet to a *4 rebar with cap L.S. #17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49' 37" East, a distance of 489.76 feet to a *4 rebar with cap L.S. 017662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said East line NO0°35'30" East, a distance of 572.81 _eet to a *4 rebar with a cap (number obliterated) on the South right-of-way line of J.S. Highway 34: thence along said South right-of-way line S72°43'26" East, a distance of 440.78 feet to a *4 rebar (no cap) , and again N87°34'22" East. a distance of 19.60 feet to a *4 rebar with cap L.S. *4392 and the Easc line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072. records of said county, said East line also-being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) 503°57'24" East. a distance of 170.01 feet to a *4 rebar with cap. L.S. #17662; 2) S03°08'31" East, a distance of 201.96 feet to a #4 rebar with no cap; 3) SOO°09'41" East, a distance of 39.04 feet to a *4 rebar with cap L.S. #4392; 4) S01°47'34" East. a distance of 31.01 feet co a #4 rebar with cap L.S. #17662; S) S00°46'59" West, a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION. to the City of Evans; thence aicng said North line S89°48' 24" West, a distance of 710.81 feet (continued) Exhibit A(Page I of 2) �. MOH HMI III 11111111111111111 III OM Ell{III 09/13/2000 JA kamoto 5 01 0 R 40.00 D 0.00 Weld County CO fLot 1-State Farm Parcel] to a #4 rebar with cap L.S. *9714 on the South line of STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the Wesc line of said STATE FARM SUBDIVISION 589°38'47" West, a distance of 238.24 feet co a #4 rebar with cap L.S. #7252, and again NO°39'08" West, a distance of 265.36 feet to a #4 rebar with cap L.S. #11399, and again N00°17'17" West, a distance of 137.19 feet Co the True Point of Beginning. • • Exhibit A ( Page 2 of 2) 1111111111111111UI 11111111 fill 111111 III Mill 1111 2793738 09/13/2000 04:06P JA Sukl Tsukamoto 6 of 8 R 40.00 D 0.00 Weld County CO EXHIBIT B Permitted Exceptions 1. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions,easements and reservations of record. 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways,streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to JPB Greeley, LLC,WBP Greeley, LLC and RGM, Greeley, LLC. 8. Lease dated May 20,2000 from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title co water in, on or under the land. 10. The right of the proprietor of a vein or lode co extract or remove his ore, should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. 11. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted co The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 30751.11Q0400008A8 AM.MSFR.A00625DS.WPD.I Exhibit B (Page I of 2) • • • 1111111111111111111 1111111131131111111111111111111 • 2793738 09/13/2000 04:05P JA Sold isukamoto 7 of 8 R 40.00 0 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 1 1972 at Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground • facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. ' a. Mountain Bell Telephone Company recorded October 1. 1981. in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 a Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. • 307SI.4.8;24/2000I I:11 AM.MSFR.A0062585 WPD:1 Exhibit B (Page 2 of 2) • 11111► 1111111111►►111111111111111111111 111111111(II► 2793738 .0of 8 8 44000D 0.00 CountyWeld 00 04:05P JA Sukl kamoto CO SCHEDULE Donor Name Tenancy-in-Common Interest • Paul Powers 5.208% • .'0l +>]7`vt 04 o:I']I>UhN Aa»'_iai tcPU.l SC-I 2'+p 1111111 11811111111111 11111 111111 Will NMI 11111111 2793739 09/13/2000 04:05P JA Sukf Tsukamoto 1 of B R 40.00 D 0.00 Weld County CO • [UNC) SPECIAL WARft p( y nrcn THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the day of , $e e ke, 2000, is entered into between THE PARTY SET FORTH ON SCH D tt G r A ACHED HERETO AND MADE A PART HEREOF("Grantor"),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University of Northern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESS ETH,that the Grantor,for and in consideration of the sum of Ten Dollars (S10.00)and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in Schedule I,in all the real property, together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference(the "Property'). TOGETHER with an undivided tenancy-in-common interest,as set forth in Sc licdpig • 1, in (i) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all easements and rights-of-way appurtenant to or otherwise benefitting the Property or the buildings, fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in Schedule I, in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances; SUBJECT TO those matters set forth on abjui3 attached hereto and incorporated herein by this reference(collectively, the "Permitted Exceptions"), TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: • )0751.4.1:21_'200004;07 PM.MSFR.A0062585.WPD:1 - 11IIII1111111111111III11111111111111111 III 1111r8r11111 2793739 09/13/2000 04:05P JA Suki Tsukamoto • 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: • • Name: • 30751.4.8/22/200004:01PM.MSFR.A0062585.WPD:I - 2 - 1111111 Ili HEE 111 1111311111111 III 1111111E 1 1 1 1 1 E 2793739 09/13/2000 04:05P JA SuM Tsukamoto 3 of 8 R 40.00 D 0.00 Weld County CO STATE OF COLORADO ) ) SS. CITY AND COUNTY OF DENVER) The fore Ong insttu nt as acknowledged before me this 5/ day of 2000 byitn D. ,i,, • Mx commission expires: 4,1 moo/ "NOTARy4 i Vaneif,r)6,4--/-0-0: i gsi,a tieL lic • ••-cw.mISSION EXPIRES: :UNE 12.2001 "4+1.._ (ha U'P\I\ISFR >006;SYS NPO.I — 3 - 1 111111 1111111111111111011111111111 1M11 III I 27934 oof78 09/13/2000 R 40 0 D0.0 Weld a Sold kamoto County CO [Lot 1-State Farm Parcel) EXHIBIT A Lent Description All of _hose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the City of Evans, and portions of the NW1/4 cf Section 20, Township 5 North. Range 65 west of the 6th P.M., County of Weld, State of Colorado, being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. *10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as'bearing NO0°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20: thence along said West line of the NW1/4 500°00' 00" E. 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumenced, said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans: said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428. records of said county; thence along said North line N89.46.59" East, a distance of 390.79 feet to a #4 rebar (no cap) , and again 533°30'11" East. a distance of 660.65 'sec to a #4 rebar with cap L.S. #11399, and again 588.13'30" Last, a distance. of 53.27 feet co a *4 rebar with cap L.S. *11399 and the Northwest corner of chat certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028, records of said county; thence along the North line of said parcel of land S89°53'04' East. a distance of. 46.45 feet to a #4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION. to the Town of Evans and the True Point of Beginning; thence along said West line NOO°22'19" West. a distance of 87.86 feet to a #4 rebar with cap L.S. *17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49'37' East, a distance of 489.76 feet to a *4 rebar with cap L.S. *17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said East line NO0°35' 30" East. a distance of 572.31 feet to a *4 rebar with asap (number obliterated) on the South right-of-way Line of 'J.S. Highway 34: thence along said South right-of-way line S72°43'26" East. a distance of 440.79 feet to a #4 reoar :no cap) , and again N87°34'22" East. a distance of 19.60 feet to a *4 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 ac Reception No. 2024072. records of said county, said East line also being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) 503°57'24" East. a distance of 170.01 feet to a *4 rebar with cap L.S. #17662: 2) S03°08'31" East, a distance of 201.96 feet to a *4 rebar with no cap: 3) S00°09'41" East. a distance of 39.04 feet to a *4 rebar with cap L.S. #4392; 4) S01°47' 34" East, a distance of 31.01 feet to a *4 rebar with cap L.S. *17662; 5) S00°46' 59" west. a distance of 489.46 feet to a *4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION, to the City of Evans; thence along said Mort.`. line S89°48'24" west, a distance of 710.81 feet :ccrt.nued) Exhibit A( Page 1 of 2) 111111111111 1111111 III 11111111111111111 III 11111 III!1111 2793739 09/13/2000 04:05P JA Suki Tsukamoto 5 of 8 ft 40.00 D 0.00 Weld County CO (Lot 1-State Fawn Parcel) ct a #4 rebar with cap L.S. #9714 on the South line cf STATE FARM SUBDIVISION to the Town of Evans: thence along said South line and the West line cf said STATE FARM SUBDIVISION S89.38'47• West, a distance of 238.24 feet to a #4 rebar with cap L.S. *7252, and again NO°39'08• West, a distance of 265.36 feet to a *4 rebar with cap L.S. #11399, and again NO0.17'17• West. a distance of 137.19 feet to the True Point of Beginning. Exhibit A ( Page 2 of 2) I111111 IIII1 IIIIIII III I111I 111111111111 III 11111 III((III 2793739 09/13/2000 04:0W JA Suitt Tsukamoto 6 of 8 R 40.00 D 0.00 Weld County CO EXHIBIT B Permitted Exceptions 1. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. S. Matters arising by,through or under Grantee. 6. Right of the public and adjoining owners in highways,streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from WB Greeley,LLC, WBP Greeley,LLC and RGM, Greeley, LLC to WB Greeley,LLC, WBP Greeley, LLC and ROM,Greeley,LLC. 8. Lease dated May 20, 2000 from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title to water in, on or under the land. 10. The right of the proprietor of a vein or lode to extract or remove his ore. should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. 11. Each and every right or rights of access co and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted to The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 30751.4 V23/20000t4iAM.MSFR.A00625B5.WPD.I Exhibit B (Page I of 2) 111111111111111 111 111111111111E0 11011111111 2793739 09/13/2000 04:05P JA Suki Tsukamofo 7 of 8 R 40.00 0 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by cne instrument recorded June 1 1972 ac Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general, and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5. 1981, in Book 949 a Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. 507S1.4.8Q4200011:11 AM.MSFLA0062$8$.SPPDA Exhibit B (Page 2 of 2) ='ti • 1110 11111 NE I I 1111111111111111131 I I I 11111 2793739 09/13/2000 04:05P JA Sukl Tsukamoto 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULE I Donor Name Tenancy-in-Common Interest Brian Pauls .469% 31175IAY.???U00 U4:07 PSI MSFR AW6?385WPD.I SC-1 ss 111111111111111111111I 11111111111111111 11111111 HI 1111 2793740 09/13/2000 04:08P JA Suki Teukamoto 1 of 8 11 40.00 D 0.00 Weld County CO [UNCJ SPECIAL WARRANTY DEED THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the 13/4 day of , 6.e f2mbNt' , 2000, is entered into between THE PARTY SET FORTH ON SCHEDULE I ATTACHED HERETO AND MADE A PART HEREOF("Grantor"),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University of Northern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). WITNESSETH,that the Grantor, for and in consideration of the sum of Ten Dollars (310.00) and other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in Schedule I,in all the real property,together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as mole particularly described on Exhibit A attached hereto and incorporated herein by this reference(the "Property"). TOGETHER with an undivided tenancy-in-common interest,asset forth in Schedule I, in (i) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all easements and rights-of-way appurtenant to or otherwise benefiting the Property or the buildings, fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in Schedule I, in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances; SUBJECT TO those matters set forth on Exhibit B attached hereto and incorporated herein by this reference(collectively, the "Permitted Exceptions"). TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: 30751.4 a.22'20O0 04.07 PM.MSFR.A00625ss.W PD;1 1111111 111111111111 III IIIII 111111 111111 11111111 III!1111 2793740 09/13/2000 04:051' JA Suld Tsukamoto 2 of 8 R 40.00 0 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: C Name: 70751 4 8/22/200004,07 PM.MSFR.A0062585.WPD.I - 2 WI EMI III IIIII 111111111111 III IIIII Jill Ill! • 2793740 09/13/2000 04:0W JA Suki Tsukamoto 3 of 8 R 40.00 0 0.00 Weld County CO STATE OF COLORADO ) ) SS. CITY AND COUNTY OF DENVER) The foregoitg instpume'}9was/tcacknowledged before me this 3/ day of 000 by_ 4c14f/Ecy c15 My commission expires. /� oleo/ „nNr , cTARy� ‘o� • y e -o—o—o- N ary Public 4-9 Sobhst "AMMISSXJN EXPIRES. :JNE 12.200' . 1-51 Z.).__%094O'P?I MSFR ;0062!15'APO i - 3 1110 110 3111 III 11111111111111111 III 11111 It IIII • 2793740 09/13/2000 04:05P JA Suki Tsukamoto ' 4 of 8 R 40.00 D 0.00 Weld County CO ]Lot 1-State Farm Parcel] EXHIBIT A Lezal Descrintion All of those portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the City of Evans, and portions of the NW1/4 of Section 20, Township 5 North, Range 65 West of the 6th P.M. , County of weld. State of Colorado, being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. #10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as'bearing NO0°00' 00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said West line of the NW1./4 SOo°00'00" E. 560.87 feet co the North line of said STROH'S THIRD ADDITION, as monumented, said North line also being the monumented South line o₹ LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans; said North line also being the North line o₹ that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records of said county; thence along said North line N89°46'59" East, a distance • of 390.79 feet to a #4 rebar (no cap) , and again S33°30' 11" East, a distance of 660.65 feet to a #4 rebar with cap L.S. #11399, and again S88°13.30" East, a distance of 53.27 feet to a #4 rebar with cap L.S. #11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028, records of said county; thence along the North line of said parcel of land S89‘53'04" East, a distance of. 46 . 45 feet co a *4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION. to the Town of Evans and the True Point of Beginning; thence along said West line N00°22' 18" west, a distance of 87.86 feet to a *4 rebar with cap L.S. *17662 at the • Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49'37" East, a distance of 489.76 feet to a #4 rebar with cap L.S. *17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said East line NOO°35'30" Ease, a distance of 572.81 feet to a *4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line S72°43'26" East, a distance cf 440.78 feet to a *4 rebar (no cap) , and again N87°34'22" East. a distance of 19.60 feet to a *4 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also 'being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) S03°57'24" East, a distance of 170.01 feet to a *4 rebar with cap L.S. #17662; 2) 503°08'31" East, a distance of 201.96 feet co a #4 rebar with no cap; 3) 500°09' 41" East, a distance of 39.04 feet to a #4 rebar with cap L.S. #4392; 4) SOl°47'34" East, a distance of 31.01 feet co a *4 rebar with cap L.S. #17662; 5) S00°46'59" West, a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION, to the City of Evans; thence along said North line 589°48' 24" West, a distance of 710.81 feet (ccntirued) Exhibit A ( Page 1 of 2) II1111111111IIIINI111llli!111111111111III1111111111111 , 2793740 09/13/2000 04:05P a Said Tiukamoto 3 of 8 R 40.00 0 0.00 Weld County CO (Lot 1-State Farm Parcel) to a *4 rebar with cap L.S. *9714 on the South line cf STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the West line of said STATE FARM SUBDIVISION 589°38'47° West, a distance of 238.24 feet co a *4 rebar with cap L.S. #7252, and again N0°39'08• West, a distance of 265.36 feet co a #4 rebar with cap L.S. *11399, and again N00°17.17^ West, a distance of 137.19 feet to the True Point of Beginning. • Exhibit A(Page 2 of 2) 1111111111111111111 III 11111111111111111 III Iilll 1111 IIII 26g93740 ot 8 R040.002000 04:06P D 0.00 Weld A Sukl County Tsukamoto County CO EXHIBIT B • Permitted Exceotiops I. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways,streets,roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to JPB Greeley, LLC, WBP Greeley, LLC and RGM,Greeley, LLC. 8. Lease dated May 20,2000 from JPB Greeley, LLC, WBP Greeley,LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title to water in, on or under the land. • 10 The right of the proprietor of a vein or lode to extract or remove his ore, should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. Il. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted co The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 30751.4.8/23/200008.48 AM.MSFR.A0062585.WPDd Exhibit B (Page I of 2) 111111 0111 1111111111 1111111111 111111IIl1111111111111 2793740 09/13/2000 04:05P JA Sold Tcukamoto 7 of 8 R 40.00 D 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 ac Reception No. 1591567. • NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general, and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 a: Reception No. 1871004 . c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. Western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. 301514.8/24/200011:11 AM.MSFR.A0062585.WPD:I Exhibit B (Page 2 of 2) rs 121111111111111111111111111111111111111111111111 l i i l 1111 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULE I Donor Name Tenancy-in-Common Interest Bradley Pauls .468% • PI•AI 8' :lion w co Pm‘ISFR.4W6?585%'PD.I SC-I 111111111111 NIP 111111111111111111111111111111111111 2793741 09/13/2000 04:05P JA Sukf Tsukamoto 1 of 8 R 40.00 D 0.00 Weld County CO • [UNCJ aer// CIAL WA RRAlV7 y_ pE `t �P THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the ACHED , 2000, is entered AND MA into between THE PARTY SET FORTH ON �E n E r �daY of A ORACHED HERETO A O FOUNDATION,ART HEREOF("Grantor"),and D N RTH RN COLyofNoO em INC., a Colorado non-profit co Y Center,Greele , 20639(" having .a Y Colorado 80639("Grantee"). WITNESSETH,that the Grantor,for and in consideration of the sum of Ten Dollars ($10.00)and other good and valuable consideration, the receipt and sufficiency of acknowledged,has granted,bargained,sold and conveyed,and by these presents does sell,convey which is hereby and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy' in-common interest,asset forth in if any, tenancy- in-commonsituate, and being in the Court,in all the real property, together with improvements, ay,described on lying attached inhe the and i County oof Weld, State of Colorado, as more rporated herein by this reference(the "Property").particularly TOGETHER with an undivided tenancy-in-common interest,as set forth in, dt 1, in (i) all buildings, fixtures and improvements located thereon or attached thereto easements and rights-of-way appurtenant ° to or otherwise benefitting the Property (ii) all fixtures or improvements located thereon; and (iii) all and singular the he appurtenances thereto belonging, or the buildings, remainder a and rhmaiodbs, rents, issues and anywise appertaining, ranreversion damvers and undivided and remainder; en interest,s as spr forth thereof from nd after the date hereof; an interest, dl ten and demand w c s_ I I, in all the estate, right,and an Property, with the hereditamentstnd appurtenances; of the Grantor, either in law or equity, title, ppurtenances; °f in and to the SUBJECT TO those matters set forth on Exhibit— attached hereto and incorporate t B herein by this reference(collectively, the "Permitted Exceptions"). TO HAVE AND TO HOLD the said interest in the Property described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT A bargained and FOREVER DEFEND said interest in the Property in the quiet and peaceable possession ofGrntee, its successors and assigns, against all and even ARID or persons claiming thereof, by, through or under the Grantor, except for the Permitted Exc ptions.e whole or any part' 307$Lib 22^000 0.07 PM.MSFR.AC062585.WPD:I ae 1111111 IINI 1111111 III INII 111111111111 III 11111 IIII Jill • 2793741 09/13/2000 04:05P JA Sukl Tsukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF, this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: Cr / ' • ame: • J08I.4.422400004:07 PM.MSFR.A0062525.WPD:1 - 2 - . I111111111111111111III111111111111111111111111111111111 2793741 09/13/2000 04:06P a Sold Tsukamoto 3 of S R 40.00 0 0.00 Weld County CO STATE OF COLORADO ) • CITY AND COUNTY OF DENVER) SS. �1�� The foregoing instrument was acknowledged before me this 3O day of . 1f, 2000 by S01av+ V Saew�0._v,�_• My commission expires: 1-30 -1-000 • =v?OTA9l't, Notary Public INsto88 3075i 4 S II 2000 04 07 PM.M5FR.A00625S5.WpDJ - 3 - :4 I IIIIII 111111111111 III 111111111111111111111111111111III 2793741 09/13/2000 04:05P JA Saki Teukamoto 4 of 9 R 40.00 D 0.00 Weld County CO [Lot 1-State Farm Parcel) eXHIBIT A Legal Description All of those portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the City of Evans, and portions of the NW1/4 of Section 20, Township 5 North, Range 65 west of the 6th P.M. , County of Weld, State of Colorado, being described as follows: Considering the West line of said NWI/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. *10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. 811648 at the West Quarter corner as'bearing NOD°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said West line of the NW1/4 S00°00'00" E. 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumented, said North line also being the monumented South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans; said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records of said county; thence along said North line N89°46'59" East, a distance of 390.79 feet to a 44 rebar (no cap) , and again S33°30' 11" East, a distance of 660.65 feet to a *4 rebar with cap L.S. *11399, and again 588°13'30" East, a distance. of 53.27 feet to a #4. rebar with cap L.S. *11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 ac Reception No. 1919028, records of said county; thence along the North line of said parcel of land S89°53.04" East, a distance of. 46.45 feet to a *4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION. to the Town of Evans and the True Point of Beginning; thence along said West line NOo°22' 18" West, a distance of 87.86 feet to a #4 rebar with cap L.S. *17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49'37" East, a distance of 489.76 feet to a *4 rebar with cap L.S. *17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans; thence along said prolongation and said East line N00°35'30" East. a distance of 572 .31 feet to a *4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line S72°43.26" East, a distance of 440.78 feet to a *4 rebar (no cap) , and again N87.34'22" East. a distance of 19.60 feet to a *4 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also 'being the West right-of-way line of old U.S. Highway *85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) 503°57'24" East, a distance of 170.01 feet to a *4 rebar with cap L:S. #17662; 2) S03°08'31" East, a distance of 201.96 feet co a #4 rebar with no cap; 3) S00°09'41" East, a distance of 39.04 feet to a *4 rebar with cap L.S. #4392; 4) SO1°47'34" East, a distance of 31.01 feet to a *4 rebar with cap L.S. *17662; 5) S00°46' 59" West, a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION, tc the City of Evans; thence along said North line 589°48'24" Wesc. a distance of 710.811 feet (continued) Exhibit A( Page 1 of 2) AIM OH III NUlll l I I 111111 MI 111111 I II 11111 III!1111 2793741 09/13/2000 04:05P JA Suki Tsukamoto 5 of 8 R 40.00 D 0.00 Weld County CO [Lot 1-State Farm Parcel] co a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, co the Town of Evans; thence along said South line and the West line cf said STATE FARM SUBDIVISION S89.38'47" West, a distance of 238.24 feet to a #4 rebar with cap L.S. *7252, and again NO°39.08" west, a distance of 265.36 feet to a #4 rebar with cap L.S. *11399, and again NO0°17.17" West, a distance of 137.19 feet co the True Point of Beginning. Exhibit A (Page 2 of 2) • 1111111111111111111 I I 11111111111111111111111111 t 11111111 2793741 09/13/2000 6 0l 8 R 40.00 D 0.00 Weld County CO EXHIBIT B • Permitted Exceptions I. General real estate taxes and assessments for 2000 and subsequent years,a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways,streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from WE Greeley,LLC, WBP Greeley, LLC and RGM, Greeley, LLC to WE Greeley, LLC, WBP Greeley,LLC and RGM, Greeley, LLC. 8. Lease dated May 20, 2000 from WE Greeley,LLC, WBP Greeley,LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9• Any water rights or claims or title to water in, on or under the land. 10 The right of the proprietor of a vein or lode to extract or remove his ore, should the same be found to penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. II. Each and every right or rights of access to and from any part of the right o₹ .way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted to The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 30751.4.842/20000s'411AM.MSFR.A00625s5 WPD.I Exhibit B (Page I of 2) 1 11111111111 1111111 1111111111 IMMO 1101111AI 2793741 09/13/2000 04:05P JA Suki Tsukamoto 7 of 8 R 40.00 D 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 at Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. Western Gas Supply Company recorded April 2, 1985 in Book 1063 ac Reception No. 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. • 30751.4b144000 iI:II AM.MSFR.A00625SS WPD:I Exhibit B (Page 2 of 2) 7� • 111111111111111111111121111111111111111111111111 87 1 of 8 R 40.0020D 0.00 00 4 Weld:05P County kamoto County CO SCHEDULE I Donor Name Tenancy-in-Common Interest John Saeman 14.996% 107511522400004:07 PM.MSFR.A0062585.WPD:I SC-I • 1111111►11111111N 111 Ill 1111/I 111111 III►1111 III liii 27937Q 09/13/2000 04:05p JA Saki Tsukamoto 1 of 8 9 40.00 0 0.00 Weld County CO f UNC] a' 3P IAI WARRAlYTl D EEQ�P ,�� THIS SPECIAL WARRANTY , HI$ isP entered i DEED ("Deed actiszagi ATTACHED HERETO "), dated FO as ofO the NORTHERN HOLORADO ADEAPARTHEREOF�TY SET FORTH pNf N RT at UniversityofNoO FOUNDATION,Colora INC., ("Grantor"),and THE UNIVERSITY ada Colorado G d e Greeley, Colorado o RSITy OF Y m'rCenter,Greeley,Colorado corporation,° ' having a ($10.00) WITNESSETH, that the Grantor,for ("Grantee"). acknowledged other good and valuable consideration and to consideration of the sum of Ten sell,convey granted,bargained,sold , the receipt and sufficiency Dollars Y and confirm,unto the and conveyed,and by went y of whichis se common interest,nco Grantee,its successors and assigns f raver,ans undisvided hereby if any, mon i , as set forth in ch du , in all the realproperty,te forever, grant,bargain, lying and being in the undtvidedtenanc described ua x 'b't attachd County of W t°gather with i hereto and inco ted, St einte boy Colorado, mpt°vein ) rPorated herein by this reference(the "Property").ore 1culaly I inTOGETHER with an undivided tenancy-in-co 1, in (i)easements all b sidings, w and improvements tenancy-in-common interest,at ay appurtenant to or otherwise located thereon the attached hereto fixtures or located thereon; andul fixappurtenancesesorimprovements thereto belonging, tse all and nfitting Pro (ii)a all • remainder and or in an (iii) singular the me or thebuildings remainders, rents, issues and anywise appertaining, harvest rem remainder d tenant profits thereof from and n the te hereof; and interest, tenancy-in-common interest, after and reversions, claim and demand whatsoeveras set forth in the date hereof inte est, with tan hdemand a oe a of the d 1 • in all estate,ofi and an ProGrantor, either in lawright, title, appurtenances; or equity, of, in and to the herein by SUBJECT TO those matters set forth on fabiktja this reference (collectively, the "Permitted Exceptions„)attached hereto and incorporated TO HAVE AND TO rP°rated - -described "- with the T HA appurtenances,unto O Dry Grantee,id interest successors for re is successors and assigns, Property above b FOREVER D does covenant and agree that it shall and will W bargained and DEFEND said interest in the Propertynd ens forever. The Gr , its successors End auto, thereof, b , assigns, against all and every in the quiet ands claiming ble ANTAND Y through or under the Grantor, except person the or possession ofGr persons the whole or setae, Permitted Exceptions.' any part 1011 i.4 8.227000 04 07 PMMSFR.A00625A5.WPD:I 111111111111 1111111 III 1111 111111 111111 111 11111 1111 1111 2793742 09/13/2000 04:05P JA Saki Tsukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: • tom- ..�.,.31/4 L W tajzle .t _ Name: 3075148/22720000407 PM.MSFR.A0062583.WPD.1 - 2 - IIIIli11111I11111111111III111111111111111111111111111 3�4 R T3/2000 04.05p JA SukI Taukamoto 1 40.00 D 0.00 Weld County CO STATE OF COLORADO ) CITY q oCnI T ��N`D COUNTY OF DENVER) SS. X000 be f °going ins a w� • Mt gal-- before me this Lab My commission expires: (_j c/ a / / day of PAY _P`� Z EARUNE Notary Public '` '� ter SLAUGHTER i • • Ltl51..1 8 22 200004 07 PM MSFR.A0062585 W1 - 3 _ 111110 MI11111111 1111 Mil 111111 111111 111 11111 11111 I 2793742 09/13/2000 04:05P JA Sukl Tsukamoto 4 of B R 40.00 D 0.00 Weld County CO • got 1-State Farm Parcel) EXHIBIT A Leal Description All of chose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION, all being in the City of Evans; and portions of the NW1/4 of Section 20, Township 5 North, Range 65 West of the 6th P.M. , County of Weld, State of Colorado, being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. #10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as'bearing NoO°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said west line of the NW1/4 S00°00' 00" E. 560.87 feet co the North line of said STROH'S THIRD ADDITION, as monumenced, said North line also being the monumenced South line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, co the Town of Evans; said North line also being the North line of that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428. records of said county; thence along said North line N89°46' 59" East. a distance of 390.79 feet to a *4 rebar (no cap) , and again S33°30' 11" East. a distance of 660.65 feet co a #4 rebar with cap L.S. *11399, and again 588°13'30" East, a distance. of 53.27 feet to a #4 rebar with cap L.S. x11399 and the Northwest corner of that certain parcel of land as described in deed recorded in Book 990 at Reception No. 1919028. records of said county; thence along the North line of said parcel of land 589°53'04" East, a distance of. 46 .45 feet to a #4 rebar with cap L.S. 411399 on the West line of STATE FARM SUBDIVISION, to the Town of Evans and the True Point of Beginning; thence along said West line N00°22'18" Wesc, a distance of 87.86 feet co a #4 rebar with cap L.S. *17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49'37" East, a distance of 489.76 feet to a #4 rebar with cap L.S. 417662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans; thence along said prolongation and said East line N0o°35'30" East, a distance of 572.81 feet to a *4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line 572°43.26" East, a distance of 440.78 feet to a #4 rebar (no cap) , and again N87°34'22" East, a distance of 19.60 feet to a *4 rebar with cap L.S. #4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also'being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) S03°57'24" East. a distance of 170.01 feet co a *4 rebar with cap L.S. #17662; 2) S03°08'31" East. a distance of 201.96 feet co a #4 rebar with no cap; 3) 500°09'41" East, a distance of 39.04 feet to a #4 rebar with cap L.S. #4392; 4) SO1°47'34" East, a distance of 31.01 feet to a #4 rebar with cap L.S. #17662; 5) S00°46'59" West. a distance of 489.46 feet to a #4 rebar with cap L.S. #4392 on the North line of to AMENDED PLAT OF SOUTHGATE SUBDIVISION, to the City of Evans; thence along said North line 589°48'24" West, a distance of 710.81 feet • (continued) Exhibit A(Page 1 of 2) Ann 1111111 11111111 III 11111 EMI 2793742 09/13/2000 04:05P JA Sold Tsukamoto • S of 8 R 40.00 0 0.00 Weld County CO [Lot 1-State Farm Parcel] to a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the West line of said STATE FARM SUBDIVISION S89°38.47" West, a distance of 238.24 feet co a #4 rebar with cap L.S. #7252, and again NO°39.08" West, a distance of 265.36 feet to a #4 rebar with cap L.S. #11399, and again NOO°17 17" West, a distance of 137.19 feet to the True Point of Beginning. Exhibit A (Page 2 of 2) 1 111111 11111 1111111 111 It 111111 111111 111 11111 III D 1111 2793742 R 40 09/13/2000 0 0 0.00 WeldJA Counli lit Co kamoto EXHIBIT B Permitted Exceptions 1. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. 5. Matters arising by, through or under Grantee. 6. Right of the public and adjoining owners in highways,streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley,LLC. 8. Lease dated May 20, 2000 from JPB Greeley,LLC, WBP Greeley, LLC and RGM, • Greeley, LW to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title to water in, on or under the land. l0 The right of the proprietor of a vein or lode to extract or remove his ore, should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. ll. Each and every right or rights of access co and from any part of the right of way for Colorado State Highway No. 34, from and to any part. of subject property abutting upon said highway, as granted to The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 5olsi.a.asv2o00oa:4aAM.MSFR.A00625a5.WPDJ Exhibit B (Page 1 of 2) 1 111111 11111 111111111111111111111 MUM 111111111 1111 2793742 09/13/2000 04:05P JA Sukt Tsukamoto 7 0l 8 R 40.00 D 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. NOTE: The following notices pursuant co CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 at Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784. d. Western Gas Supply Company recorded April 2, 1985 in Book 1063 at Reception No. 2004300. e. Associated Natural Gas, Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. 30751.4.8/24/100011:11 AM.MSFR.A0062585.WPD.I Exhibit B (Page 2 of 2) s+r 111111111►►1111►1►i 11i 11►1111►1►1►1111►1011►1►►1►►►11► 2793742 09/13/2000 04:05P JA Sold Tiukamoto 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULEI • Donor Name Tenancy-in-Common Interest Richard G. McClintock 27.2735% 30751.4.824/200010 23 AM.MSFR.A006258S.WPD;I SC-I • s+� ►►UM II II I ►►1►1►►ill►1►1► 111111►►►II►►►►REM ►II► 2793743 09/13/2000 04:06P JA Suld Isukamoto 1 of 8 R 40.00 D 0.00 Weld County CO [UNCJ •L� SPECIAL WARRANTY DEED ' r 3 J THIS SPECIAL WARRANTY DEED ("Deed"), dated as of the �day of SP. ieot e(, 2000, is entered into between THE PARTY SET FORTH ON SCHEDULE I ATTACHED HERETO AND MADE A PART HEREOF("Grantor"),and THE UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INC., a Colorado non-profit corporation, having a address at University of Northern Colorado,Judy Farr Center,Greeley,Colorado 80639("Grantee"). W ITNES SETH,that the Grantor,for and in consideration of the sum of Ten Dollars ($10.00)and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,has granted,bargained,sold and conveyed,and by these presents does grant,bargain, sell,convey and confirm,unto the Grantee,its successors and assigns forever,an undivided tenancy- in-common interest,as set forth in Schedule I,in all the real property, together with improvements, if any, situate, lying and being in the County of Weld, State of Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference(the"Property"). TOGETHER with an undivided tenancy-in-common interest,as set forth in Schedule I, in (i) all buildings, fixtures and improvements located thereon or attached thereto; (ii) all • easements and rights-of-way appurtenant to or otherwise benefitting the Property or the buildings, fixtures or improvements located thereon; and (iii) all and singular the hereditaments and appurtenances thereto belonging, or in anywise appertaining, and the reversion and reversions, remainder and remainders, rents, issues and profits thereof from and after the date hereof; and an undivided tenancy-in-common interest, as set forth in Schedule I, in all the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity, of, in and to the Property, with the hereditaments and appurtenances; SUBJECT TO those matters set forth on Exhibit B attached hereto and incorporated herein by this reference (collectively, the "Permitted Exceptions"). TO HAVE AND TO HOLD the said interest in the Property above bargained and described with the appurtenances,unto the Grantee,its successors and assigns forever. The Grantor, for itself,its successors and assigns,does covenant and agree that it shall and will WARRANT AND FOREVER DEFEND said interest in the Property in the quiet and peaceable possession of Grantee, its successors and assigns, against all and every person or persons claiming the whole or any part thereof, by, through or under the Grantor, except for the Permitted Exceptions: 30751.4.997^.00004:07 PM.At5FR.A006?585.WPD:1 - �s 1'111111111111111111 III 1111 101110111 Mill Ill 2793743 09/13/2000 04:06P JA Suki 7sukamoto 2 of 8 R 40.00 D 0.00 Weld County CO IN WITNESS WHEREOF,this Special Warranty Deed is executed by Grantor as of the day and year first above written. GRANTOR: • Name: 30751.4.82212000 04.07 PM.MSFRA0062585.WPD;1 2 • 1111111 III HEIR Iii 10111111 1311111 111110 III! 2793743 09/13/2000 04:0SP JA Sukl Tsukamoto 3 of 8 R 40.00 D 0.00 Weld County CO STATE OF COLORADO ) ) SS. CITY AND COUNTY OF DENVER) The f egoing instrument was acknowledged before me this /alb day of a, 2000 byrt Irk( r ttlA10_44 a My commission expires: -c.(..)OTJ(( bat .�P�-r^-..VB '•. Notary Public (J� e EARUIIF to = SLAUGHTER 3075 14.8`2 2000 04:07 PM.NSFR.A0062585-WPD:1 3 a•t 11111111111111111!!Ili 11111111111111111 Iii liltt 1111 till 2793743 09/13/2000 04:06P JA Said Tsukamoto • 4 of 8 R 40.00 D 0.00 Weld County CO (Lot i-State Farm Parcel) EXHIBIT A Len! Description All of chose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION. all being in the City of Evans, and portions of the NW1/4 of Section 20, Township $ North, Range 65 West of the 6th P.M. . County of Weld, State of Colorado, being described as follows: Considering the West line of said NWL/4 of Section 20 as monumented with a 3 1/4" aluminum cap L.S. #10740 at the Northwest corner and a 3 1/4" aluminum cap L.S. #11648 at the West Quarter corner as 'bearing N00°00'00" East and with all bearings contained herein relative thereto. Commencing at said Northwest corner of said Section 20; thence along said West line of the NW1/4 S00°00'00" E. 560.87 feet to the North line of said STROH'S THIRD ADDITION, as monumented, said North line also being the monumented South Line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION, to the Town of Evans; said North Line also being the North line of that certain parcel of land as described in deed recorded in Book 891 at Reception No. 1813428, records of said county; thence along said North line N89°46'59" East, a distance of 390.79 feet co a #4 rebar (no cap) , and again 533°30'11" East. a distance of 660.65 feet to a #4 rebar with cap L.S. #11399, and again S88°13'30" East, a distance. of 53.27 feet to a *4 rebar with cap L.S. #11399 and the Northwest corner of chat certain parcel of land as described in deed recorded in Book 990 ac Reception No. 1919028, records of said county; thence along the North line of said parcel of land S89'53'04- East, a distance of. 46.45 feet co a #4 rebar with cap L.S. *11399 on the West line of STATE FARM SUBDIVISION, to the Town of Evans and the True Point of Beginning; thence along said West line NOO°22' 18" West, a distance of 87.86 feet to a #4 rebar with cap L.S. X17662 at the Northwest corner of said STATE FARM SUBDIVISION; thence along said North line of STATE FARM SUBDIVISION N89°49' 37" East, a distance of 489.76 feet to a *4 rebar with cap L.S. #17662 on southerly prolongation of the East line of LAKESHORE THIRD ADDITION, to the Town of Evans: thence along said prolongation and said Easc line N00°35' 30" East, a distance of =72.31 feet to a #4 rebar with a cap (number obliterated) on the South right-of-way line of U.S. Highway 34; thence along said South right-of-way line 572°43'26" East, a distance of 440.78 feet to a #4 rebar (no cap) , and again N87°34'22" East, a distance of 19.60 feet to a #4 rebar with cap L.S. *4392 and the East line of that certain parcel of land as described in deed recorded in Book 1083 at Reception No. 2024072, records of said county, said East line also 'being the West right-of-way line of old U.S. Highway #85 (8th Avenue) ; thence along said West right-of-way line the following 5 courses and distances: 1) S03°57'24" East, a distance of 170.01 feet to a #4 rebar with cap L.S. #17662; • 2) 503°08'31" East. a distance of 201.96 feet to a *4 rebar with no cap; 3) 500°09'41• East, a distance of 39.04 feet to a *4 rebar with cap L.S. #4392; 4) Sol°47'34" East, a distance of 31.01 feet to a #4 rebar with cap L.S. 417662; 5) S00°46' 59" West, a distance of 489.46 feet to a #4 rebar with cap L.S. *4392 on the North line of the AMENDED PLAT OF SOUTHGATE SUBDIVISION. to the City of Evans; thence along said North line 589°48'24" West, a distance of 710.81 feet • (continued) Exhibit A( Page 1 of 2) n 111111111111111111111111111111111111111 III IIIII IIII IIII 2793743 09/13/2000 04:06P JA Sold Tsukamoto 5 of 8 R 40.00 D 0.00 Weld County CO (Lot I-State Farm Parcel) to a #4 rebar with cap L.S. #9714 on the South line of STATE FARM SUBDIVISION, to the Town of Evans; thence along said South line and the West line of said STATE FARM SUBDIVISION 589°38.47° West, a distance of 238.24 feet to a *4 rebar with cap L.S. #7252, and again NO°39'08° West, a distance of 265.36 feet to a *4 rebar with cap L.S. #11399, and again NO0°17.17° West, a distance of 137.19 feet to the True Point of Beginning. Exhibit A ( Page 2 of 2) • 1211111111111111111111111111111111111111 ItI 111111111 till 6 of 8 R 40.80 D 0.00 Weld County CO EXHIBIT B Permitted Exceptions 1. General real estate taxes and assessments for 2000 and subsequent years, a lien but not yet due and payable. 2. Existing leases and tenancies. • 3. Such state of facts as an accurate survey or an inspection of the Property would show. 4. Any and all covenants, restrictions, easements and reservations of record. • 5. Matters arising by,through or under Grantee. 6. Right of the public and adjoining owners in highways,streets, roads and lanes bounding or abutting the Property. 7. Overlease of even date herewith from JPB Greeley,LLC, WBP Greeley,LLC and RGM, Greeley, LLC to JPB Greeley, LLC, WBP Greeley,LLC and RGM, Greeley, LLC. 8. Lease dated May 20, 2000 from JPB Greeley, LLC, WBP Greeley, LLC and RGM, Greeley, LLC to State Farm Mutual Automobile Insurance Company. 9. Any water rights or claims or title to water in, on or under the land. • 10. The right of the proprietor of a vein or lode to extract or remove his ore, should the same be found co penetrate or intersect the premises thereby granted and rights of way for ditches and canals as reserved in the United States Patent recorded March 29, 1881 in Book 20 at Page 296, and any and all assignments thereof or interests therein. Ii. Each and every right or rights of access to and from any part of the right of way for Colorado State Highway No. 34, from and to any part of subject property abutting upon said highway, as granted co The Department of Highways, State of Colorado, by Deed recorded July 12, 1962 in Book 1619 at Page 610. (continued) 30751.4 8/23/200001148 AM MSFR.A006758S.WPD.I Exhibit B (Page I of 2) • i 11111111111111111111111111111111111111III11111Ills III! 2793743 09/13/2000 04:06P JA Suld Isukamoto 7 of 8 R 40.00 0 0.00 Weld County CO 12. An easement for Communicatin facilities and incidental purposes granted to The Mountain States Telephone and Telegraph Company by the instrument recorded June 14 1972 at Reception No. 1591567. • NOTE: The following notices pursuant to CRS 9-1.5-103 concerning underground facilities have been filed with the Clerk and Recorder. These statements are general and do not necessarily give notice of underground facilities within the subject property. a. Mountain Bell Telephone Company recorded October 1, 1981, in Book 949 at Reception No. 1870705. b. Union Rural Electric Association, Inc. recorded October 5, 1981, in Book 949 at Reception No. 1871004. c. Colorado Interstate Gas Company recorded August 31, 1984, in Book 1041 at Reception No. 1979784 . d. western Gas Supply Company recorded April 2. 1985 in Book 1063 at Reception No. 2004300. e. Associated Natural Gas. Inc. recorded April 23, 1986 in Book 1110 at Reception No. 2050953. f. Panhandle Eastern Pipe Line Company recorded June 26, 1987. ]0751+.824/200011:11 AM.MSFR.A0062585.NPD:1 Exhibit B (Page 2 of2) x+v • 1 111111111111111111III11111111111111111 I1111111 1111 1111 2793743 09/13/2000 04:06P JA Sukl Teukamoto 8 of 8 R 40.00 D 0.00 Weld County CO SCHEDULE I • D_r Name Tenancy-in-Common Interest Randy M. Schwartz 6.666% • I0M 4B'f^o000a:07 PM MSFR A0062585.WPDa SC-1 • • I IIIIII 111111111111 III'IIIIII It IIIIIII III 11111 1111 tIll 5N 5 2804545 11/03/2000 10:47A a Sold Tauliamoto —. 1 of 3 R 15.00 D 0.00 Weld County CO ---- QUITCLAIM DEED as of This DEED.made/um 13 thday of September 2000 • betweerWBP GREELEY, LLC, a Colorado limited liability company >n i I mod' ,pamonand THE UNIVERSITY OF I! ' NORTHERN COLORADO FOUNDATION, INC., a non-pprofit I •+eo.powaoo duly organized and existing under and by virtue of the laws of the•Sate of Colorado •anmmnimtekalaaarmtit University i !'Colorado, Judy Farr Center, Greeley, Colorado 80639 I. WITNESS,watmettesox.f•- ' ' -- good and valuable i i consideration, .8eiaboefth, .1 the receipt and sufficiency of wbicb is hereby acknowledged,has remiss.seleafed•sold and QUITCLAIMED.and by these presents does remise.release sell and QUITCLAIM unto the grantee.its successors and assigns forever.all the right.title.interest,claim and demand ' which the grantor has in and to the real property,together with improvements.Wash situate,lying and being in the • 'i Co.mtyof Weld andstateofcwonadn,descTiheda.wlwton Exhibit A annexed !hereto and made a part hereof. • • li II. � i I b I „ II i I. TO HAVE AND TO HOLD the ante together with all and ti*ilar the apqutenanoesand pivie{m thaeumobelonging•orin anywise I. thaeunto appenasmng.and all the estate.tght.ale.interest end del s whosoever of to 1' grantor.either ire law or equity,to the only proper i 'i use.besot and OehomofWegramet its mttmtoes and assigns fortrer. The away mtmba shall include the Aural,the plant thee/islet and the use of any gender shall be applicable to all seeders. IN WITNESS WHEREOF,the grantor has executed this deed co the date set foah above. 6BP GREELEY S.LC, a Colorado limited liability rnmpany U� Its: Manager, William B. Pauls I� NV I, 'This Deed is a convenience deed which reflects an apparent inconsistebcy `Iaaith respect to the undivided tenancy-in-common interest in the ['aforesaid property owned and held by the aforesaid grantor. • STATE OF COLORADO 1 ss l lCity and County of Denver' I The foregoing instrument was admowkdged before me this "6-414" day of D�pij/ • 2000 • li by William B. Pauls, m af WBP Greeley, LLC, A Colorado limited liability ;- company r°b",,. 3 :\IOTARyi Witness my hand and official seal. -0-0-? • € My commission expires: I /�ffm Dt°vw''�^ C'n•� ' ssv COMMISSIONJUN12,200(PmES �„e / t'a'ns svtat 1 /' r JUNE 12,s2�001 O^�c•�(G�O' V o tr l st '6 am st;U}'✓1 wont oesaw.Cases moo sumo sussnas.ersr Sou r.e, Non Su to uff[UD =Door l ass /-fv'Hf'1;KA �NS(%1 as a.143 Waste St.meth CO 2—(303)292.2W-1.98 .toss F . • 1111111111111111111 JIll 111111 1111111111 Ill llll1 lIll E 2804645 11/03/2000 10:47A JA Suki Tsukamoto (Lot l-State Farm Parcel( 2 of 3 R 15.00 D 0.00 Weld County CO • EXHIBIT A Lezai Descnntion :.1_ :f :nose portions of STATE FARM SUBDIVISION, and LAKESHORE THIRD ADDITION. all being in one City of Evans. and - ----ns of one NW1/4 of Section 20, Townsnip 5 North, Range 35 west of the 6th P.M. . County of Weld. State cf Colorado. being described as follows: Considering the West line of said NW1/4 of Section 20 as monumented with a 3 1/4' aluminum zap L.S. 210740 at the Northwest corner and a 3 ./4" aluminum cap L.S. *11648 at the West Quarter corner as bearing N00•^0'00" East and with all bearings contained herein relative tnereto. Commencing at said Northwest corner of said Section 20: thence along said west line of the NW1/4 S00.00'00" E. 460.37 fee: to the :fort' line of said STROH'S THIRD ADDITION, as aonumented, said Nortn line also being one monumented Soucn line of LAKESHORE ADDITION and LAKESHORE SECOND ADDITION. t_ one Town of Evans: said North line also acing the North line of :tat :attain parcel of :and as described in and recorded in Soon 891 at Reception No. .313428, records of said county; thence along said North line N89.46'59• East, a distance of 390.79 feet co a *4 reoar (no cap: , and again S33.30'11" Easc. a distance of 660.65 fee: to a #4 rebar with cap ..S. *11399, and again S88.13'30" East. a distance. of 53.27 . feet to a #4 rebar with cap L.S. *11399 and the Northwest corner of chat certain parcel of land as described in deed recorded in Hook 990 at Reception No. 1919028, records of said county; thence along the North line cf said parcel of land S89'!3'04• East, a distance of 46.45 feet to a #4 rebar wit:: cap L.S. *11399 on the West 1Sne of STATE FARM StR4DIVISIO41, to the Town of Evans and one True Point of Beginning; thence along said West line NOO°22':8" West, a distance of 87.86 feet co a *4 rebar with cap L.S. *17662 at the Northwest corner of said STATE= FARM SUBDIVISION: thence along said North line of STATE FARM SUBDIVISION N89•49'37" East. a distance of 489.76 feet to a *4 rebar with cap L.S. 417662 on southerly prolongation of the East :ine of LAKESHORE THIRD ADDITION, to the Town of =vans: thence along salt orolongacion and said East line No0.35'30" East, a distance of 577_31 feet to a *4 reoar with a cap ;number coliterated) on the South right-of-way line _f U.S. Hignway 34: onence along said Soucn r:gnt-of-way line 372.43'26" East, a distance of 440.73 feet to a #4 reoar no cap: . and again N87•34'22" East. a distance of 19.60 feet to a s4 :mbar with cap L.S. #4392 and the East line of chat certain parcel of land as described in deed recorded in Soon 1083 at Reception No. 2024072. records of said county, said East line also being tne West right-of-way line of old U.S. Highway *85 (8th Avenue) : onence along said West right-of-way line the following 5 courses and distances: .i S03°57'24" East. a distance s; :70.01 feet co a *4 rebar with cap L.S. *17662; 2) S03.08'31" East. a distance Of 291.96 feet to a *4 rebar with no cap; 21 500°09'41" East. a distance of 29.04 feet to a *4 :sear with cap L.S. *4392: 4, S0:°47'34" East. a distance of __. :1 feet to a 44 :soar with cab L.S. *17662: 4. 300°45' 49" West, a d:s-ante of 439.46 feet to a *4 reps: with tap ..3. 24392 cn the Ncrt -ine of one AMENDS_ FLAT _F SOU" HGATE sUHDIv' to nt•- .. _SHO0T. _.. _-C% of Evans: thence ale _ said sort.. -_n_ 339.48'24" west. a distance of 722.al fee: ' continued) Exhibit A( Page 1 of 2) • I IIIUI IIID 1111111 Till111111III1111111III11111III! III 2804645 11/03/2000 10:47A JA Suki Tsukamoto (Lot t-State Farm Parcel] 3 of 3 R 15.00 0 0.00 Weld County CO __ -4 :soar with cap L.S. 49714 0.. the Soucn line of 5 AT! FARM SUBDIVISION, :o cne Town __ _vans: :nence along said Soucn line and :ne west :Ina cf said =TS FARM SUBDIVISION 539•?9.47• west. a distance of 238.24 feet :o a *4 reoar with cap L.S. #72_2, and again .70°?9•pe• west. a distance of 263.36 feet :o a *4 reoar with cap L.S. #11399, and again :roo•t7' _7• west, a distance of :37. ':_ feet :o the True Point of Beginning. • • • • Exhibit A(Page 2 of 2) DEC.29.2003 2:03PM CO SANTA FE N0.543 P.2 BILL OF SALE AND ASSIGNMENT AGREEMENT THIS BILL OF SALE AND ASSIGNMENT AGREEMENT("Agreement"),dated November 18, 20p3,by and between University of Northern Colorado Foundation,Incorporated,a.Colorado non-profit corporation,whose address is Judy Farr Center,Campus Box 20,Greeley,Colorado 80639("Assignor"),and US-O310,LLC, a Colorado limited liability company("Assignee"). WHEREAS, Assignor and Assignee entered into that certain Real Estate Sale and Purchase Agreement dated October 21, 2003 (the"Contract")for the purchase and sale of that certain real property wish improvements thereon located at 3001 86 Street,Evans, Colorado, Colorado, and more particularly described in Exhibit A attached hereto(the"Property"),together with certain"Personalty"and "Intangible Property"in connection with the Property, as more particularly described below; and WHEREAS,Assignor desires to assign unto Assignee all of Assignor's right,title and interest in and to the Personalty and the Intangible Property as hereinafter provided. ' NOW,THEREFORE,in accordance with the Contract and in consideration ofthe mutual covenants and obligations set forth therein,the parties do hereby covenant and agree as follows and take the following actions: ' 1. Assignor does hereby assign and sell unto Assignee all right,title and interest of Assignor in and to all tangible personal property("Personalty")now owned or hereafter acquired by Assignor from State Farm Mutual Automobile Insurance Company, and located on, and/or used in connection with the management,maintenance or operation of the Property,including,without limitation,all fixtures,machinery, air conditioning and heating equipment,supplies,replacement parts,floor coverings,wall coverings,blinds, partitions,fire prevention and extinguishing apparatus, security systems,plants, furniture and all building materials. 2. Assignor does hereby assign and sell unto Assignee all of the Assignor's right, title and interest in and to the following property to the extent the same is transferable by Assignor: (a) Assignor does hereby assign and sell unto Assignee all of Assignor's right,title and interest in,if any,the leases(and all amendments thereof)in connection with the Property set forth in Exhibit B attached hereto (the "Leases") and Buyer accepts title to the Property subject to such Leases; provided, however, that Assignee but does not assume any obligations, responsibilities or liabilities of any kind or nature under or in connection with the Leases; (b) any and all licenses, permits, authorizations, certificates of occupancy and other approvals and intangible rights that are now or are hereafter in effect and necessary for the current use and operation of the Property(collectively,the"Permits"); . (c) any and all builders' and manufacturers' warranties and guarantees express or implied, oral or written, which relate to the Property, and which inure to the benefit of Assignor (the Warranties"); (d) All site plans, surveys, soil and substrata studies, plans and specifications, engineering plans and studies and other plans,diagrams or studies of any kind, if any,in Seller's possession or centrol,and all development rights that relate to the Property(collectively,the"Studies and Rights");and (e) any and all other privileges,rights and appurtenances of Assignor,reversionary or otherwise and in any way related to the properties described in this Agreement,includinejbut not limited to all rights to protest property tax valuations and collect property tax refunds for the current and all previous .`rte DEC.29.2003 2:03PM CO $ SANTA FE N0.543 P.3 property tax years, to_the extent that any such property tax matters have not been previously pursued by Assignor(the"Remaining Rights"). As used herein, "Intangible Property" means the Leases,Permits, Warranties, Studies and Rights and the Remaining Rights. As used herein, "Transferred Property" means the Personalty and the Intangible Property. ' 3. Assignee acknowledges and agrees that it has not relied and does not rely upon Assignor as to any matter relating to the Transferred Property, including but not limited to, use, condition, presence of hazardous materials,income potential,marketability or fime'ss for aparticular purpose,and Assignee agrees it has acquired the Transferred Property"as is"and"with all faults".Assignor hereby expressly disclaims any and all warranties and representations whatsoever, express or implied, with respect to the Transferred Property including,without limitation,warranties and representations concerning thejjse,condition,presence of hazardous materials,income potential,marketability or fitness for a particular purpose of all or any part of the Transferred Property. 4. This Bill of Sale and Assignment Agreement shall be (a) binding upon, and inure to the benefit of, the parties to this Bill of Sale and Assignment Agreement and their respective heirs, legal representatives,successors and assigns,and(b)construed in accordance with the laws of the jurisdiction in which the Property is located. 5, This Bill of Sale and Assignment Agreement may be executed in one or more counterparts, which,when combined, shall constitute a single,valid and enforceable document. IN WITNESS WHEREOF, this Bill of Sale and Assignment Agreement has been signed and delivered by the parties as of the date first above written. ASSIGNOR: UNIVERSITY OF NORTHERN COLORADO FOUNDATION, INCORPORATED,a Colorado non-profit corporation NaIM./ 3,aM.pe U. ILlpoee Title; Prei;elant L CEO ASSIGNEE: RES-0310,LLC, " a Colorado limited liability company By: (L C. (—Ai) 1�-- Nanae: tptmmO l• (el Titl ; vlitArt Piet 2 DEC.29.2003 2:03PM CO $ SANTA FE NO.543 P.4 .____- • . EXHIBIT A . . - Os-... .4.6. . . LEGAL DESCRIPTION OF THE PROPERTY All of thole portions of Slate Palm SubdivT9T6n, end Lakesahore Third Addition, all being'in ttfd'City of Evana,and portions df the Northwest•Quarter of Section 20, Township 5 North, Range B5 Went of the 6th P.M., County of Weld,8ta a of Colorado, being deeddbed as follows: Consider' g the West line of meld Northwest Quarter of Seotlon 20 es monumented with a a 114 Inch aluminum cap L.S. 10740 at the northwest corner and a 3 114 Ina!) aluminum cap L.S.#11846 at the West Quarter corner as beano North 00100'07 East and with all bearings contained herein relative thereto. Commending at said Northwest corner of said Section 20;thence along said West line of the Northwest Quarter South 00900'00" Eat, 560.87 feet to the North the of said Stroh's Third Addition, as monumented, said North Ilne oleo tieing the monumented South line of Lakeehare Addition and Lakeshore Second Addition, to the Town of Evans;'said North line also being the North line of that certain parcel of land as described In deed recorded in ._. .book 891 lot Reoeptlon No, 1813420, records of card County;thence along said North line North 89.46'59"East, a distance of 390.79 feet to a 04 rebar(no cap), and again South 33'30'11"Ent, a distance of 860,65 feet to e #4 rebar With cap L.S. #11399, and again South 88'13'30" East, a distance of 53.27 feet to a #4 rebar with cap L,S,#11999 and the Northwest corner of that certain parcel of land as described In deed recorded In Book 090 at Reception No. 1019028, records of said County; thence along the North tine of said parent or land South 89'63'04",East, a distance of 48.45 feet to a #4 rebar with cep L.S. #11399 on the West line of State Farm Subdivision, to the town of Evans and the TRUE POINT OF BEGINNING; thence along said West line North 00'22'16" West, a distance of 87.06 feet to a 04 rebar with cap L.S, 00662 at the Northwest corner of said State Farm Subdivision;thence along said North line of State Farm Subdivision North 89'49'37"East, a distance of 489.76ifeet to a#4 rebar with cap L.S.017862 on Southerly prolongation of the East line of Lakeshore Third Addition, to the Town of Evans; thence along said prolongation and said East line North 00'35'30" East, a distance of 572.81 feet to a #4 reber with a cap (number obliterated) on The South right-of-way Eno of U.S. Highway 34; thence along sold South right-of-way line South 72'43'x6" East, a distance of 440,73 feet to a #4 rebar(no cap), and again North 87'34'22" East, a distance of 18.50 feet to a #4 railer with cap L.S. #4392 and the East One of that certain parcel of land as described In dead recorded In Book 1003 at Reception No. •2024072,•reaorde of said County, said East line also being the West right-of-way line of old U.S, Highway#85 (6th Avenue);thence along said West right ofway line the following 5 oouiue and distances: 1) South b3'S7z4'East,a distance or 170.01 feet to a#4 rebarwth 04p L.S.#17662: 2) South 03'08'31"East,a distance of 201.96 feet to a#4 rebar math no cap; 3) South p0'09'41"East, a distance of 39.04 feet to a#4 radar with Gap LS.84392; 4) South 1'4734"Eaat,a distance of 31.01 feat to a#4 rebar with cap L.B.#17662; 5) South 00'48'59r West.a distance of 489,48 feet to a#4 rebar With cap L.S, #4392 on the North line of the Amended Rat of Southgate Subdivision, to the City of Evans; thence along said North Una South 89'48'24" West a distance of 710.81 feet to a#4 rebar with cep LS.#9714 on the South line of State Farm Subdivision,to the Tawn, of Evans; thence along said South line and the West Ilea of said State Farm Subdivision South 89'38'47".West a distance of 288.24 feet to a #4 rebar with cap L.S.#7252, and again North 0'39'08"West, a dlstanee f 265,38 feet to a #4 rebar with cap L.S. #11309, end again North 00'17'17' West, a distance of 137.19 fa t(o the TRUE POINT OFBEGINNING. O1031 Solutions,ILO 2003 , All Rights Reserved HEELER MANAGEME,NTF CROUP) INC. May 6, 2004 Mr. Tim Clancy Witwer, Oldenburg, Barry and Bettingfield, LLP Attorneys at Law 8227th Street, Suite 760 Greeley, CO 80631 Dear Mr. Clancy, You requested me, as a commercial real estate broker,to give an opinion of value of the former State Farm Mountain States Regional Office at 3001 Eighth Avenue in Evans, Colorado for the years of 2001, 2002, 2003, and 2004. My credentials are as follows. • A Certified Commercial Institute Member— CCIM, which is the highest professional designation a commercial real estate broker can achieve. • A selling, listing,leasing real estate investment broker with Wheeler Management Group, Inc. (a local third generation commercial real estate firm in Greeley) for five years. • A New Mexico and Colorado commercial real estate broker for over 35 years. • Past President of the Albuquerque Board of Realtors. • Past President of the Commercial Association of Realtors (CARNM) of New Mexico. • Past real estate commissioner for the State of New Mexico. • Past President of the Colorado/Wyoming CCIM chapter. • Current board member of the Denver Metropolitan Commercial Association of Realtors. I have visited the property in question during tours conducted by Ms. Julia Crawmer, CCIM the current listing broker and have seen most of the property. I was the transaction broker for the sale of the former 45,000 square foot State Farm Call Center at 5890 13th Street in Greeley, Colorado which sold to Greeley Orthopedics and Greeley X-Ray Group on July 3, 3003 for $7o per square foot or $3,150,000 discounted from $3,800,000. The building was five years old and had been vacated by State Farm approximately three months prior to being sold. The building was practically new and did not suffer the functional obsolesces nor retrofit nightmares that the 230,558 square foot State Farm building in question suffered since the announcement that State Farm was moving to Promontory in 2000. When UNC took title to the building in 2000, the Foster Valuation Company, LLC, appraisal for income tax purposes for the buyers became no longer viable. Mr. Foster appraised the property for $11,270,000 or $48.88 per square foot, with an expiring 54 month lease that began May 20, 1999, and was ending on November 19, 2003. The lease 1130 38th Avenue, Suite B, Greeley, CO 80634 (970) 352-5860 Denver(303)892-1518 • Fort Collins(970)223-7884 • Fax(970)352-0117 rate was $3.42 per square foot NNN. This would support Foster's valuation of$48.88 per foot at a 7 cap. However, the end was in sight for the short-term lease from State Farm and the market strongly opposed that value when it was actively marketed by the Frederick Ross Company at $11,500,000. In 2003,the building sold for $12 per square foot. This selling price would support a 10% cap rate on a $1.20 per foot NNN lease rate because of non-credit rated tenants that it would now attract. The new owners are asking $2.95 per square foot but my estimate of what they will receive after the free rent given and the time value of money is approximately $1.85 per square foot. Using a 45%holding/TI expense the $1.85 per square foot gross becomes a $1.23 Net Operating Income,which capped at to% is $12.30 per square foot or approximately $2,800,000. The seller of the west Greeley State Farm Building was forced to discount his building from $3,800,000 to $3,150,000 or 17%because of the inability to find call center clients due to "offshoring" of that industry. Please note the article attached from the National Realtor's Commercial Alliance Advisory magazine. As interest rates increase the cap rates will increase,thereby decreasing the value of Industrial real estate per the attached Wall Street Journal article thereby further devaluing the property. Another factor confirming my value of$12.30 per foot comes from the Weld County Assessors sales comparables for warehouses. The 2004 county records show a $30.17 average value for warehouses but only three of these building were over $1,000,000 and none of the three were over 60,00o square feet. Values are reduced dramatically because of larger sizes. Larger buildings such as the subject building (which is approximately four times larger than anything the Weld County report of sales dated March 10, 2004) are discounted heavily because of holding cost and anticipated retrofit cost. Another factor is the appraisal price of$2.90 per square foot for the ground under the subject property. I personally was the transaction broker on a sale of 10.334 acres immediately across US 85 from the State Farm Building for $200,000 or .44 ¢ per square foot. The current owner is now developing the property into warehouse pads. If the Foster appraisal considered the comparable,the land value on page 51 of that appraisal would be reduced $1,715,164. Therefore it is my conclusion that the value of 3001 8th Avenue in Evans, Colorado is approximately $2,800,000 and that value was there the day State Farm announced they were moving west and was finally confirmed when UNC accepted $12 per square foot on November 14, 2004 after extensive marketing by UNC at $50 per square foot. Yours very truly, C-=: ;41GVdJa ' Ron L. Randel, CCIM RR:mas Enclosures reg�� The Reurade s,Commercial REG d aace.Wily a Board,composed of major king adL ors cape and local RCAI_JpThemar RE leaders moms nw ame5 alliance and sandy in a composed &mamaking adtivrry real.an for al!idiCs commercial Mifiafives,Wiwry Board members are listed on page 2. MEETING HIGHLIGHTS• Lost jobs equal vacant space According to data from Forrester locations. Initially, she said, off- U.S. companies from these types of continued its examination of de- Research,3.3 million U.S.office jobs shored jobs were knowledge-based outsourcing could be as high as 25 ments that comprise the ideal corm will be lost to foreign workers by functions such as software develop- percent to 30 percent,said Lachman. mercial real estate association by 2015, M. Leanne Lachman of ment, tT helplines, call centers,and While Lachman is confident the holding open discussions with panels Lachman Associates LLC, told mem- telemarketing. Then companies ex- U.S. economy will eventually create of association executives, contmer- bers of the RCA Advisory Board dui- perimented with outsourcing bust- replacement jobs for those lost over- cial real estate clients, and young ing a late March meeting in Chicago. ness-process functions such as bill seas,it may take time.Short term,the commercial real estate practitioners. Those lost office jobs translate to payment, insurance-claim process- commercial real estate industry The goals of the exercise were to almost 600 million square feet of ing, employee benefits administra- should prepare to deal with off- identify the programs,products,and vacant office space,or 17 percent of non, and mortgage-loan servicing. shoring's contribution to already services brokers,clients,and service currently occupied space. Today, companies are offshoring high vacancy rates in most U.S.office providers need from an association Lachman described the overseas more sophisticated functions from markets. and to consider ways to bring about loss of jobs as"offshoring,"the long- equity research, credit analysis, and In addition to hearing Lachman's consolidation among today's set term relocation of business functions legal research to X-ray and CAT Scan presentation on "The New Export: mented commercial real estate asso- and processes to lower cost non-U.S. reading and animation. Savings for Office Jobs,"the Advisory Board also ciations. • it ' U I pdates on three key inivaut e.x4 Association of Real Estate License mission. In response. the Con 4 w Hirt:Sidle Association of REM. by the RLAI:FOILS Commercial .Al- Law Officials,On a less positive note. teeticut Association of 121[AcIuRS FORS sponsored a broker lien hill fiance.Ad,isnn Board. RCA staff was recently alerted uo is hacking II.B. SS SO. which would that passed the Senate last tear and License reciprocity: In 2Uuk rL ressise action on reciprocity establish standards under wind' is still Alto. assigned to a Ilnuse license reciprocity legislation he- being considered by the Mississippi commercial OSIs could lawfully Communes. The Delaware Assoeia- came late in Sash Carolina. Real Estate Commission. The coin- share in compensation a;reetuents toot of IthALFORs also plans to Mart land and Washington State. mission is seeking to change Mllssis- with Connecticut licensees and introduce duce broker hen legislation- raising the number of cooperative sgtpt license law so that the sidle through the Connecticut licensee. CF credits: The Continuing Education stales to 20-Cooperative states grain would become a pinsted-location true grounds to bring suit. Credo fa k him.his perliuncd ARELU) out-of-state licensees (O51st the state instead ul a cooper:uise one. A Broker lien laws: Renewed ef- In adopt a one-top approach for t.l ability tut conduct business in their physical-location state does not per forts are underway in scser,d states reedit course appro al among as member jurisdiction. in cooperation ttith au nut OSLs to perform services within to pass broker lien bilk this icu. slue',Iii,:gr IMO h twill ellsa course in-state licensee. Earlier this teat the state although Ihes may do so Such lasts would allow bothers to pnmidcntoaehieteMink,-wpptIial nil both the Indiana Senate IS 2321 from their own state.The Mississippi place a lien on property in order to states instead of adhering to the euinhcr- and the Kansas Senate IS.B. ;341 Association of in:AI:FORS supports MUM all Unpaid conuuission. Alter some. etpenstu', and lime-consuming passed reciprocity legislation. .At the action because of concerns Failing to pass two years in a row. a process that require.separate,tpprutal in press time, the Indiana bill, which raised by residential practitioners new broker lien hill (S.B.I-SS A was each sine The mu-shgr process should ssas actisely supported by the about the conduct of residential introduced in the Honda Senate in result in more and better Cl- course Indiana Association of RI AI:I't)RS-. ()SLs. On the enfurcentent front, the March 2211(11. The Florida -Assucia- options for commercial praUihnners. was pending in the House. The Kentucky Real Estate Commission Hon of REALTORS° worked claw; Ann U (greed to io ewgate the feLthllitt Kansas hill is awaiting consideration recently sent warning letters to with Task Force Member Jim of prodding a one stop approval sense. In the Arose. The I law aii Assucia- national enrnmercial Companies Hochman. senior eke president:mil As a first step.the group is CI)tupiling infor- unit of REAI:I'ORS- is supporting alening OSIs about what is allow- senior counsel of CB Richard Ellis aiation regarding what is required In get S_2S)2/lilt I7, which would allow able tinder Kentucky license law. Inc, to strengthen the bill. improv- CE courses apprmed for credit in each the real estate commiseiun to cater The Connecticut Supreme Court mg its chances for passage. In state. RebitlL' of the studs.which 'vill he into formal license rueognititIn ruled that the site's license law pro- Kansas, broker lien language yeas relined in late:April,will he teed to assist agreements with other states and In bits OSIs from filing lawsuits in attached to separate legislation. WHO in deciding w holier itisfea'ihlcto jurisdictions recognized by the Connecticut for failure to pay coin- S.328,and passed by the House.The centralize approvals. 4 REALTORS' COMMERCIAL ALLIANCE RETORT CORPORATE HEADQUARTERS OFFICE For Sale or Lease 5890 13th Street, Greeley, Colorado North Entrance 45,000/SF Corporate Office k .rt ft Axis W1414 Currently occupied by State Farm Insurance until 3/1/03 Purchase Price: $3,800,000 ($84,44/SF) .. -`_ • _ z Lease Rate: $10.00 per Square Foot !INN -. South Entrance $84.40 per -. Square Foot - ..�. : •r T(HEELER «* �, ,{ A T AGE* ,{�T - ® cum 812 8th Street Plaza * Greeley, Colorado * 80631 MANAGEUP INC. MENT-1 VIZ 1�LG1 V 1 RE, ,oa 970.352.5860 Office * 970.352.0117 Fax 303.892.1518 Denver * 970.223.7884 Fort Collins WMG•f8 Information deemed reliable, but not guaranteed. Price, terms and condition subject to change. pf Office Sale Q ,,/. F IcE State Farm Mountain States Regional Office 'na' 3001 Eighth Avenue, Evans, Colorado y • •.• . :; !G,G. .+sue(• ;_ .t\ .i2 -..i, [ n . ,rt..; r ..T✓pie Rn. . - p x� J STATE FARMiINSURANC ® High-profile Northern Colorado Multi-purpose Facility— Landmark 230, 558-SF Building $ 11 , 500, 000 ( $ 50/SF) Great visibility and access Please Contact: • Close proximity to University of Northern Colorado and Jeff McClintock Ft. Collins/Colorado State University 303.260.4390 • Potential uses include call center, high-tech manufacturing, jmcclintock@fross.com government offices, education and training facility Dave Lee • Meticulously maintained 303.260.4349 • Located at the southwest corner of Hwy 85 and Hwy 34 dlee@fross.com bypass, immediately south of Greeley %' �, Jason Addlesperger • Includes 18,000-SF warehouse with 22' ceilings 303.260.4342 jasona@fross com Frederick Ross Company p-`Ap Nix ,� � ; � 717 Seventeenth Street, Suite 2000 firF 7.., Denver, Colorado 80202-3323 r'� 't Phone: 303.892.1111 r „. www.frederickross.com Fax: 303.892.6338 T "FA l ° Frederick Ross ROSS Company ( Information contained herein,while not / // / ONCOR guaranteed is from sources we believe reliable. Worldwide Real Estate Services r Building Information) Building Information . .'i ,r z Address: 3001 Eighth Avenue;SWC of US 85 and US 34 bypass, immediately south of Greeley City/County: Evans/Weld Zoning: C-3 (High-Intensity commercial District) '4 >ti Building Size: 230,000 SF total Land Area: 16.006 acres .. V a lit 169,029-SF main level, including 18,000-SF warehouse 61,529-SF lower/garden level(100%office) 4 '£ Years of Construction: 1962, 1974, 1980, 1987, 1998 Condition: Excellent ' Sale Price: $11,500,000 Price per Square Foot $50.00 Ceiling Heights:8.5'in office areas, 22'in warehouse Sprinklered: Entirely to Site Man Power. Redundant power supply, back-up power system Telecommunications: Large, raised-floor(18") data center with supplemental HVAC and battery backup Food Service: Newly-upgraded, full-service kitchen and dining area ?' Parking: 798 surface spaces; adjacent land potentially available for additional parking I . w°ano..www, i wry - ...war. T 4 r„ ₹h '% \ ' I 0 R7. . -. .., y t .p.J r '� _ j I r - * (1 n . J - Ea at 'C! H — ¢ :.,s a ". _' tlSa:,v.a..�• b..� -.;$4 Wes" • t- o . 9A. lail,- ti ' .r,, liii`' = ass` ri A _..-- Via.... _ r � �� oI i4 ,r •z J° ,, Cr ' t` 1 ‘ J.L' q1, �r.ri t.- sit ."z° « 4,'443.,� y R .. is�.z-9 I .l 3Ytl a d •. i s glillt 0 -4 !p4k. w wAT I P ` r a4x ' � •l .S"'1.'411;04° � Y IFIF J4 3 w�' - i � 7 4-T r I www.frederickross.com' I . I ` i State Farm Mountain States Regional Office 3001 Eighth Avenue, Evans, CO i �Ao! lea' �ti. y✓� _ . I 74....1,:-.‘,: ,_,...„r.....: 0. • . "D �44 .!!:.• i9hwalo3 4.IIP:d- • . AidillIPP.-. ' 4g , 43ass 1 ..IMIPr" (Willi' IlillIIIIIIIIIIIIIIIIIIIIII L MEW E I. • ....».... ^ iii • .44,1:4"54C:'•• ••.• ° uy rte.-`' 1 'Jr , •�, ., .i11 r ra ' % [flilillillillif ill (lillillill!llliillllllliLJ II`` JJ II ii JJ W WG Il(llllil !i[11lllll 3 /=to Softball Fields...4 O . ' 4. I I LLI Z LLJ • ' . : I Two-Story Q _ I . 230,000-SF 1 -, Facility W , . II\ = Patio _- 3 Break Area °' ' ' y\ 1t y. I .. �,\\\\X.,..•\. ;Loadi n9 c �'v '� 1 ,� s Loading,-\\ \ }' I I 04,4*47/4,/khA7,4 L._._,) \i' , ,__J y i 1 Li I Imams State Farm Regional Office 3001 Eighth Avenue, Evans, CO - - r -•R F°>k Ti,.♦ a a r .ti i r- \��C ��?'A ;�.Z+�.+�� .a � „NIL-vies, 1. 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Yr r ai_`_ � F t t 1'4; 4-'1-' tee, r� _ter• r X \ P � `\ -,-,--_ .tom_• t' �k - „ 1 1 /� L L-,.-5 S .:i�:,! t }.�.. 1R'1l"tl� c^ T.. is .S 7t t,. �. a �'^ 7 7 c , l:t a ..y w _ ii , 41‘ A :.es..^ Yy ,� )r? eJ• w ^r• 3'r 2,.`.:}` ti. •\� • 1 wit eta=�e� ^ 5 i a •-T.� 4 '' f F♦�qt-1".- :y- 7c. 1.f.� ,. ;..m ♦ ^F ` � ... �!D8,-- �0 L'n';.,� na .f ��C?"Y _ . C...., . „ V. v. ".t:, -.y..: j4 r�'_ .ir r, n1 .fr.-.• ` '� 1k , v> S � ..fata--- l \`I v i,.' 7Ja *+. x.t- C tl.•. S .), =?\Z' r\ r•.+ 'ti♦ '4 ` ,, r••iry'.:-, > -e. .� .s '"1w� �. *C /.e 1 r a ,tf• . r-`�`•' e. i i ��r v�' `ST—.."q.‘a I' ,r.i i y :�` T - `,1 ♦ t • .> ,,,,--t,t n 6Y' ..ittit.‘ \+ x n . ' \r" t'. 47 .w�g ‘ - 4 "< Y F .ya_e" _ d .. --rz _ ,w �'�,.r w �s'�9'�" ^ "` w.. .�+i- ti.�1 'a` «.--a a' T= • At 't .,* ' may: i% $ TT , s, � ay, t.-� ` ir, " "__" --,1 nilInformation contained herein,while not guaranteed,is from sources we believe reliable. Pnce,terms and information subject to change, Frederick Ross Company,its broker associates and its salespersons,are or will be acting as agents of the sellernessor with the duty to represent the interests of the seller/lessor Frederick Ross Company will not act as your agent unless an agency agreement is signed and in effect. REALroa I B8 WEDNESDAY, APRIL 28, 2004 THE WALL STREET JOURNAL. THE PROPERTY REPORT Building Value/By Ray A. Smith Rates Matter Historically low interest rates have been a How Higher Rates Could Affect Commercial Property Values big reason o lestate.r increased When investor ratlest in are low,real-estate transaction activity N OW THAT IT'S WHEN, not if, the demand for real estate as the cost of bor- next two years if interest rates rise 1.5 values in 2004, while Real Estate Re- just hasn't been that strong." Federal Reserve will raise interest rowing rises, cooling the market. So percentage points.Real Estate Research search sees 5%to 10%declines if interest Rising interest rates are seen by the tends to be high;when rates are high, rates, the question for commercial real- while the property's capitalization rate Corp., based in Chicago, predicts a 10% rates rise between one and two percent- three firms as having little to no impact activity tends to slow. estate investors is what will happen to would increase, prices and values would to 15%decline should interest rates rise age points over the next 12 to 18 months- on retail property values largely because property values? generally fall or remain flat- that much- The Fed's current target for Marcus & Millichap predicts the values of expected job growth, which would re- r y According to forecasts from at least Over the past five years,prices of of- its benchmark federal-funds rate, the of industrial research and development place low interest rates as a catalyst for 10 xta t. Propertysales_ 8Y` three real-estate research firms, values fice, industrial, apartment and retail rate charged on overnight loans between facilities and high-tech manufacturing spending and extend the strong levels of _ .., ,,= (leftscale% - and prices will decline sharply for office properties for transactions above banks, is at a 46/ear low of 1%- properties would suffer more than ware- consumer spending of the past few • a t v 24* Tte,Y,,r ^ 31- ,7 • properties. And values are expected to $500,000 have tended to rise when inter- The problem with office buildings, house or distribution centers when inter- years. r144', '=* Stscak either fall—though not as sharply as they est rates fall and vice versa,according to says Jim Costello, a senior economist est rates rise since those properties still Kenneth R Riggs Jr., chief executive - . Kfi will for office buildings—or remain flat research from Marcus & Millichap Re- with Torto Wheaton Research in Boston, have higher vacancy rates. officer of Real Estate Research, adds a for apartment buildings,industrial build- search Services, a division of Marcus & is that leases that expire between this The firms don't all agree on the apart- that values for retail properties eventu- ' 4 ings and retail properties- Millichap Real Estate Investment Broker- year and 2008 will be renewed or re- ment sector, which has suffered due to ally will experience some minor repric- i 5 In the real-estate industry, low inter age Co., of Encino, Calif- leased at lower rates,as rents have come little demand and low interest rates ing,"mainly because the level of pricing est rates have helped fuel investor de- The fact that real-estate demand down from the market highs at which prompting would-be renters to become for these assets has been so high as to be 1;P, 1. mand for commercial property by lower among tenants has been weak,especially they were signed years ago when the homeowners-Marcus&Millichap expects "unsustainable." But he describes this 6 '{Z 4 ing investors' borrowing costs. That de- in the office sector,will make it increas- economy was strong. That, combined price corrections in the weakest markets. repricing as more of a cyclical phenome 5 mand, in turn,has pushed up prices and ingly harder for building owners to raise with rising interest rates,is a big reason Real Estate Research expects values to non than interest-rate related. 0 w z ., . 3 values for commercial assets to record rents enough to offset the loss in value why the firms think the office sector will hold up because higher interest rates levels, and has driven returns on new that comes with rising interest rates. be hit hard. should give a boost to apartment demand. See the most recent Building 1999 '00 '01 '02 '03 1q'04 investment, or so-called capitalization Harvey E. Green, chief executive of Torto Wheaton and Real Estate Re- Torto Wheaton's Mr. Costello thinks Sm Value Q&A column online at Real- -sales of apartment,office,retail and,nausmalproperties of rates, down. Marcus & Millichap Real Estate Invest- search both predict a similar problem to values will decline 4.2% this year. "You EstateJournal-com. If you have a $500000 and above nationwide.1Q 2004 numbers are Some analysts and observers believe ment Brokerage, predicts a 15% to 20% a lesser degree for industrial properties. still have some high vacancy rates in the real-estate guestion,e-mail it to Build- estimated annualized sates. higher interest rates will reduce investor drop in office-building values over the Torto Wheaton forecasts a 6.9%decline in sector,"he says, "and in general demand inglalueCwsj.com. Source:Marcus&Marcnap Research Services CLERK TO THE BOARD PHONE (970)336-7215, EXT.4225 T FAX: (970) 352-0242 P.O. BOX 758 GREELEY, COLORADO 80632 WADe. COLORADO April 5, 2004 TIMOTHY V. CLANCY 822 7TH STREET SUITE 760 GREELEY, CO 80631 RE: SCHEDULE NUMBER 096120208024 (Tax years 2001, 2002 and 2003) Dear Property Owner: This is to advise you that the Weld County Board of Commissioners will hear your petition for abatement or refund of taxes on the property described as:3001 8TH AVENUE, EVANS,CO 80620. The meeting is scheduled for April 28, 2004, at 9:00 a.m., in the First Floor Meeting Room, Weld County Centennial Center, 915 10th Street,Greeley, Colorado. The Assessor is recommending that the Board deny your petition. You are not required to be • present at this hearing, however,this is your opportunity to have your position heard, especially if your position is opposed to the Assessor's recommendation. If you intend to submit any documentation in support of your position for this hearing, all such documentation must be submitted to the Office of the Clerk to the Board and to the Weld County Assessor's Office at least seven calendar days prior to the meeting date in order for it to be considered at the scheduled hearing. If you have any questions concerning this matter, please do not hesitate to contact Carol Harding at (970) 336-7215, extension 4217. Sincerely, laad% . Donald D. Warden Clerk to the Board By:///p/6?1I..72/1 , . `,Lef fl%� Deputy Clerk to e Board cc: Assessor PETITION FOR ABATEMENT OR REFUND OF TAXES '0675-353 Please submit in duplicate copies and answer all questions County Name Weld Date Received RECEIVED Use Assessor's or Commissioner's Date Stamp DEC 3 1 2003 PETITIONER: Complete Section I on this side only Section I: WELD COUNTY ASSESSOR Greeley, Colorado 1. Date: December 31,2003 2. Petitioner's Name: RES-0310, a Colorado limited liability company 3. Petitioner's mailing address: RES-0310,in care of its agent Timothy V. Clancy,822 7th Street,Suite 760 • Greeley,CO 80631 4. SCHEDULE OR PARCEL NUMBER(S) PROPERTY ADDRESS OR LEGAL DESCRIPTION OF PROPERTY 0961-20-2-08-024(Parcel) 3001 8t Avenue,Evans, CO 80620 5. Petitioner states that the taxes assessed against the above property for property tax year(s)2001,2002,and 2003 are incorrect for the following reasons: (Briefly describe the circumstances surrounding the incorrect value or tax. (The petitioner's estimate of actual value must be included.) Attach additional sheets if necessary. See Addendum 6. Petitioner's estimate of actual value$2,850,000(2001),$2,850.000(2002)and$2.850.000(2003) Value Year Value Year Value Year 7. Petitioner requests an abatement or refund of the appropriate taxes associated with a reduction in value. I declare,under penalty of perjury in the second degree,that this petition,together with any accompanying exhibits or statements,has been examined by me,and to the best of my knowledge, information and belief, is true,correct and complete. By: Witwer Oldenb Bararry&Bedingfield,LLP Daytime Phone Number(970)352-3161 By: Agent's Signa *Letter of agency must'be((((((attached when petition is submitted. Every petition for abatement or refund filed pursuant to section 39-10-114,C.R.S.,shall be acted upon pursuant to the provisions of this section by the board of county commissioners or the assessor,as appropriate,within six months of the date of filing such petition. 39-1-113(1.7),C.R.S. S 1:1 = n m C7 i `-cri m N n = - o 7j e - t ? .ice Section II: Assessor's Use Only Tax Year /CB0! X20 Tax Year ...2e03 Value Tav eort) -yy��Value ^gyp Tax Yo Original �/01096� 5/i8 269,7We 4/4 /?/).1 SQ 657e YOZ .St Corrected /6 o qe `it 1,2�796.3 /Dj /3/).2 fri 127e 3702.3a 3 a Abate/Refund ev ezeoh /assessed 4h4c /a i �7�g!?Y i9Ssessed dolk� #2, 9Z?, 960 a 936 070 (FOR ASSESSORS AND COUNTY COMMISSIONERS USE ONLY) RESOLUTION OF COUNTY COMMISSIONERS Resolution No. Section I: In accordance with 39-1-113(1.5),C.R.S.,the commissioners of County authorize tt eTTe assessor to review petitions for abatement or refund and to settle by written mutual agreement any such petition for abatement or refund in an amount of one thousand dollars or less per tract,parcel,or lot of land or per schedule of personal property. The assessor and petitioner mutually agree to an assessed value and tax abatement/refund of: Tax Year Tax Year Assessed Value Tax Assessed Value Tax Original Corrected AbatelRefund PLEASE NOTE:THE TOTAL TAX AMOUNT DOES NOT INCLUDE ACCRUED INTEREST,PENALTIES,AND FEES ASSOCIATED WITH LATE AND/OR DELINQUENT TAX PAYMENTS,IF APPLICABLE. PLEASE CONTACT YOUR COUNTY TREASURER FOR FULL PAYMENT INFORMATION. Petitioner's Signature Oat Assessor's or Deputy Assessor's Signature Dab . If Section I is not complete and/or if petition is for more than$1,000,Section II must be completed. Submit an original petition and a copy to the Division of Property Taxation. Section II: Assessor's recommendation: Approved or: Approved in part$ No protest filed in or . (If a protest was ed,please attach a py of NOD.).,a'"ll ,,�r�- /enied for the following reason(s): 4140.C(4915 v Ze/(//kC� —'94 sers7 ,Q� o / Miler8y c �� tube o u /x7 ✓e" Wt. 2oa3 Acre 1/alireS —leA—Se 3 /Ad p/4ee o/ n4 This /0 pi 2.tLuo /t't . Nt/y PRiee t'w@ tq 74,15,r ried Eras d don'4ht a or epury Assessor's Signatur Section III: WHEREAS,The County Commissioners of County,State of Colorado,at a duly and lawfully called regular meeting held on_/ /_,at which meeting there were present the following mo day yr members: with notice of such meeting and an opportunity to be present having been given to the taxpayer and the Assessor of said County and Assessor (being present/not present)and Name petitioner (being presentnof present),and WHEREAS,The said Name County Commissioners have carefully considered the within petition`,and are fully advised in relation thereto, NOW BE IT RESOLVED,That the Board(agrees/does not agree)with the recommendation of the assessor and the petition be(approved/denied)and an abatement/refund be(approved/denied)for property tax year(s) and . The taxes to be abated/refunded for property tax year are$ which represents an assessed value of$ and the taxes to be abated/refunded for property tax year are$ which represents an assessed value of$ . Chairperson of the Board of County Commissioners'Signature County Clerk and Ex-officio Clerk of the Board of County Commissioners in and for the aforementioned county,do hereby certify that the above and foregoing order is truly copied from the record of the proceedings of the Board of County Commissioners. IN WITNESS WHEREOF,I have hereunto set my hand and affixed the seal of said County at ,this day of Time Date Month Year County Clerk's or Deputy County Clerk's Signature ACTION OF THE PROPERTY TAX ADMINISTRATOR Denver,Colorado, Month Day Year The action of the Board of County Commissioners,relative to the within petition,is hereby 7.Approved;E Approved in part$ ;U Denied for the following reason(s): Secretary's Signature Property Tax Administrator's Signature O.WSFl..NPATEWORMREV2 THE NORTHERN COLORADO kie' S REPORT usIN $1 Volume 9, No. 4 Serving Northern Colorado, Cheyenne and Laramie Nov. 14-27, 2003 Californians could be looking east By Robert Baun Economist predicts migration to mountains money' to Colorado and all other West- The Business Report ern states in coming years." Not scientific by any means, but mid 1990s.At that time, 1.3 million Cal- Supporting Thredgold's analysis is a Workers at the Fort Collins Area another indication that growing num- ifomians left the state, many of them survey conducted recently by the Cali- Chamber of Commerce are hearing the bers of residents in the Golden State are landing in the Rocky Mountain region. fomia Business Roundtable, an eco- cry from Californians. frustrated by the economic and political In his recent quarterly newsletter, nomic-development agency. Out of 400 They want out. climate there and are looking for haven Jeff Thredgold, corporate economist for businesses polled by the CBR, 17 per- The chamber routinely sells pack- somewhere else. Vectra Bank Colorado, said California's cent said they planned to move or ages of relocation information about In fact, one leading bank economist budget deficit and other economic mis- expand out of state, the highest ratio in Fort Collins. Of those requests, 17.5 believes California is in the early stages steps "establishes a foundation for the 12-year history of the survey. percent have come from California this of an exodus to mirror the wave of out- another round of California out-migra- In addition, Economy.com, an eco- year,up from 10.9 percent last year. migration experienced in the early and tion of `talented people and their See CALIFORNIA, 25A INSIDE S P E C I A L SECTION C T I 0 N INSIDE Ex-State Farm ,s.t !a ! ! I:M: 0!1 w�fi lA '% 1 11i ;li t'l t headquarters . 6+ �I't s di l { ! �y f t{� r Fi ' 7 ,., iv (4h.`'� gq,� llnir ,�'4h1e W4 i-4�hn 1';i1 � i ip �l i. F3�' .�h" 1 ! t ., �1 .4 �tti'b, ,i3i *'-' i'1 N^l,n�1..'gfT ! s. r'i ! 1 I�5h4�' R, I 1 , r'Hn I'� 1 y 1 d "i� `� Ku 9 •� ski c it e' 'P �! � � '1� ,.� •lid` .. — ! «';tali q Iii !• ha` i _ mfr • I E< 114 f -tf;+K"" i ! Iii L , t ! ! t 1 1 r , °isATsYto i ! 4 . i ,�i - sold by LAC. ' E s ' dr::r u' A;1.,i� Y d.A..'� 7.5A, it It R�!l .. North Weld Business ,� ,� �� !'� �� ' e ° ; '' �''� E�: University closing deal l it F^7 fi iG; �i � . . .. .. .. Noah N,1el� County towns "�" a � « ic'-by>,any means, but mid 1990s.At that time,1.3 million Cal- Supporting 1 nreugola s analysis is a tion that growing num- ifomians left the state, many of them survey conducted recently by the Call- s' in the Golden State are landing in the Rocky Mountain region. fomia Business Roundtable, an eco- re economic and political In his recent quarterly newsletter, nomic-development agency. Out of 400 nd are looking for haven Jeff Thredgold, corporate economist for businesses polled by the CBR, 17 per- Vectra Bank Colorado, said California's cent said they planned to move o leading bank economist budget deficit and other economic mis- expand out of state, the highest ratio in ida is in the early stages steps "establishes a foundation for the 12-year history of the survey. mirror the wave of out- another round of California out-migra- In addition, Economy.com, an eco- rienced in the early and tion of `talented people and their See CALIFORNIA,25A ,. I A L S E C T I o N Ex State Farm , headquarters f` ' q sold by [ C � � . � 1 ' . ' . C ' .-- ' - , University closing deal i' 'r, I i� �;'�\�� I1. f i '�j �� on donated building for less than appraised value By Robed Been The Business Report • \ ." GREELEY-In real estate parlance, the University of Northern Colorado • Foundation is a"motivated seller." ) `'` ma ) �� The UNC Foundation expects to sell `, t J the former State Farm Insurance ' IF -.) regional headquarters complex in Evans—donated to UNC two years ago \.' �� / —for less than$5 million. �� , That's a deep discount from the \ recent asking price of $11.5 million, \ and well below the appraised value of � r $10.1 million applied to the facility by the Weld County assessor. UNC Foundation president Jim / Moore said the property, which . includes a 230,000-square-foot building �- \ on 16 acres,is under contract.The deal is scheduled to close Nov. 18. See UNC,25A MAILING INFORMATION: mointrzatrianCER-ST LO1tR-014 "x°33 78 s approaching retirement in the next few years will likely be much 174523 N: 506167 310 leis predecessors and create more jobs for those who cater to their Stanely F 5teS1arc tomer ectionB. Weld No17TH Assessors Office GREELEY CO 80631-9563 WELD COUNTY, 16A;SOFTWARE COMPANIES,22A:ASSISTED-LIVING CENTERS.58;LONG-TERN!FACILITIES,SB Nov. 14-27,2003 THE NORTHERN COLORADO BUSINESS REPORT 25A UNCUNCfrom 1A get what the facility was appraised at," , Moore said. "Understanding the changes CALIFORNIA, from 1A in the economy, we certainly are very appreciative of anything." '`Recognizing the In early October, the UNC Founda- The proceeds from the sale have nomic analysis firm,said 108,500 more tion cut the asking the price on the already been earmarked by the UNC property from $11.5 million to $5 mil- Foundation. The school's athletic economy we are Californians left the state than arrived lion.But Moore said the saleprice would department willget 45 from other states in 2002, tripling the p percent hW. of the dealing with, we out-migration figures from 2001. be less than that. money. The UNC Kenneth W. Monfort "Recognizing the economy we are College of Business will receive 40 per- Helping hands dealing with, we decided to lower the cent. The balance will go toward an decided to lower the If California businesses are willing to price and did so with the hope of endowed faculty position in real estate move, Colorado's economic developers being able to attract not just users development. " are willing to help. but maybe some investors," Moore The State Farm facility, at 3001 price• Citing the CBR survey results, a said. Eighth Ave. in Evans,was built in 1963. group of economic developers from He declined to identify the buyer,but Since then, State Farm expanded and Front Range counties are forming a said the new owner's intent "is to get building several limes, most recently in coalition called the Colorado Jobs Ini- some new leases in there and hopefully 1998. When State Farm moved, the tiative. The goal of the program: raise bring some new jobs to Greeley." developer of Promontory took over the Jim Moore, $500,000 to launch a marketing cam- ' Another source familiar with the deal property and made the donation topaign in California about the fruits of said the would-be owner is a Colorado- UNC. UNC Foundation doing business in Colorado. based investor with a track record of State Farm has moved its entire staff Earlier this year, Colorado Gov. Bill redeveloping buildings for multiple out of the building but has continued to Owens and Denver mayor John Hicken- office tenants. use the site for storage. looper led a delegation of business The UNC Foundation appeared to In the interim, UNC decided it several large commercial properties in interests to tour Silicon Valley with the have little choice but to put a clearance couldn't make use of the building for the Greeley area. message that Colorado has set out the price on the property. school purposes. UNC would have Hewlett-Packard Co., which vacated welcome mat. State Farm, which has relocated its been exempt from paying taxes on the its 350,000-square-foot complex in When he recently attended a food- regional offices to the Promontory busi- facility if it was used for academic rea- west Greeley earlier this year, was processing-industry trade show in Las ness park in west Greeley, has been sons. forced to drop its askingKlaphake,leasing the facility for the past two "Initially, that was explored," Moore price from of the, Ron Greeley-Weld Economic pres a CEO Develop- years. The lease payments have said. "But we've got a building on cam- $18 million t ito$lin Bmring onn.Another ksiet m theA Develop- nificant facility lingering the market ment Action Partnership, said he defrayed the carrying costs - mainte- pus that's currently empty right now. I is the former 42,000-square-foot Sykes walked away with "a dozen really good nance and taxes—of the property. don't know if that was a space(the State building,1450 Sykes Ave.,vacant near- leads" for future business expansion in However, State Farm's lease expires Farm building)that was ever going to be ly two years. Weld County"including some from Cal- Nov. 19.After that,the UNC Foundation suitable for academic purposes." "There are a lot of superior proper- ifomia." becomes responsible for carrying costs The empty building on UNC's cam- ties in the market in Greeley,"said Mark At the crux of California's troubles that Moore estimates at $600,000 per pus is the former University Lab School Bradley,a broker with Realtec Commer- are the state's budget deficit—,project- year. complex, which was vacated two years cial Real Estate Services Inc.,explaining ed at $8 billion this year — and a tax At that rate,the donation value of the ago. why the old State Farm property could- environment that makes it one of the property could quickly turn from an UNC's inability to get the appraised n't command a premium price."They're most expensive states in the country in asset to a liability. value for the property matches the frus- also completing with a lot of vacant which to conduct business. "We would love to have been able to tration experienced by the owners of buildings in Denver." CALIFORNIA,27A • CLERK TO THE BOARD PHONE (970) 336-7215, Ext. 4225 FAX: (970) 352-0242 P. O. BOX 758 C. GREELEY, COLORADO 80632 COLORADO June 17, 2004 RES-0310 Go Timothy Clancy 822 7th Street, Suite 760 Greeley CO 80631 RE: SCHEDULE NUMBER 0961-20-2-08-024 (Parcel) Dear Property Owner: On June 7th, 2004, the Board of Weld County Commissioners considered your petition for abatement or refund of taxes and denied same. Pursuant to Section 39-2-125(f), C.R.S., you have the right to appeal this decision to the State Board of Assessment Appeals within thirty days. You may obtain the appropriate forms and instructions from the Board of Assessment Appeals, Department of Local Affairs, 1313 Sherman Street, Room 420, Denver, Colorado 80203. Very truly yours, i onald . Warden, Clerk to the Board i'..,. d \Deputy Clerk to the Board cc: Assessor eiliRd Agree (9°y ABATEMENT HEARING for SCHEDULE # 096120208024 MONDAY JUNE 7, 2003 ASSESSOR'S RESPONSE INFORMATION By MICHAEL SAMPSON Certified General Appraiser#1318543 t . TABLE OF CONTENTS SECTION PAGES General Information 1 Market Approach 2 — 12 Income Approach 13 — 17 Reconciliation 18 Cost Approach/profile 19—23 1999 General info 24—30 2000 General info 31 — 36 2001 General info 37—40 2002 General info 41 —47 • GENERAL INFORMATION The subject property in question is the old State Farm Insurance property in Evans. It was leased in May of 1999 to investors from Denver that were also involved in the new State Farm office property west of Greeley. This original group of investors then transferred the property to the UNC Foundation in September of 2000. The lease that was in place at that time was for a 54 month duration and expired in November of this past year (2003). That also is the point in time that the new owners, RES-0301, LLC acquired the property and the future tax liability associated with the property. The abatement for the property has been reduced from 2001-2002 and 2003 to just 2003 because of legal reasons, I have spoken with Mr. Clancy since the last meeting with the board and his indication was that they were only interested in further pursuit of the 2003 appeal. The following information therefore is relative only to that year of protest. Taxes payable for 2003 are based upon the value of the property as of 1/1/2002. This value is derived from the commercial market data in the time frame of 1/1/1999 to 6/30/2000 and we view income data from complete years if possible because it provides a more comprehensive picture of the health of the rental markets. I have provided several years of general market information with this packet for your information on the market and investment situation in the years in question. Additionally there is an income approach sheet and market approach sheet in defense of our values since the inception of the lease in question. Each section is broken out by the year of the information and I have included the years 1999 thru 2002 for this packet. Sincere Michael Sampson Certified General Appraiser# 1318543 1 MARKET APPROACH The subject property was valued at$44.08 per sq. ft. for the 1999-2000 time frame, this being based upon a value of$10,096,418 and a combined office/warehouse area of 229,036 sq. ft. In the general information that was provided in this packet (and highlited for ease of viewing) you will find that the general sales per sq. ft. for office space and industrial areas are as follows; 1999 OFFICE (class c space) $33.86 to $42.00 median/$37.93 INDUSTRIAL $37.20 to $41.81 median/ $39.50 2000 OFFICE (class c space) $48.18 to $57.04 median/ $52.61 INDUSTRIAL $38.64 to $42.36 median/$40.50 2001 OFFICE (class c space) $73.43 to $74.90 median/$74.17 INDUSTRIAL $43.59 median/$43.59 According to our records the building is aprox. 91% office space and the remainder is warehouse/industrial. Therefore 209,700 sq .ft would be sold as office and 19,336 sq. ft. would be sold as warehouse. Looking at only 1999 and 2000 figures this would equate to aprox. $45.25 per sq. ft. for the office area and $40 for the warehouse area. Therefore: OFFICE: 209,700 x $45.25 = $9,488,925 WAREHOUSE: 19,336 x $40.00= $773,440 TOTAL: $10,262,365 9 COMPARABLE MARKET SALES / LARGE PROPERTIES 1996 - 2000 3 COMPARABLE SALE SUBJECT ^�xr , *. r , ,. • mr Main Level 167.593 e Lower Level 61.443 4.O•1:: 4 a r 7t ' , rev 60. Total SF 229.036 r..•: 155.0' Ili r.y-;. 'rr,,. 320' x550' . \ \ ii 1 Level t:. 2455' \ ��\ \\�3150' •-•- •;11.!:4#- AO . .-1rte' R it ti' ba �ws'_�i�^! • -- Y. n ti..v.+.r..- 356.0 P!N#, 8924300 PARCEL #: 096120208024 PRIMARY OCCUPANCY: OFFICE OFFICE: 2ND OCCUPANCY: ADDRESS: 3001 8 AVE EVANS PROJECT: SALE DATE: 09/13/00 BOOK #: SALE PRICE: $11,000,000 RECEPTION #: 2793724 ADJ SALE PRICE: GRANTOR: JPB, WPB, RGM GREELEY LLC GRANTEE: UNIVERSITY OF NORTHERN COLORADO YEAR BLT: 1962/74/80/86 LAND VALUE: 1,394,464 EFFECTIVE AGE: 1990 ZONING C-3 BLDG SIZE: 229,036 LAND/BLDG RATIO: 3.04 CLASS: C IMPS PRICE/PSF: $41.94 CONSTRUCTION-QUAL: AVG SALE PRICE/PSF: $48.03 WALL HEIGHT: 15 CASH DOWN: $0 STORIES: 2 LOAN: BSMT SIZE: INTEREST RATE: BSMT FINISH: LOAN TERM (YRS): LAND SIZE: 697,232 POINTS PAID: REMARKS: The Grantor donated the subject property to the University of Northern Colo as a $11 million dollar gift. An MAI appraisal was done on 7/27/98 for a value of$9.8 million. ng ,,, uswcwte o w.._ _.. Arc,Rear 1.1060.04 Oftisereat en 'KILOS, s ;? f7 �o Io 1 \ 6 e PIN#, 1277586 PARCEL #: 080329000004 PRIMARY OCCUPANCY: LIGHT MFG OFFICE: 5% 2ND OCCUPANCY: ADDRESS: 31181 39.5 CR GREELEY PROJECT: SALE DATE: 10/17/00 BOOK #: SALE PRICE: $5,494,700 RECEPTION #: 2802504 ADJ SALE PRICE: GRANTOR: NORFOLK IRON & METAL CO GRANTEE: JAE PROPERTIES COLORADO YEAR BLT: 2000 LAND VALUE: 811,300 EFFECTIVE AGE: 2000 ZONING COM BLDG SIZE: 116,094 LAND/BLDG RATIO: 16.02 CLASS: S IMPS PRICE/PSF: $40.34 CONSTRUCTION-QUAL: AVG SALE PRICE/PSF: $47.33 WALL HEIGHT: 40 CASH DOWN: $0 STORIES: 1 LOAN: BSMT SIZE: INTEREST RATE: BSMT FINISH: LOAN TERM (YRS): LAND SIZE: 1,860,012 POINTS PAID: REMARKS: Sale not confirmed. bldg 1 whse 110,000 sf WH 40'. Bldg 2 Office 6094 sf WH 14'. YOC 2000 Bldg conditon good. S • tY"r.Y 1 x t10• BItlp2 1�0, C tic> 80 . 35.0' 31 IT '� rvi 14, nit ail — S.L. a .IId _1� — .0 o 'IOC 8000 m W Class S — vs First Roos 6094 SF F 78 0' r r 7].0' O O COMPARABLE SALE BUR 989 are 11904 °llon Bultt 1989 f _ . WBUX1199a Class 6W0 lfi'WN men Siet r_.__.__g suer cuss - goo° 5,.530/IS 53 1500051 faa erk5Ny PIN#, 6925798 PARCEL #: 095905100084 PRIMARY OCCUPANCY: DISTRIBUTION WAREHOUSE OFFICE: 10% 2ND OCCUPANCY: ADDRESS: 295 71 AVENUE GREELEY PROJECT: SALE DATE: 03/31/00 BOOK #: SALE PRICE: $3,500,000 RECEPTION #: 2759111 ADJ SALE PRICE: GRANTOR: BEEFIT CORP. GRANTEE: WARDE TIMOTHY & SALLY YEAR BLT: 1989/94 LAND VALUE: 313,854 EFFECTIVE AGE: 0 ZONING I-L BLDG SIZE: 59,927 LAND/BLDG RATIO: 0.00 CLASS: C IMPS PRICE/PSF: $53.17 CONSTRUCTION-QUAL: GOOD SALE PRICE/PSF: $58.40 WALL HEIGHT: 36 CASH DOWN: $500,000 STORIES: 1 LOAN: NEW BSMT SIZE: INTEREST RATE: 8.95% BSMT FINISH: LOAN TERM (YRS): 15 YRS LAND SIZE: 209,236 POINTS PAID: REMARKS: EAST HALF OF BUILDING BUILT IN 1989, WEST ADDITION WAS CONSTRUCTED IN 1994. OFFICE AREA 6285 SQ FT WITH MEZZANINE STORAGE OVERHEAD. • COMPARABLE SALE 04, �* > ,15 T '.•• '��k7, '""i � rc'lc`a 4s �� .`:`e:td' ➢ J baa I PIN#, 7083798 PARCEL #: 095905104005 PRIMARY OCCUPANCY: LIGHT MANUFACTURING OFFICE: 16.00% 2ND OCCUPANCY: ADDRESS: 244 DUNDEE AVE GREELEY PROJECT: SALE DATE: 10/14/99 BOOK #: SALE PRICE: $4,230,000 RECEPTION #: 2727122 ADJ SALE PRICE: $4,225,000 GRANTOR: EFTC CORPORATION GRANTEE: STARTEK USA, INC. YEAR BLT: 1994/98 LAND VALUE: 526,510 EFFECTIVE AGE: 1996 ZONING I-L BLDG SIZE: 88,706 LAND/BLDG RATIO: 5.94 CLASS: C IMPS PRICE/PSF: $41.69 CONSTRUCTION-QUAL: AVG SALE PRICE/PSF: $47.63 WALL HEIGHT: 14/18/22 CASH DOWN: $4,230,000 STORIES: 1 LOAN: BSMT SIZE: INTEREST RATE: BSMT FINISH: LOAN TERM (YRS): LAND SIZE: 526,510 POINTS PAID: REMARKS: PROPERTY VACANT AT TIME OF SALE. ADJUSTED SELLING PRICE $5,000 FOR LARGE TRASH COMPACTOR & AIR COMPRESSOR. OFFICE 14,440 SF, MANUFACT. 74,266 SF. 7 COMPARABLE SALE Y RS' _ 4 eV ro - ., - "'tee. PIN#, 7430598 PARCEL #: 095910229002 PRIMARY OCCUPANCY: OFFICE OFFICE: 2ND OCCUPANCY: ADDRESS: 5890 W 13 ST GREELEY PROJECT: SALE DATE: 05/08/98 BOOK #: SALE PRICE: $3,250,000 RECEPTION #: 2612234 ADJ SALE PRICE: GRANTOR: ROCHE PATRICK B GRANTEE: BOEHNER DALE & DIANNA, BUNA ADAM, ETAL YEAR BLT: 1998 EFFECTIVE AGE: 1998 LAND/BLDG RATIO: 5.49 BLDG SIZE: 45,791 IMPS PRICE/PSF: $54.51 CLASS: S SALE PRICE/PSF: $70.97 CONSTRUCTION-QUAL: AVG CASH DOWN: $1,000,000 WALL HEIGHT: 16 LOAN: NEW STORIES: 1 INTEREST RATE: 8.50% BSMT SIZE: LOAN TERM (YRS): 3 YRS LAND SIZE: 251,169 POINTS PAID: LAND VALUE: 753,884 REMARKS: SELLER WAS THE DEVELOPER & BUILDER, PROPERTY LEASED TO STATE FARM INSURANCE FOR 5 YEARS STARTING 3/15/98, CAP RATE 11%, THIS SALE WAS PART OF 1031 EXCHANGE COMPARABLE SALE t s.A` 1 v _ PIN#, 7083598 PARCEL #: 095905104003 PRIMARY OCCUPANCY: MANUFACTURING OFFICE: 20.00% 2ND OCCUPANCY: ADDRESS: 7251 W 4 ST GREELEY PROJECT: SALE DATE: 05/08/98 BOOK #: SALE PRICE: $3,200,000 RECEPTION #: 2612074 ADJ SALE PRICE: GRANTOR: ROCHE PATRICK B & KATHERINE A GRANTEE: MILLER PETER D FAMILY LIMITED PARTNERSHIP YEAR BLT: 1987 EFFECTIVE AGE: 1987 LAND/BLDG RATIO: 4.21 BLDG SIZE: 47,960 IMPS PRICE/PSF: $62.52 CLASS: C SALE PRICE/PSF: $66.72 CONSTRUCTION-QUAL: AVG CASH DOWN: $800,000 WALL HEIGHT: 12 & 15 LOAN: NEW STORIES: 1 INTEREST RATE: 7.25% BSMT SIZE: LOAN TERM (YRS): 20 YRS LAND SIZE: 201,770 POINTS PAID: LAND VALUE: 201,619 REMARKS: SUBJECT PROPERTY IS INCUMBERED WITH A FIVE YEAR LEASE PLUS 2 FIVE YEAR OPTIONS. LEASE STARTED 10/1/97, CAP RATE 11.6%. COMPARABLE SALE "Tat 14 t s PIN#, 6941698 PARCEL #: 095910228003 PRIMARY OCCUPANCY: OFFICE OFFICE: 2ND OCCUPANCY: ADDRESS: 5400 11 ST GREELEY PROJECT: SALE DATE: 09/19/97 BOOK #: 1628 SALE PRICE: $2,550,000 RECEPTION #: 2570988 ADJ SALE PRICE: GRANTOR: ROCHE PATRICK B GRANTEE: DRAKE FAMILY TRUST YEAR BLT: 1996 EFFECTIVE AGE: 1996 LAND/BLDG RATIO: 3.90 BLDG SIZE: 36,968 IMPS PRICE/PSF: $55.30 CLASS: C SALE PRICE/PSF: $68.98 CONSTRUCTION-QUAL: AVG CASH DOWN: TRADE WALL HEIGHT: 16 LOAN: STORIES: 1 INTEREST RATE: BSMT SIZE: LOAN TERM (YRS): LAND SIZE: 144,323 POINTS PAID: LAND VALUE: 505,708 REMARKS: BUYER TRADED 240 ACRES OF FARM LAND AT W 20TH ST 71ST AVE FOR SUBJECT PROPERTY AND $100,000 CASH. 5 YEAR TRIPLE NET LEASE AT $23,000 PER MONTH WITH 3 ONE-YEAR OPTIONS. LEASE START DATE 9/19/96 • COMPARABLE SALE zi eA,h r-nf t r e — iS r\ 1y ' i r a • PIN#, 6941598 PARCEL #: 095910228002 PRIMARY OCCUPANCY: COLLEGE OFFICE: 2ND OCCUPANCY: AUDITORIUM 16.00% ADDRESS: 5590 11 ST GREELEY PROJECT: SALE DATE: 04/16/97 BOOK#: 1601 SALE PRICE: $2,300,000 RECEPTION #: 2543570 ADJ SALE PRICE: GRANTOR: ROCHE PATRICK B GRANTEE: AIMS CONTINUING EDUCATION AUTHORITY YEAR BLT: 1997 EFFECTIVE AGE: 1997 LAND/BLDG RATIO: 3.78 BLDG SIZE: 29,180 IMPS PRICE/PSF: $65.61 CLASS: C SALE PRICE/PSF: $78.82 CONSTRUCTION-QUAL: AVG CASH DOWN: WALL HEIGHT: 17 & 23 LOAN: STORIES: 1 INTEREST RATE: BSMT SIZE: LOAN TERM (YRS): LAND SIZE: 110,249 POINTS PAID: LAND VALUE: 385,541 REMARKS: BUILDING BUILT BY SELLER TO SUIT BUYER 4 COMPARABLE SALE A II ll�i@IIBIiBill ROMiN �� 181;1111 ! a% J tokin _ -= PIN: 2824186 PARCEL#: 96105332008 1 PRIMARY OCCUPANCY: OFFICE OFFICE SPACE % : 2nd OCCUPANCY: ADDRESS:110010 ST GREELEY PROJECT: SALE DATE: 02/29/96 BOOK #: 1535 SALE PRICE: $1,950,000 RECEPTION #: 2478765 ADJ SALE PRICE: $1,780,000 GRANTOR:ASMUS HARRY ETAL GRANTEE:GREELEY, CITY OF YEAR BLT: 1983 LAND/BLDG RATIO 1.64 EFFECTIVE AGE: IMPS PRICE/PS $55.34 BLDG SIZE: 29,141 SALE PRICE/PS $61.08 CLASS: A CASH DOWN: CONSTRUCTION-QUAL: AVG LOAN: NEW WALL HEIGHT: 12 INTEREST RATE: 7.5% STORIES: 4 LOAN TERM (YRS 15 BSMT SIZE: POINTS PAID: LAND SIZE: 47,836 LAND VALUE: $167,426 REMARKS: ADJ SALE FOR FINANCING. LEASABLE AREA 24,576 SF, 84% OF GROSS BUILDING. GROSS $309,830 8% VAC, EXP .456, NET 143,730, OAR .0807. aL • INCOME APPROACH The following information is derived from Performa(actual income figures) for the subject in the year 2000. What I have done is use the actual monthly income figures from the second amendment of the original lease agreement for January thru August and then reverted to the original lease agreement for the remainder of the year. This gave me the final net income figure you see here. It is important to note that I also looked at the general market for similar types of leased properties during that time period to make sure that the subject lease was generally within typical market parameters. To be very honest, I think that the net lease for the subject was probably lower than the general market, however the location of the subject and the size were (and continue to be) a hindrance. This being said, the fact is that the subject was just beginning its lease in earnest and the income the property was generating in 2000 was pure net money that the owners were simply putting into their pockets because they had no major expenses to pay. Again it is important to note that the taxes being charged against the subject were being paid by the tenant and not the owners. I realize this does not preclude the current owner from this abatement for 2003, but the lease at the time strongly suggests that the value assigned the subject was NOT excessive or out of line with the market at that time. Income from January thru August 2000 $646,371 / 7 months = $92,338 per mo. Income from September thru December 2000 $437,500 / 5 months = $87,500 per mo. Total income for 2000 $ 1,083,871 or $4.73 per sq. ft. $ 1,083,871 / 10% = $10,838,710 Value by income approach /3 CAP RATE INFORMATION • VI INTEGRA JOSEPH FARBER & COMPANY - REAL ESTATE INVESTMENT SURVEY - SUMMER 2000 REAL ESTATE APPRAISERS AND CONSULTANTS 2000 South Colorado Boulevard,Suite 250,Denver,Colorado 80222/(303)300-3320 Respondents by Pro rt T Stabilized Reversion or Discount/Yield Anticipated Growth Anticipated Growth Holding Period Business and Location y ype Cap Rate Terminal Cap Rate Rate(IRR) Rate Income Rate Expenses (Yrs) I. Regional Commercial Hotels/Motels 10.0% 10.5% 3%each year 3%each year 10 Real Estate Brokerage Multi-Family Apartments 8.75% 9.5% Denver,CO Suburban/Low Rise Office 9.5% 10.0% CBD/Class A Office 8.0% 9.5% Neighborhood/Community Retail 9.5% 10.0% Industrial/Warehouse 9.5% 10.5% 2. National Commercial Suburban/Low Rise Office 10.0% 9.5% 12.0% 3%each year 3%each year 10 Real Estate Brokerage CBD/Class A Office 8.5% 9.5% 11.0% Denver,CO 3. Jones-Healy,Inc. Muld-Family Apartments 10.0% 5%1st year, 3%each year 5 Real Estate Brokerage Suburban/Low Rise Office 11.5% 3%thereafter Pueblo,CO - CBD/Class A Office 11.0% Neighborhood/Connunity Retail 11.0% IndusmaU W arehouse t I.5% 4. Valuation/Consulting Golf Course . 10.0%- 12.0% 11.0%- 13.0% 12.0%- 14.0% 4%each year 4%each year 7 Denver,CO 5. Griffis/Blessing,Inc. Multi-Family Apartments 9.0% 9.25% 13.0% 3%each year 3%each year 10 Asset Management Suburban/Low Rise Office 9.5% 10.0% 13.0% Colorado Springs,CO CBD/Class A Office 9.75% 10.0% 13.0% Neighborhood/Community Retail 11.0% 11.0% 14.0% Industrial/Warehouse 10.0% 10.25% 13.0% Medical Office Buildings 9.5% 10.0% 13.0% 6. Real Estate Development Suburban/Low Rise Office 9.0% 10.0% 13.0% 4%each year 4%each year 10 Denver,CO Neighborhood/Community Retail 9.5% 10.0% 13.0% Free Standing Retail 9.0% 10.0% 13.0% 7. Regional Commercial Suburban/Low Rise Office 10.0% 10.0% 14.0% 2%each year 2%each year 5 Real Estate Brokerage CBD/Class A Office 9.0% 9.5% 12.0% Denver,CO Regional Retail 9.0% 9.5% 13.0% Neighborhood/Community Retail 9.5% 9.5% 13.0% Free Standing Retail 11.0% 11.0% 15.0% Big Box Retail 9.0% 9.0% 13.0% Industrial/Warehouse 9.5% 9.5% 12.0% 8. Regional Commercial Multi-Family Apartments 9.75% 10.0% 10.0% 3%each year 3%each year 7 Bank Suburban/Low Rise Office 9.75% 10.0% 10.0% Denver,CO CBD/Class A Office 9.75% 10.0% 10.0% Neighborhood/Community Retail 9.75% 10.0% 10.0% Free Standing Retail 10.0% 10.0% 10.0% JII\77fEJ'1J\. Realty Resources JOSEPH FARBER & CO. • DENVER SUMMER 2000 REAL ESTATE INVESTMENT SURVEY ROCKY MOUNTAIN REGION • Integra Joseph Farber & Company is pleased to many months typically elapsed between the time the present the results of our Summer 2000 Survey. property was listed and the time it was placed.under Provided is a summary of the respondents'perceptions contract,assuming the property was reasonably priced. of the real estate market in the Rocky Mountain The estimated marketing time decreased with 80% of Region, primarily covering the States of Colorado, the respondents indicating up to six months. The Wyoming, Montana,and New Mexico. second question pertained to the time between contract and actual closing. The range was typically one to six Through our questionnaire we investigated several months, with 70% of the respondents indicating up to select indices used by the real estate community in the three months and 100% up to six months. In some acquisition, disposition, or financing of income cases respondents observed the due diligence period producing properties. being longer than the actual marketing time. Analysis Methods Sales/Closing Costs We asked what type of valuation technique they most We also asked the respondents to estimate on a heavily relied upon. Capitalized Income or Direct percentage basis the total closing costs for a seller of Capitalization was the predominant method followed real estate including brokerage commissions, by the Discounted Cash Flow Technique and the legal/title work and other closing costs. The averages Market Approach. Of the respondents, 65% indicated are summarized as follows: that they rarely use the Cost Approach. Improved Primary Secondary Rarely Vacant Commercial Sale Price Land Properties Cost Approach 0% 35% 65% Up to$1.0 Million 9% 7% Direct Sales/ Market Approach 38% 42% 19% $1.0 To$2.499 Million 8% 6% Capitalized $2.5 To$4.999 Million 6% 5% Income 69% 31% 0% $5.0 To$9.999 Million 5% 4% Discounted $10.0 Million&Over 4% 3% Cash Flow 38% 15% 46% In Discounted Cash Flow(DCF) analyses, the holding We look forward to continuing the survey with a period ranged from 5 to 10 years, with 10 years being Winter 2000/2001 issue. We welcome any comments predominant. or suggestions you may have on how we may improve future issues to better meet the needs of those in the Marketing Time real estate industry. We sincerely thank those firms and individuals who participated in this Investment We again asked the respondents about marketing Survey. Let us know if your firm would like to be a �/ times for properties. The first question asked how respondent to future surveys. ND INTEGRA JOSEPH FARBER & COMPANY - REAL ESTATE INVESTMENT SURVEY - SUMMER 2000 REAL ESTATE APPRAISERS AND CONSULTANTS 2000 South Colorado Boulevard,Suite 250,Denver,Colorado 80222/(303)300-3320 Respondents by Stabilized Reversion or Discount/Yield Anticipated Growth Anticipated Growth Holding Period Property Type Business and Location Cap Rate Terminal Cap Rate Rate(IRR) Rate Income Rate Expenses (Yrs) 12. Mortgage Banking Hotels/Motels __.10.0%- 14.0% 0%each year 0%years 1-2, 10 Denver,CO Multi-Family Apartments 8.5%- 10.0% 12.0% 1%thereafter Suburban/Low Rise Office 9.0%-10.0% 12.0% CBD/Class A Office 8.5%-10.0% 11.0% Regional Retail 8.5%-9.5% 11.0% Neighborhood/Community Retail 9.0%-10.5% 13.0% Free Standing Retail 9.0%-11.0% 14.0% Big Box Retail 9.0%-10.0% 12.0% Industrial/Warehouse 9.0%- 11.5% 12.0% Food Processing Facilities 9.0%-12.0% 14.0% Mobile Home Parks 10.0%- 13.0% 14.0% Mini Warehouse/Self Storage 10.0%-13.0% 14.0% Medical Office Buildings 9.0%-10.0% 12.0% 13. Valuation/Consulting Hotels/Motels —11.0% 12.0% 14.0% 2.5%each year 2.5%each year 7 Salt Lake City,UT Multi-Family Apartments 9.5% 10.5% 12.5% Suburban/Low Rise Office 10.0% 11.0% 13.0% CBD/Class A Office 9.75% 10.75% 12.75% Regional Retail 9.75% 10.75% 12.75% Neighborhood/Community Retail 9.75% 10.75% 12.75% Free Standing Retail 10.0% 11.0% 13.0% Big Box Retail 10.1% 11.1% 13.0% Industrial/Warehouse 9.8% 10.8% 13.0% Truck/Distribution Terminals 10.0% 11.0% 13.0% Truck Stops 10.0% 11.0% 13.0% Food Processing Facilities 10.0% 11.0% 13.0% Free Standing Restaurants-Sit Down/Family 9.75% 10.75% 12.75% Free Standing Restaurants-Fast Food 9.5% 10.5% 12.75% Mobile Home Parks 10.0% 11.0% 13.0% Mini Warehouse/Self Storage 9.75% 10.75% 12.75% 14. Real Estate Capital Corp. Golf Course 9.0%- 12.0% 11.0%-12.0% 12.0% 2%-3%each year 4%each year 5 Mortgage Banking Denver,CO 15. Terrix Financial Corp. Hotels/Motels -- 12.0% 12.0% 10.0% 3%each year 3%years 1-2, 7 Mortgage Banking Multi-Family Apartments 8.5% 8.5% 10.0% 4%thereafter Denver,CO Suburban/Low Rise Office 10.0% 10.0% 10.0% CBD/Class A Office 10.0% 10.0% 10.0% Regional Retail 9.0% 9.0% 10.0% Neighborhood/Community Retail 10.0% 10.0% 10.0% Free Standing Retail 9.0% 9.0% 10.0% Big Box Retail 10.0% 10.0% 10.0% Industrial/Warehouse 9.0% 9.0% 10.0% r Truck/Distribution Terminals 10.0% 10.0% 10.0% • C INTEGRA JOSEPH FARBER & COMPANY - REAL ESTATE INVESTMENT SURVEY - SUMMER 2000 REAL ESTATE APPRAISERS AND CONSULTANTS 2000 South Colorado Boulevard,Suite 250,Denver,Colorado 80222/(303)300-3320 Respondents by Stabilized Reversion or Discount/Yield Anticipated Growth Anticipated Growth Holding Period Business and Location Property Type Cap Rate Terminal Cap Rate Rate(IRR) Rate Income Rate Expenses (Yrs) 8. Regional Commercial Industrial/Warehouse 9.75% 10.0% 10.0% Bank(Cont.) Food Processing Facilities 9.75% 10.0% 10.0% Denver,CO Free Standing Restaurants-Fast Food 11.0% 12.0% 11.0% Mobile Home Parks 11.0% 12.0% 11.0% Mini Warehouse/Self Storage 10.25% 11.0% 10.25% Nursing Homes 11.0% 12.0% 11.0% Retirement Communities 11.0% 12.0% 11.0% Medical Office Buildings 9.75% 10.0% 10.0% Residential-Raw Land 12.0%-14.0%+Profit Residential-Finished Lots 12.0%-14.0%+Profit Commercial Land 12.0%-14.0%+Profit 9. Regional Commercial Bank Hotels/Motels -- 10.5%-11.0% Denver,CO Multi-Family Apartments 9.0%-10.0% Suburban/Low Rise Office 9.0%-9.5% CBD/Class A Office 8.5%-9.5% Regional Retail 9.0% Neighborhood/Community Retail 9.5%-10.0% Free Standing Retail 9.5%-10.0% Big Box Retail 10.0%-10.5% Industrial/Warehouse _ 9.0%-9.5% Free Standing Restaurants-Sit Down/Family 11.0%-11.5% • Free Standing Restaurants-Fast Food 11.0% Golf Course 12.0% Mobile Home Parks 11.0%-11.5% Mini Warehouse/Self Storage 9.5%-10.0% Nursing Homes 11.0%-115% Retirement Communities 11.5% Medical Office Buildings 9.5%-10.0% 10. Kinnickinnic Realty Co. Multi-Family Apartments 10.0% 10.0% 12.0% 2.5%each year 3.5%each year 7 Private Investor Suburban/Low Rise Office 10.0% 10.0% 12.0% Denver,CO 11. Metro Realtors PC Hotels/Motels 12.0% 2%each year 2%each year Real Estate Brokerage Multi-Family Apartments 9.0% Billings,MT Suburban/Low Rise Office 10.0% CBD/Class A Office 11.0% Regional Retail 9.0%-10.0% Neighborhood/Community Retail 10.0% IndustrialWarehouse 10.5% Free Standing Restaurants-Sit Down/Family 11.0% Free Standing Restaurants-Fast Food 11.0% Mini Warehouse/Self Storage 11.0% Medical Office Buildings 10.0% IN INTEGRA JOSEPH FARBER & COMPANY - REAL ESTATE INVESTMENT SURVEY - SUMMER 2000 REAL ESTATE APPRAISERS AND CONSULTANTS 2000 South Colorado Boulevard,Suite 250,Denver,Colorado 90222/(303)300-3320 Respondents by Stabilized Reversion or Discount/Yield Anticipated Growth Anticipated Growth Holding Period Property Type Cap Rate Terminal Cap Rate Rate(IRR) Rate Income Rate Expenses (Yrs) and Location Pe ( ) 19. Regional Savings&Loan Multi-Family Apartments 7.0%-9.5% 3%-4%each year 3%-4%each year 10 Denver,CO 20. Valuation/Consulting Multi-Family Apartments 10.5% 11.0% 12.0% 3%each year 3%each year 10 Cheyenne,WY CBD Class A Office 10.5% IL0% 13.0% Neighborhood/Community Retail 10.5% 11.0% 13.0% Free Standing Retail 10.5% 11.0% 13.0% Industrial/Warehouse 11.0% 11.5% 13.5% Free Standing Restaurants-Sit Down/Family 10.5% 11.0% 13.0% Mobile Home Parks 10.5% 11.0% 13.0% Mini Warehouse/Self Storage 10.0% 10.75% 12.5% 21. Real Estate Brokerage Multi-Family Apartments 10.0% 3%each year 3%each year 10 Grand Junction,CO Suburban/Low Rise Office 10.0% CBD/Class A Office 9.5% Regional Retail 9.5% Neighborhood/Community Retail 10.0% Free Standing Retail 10.0% Big Box Retail 9.0% Industrial/Warehouse 10.0% Truck/Distribution Terminals 11.5% Mobile Home Parks 11.0% Mini Warehouse/Self Storage 11.0% Medical Office Buildings 9.0% 22. Valuation/Consulting Hospitals-Real Estate Only 9.0%-13.0% 3.5%each year 3.5%each year 10 Denver,CO Nursing Homes-Real Estate Only 9.0%-10.0% 11.0% 13.0% Stabilized cap rate including going concern 12.0%-14.0% Retirement Communities-Real Estate Only 9.5%-11.0% 12.0% 13.0% Stabilized cap rate including going concern 11.0%-13.0% 23. National Commercial Bank Hotels/Motels 10.5%-11.0% 50-100 Basis Pts. 15.0% 3%each year 3%each year 7 to 10 Denver,CO Multi-Family Apartments 9.5%-10.0% Above Stab.Rate 12.0% Suburban/Low Rise Office 10.0% 13.0% CBD/Class A Office 9.5%-10.0% 13.0% Regional Retail 10.5%-11.0% 13.0% Neighborhood/Community Retail 10.5%-11.0% 13.0% Free Standing Retail 10.0%-11.0% Big Box Retail 12.0% Industrial/Warehouse 9.5%-10.0% Free Standing Restaurants-Sit Down/Family 10.0%-12.0% Golf Course 11.0%-13.0% Mini Warehouse/Self Storage 9.5%-11.0% Medical Office Buildings 9.5%-10.0% Residential-Raw Land 13%+Profit /^ Residential-Finished Lots 13%+Profit Cf ( - INTEGRA JOSEPH FARBER & COMPANY - REAL ESTATE INVESTMENT SURVEY - SUMMER 2000 REAL ESTATE APPRAISERS ANI)CONSULTANTS 2000 South Colorado Boulevard,Suite 250,Denver,Colorado 802221(303)300.3320 Respondents by Property Type Stabilized Reversion or Discount/Yield Anticipated Growth Anticipated Growth Holding Period Business and Location Cap Rate Terminal Cap Rate Rate(IRR) Rate Income Rate Expenses (Yrs) 15. Terrix Financial Corp.(Cont.) Truck Stops 10.0% 10.0% 10.0% Mortgage Banking Food Processing Facilities 12.0% 12.0% 10.0% Denver,CO Free Standing Restaurants-Sit Down/Family 12.0% 12.0% 10.0% Free Standing Restaurants-Fast Food 9.0% 9.0% 10.0% Golf Course 10.0% 10.0% 10.0% Mobile Home Parks 9.5% 9.5% 10.0% Mini Warehouse/Self Storage 10.0% 10.0% 10.0% Hospitals 10.0% 10.0% 10.0% Nursing Homes 9.5% 9.5% 10.0% Retirement Communities 9.5% 9.5% 10.0% Medical Office Buildings 9.0% 9.0% 10.0% Residential-Raw Land 14%+Profit Residential-Finished Lots 14%+Profit Commercial Land 14%+Profit 16. National Commercial Bank Hotels/Motels 10.0%-13.0% 10.5%- 13.0% 12.0%- 14.0% 3%-3.5%each year 3%-3.5%each year 10 Denver,CO Multi-Family Apartments 8.75%-11.0% 9.25%-10.5% 11.0%- 12.5% Suburban/Low Rise Office 9.0%-11.0% 9.5%-10.5% 11.0%-12.0% CBD/Class A Office 9.0%-10.0% 9.5%-10.0% 11.0%-12.0% Regional Retail 9.0%-10.0% 9.5%-11.0% 11.0%-12.0% Neighborhood/Community Retail 9.5%-11.0% 10.0%-11.0% 11.0%-12.0% Free Standing Retail 9.0%-11.0% 9.5%-11.0% 11.0%-12.0% Big Box Retail 9.0%-11.0% 9.5%-11.0% 11.0%- 12.0% Industrial/Warehouse 9.0%-11.0% 9.5%-11.0% 11.0%-12.0% Mini Warehouse/Self Storage 9.0%-11.0% 9.5%- 11.0% 11.0%- 12.5% Retirement Communities 10.0%-12.0% 10.5%-12.5% 11.0%-13.0% Residential-Raw Land 25.0%-35.0%Includes Profit Residential-Finished Lots 15.0%-20.0%Includes Profit 17. Northland/Marquette Multi-Family Apartments 9.0% 9.5% 11.0% 3%each year 4%each year 10 Capital Group,Inc. Suburban/Low Rise Office 9.5% 10.0% 12.0% Mortgage Banking CBD/Class A Office 9.0% 9.5% 11.5% Denver,CO Neighborhood/Community Retail 9.5% 10.0% 12.0% Industrial/Warehouse 9.0% 9.5% 11.5% Mini Warehouse/Self Storage 10.5% 11.0% 13.0% 18. Regional Asset Hotels/Motels - - 12.0% 50 Basis Pts. 200-250 Basis Pts. CPI CPI 7 Management Firm Multi-Family Apartments 8.5%-9.0% Above Stab.Rate Above Denver,CO Suburban/ow Rise Office 9.5%-10.0% Reversion Rate CBD/Class A Office 8.0%-9.5% Neighborhood/Community Retail 9.0%-9.5% Free Standing Retail 9.0% Big Box Retail 10.0%- 11.0% Industrial/Warehouse- 9.0%-9.5% Truck/Distribution Terminals 9.0%-9.5% Free Standing Restaurants-Sit Down/Family 12.0% Medical Office Buildings 9.0% RECONCILLATION OF APPROACHES The property in question was fully leased or owner occupied in the time frame that is in question. The first half of 1999 the property was still occupied by State Farm and then the investors took control in May of that year. The lease was written and agreed to for a period of 54 months from that inception date. This took the property to November of 2003 (on that lease), so for all intent and purpose the lease was just starting on the time in question. As discussed earlier, the date of value was 1/1/2002 for the taxes that are in question for 2003 and this value was derived from the market in place during 1999 and 2000. All the information that I have submitted here indicates that the income approach is very solid and fully supported by both the proforma information as well as the prevailing market income information for the local economy as a whole. Additionally the market approach also supports the income approach and both indicate that the value we had on the property in 2002 was supportable and justified. The cost approach, even if you account for external obsolescence and functional issues, would support the market value on the subject in 2000 and consequently the value as of 1/1/2002. This value is carried on our system at $15,500,000 for the time in question. The market approach (as shown) also supports the value the assessor's office had on the subject property on 1/1/2002. The most relied upon approach was the income and it is fully supported by not only the actual subject but the general lease market in place during 1999 and 2000. Based upon all three (3) approaches to value, and the strongest being the income and market, I would not recommend any changes to the value for tax year 2003. COST APPROACH $10,857,682 MARKET APPROACH $10,262,365 INCOME APPROACH $10,838,710 ASSESSOR'S VALUE: $10,096,418 COST APPROACH/ASSESSOR PROFILE /7 WELD COUNTY ASSESSOR Account#: R8924300 PROPERTY PROFILE Parcel 096120208024 MH Seq#: MH Space: Appr Year: 2000 Levy: 93.148 #of Bldgs: 1 Active On: Tax Dist: 0650 Map#: 1352 LEA: EVAN01 InactiveOn: Assign To: CCJ Initials: JMI Acct Type: Commercial Last Updated: 4/9/2001 New Growth: 0 Owner's Name and Address: Property Address: UNIVERSITY OF NORTHERN CO FOUNDATION IN Street: 3001 8 AV City: EVANS UNC -JUDY FARR CENTER GREELEY CO 80639 3usiness/Complex: UNVERSITY OF NORTHERN COLORADO Sales Summary Legal Description EVS PT STATE FARM SUB&PT NW4 20-5-65 BEG NW COR SEC S560.87'N89D46'E 390.79'S33D30'E 660.65'S88D13'E 53.27'589D53'E 46.45'TO °OB N0D22'W 87.86'N89D49'E 489.76'N0D35'E 572.81'S72D43'E 440.78'N87O34'E 19.60'S03D57'E 170.01'S03D08'E 201.96'S0D09'E 39.04' S01D47'E 31.01'S0D46'W 489.46'S89D48'W 710.81'S89D38'W 238.24'N0D39'W 265.36'N0D17'W 137.19'TO POB SITUS:3001 8 AV EVANS 80620 Land Valuation Summary Unit of Number Of Value Per *Assessed Measure Assmt Land Type Ag Code Abst Code Units Unit Actual Value percent Value Commercial 2120 Square Feet 697232 $0.75 $522,924.00 0.29 $151,647.96 _and Subtotal: 697232 $522,924.00 $151,650.0 Full Market Values $0.00 $0.0( Buildings Valuation Summary Abst Actual Assmt *Assesse Bldg # Property Type Code Occupancy Value Percent Value 1 Commercial 2220 344 -Office Building $9,573,494 0.29 $2,776,313 Improvements Subtotal: $9,573,494 $2,776,310 I 'otal Property Value $10,096,418 $2,927,960 'Approximate Assessed Value Thursday, June 03, 2004 Page 1 of 3 26 WtLU UUUN I Y A„tbbUK Account# R8924300 PROPERTY PROFILE Parcel#: 096120208024 MH Seq#: MH Space: Building #: 1 Condo SF Condo % Land: Condo% Bldg: Unit Type: Landscaping $: Property Type: Commercial 0 0 0 $0.00 Quality: Average Nbhd: 101 Occupancy: Office Building Condition: Average Nbhd Ext: 00 Perimeter: 1809 Nbhd Adj: 1 Percent Comp: 100.00% Individual Built As Detail Built As: Office Building Year Built: 1963 Construction Type: C Year Remodeled: 1980 HVAC: Hot Chilled Water % Remodeled: 1 Interior Finish: Adj Year Blt: 1980 Roof Cover: Effective Age: 14 Built As SF: 209696 Mh Make: # of Baths: Tag Length/Width: X # of Bdrms: Tag Length/Width: X #of Stories: 2 Mh Skirting LF: Story Height: 15 MH Skirting Type: Sprinkler SF: 209696 Diameter: Capacity: Height: Built As: Storage Warehouse Year Built: 1986 Construction Type: C Year Remodeled: HVAC: Hot Chilled Water % Remodeled: Interior Finish: Adj Year Blt: 1986 Roof Cover: Effective Age: 12 Built As SF: 19340 Mh Make: #of Baths: Tag Length/Width: X #of Bdrms: Tag Length/Width: X #of Stories: 1 Mh Skirting LF: Story Height: 22 MH Skirting Type: Sprinkler SF: Diameter: Capacity: Height: Building Details Bldg#: 1 Yn*?, 27 X 35 GARAGE 945 $15.35 $14,506.0 Asphalt Average 256300 $1.51 $387,013.0 BRICK WALL 150 $6.80 $1,020.0 -hursday, June 03, 2004 Page 2 of 3 ,fit VVtLU eUUN I T AS,t„UK Account#: R8924300 PROPERTY PROFILE Parcel#: 096120208024 MH Seq#: MH Space: CONCRETE WALKS 6370 $1.95 $12,422.00 LANDSCAPING 65974 $1.00 $65,974.00 Value Details RCN Cost/SF: $72.10 Design Adj %: 0 Func Obs %: 0 Total RCN: $17,234,417.00 Exterior Adj %: 0 Econ Obs %: 0 Phys Depr%: 0.1 Interior Adj %: 0 Other Obs °/,: 0 Phys Depr$: 1723442 Amateur Adj %: 0 RCNLD $: $15,510,975.00 RCNLD Cost/S $67.72 Market/SF: $0.00 J Thursday, June 03, 2004 Page 3 of 3 2 Account Notes Account#: R8924300 Entry Date Office Note Bldg Category 11/13/00 A SWD REC#2793724 THRU 2793734 CONVEYS ALL INT FROM JPB GREELEY LLC& ADM WBP GREELEY LLC&RGM GREELEY LLC TO VARIOUS"NOMINEES". SWD REC# 2793735 THRU 2793743 CONVEYS 100%INT FROM ALL THE"NOMINEES"TO UNIVERSITY OF NORTHERN COLORADO FOUNDATION INC.KRD 11/13/00 A 2000-SPLIT FROM PARCEL 0961-20-2-08-022. PARCEL SIZE IS PER DEED PLOT. ADM KRD 11/15/00 A 2000-PRO-RATED ACCT IN AIMS ONLY. BECAME TAX EXEMPT AS OF 09/13/00 ADM PER SWD CONVEYING TO UNC RECORDED ON 09/13/00. TAXABLE 255 DAYS. CHANGED ABSTRACT CODES IN RW FOR 2001 TO MAKE FULLY EXEMPT. KRD 11/15/00 A 2000-UNDID PRORATION-PER DPT BECAUSE IT WAS CONVEYED TO THE ADM UNIVERSITY OF NORTHERN COLORADO FOUNDATION INC-THEY MUST APPLY FOR EXEMPTION WITH THE STATE. KRD Thursday, June 03, 2004 Page 1 23 1999 GENERAL MARKET INFORMATION 2 RE.AI .TF'JCId Pro Broker E-mail Us! COM ER L REAL ESTATE SERVICES,.It Search Directory Vacancy Rates (updated 12-99) 4.04/a 1ndustr.E Fort Collins Retail' 24)%iAtdtt t j, Loveland 1 Retan ' a -1u , .. ,7,e •l° . I Industrial Greeley Retail , / I 0%a 2°/a 4% 6% '&°1a 10% 12°/a 14% Lease Rates (updated 12-99) VO,IrprrtAMT!:�,1. tease ita;es � � Office Retail Industrial aesoo, ,�,a 1 t. CUTL) Ala f (GROSS) (NNIN) Fort Collins -,.a+l ., pi L. .-• r Loveland �` rn_� yM Greeley r, Lfr:frfr'r'fr',,,frfri-LAI �. Return to REALTEC home pane C O 6vf 6v1 l'•=2 C ! ../A l� I S E A H CH to Design 'Interact Business Solutions 12/16/1999 11:43 AM of 1 .4MARKET Greeley Highlights i UPDATE 2000 g re soon m Greeley Industrial Synopsis INDUSTRIAL There will be increasing demand for Occupant Location City SF dock high and high-cube/high-tech Multi-tenant Oakridge Plaza 2881 31st Av Gdy 31,000 warehouse space. We see a Multi-tenant Gallery Green Prof Pk 298629th St Grly 29,250 stabilizing trend in office/warehouse INDUSTRIAL TOTAL 60,250 condo construction. Lack of other new speculative construction will lower vacancy rates of existing small RETAIL to mid-sized buildings. The majority Anchor/Tenant Center Name Location City SF•. of Greeley vacant industrial space Home Depot Elk Lakes 2815 35th Av Grly 129,550 is comprised of two facilities: Con- Agra's Portion Foods (72,000) and Gamsey&Wheeler 4901 29th St Grly 40,547 Fabricated Metal Products (88,000 Multi-tenant Westmoor Commons 48th Av&10th St Grly 30,000 sf). 3B5 Sports . 2935 31 Av Grly 22,181 Greeley Honda 4535 29th St Gdy 18,508 Greeley Retail Synopsis Retail growth has not kept pace with Rite Aid 2626 10th St Gdy 13,000 the rapid increase in housing growth. Texas Roadhouse 2451 W 28th St Gdy 7,491 West Greeley will continue to Coyote Grill West Point Center 52509th St Dr Gdy 4,376 experience low vacancies and higher RETAIL TOTAL 265,653 prices. High vacancy rates in downtown retail space will continue, . with some vacancy reduction fueled OFFICE by the DDA's development plans Major Occupant Building/Park Location City SF combined with the low level of rents. Weld County Planning&Zoning Weld County Campus 1555 N 17th Av Gdy 55,170 Downtown Greeley has recently been Farm Credit Bank 4505 29th Av Grly 28,080 _ designated as "endangered" by Union Colony Bank Clarkson Office Bldg 910 54th Av Grly 25,000 Colorado Perservation Inc. Possible i benefits of this designation include Frontier Bank Frontier Bank Bldg 2425 35th Av Gdy 21,339 historical grants and consultations Choice Realty Choice Realty Bldg 127556th Av Gdy 13,000 with experts in historic preservation.• Re/Max Optimum Bldg 5586 W 19th St Grly 13,180 Century 21 - Gateway Estates 4407 29th St Gdy 10,200 Greeley Office Synopsis State Farm's move from Evans to OFFICE TOTAL 165,969 Greeley's Promontory (US Hwy 34 and Hwy 257) is the big news in Greeley. New office space constructed over the past 2 years in the Mosier Hill area (approx. %(() 'O "e re a tor' ti cam - 200,000 SF) has a vacancy of approx. 5%. Downtown office space, INDUSTRIAL however, has a current vacancy of Occupant Project Name .Location City SF about 15%. Correspondingly, a large Winograd's Steel&Supply Weld Cty Rd 39 1/2&64 Grly 150,000 disparity exists in rental rates, with west Greeley commanding $13- Noffsingerlight Mfg 5276th St Grly 19,000 $19/SF (depending upon age, Terminal addition Greeley-Weld County Airport 600 Crosier Av Grly 6,000 quality), and downtown offices INDUSTRIAL TOTAL 175,000 offered for $7-$12/SF. . The Greeley office forecast for 2000 w is that rental rates and vacancies RETAIL will remain stable at current levels. Anchor/Tenant Project Name Location City SF Office construction planned for Spec Country Club Corners 47th&10th Grly 124,200 completion in 2000 will be Safeway 47th&20th Grly 55,000 substantially less than 1999, and Borders Books Elk Lakes 2833 35th Av Grly 23,000 absorption of existing space will be gradual. Petsmart. Elk Lakes 2833 35th Av Grly 19,300 Johnny Carino's 2473 28th St Grly 6,130 Great Steak Escape Bittersweet Plaza 3636 W 10th St Grly 5,000 /°` n T . T {fir C RETAIL TOTAL 232,430 „J iR_iH J��1 .1 yJ1 OFFICE COMMERCIAL REAL ESTATE SERVICES INC Major Occupant Building/Park Location City SF M 350 E 7th St, Ste 3 255 E Monroe Av, Ste 4 State Farm Promontory US Hwy 34&Hwy 257 Gdy 150,000 t Loveland,CO 80537 Fort Collins,CO 80525 a (970)593-9900 (970)229-9900 1st Bank 10th&47th Av Grly 4,500 ° OFFICE TOTAL 154,500 2T/ iti ' ; _ uE�, C Office/ Retail / Industrial r A / !IPD ' 2000 Vacancy Rates ':. > • Office El Retail n Industrial , r- - "x r 10% o .10 iral r 9% �I a MI�1 a ea �"'^ ."i' MEDIA swxson / ` me noxn¢xn cmuxnoo O a r�� I O 01 ♦♦ 8% �> 7% I M1 M1 CO 1 gal CHI Weld County 6 0 ^ 1 M1Market Lease Rates 5% �' ' iP.t1i 4 Whse(cr♦u0 R+D Oki 4%O �� NI I Industrial $1.75 4.00 $4.00-6.00 3% I rill $• �� '�� 4 mil IPRIME SECONDARY 2% I .♦■' .�.a■' : 4 �.1 II '�41 Retail (aN) $14-18 $6-14 1% V r 4 ,�� 1�\\\ ��\ Class A Class B Class C 0% ' ��■' kJ SS tea—' AI L S.I Office(gr) $14-19 $9-13 $7-9 1995 1996 1997 1998 1999 Medical $13-30 $13-24 $13-20 Retail Sales Tax Collections New/Designed to Suit space,add additional$2/sf source:City of Greeley $25 ■■■■■■■■MI Weld County Sales 1998 vs 1999 ■■■■PI�� N I I INDUSTRIAL 1998 1999 ci)z $20 ■■� a a .4a .4VI 0- # of Sales 45 15 • M I ry II ;ilk N " 1I I Total Square Feet 676,570 276,748 2 $15 Average Size 15,030 18,450 lair a 11 II II II II II I Average Price/sf $37.98 $41.81 Z $10 RETAIL 1998 1999 ■■1 11 11 I1 II 11 II I # 1 11 11 11 11 11 II Total Square Feet 416,779 167,353 Average Sales 68 98$5 rage Size 10,968 5,398 Average Price/s1 $40.70 $55.55 $0 1991 1992 1993 1994 1995 1996 1997 1998 1999 OFFICE 1998 1999 ' i;er. WERr # of Sales 18 15 99-a s d' - n s e sg Total Square Feet 140,678 276,748 Tenant Address City Type SF Average Size 7,815 18,4460 Beverage Express 611 8th St Grly Ind 20,000 Average Price/sf $68 $42 JR Race Car 2123 2nd Av Grly Ind 13,680 weld Centennial BOCES 800 8th Av Grly Off 10,000 IRL Trucking 306 N 8th Av Grly Ind 9,316 Healthbound Inc 1180 Main St Wndsr Ret 8,640 REALTEC■T 149 9'9' .O Wei Count , '67111 ., . ��1JL-�lJ � Property/Tenant Location City Type SF Price $15f Starlet 224 Dundee Av Grly Mfg 88,706 $4,230,000 $47.74 COMMERCIAL REAL ESTATE SERVICES INC Bank One 822 7th St Grly Off 129,247 $3,500,000 $27.08 801 8th St,Ste 110 Ramada Inn 609 8th Av Grly Hotel 100 rms $2,900,000 Greeley,CO 80631 Stampede Travel Plaza 665 31st St Evans . Ret 14,521 $1,777,100 $122.38 Tel(970)346-9900 • Fax(970)304-0707 Westlake Shopping Center 2030 35th St Grly Ret 14,568 $1,300,000 $89.24 Email valbrand@realtecgreeleyCom 1st Choice Bank 5801 11th St Grly Off 14,900 $1,204,900 $80.86 Website http://Commercial$eamh.COm/Realtec 1518 11th St Grly Apts 29 units $1,100,000 212 Ash St Wndsr Off 6,624 $800,000 $120.78 Information Sources:Weld County Assessor's Office,City 1st Choice Bank 1069 Main St Wndsr Off 2,122 $560,000 $263.90 of Greeley,Town of Milliken,Town of Johnstown,Town of 3511 W Service Rd Evans Off 14,652 $550,000 $37.53 o W Indsor,Town of Eaton,Town of Ault and Town of Evans. 2? Is x'C'f'syn 1,k yF, k • e. i:.., ,,,::: Office F c,„..]..,......,;::74,L,f,:i:K4...,. --4ailiariiii,:a:nailat:::iFin s fir: u�p•p ppt:,* o 0 0 Office Vacancy Rates h : !,,.....v,,:,2,:.,,::,� Source:Realtec 5 p Y.. f gP §° 4n s z k . 30% N �`X . 3 a. a y k b ,r IN; 4 , x .r' IN FORT COLLINS A, "r"'pq„ MEER SPONSOR F'"‘•:•. .,::.E..._:-:‘..,.," lxenocr um eoL0A00 25% _,v.• BuSINE5`S REPORT - -® GREELEY LOVELAND 20%- ° a o m O a of O 15%- iii OP ..- se e o O Northern Colorado Office e anirFei Gila) oe C e e Gi O R Market Lease Rates — — e e at ca 10%- m ca— m n n e r at (annual/sf,full gross) o e m '° 5° to o e co Class Ft Collins Loveland Greeley "_ �- e 5%- A $17-23 $16-22 $14-19 R $12-16 $12-14 $9-12 0% C $9-12 $7-10 $7-9 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Medical $13-30 $13-24 $13-20 ,1 New/Designed to Suit space,add additional $2/sf. Fort Collins Building Permit Values Source:Clty of Fort Collins 'lilt $71'26"°° New commercial construction MP - �I PRIVATE I. permits for the Office/Professional $6OE1r--� category for 1999 totaled Office Sales 1998 vs 1999 ssom ---' ,USE TICE I $71,263,000, up from$7,320,000 540N -- . CENTER .• in 1998, which represents nearly $20,562,000 �� a ten-fold increase. Over 80%the LARIMER COUNTY 1998 1999 5'°" -' total dollar value was attributed to eM t , PUN ' PVH's Harmony Campus and # of Sales 35 37 s,oM Larimer County's new Justice ' I Center. Total Square Feet 244,775 341,255 MI 1996 1997 1998 1999 Average Size 6,994 9,223 Average Price/sf $100 $98 - a � r ., Company Building/Location City SF Type WELD COUNTY 1998 1999 us West 3351 Eastbrook Dr FC 22,195 New Riverside Technology 2290 E Prospect Rd FC 19,980 New # of Sales - 18 15 Wind 2 Software 1825 E Prospect Rd - FC 19,200 New Factual Data 5250 Hahns Peak Dr Lvld 15,882 New Total Square Feet 140,678 276,748 329 New e Centennial Associatesounein Av Grly 10 Weld Cn ial B0CES 800 8th A 000 New FC 9,778 Renew Average Size 7,815 18,4460 Ayres&Associates 3665 JFK 1 O0 Specht Point Dr Ny - FC 9,706 Renew Training Linksnkc Average Price/sf - $68 $42 New Horizons Computer 5250 Hahns Peak Dr Lvld 9,378 ew Bank One 2000 S College Av FC 8,257 New rinre:.vrk:s. ' .m'9'f.. Fmmm':, .,>, . .,3...go a,,,r" $ y 3.a». '"s. '°S tr Property/Tenant Y Location City SF Price $/Sf Public Service Bldg 1901 E Horsetooth Rd FC 37,900 $3,550,000 $93.67 Bank One 822 7th St Grly 129,247 $3,500,000 $27.08 l REALTEC Bank One 200 E 7th St Lvid 74,441 $3,500,000 $47.02 Big Horn Bldg 3800 Automation Wy FC 31,200 $3,230,000 $103.53 COMMERCIALREAL ESTATESERVICES INC Collinsbrook Bldg 3351 Eastbrook Dr FC 34,872 $2,500,000 $71.69 255 East Monroe Av,Ste 4 fEM Bldg 1629 Blue Spruce Dr FC 32,846 $2,200,000 $66.98 Fort Collins,CO 80525 Seven Lakes Bus Pk 2290 E Prospect Rd FC 19,980 $1,950,000 $97.60 580111th St - Grly 14,900 $1,204,900 $80.86 Tel(9 Email reaiteC • Fax(970).COm282- 8O 1st Choice Bank 2000 S College Av FC 18,727 $1,000,000 $53.40 realtec®newamerica.com Bank One 9 Website http://CommercialSearch.com/Realtec New Horizon Travel 3701 N Grant Av Lvld 4,800 $725,000 $150.00 o 28 • Fort Collins Office Synopsis • Although rental rates remained FORT COLLINS relatively stable through year-end Major Occupant Building/Park Location City SF ,- 1999, in order to combat the current Natural Resources Research Ctr Centre Advanced Technology FC 120,000 / Oversupply of office space, some Poudre Valley Hospital Harmony Campus 2121 E Harmony Rd FC 115,000 owners offered concessions for The Group Inc Preston I 2803E Harmony Rd . FC 27,000 tenants. The Fort Collins office National Petcare Paragon Office Bldg 3540 JFK Pkwy FC 18,000 market has a total of 4 million SF, Re/Max First Associates Miramont Office Pk 4703 Boardwalk Dr FC 13,490 with an estimated 520,000 SF Associates in Family Medicine 3519 Richmond Dr FC 13,000 currently available, representing a Multi-tenant Landings Office Park JUDE Boardwalk Dr FC 12,220 13% overall vacancy rate. Major Multi-tenant Fossil Creek Office Park 113 Coronado Ct FC 12,220 relocation of government agencies Vaught-Frye Bldg Trolley Station 401 W Mountain Av FC 10,600 from privately-owned space to new Centennial Bank Safeway Market Center 1550 E Harmony Rd FC 6,200 public facilities added 170,000 SF Kitchen Design Center 226 Remington St FC 4,500 to the available inventory. First Bank of N Colorado University Center 2315 S College Av FC 4,500 Finalization of projects approved FORT COLLINS TOTAL 356,730 under the Land Development Guidance System continued in 1999. LOVELAND Fewer privately-owned new office Major Occupant Building/Park Location City SF projects have been submitted under Factual Data Global Tech Center West 5250 Hahns Peak Dr Lvld 32,000 the new City Plan criteria. Firstier Bank Rocky Mountain Village 5275 McWhinney Blvd Lvld 23,930 American Bank American Bank West 2695 W Eisenhower Blvd Lvld 20,000 Loveland Office Synopsis Aztec Plumbing&Heating Aztec Center 4194 N Garfield Av Lvld 12,000 In 1999, major office development Security Title Garfield Plaza 3800 N Garfield Av Lvld 8,000 Consisted of the completion of a Multi-tenant North Park Offices 2600 Abarr Dr Lvld 7,200 second building in Rocky Mountain Larimer County Health Services Estrella Place 4162 W Eisenhower Blvd Lvld 6,000 Village, and the Garfield Plaza Chicago fide 3001NTaft Av Lvld '5,000 project. Other new office projects Land Title 3701NGrant Av Lvld 4,800 have been limited to small, owner- Longs Peak Credit Union 150 SW 14th St Lvld 2,500 occupied buildings, with limited LOVELAND TOTAL • o121,430 speculative construction. Office GREELEY/WINDSOR space in Loveland is in a state of Major Occupant Building/Park Location City SF strong demand, but limited supply, Weld County Planning&Zoning Weld County Campus 1555 N 17th Av Grly 55,170 with vacancy rates of approximately Farm Credit Bank 4505 29th Av Grly 28,080 9% city-wide. Most of the office Union Colony Bank Clarkson Office Bldg 910 54th Av Grly 25,000 vacancy is occurring in new, Class Frontier Bank Frontier Bank Bldg 2425 35th Av Gdy 21,339 A space, which evidences the Healthbound Fitness 1180 Main St Wndsr 14,350 resistance by tenants to pay the Choice Realty Choice Realty Bldg 1275 58th Av Grly 13,000 lease rates required by owners of Re/Max Optimum Bldg 5586 W 19th St Grly 13,180 newly-constructed buildings. Century 21 Gateway Estates 4407 29th St Gdy 10,200 Greeley Office Synopsis GREELEY/WINDSOR TOTAL 180,319 The big news in Greeley is the planned move of State Farm from their existing Evans campus to the new Promontory project at US Hwy �g `. m 34 and Hwy 257. New office space � constructed over the past 2 years FORT COLLINS in the Mosier Hill area (approx. Major Occupant Building/Park Location City SF 200,000 SF) has a vacancy of Larimer County Justice Center 201 Laporte Av FC 115,000 approx. 5%. Downtown office space, Spec Preston II Harmony&Corbett FC 50,000 however, has a current vacancy of Pacific Mortgage Centre Advanced Tech 2537 Research Blvd FC 35,000 about 15%. Correspondingly, a large Spec Little Big Horn Horsetooth&Timberline FC 32,000 disparity exists in rental rates, with Spec-office Oakridge Business Pk Lemay&Oakridge FC 18,000 west Greeley commanding $13- Spec-medical Oakridge Business Pk Lemay&Oakridge FC 10,000 $19/SF (depending upon age, Spec-office Oakridge Business Pk Lemay&0akridge FC 8,500 quality), and downtown offices McClelland Dental McClelland Office Pk McClelland Dr FC 7,500 offered for$7-$12/SF. Spec Centre Advanced Tech Drake&Worthington FC 7,000 The Greeley office forecast for Tech Lab Inc Centre Advanced Tech Drake&Worthington FC 3,800 2000 is that rental rates and FORT COLLINS TOTAL 286,800 vacancies will remain stable at current levels. Office construction LOVELAND planned for completion in 2000 will Major Occupant Building/Park Location City SF be substantially less than 1999, and Spec Loveland Tech Ctr 4007 S Lincoln Av Lvld 35,000 absorption of existing space will be The Group Inc Rocky Mountain Village 5401 Stone Creek Cr Lvld 20,000 gradual. Spec North Park Place 29th&Taft Lvld 7,000 R REA T �M1 LOVELAND TOTAL 62,000 TEC GREELEY Major Occupant Building/Park Location City SF 1v State Farm Promontory COMMERCIAL REAL ESTATE SERVICES NC US Hwy 34&Hwy 257 Gdy 150,000 Spec Manor Center 1204-1218 W Ash St Wndsr 12,000 350 E 7th St,Ste 3 801 8th St,Ste 110 1st Bank 10th&47th Av Gdy 4,500 Loveland,CO 80537 Greeley,.CO 80631 Spec 1226 W Ash St Wndsr 2,000 (970)593-9900 (970)346-9900 GREELEY TOTAL 168,500 i r EALTEC Industrial Industrial Vacancy Rates opDATE 2000 me. Source:Realec 0 < 35% n • Fort Collins ® Greeley ,$ Loveland ` =� "" j "r MEDIA SPONSOR 25% ■■■■.== b' 6 � n ISM o �l�GC Vlu 20% al p ■■■� w 15% mC e m 0 o 100/0 e w t, e. e e e q e Northern Colorado Industrial „ e ,cc �n e r I a', a pj -^'i mr• v, " Market Lease Rates Sao � r' "' aa — Whse(Gr+Utl) R+D(3N) 00/0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Ft Collins $5.95-8.00 $8.00-10.00 Loveland $4.80-6.00 $7.00-10.00 Fort Collins Industrial Lease Rate Greeley $1.75-4.00 $4.00-6.00 Price/sr Gross+Weiss Source:Resllec $8.00$7.00 ■IM■■■■■■Sri Fort Collins I.71 Pit I :'I 1999 Net Absorption $5.00 e!2 l Ills 1999 Vacant SF 445,273 ,r, mil II W Increase in Vacancy SF 308,317 E3.00 Iii ml IIINew Construction SF 295,874 N12,443 $2.00 I I I 11111 I I I Il a 01.00 Il Il 'Ill II fl I Industrial Sales 1998 vs 1999 $0.00 .a ,I SI 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 LARIMER COUNTY 1998 1999 ,"r >'.z a,,°.. � .. .. ' s`° # of Sales 16 18 Address City SF Total Square Feet 315,178 194,941 Tenant20,000 Beverage Express 611 8th St Grly Average Size 19,699 10,830 Contractors Heating&Supply 5009 Fossil Creek Blvd FC 14,600 Average Price/sf $45.25 $53.79 JR Race Car 2123 2nd Av Grly 13,680 Zephyr Graf-X 5802 Byrd Dr Lvld 12,600 WELD COUNTY 1998 1999 CamAm Construction 208 Racquette Dr FC 12,400 Heska Corp 2601 Midpoint Dr FC 11,628 — # of Sales 45 15 UPS 3701 SW Frontage Rd FC 10,000 Total Square Feet 676,570 276,748 St Vain Moving&Storage 1800 E Harmony Rd FC 10,000 Average Size 15,030 18,450 KTL Trucking 306 N 8th Av Grly 9,316 Ion Tech Inc 2573 Midpoint Dr FC 8,286 Average Price/sf $37.98 $41.81 _ � , a ..ri"°:S °t'5s A.,., " 3`*fi,�n„tri nn "n:..gs% A.`xs"yat ° s Location Property/Tenant 224 Dundee Av Grly 88,70688,706 $4,230,000 $47.74 y SF Price $/51 Stanek T-� C Alpine ManufacturingSofaM 2421 International Blvd FC 55,000 $2,200,000 $40.00 jKWV` Alpine rt 709 S Frontage Rd FC 23,398 $1,555,000 $66.46 ,J Multi-tenant 210 Turner&705-765 2nd St Brthd 38,778 -$1,297,500 $33.46 COMMERCIAL REAL ESTATE SERVICES INC Hewlett Packard 140 SW 2nd St Lvld 27,860 $900,000 $32.30 255 East Monroe Av,Ste 4 Poudre Plastics 1626 Riverside Av FC 18,600 $691,000 $37.15. Fort Collins,CO 80525 Contactors Heating&Supply 5009 Fossil Creek Blvd FC 14,600 $685,000 $46.92 a Tel(970)229-9900 • Fax(970)282-1080 8issetti Cheesecake 310 Railroad Lvld 19,404 $495,000 $25.51 Email realtec newamenca.com Army Reserve 1934 E Uncoln Av FC 14,550 $376,000 $25.84 Website http://CommercialSearch.dom/Reattec Xerox 133 Commerce Dr FC 7,275 $355,0O $48.80 e Fort Collins Industrial Synopsis FORT COLLINS • Industrial sales and leases slowed Major Occupant Building/Park Location City SF in 1999, cornpa ced to 1998. Anheuser Busch(addinon) 2351 Busch Dr FC 135,434 . Multi-tenant Mulberry Commercial Pk 2501 E Mulberry St FC 93,180 Absorption was flat due to new Spec Summit Commercial Ctr 3095 Summit View Dr FC 30,000 construction and the closing or Superior Floor Coverings Fossil Creek Plaza 101 Saturn FC 11,760 relocation of a number of industrial Center Printing Intemational Business Pk 201 Rome Ct FC 10,000 businesses: Polymold (58,751 5f), Aglasco Evergreen Park 1414 Blue Spruce Dr FC 8,500 Alpine Manufacturing (55,000 sf), Pierson Concrete Prospect East 2636 Midpoint Dr FC 7 TOTAL 4 295,8 GSA Computer Center (100,000 sf), and Elscint(47,500 sf) adding a total LOVELAND of 261,251 sf of additional vacant Occupant Location City SF space to the market. Multi-tenant Loveland Tech Center 4007 S Lincoln Av . Lvld 40,000 Multi-tenant Southwest Business Pk 1300 S Garfield Av Lvld 33,000 Industrial absorption, in the year Zephyr Graf-X(addition) FC-Lvld Industrial Airpark 5443 Earhart Rd Lvld 16,890 2000, should be strong with a slowing Telecom Switching Station 2720 SW 14th St Lvld 14,500 of new construction and absorption Spec Valley Block Bldg 6766 CO Hwy 402 Lvld 10,496 of existing large facilities. Industrial Colorado Marble . FC-Lvld Industrial Airpark 5824 Wright Dr Lvld 8,000 condominiums will continue to be Rocky Mountain Flying Services FC-Lvld Industrial Airpark 5896 Wright Dr Lvld 5,000 TOTAL 127,886 developed and sold in the market, and projects with outside storage will GREELEY experience strong demand. New Occupant Location City SF facility costs continue to rise due to Multi-tenant Oakridge Plaza 2881 31st Av Grly 31,000 governmental fees and property tax Multi-tenant Gallery Green Prof Pk 2986 29th St Grly 29,250 increases. Multi-tenant Evans Business Pk 35th Av&32nd St Evans 14,000 TOTAL 74,250 Loveland Industrial Synopsis The industrial market remains tight; very little spec building is underway l *r.r:� g,v ? a� > r- s . .m ., except for the construction of 4WD • rid'l rs[it i711t'- office/warehouse condominiums FORT COLLINS U (sales of condos remain brisk). The Occupant Project Name Location City SF City of Loveland is directing industrial Advanced Energy Prospect East 1625 Sharp Point Dr FC 63,000 development to the Fort Collins- Spec 1201 Academy Ct FC 30,000 Loveland Airpark area on I-25, where Spec 1101 Academy Ct FC 22,000 most new and proposed construction Spec Ft Collins Business Pk 1307 Duff Dr FC 24,000 is for owner/users. Some owners are Bohemian Breweries International Business Pk 2700 Zurich Dr FC 20,000 building additional space for lease Spec POW Properties Smithfield Dr FC 15,000 within their projects, because of the Spec 4000 E Prospect Rd FC 12,000 pent-up demand that exists. Spec Riverside Centre 1400 Riverside Av FC 11,250 Spec Arcon Warehouses 1420 Blue Spruce Dr FC 8,500 Greeley Industrial Synopsis TOTAL 205,750 There will be increasing demand for dock high and high-cube/high-tech LOVELAND warehouse space. We see a stabilizing Occupant Project Name Location City SF trend in office/warehouse condo Spec Anasazi Business Park 615 N Denver Av Lvld 65,000 construction. Lack of other new Pedersen Complex Longview Commercial Center 6700 Franklin Av Lvld 46,000 speculative construction will lower Advanced Manufacturing 6600 Crossroads Blvd Lvld 30,000 vacancy rates of existing small to Spec FC-Lvld Industrial Airpark 5601 Earhart Dr Lvld 26,400 mid—sized buildings. The majority of QM Company 6600 Crossroads Blvd Lvld 22,000 Greeley vacant industrial space is Spec FC-Lvld Industrial Airpark 5855 Wright Dr Lvld 17,000 comprised of two facilities: Con-Agra's Teletech 6600 Crossroads Blvd Lvld 10,000 Portion Foods (72,000) and Fabricated TOTAL 216,400 Metal Products (88,000 sf). GREELEY Grly 150,000 in R MT ■T rr■r7F1� Occupant Project Name Location City SF WREAL EC BSeehive ve Homes rad's Steel&SuPPIY Weld Cty Rd 39 1/2 Evindsor ans Businessons Hwy 257&Park 35th Av&32n Eastman&64 Evans r 100,000 28,0 COMMERCIAL.REAL ESTATE SERVICES INC Noffsinger Light Mfg 527 6th St Grly 19,000 350 E 7th St,Ste 3 801 8th St,Ste 110 Spec Windsor Tech Business Ctr Garden Dr Wndsr 12,000 Loveland,CO 80537 Greeley,CO 80631 Greeley-Weld County Airport 600 Crosier Av Grly 6,000 (970)593-9900 (970)346-9900 TOTAL 315,000 P ,,, ,, ... ° EALTEC Investment , ,c...,,,:: . ::.,.,: .:;:. .,,K.::::, ,„ :,.:: ,.:, ::,... _ Iv ,4f r ', (JPDAT ZYx000 3 n - ,.j ❑ 0-$100K { 3 ly ; ::: 3 3' 3 `fix r �£1z .. 1 x ` 1999 Larimer County ■ $100-500K x*1 ' Improved Commercial Sales `° TxNitss °N°es'rT'u' '° °° IIII RSource:Lorimer County Assessors Office $500K-1M REPORT iii e uri, 70t ® $1-2M Northern Colorado ��" fl $1-2 Top Investment Salesal OFFICE PRICE N0I CAP Public Service Bldg 58% 1901 E Horsetooth Rd-FC $3,550,000 $334,000 9.4% Bank One 235 6th St-Lvld $3,500,000 $332,000 9.5% Bank One 822 7th St-Grly $3,500,000 $306,850 8.8% Number of Big Horn Bldg 3800 Automation Wy-FC $3,230,000 $323,000 10% Sale Transactions Collinsbrook Bldg 3351 Eastbrook Dr-FC $2,500,000 8.5-14% simimwlmsim i22 Smith Barney 1999 400 E Horsetooth Rd-K $1,545,000 $150,000 9.7% —awau Bank One 1998 163 iml 2000 S College Av-FC $1,000,000 $99,000 9.9% ISaIMIIMMIIIIII -------�- RETAIL PRICE N0I CAP 1997 121 CSouth College Shops 1 . 2413 S College Av-FC $3,650,000 $324,000 8.9% m�� 146 SS `' 1995 Harmony Market 925 E Harmony Rd-FC $2,900,000 $290,000 10% 111111--iza Tailgate Tommys 1995 145 E Mountain Av-FC $1,250,000 $125,000 10% --�_�� University Plaza 221 2020 S College Av-FC $930,000 96,000 10.3% 1994--_--__ INDUSTRIAL PRICE N0I CAP 0 5o ioo 15o 200 z5o Army Reserve Bldg 1934 E Lincoln Av-FC $376,000 $43,000 11.4% APARTMENTS PRICE $/UT5 UTS Larimer County Improved Northwood Apts 1742 Heritage Cr-FC $4,711,500 $25,887 182 Commercial Sales History Watkins West Apts Source:Ladner County Assessors Office 1201 W Swallow Rd-FC $1,600,000 $57,143 28 $140 1001aA - --- 1001 Emigh St-FC $1,500,000 $46,875 32 1518 11th St-Grly $1,100,000 $37,931 29 $120 M W 5ri 09k Lane Av- �IM!!Il a if l 509 S Bryan Av-FC $957,000 $47,850 20 Mil HOSPITALITY PRICE $/RM RMS N$100 ^ •_ -' 00 O 11 ETiti n O98th Av • Ramada -Grly $2,900,000 $29,000 100 = Helms1204 SAire Collegen y-FC $1,800,000 $72,000 25 $80 ^' 1 w 'grim -1 11 II I Timber Creek Chalets O 2115 Kiway Fall River-EP. $825,000 $82,500 10 f $60 ' " ^ " O " ^ " " " ' 1027E Motel w 1027E Eisenhower Blvd-Lvld$690,000 $38,333 18 O t,,,._, Pr O N Budget Host Hotel 1513 N College Av-FC $502,000 $16,733 30 $40 in- $201 11 11 'Ill 11 11 11 REALTEC 1 11 11 11 11 11 11 11 1 COMMERCIAL REAL ESTATE SERVICES INC $0 1992 1993 1994 1995 1996 1997 1998 1999 255 East Monroe Av,Ste 4 SF Sold(M) 1.53 1.77 1.22 1.39 1.31 2.04 1.74 1.78 Fort Collins,CO 80525 hi Tel (970)229-9900 • Fax(970)282-1080 Avg g/SF $44.79 $52.57 $62.15 $48.11 $57.14 $51.94 $76.66 $66.56 Email reattecOnewamerica,com Website http://CommercialSearch.corn/Realtec e 30 Northern Colorado Fort Collins Investment Real Estate Cycle Investment Synopsis In all price ranges, high-quality oversupply investment icultt properties continue to be ti FA sg difficult to find. Capitalization rates cc- Fc�Accelerated \i,� "Qvy are generally in the 10% range, with # Fc New Construction good quality investment deals trading ��_ High Vacancy as low as 8%. Investors are not only evaluating income performance, but also purchase price as compared to N=` Q replacement cost, and the potential g to "add value" through improvements Declining to the property. Realtec forecasts Prices, demand for investment properties will Rents & remain strong. Construction Loveland Investment Synopsis Investment properties are still in high R� Increasing ... Prices & Rents Absorption of demand. Realistically-priced properties .ei,� Excess Supply e. receive relmultiple offers r soon t they nt N%%.. / ��r listed. Larger i oon as htL�//properties (over 7,500 square feet) Low Vacancy are coming on the market, but moving as quickly as lower priced properties. Current conditions in the 1999 Northern Colorado commercial real estate markets. The individual Cap rates continue to stay below 10% markets are never exactly at one point in the cycle,but typically cover a range on the cycle: for investment properties priced below $1,000,000. Investors are accepting Fort Collins Apartment Sales /''` lower cap rates provided that the Source:Realtec and Shannon&Assodata5 / property has potential for better Units Sold returns through renovation & proper 684 700 management.c Lease rates are 600 ■■■■� 559 ■ , ■■■■ expected to continue to increase. Greeley 500 ■■■■ '70 ■,A ■1'■ �■ 451Investment Synopsis 400 387 �■ - 383 .,.1. 398 415 ■■ Lower transaction activity and 300 ��■ 288 ' --��,■ 262 economic yuncertainty will keep CAP �■,�■■■■SA p rates slightly higher in the Greeley 200 area than in Lorimer County. ■ -e■■■1■'■■■ willing 126 ■ Redevelopment opportunities exist in 100 ■ 48 ■■■■■ ■■■■■ downtown Greeley for investors ■ 18 to add value to properties in 0 ■ anticipation of future gains. Excellent 87 88 89 90 91 92 93 94 95 96 97 98 99 transportation access and E-Commerce ° may drive the need for new warehouse Price/Unit 0 01 construction. Higher CAP rates coupled $90,000 ' with property values lower than in the $80,000 c "` 0 IA Fort Collins/Loveland market present $70,000 Tr m investors with above average long- o v n w term profit potential. $60,000 m v w 141 TT $50,000 00 0 0 m rp w w c 4.4 CI RF,Ar TEC ng $40,000 a s m n a N _ - r✓ M M $30,000 .,h N MI w „ w 41, COMMERCIAL REAL ESTATE SERVICES INC $20,000 350 E 7th St Ste 3 801 8th St,Ste 110 $10,000 Loveland,CO 80537 Greeley,CO 80631 (970)593-9900 (970)346-99O0 $0 87 88 89 90 91 92 93 94 95 96 97 98 99 • 2000 GENERAL MARKET INFORMATION 3/ Tur Gitoui', IN (' . 1 commERcua,„, EsTATE Insider Vol. 24, No. 1 Current Market Update A PUBLICATION OF THE GROUP, INC. Here are the vacancy and lease rates for Northern Colorado's three major cities as of September 30, 2000. COMMERCIAL Vacancy Rates Property Type Fort Collins Greeley Loveland Office 12.3% 12.0% 7.1% Retail 15.2% 8.0% 7.1% HERN COLORADO Industrial 7.4% 6.0% 3.5% 4ERCIAL REAL ESTATE Lease Rates sF Property Type Fort Collins Greeley Loveland Office— ClassA $15 - $22 $ 7 - $17 $ 7 - $22 Retail $ 8 - $28 $ 6 - $15 $ 8 - $26 Industrial $ 5 - $ 9 $ 3 - $ 6 $ 5 - $ 8 Office and industrial lease rates are gross and retail rates are triple net. All rates arequoted on an annualpriceper square foot. q haPi Mier,cca+,MAI oker Associate/Partner Amendment 24 — A Science Experiment? If you own real estate in Colorado, Amendment 24, the"Citizen Management of Growth Initiative," will probably affect you. While many believe it would apply only to builders and developers, it actually would apply to any persons or entities—businesses, individuals, churches, non-profits, farmers, and governments—that want to build anything in Colorado. While proponents and opponents argue about the potential consequences of Amendment 24, neither 803 EAST HARMONY ROAD group really knows for sure what would happen if passed. ORT COLLINS,CO 80528 Since the proposed amendment has never been passed in any other state, its )70)229-0700 consequences are unknown. In essence it is a"science experiment" with 4 million Colorado residents as its subjects. If the experiment fails, it will be difficult (some say impossible) to change a constitutional amendment. If you would like a copy of the proposed Amendment 24, please give me a call. :nr , y a +�R� \ E � r�s " 4 � ALTEC Office ,---A0 � '^ € � 4��4 a ("Pt A ' F , 01 Office Vacancy Rates ,'3��, f i £a ? a Sauce:Realtec :P A u _," 30% cmi , ' 'r"'"'3x',• ��,„%' MEDIA SPONSOR I. FORT COLLINS E Es�.i'.;� _ NOaTne1lH COwaA°O 5 �R 25%- ;':,;4 ® GREELEY - 20%- ® LOVELAND e Northern Colorado Office a Market Lease Rates ui o m (annuaVsf,full gross) 15%- - - e /e Class Ft Collins Loveland Greeley m6 ci 0 m e e nbv.2 de r A $17-24 $18-26 $14-18 10%- o e' ' O G�B26 $10-1iIiiI) �� .C $10-12 $80 $6-10 50- / 1 Medical $13-30 $15-25 $13-20 �; 1 /y,1 New/Designed to Suit space, add additional $2-$4/sf. 0% ' , , I , , ", , (!'{} - s^ 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Office Sales 1999 vs 2000 Fort Collins Building Permit Values FORT COLLINS 1999 2000 Source:City of Fat Collins # of Sales 33 19 $eam --- ee,.f4.eeo 2000 $70M New commercial construction permits Total Square Feet 267,302 220,163 $60M --- --- for the Office/Professional category $ 0M -_- were $29,425,313 in 2000. 1999 Average Size 8,100 11,588 $440M was an unusually strong year for f30M 129 MAW "'''t5"' permits With 71,263 000. Average Price/sf $98 $106.86 -� I— I I $ r $zoMGovernment projects in 1999 skewed GREELEY 1999 2000 $'so M; ; I . the numbers considerably. # of Sales 12 8 1996 1997 1998 1999 2000 Total Square Feet 169,346 363,043 Average Price/sf $33.86 $48.18 LOVELAND 1999 2000 2000s Trs fFrceeases M F Company Building/Location City SF Type # of Sales 4 11 Volt Svcs 3825 E Mulberry FC 64,000 New Agilent 4800 Wheaton FC 25,000 New Total Square Feet 73,953 40,775 Managed Business 200 N College FC 13,464 New Robertshaw 3825 E Mulberry FC 11,420 New Average Size 18,488 3,707 CollectibleTown.com 4600 Innovation FC - 9,976 New New Horizon Computer Centerra Lvld 9,300 New Average Price/sf $62.28 $103.11 Sear Brown Centerra Lvld 8,938 New Limelight 3351 Eastbrook FC 8,649 New CyberCrop 736 Whaler's Way FC 7,200 New Sixth Dimension 1201 Oakridge FC 6,771 New FirsTier Bank Centerra Lvld 6,520 New ■T'T T rftT�( Duke Communication 100 W 29th Lvld 6,200 New Cheetah A H ■ . , „ ■ Chicago Title CO Mortgage 1403 W are 155 E Boardwalk t Lvld 5FC ,000 023 Renewal ., iii J\LWiJJt L EC Wind 2 Software 1901 Sharp Point FC - 4,650 New COMMERCIAL REAL ESTATE SERVICES INC Cottonwood Family Practices 2420 16th St Grly 4,521 New Entanglements 5754 11th St Grly 4,000 New 255 East Monroe Dr,Ste 4 BME Designs 724 Whaler's Way FC 3,350 New Fort Collins,CO 80525 Tel(970)229-9900 • Fax(970)282-1080 Email realtec@newamerica.com Website http://CornmercialSearch.com/Realtec a 23 xi 1 re t a`n..n ° ' fa `�>a `ramme:*<..@a� eau=°'°e x' i' t es? Fort Collins Office Synopsis fes�a Starting the n year 2000 with a vacancy Property/Buyer/Seller Loption rate of over 13%, It seemed that vacanciesCity SF Price $/Sf would remain high throughout the year. State Farm 3001 8th Ave Evans 229,036 $11,000,000 $48.02 Absorption of existing space exceeded Bittersweet 3400 W 16th St Grly 31,660 $3,200,000 $101.07 expectations however, and as of year-end Coldwell Banker 1275 58th Ave Grly 13,323 $1,435,000 $107.71 2000, the office market has a vacancy rate Jerome Bldg 800 8th Av Grly 71,498 $1,130,000 $15.81 (city-wide) of approximately 6.9%. Rental The Landings 3950 JFK# FC 6,110 $850,000 $139.11 rates have remained stable,although limited The Landings 3950 JFK# FC 6,110 $720,000 $117.83 year-end availability may exert upward Coronado Ct Fossil Creek FC 6,110 $708,000 $115.87 pressure on rates. Fort Collins'office market 1520 S College Ave FC 8,578 $460,000 $53.62 now has in excess of 4.5 million square 1235 Riverside FC 4,600 $380,000 $82.60 feet, with another 300,000 SF planned for Manion/Cougar Dental 702 W Drake FC 3,133 completion in the first half of 2001. There $363,400 $116.00 are fewer new office projects In the pipeline than a year ago at this time. New projects are now submitted under City Plan, with r $ mm-c •a'+ g-.a ,N �y,7;a, z. - a t, wini µr; ,M some projects approved under the Land 'Q� /� �. u�'Q °, Development Guidance System still to be completed. Discussions continue regarding FORT COLLINS the limitation on parking (3 vehicle spaces Major Occupant Building/Park Location - City SF per 1,000 SF) Imposed by City Plan. This Multi-tenant Center for Adv Tech NE Quad Drake/Shields FC 36,712 precludes many employers from considering Multi-tenant Landings Office Park E Boardwalk,6 Bldgs FC 36,660 Fort Collins. By comparison, new Class A Fossil Creek Office Park 2 Bldgs FC 12,200 space in metro Denver parks offer 4.5 to 6 spaces/1,000 sf. AMCC Oakridge Bus Park Automation Dr FC 12,000 Miramont Office Park S of Boardwalk/Harmony FC 6,500 Loveland Office Synopsis Center for Adv Tech W Drake Rd FC 4,000 Loveland continues to have strong FORT COLLINS TOTAL 108,072 demand, especially for Class A space and medical office space. With diminishing LOVELAND supply (vacancies in the 5-6% range) Major Occupant Building/Park Location City SF tenants are less reluctant to pay higher Multi tenant FirstTier Bank Bldg 5275 McWhinney Blvd Lvld 23,930 rates. New construction commands$14.00 Multi tenant Thompson Valley TC 1035 Eagle Dr Lvld 4,970 - $16.00/SF NNN for"In town" space, and 9 $17.00 - $22.00/SF NNN for space in Multi tenant 1073 N Lincoln Lvld 4,334 Centerra. The year 2000 saw limited new LOVELAND TOTAL 33,234 construction, however, several new projects are in the planning stages for 2001. This GREELEY/WINDSOR new space will be readily absorbed. There Major Occupant Building/Park Location City SF is a good opportunity for development of Multi-tenant Clarkson Office Building 910 54th Ave Grl 25,000 office condominiums,as many smaller users Y have desires to own, rather than lease. AG Edwards 4675 20th Street Rd Grly 4,000 Centerra will once again be the area of GREELEY TOTAL 29,000 hottest activity, in addition to new construction planned along the East w::•4,,, s gaw:Le< alea-rm Gi i, , nix 2911 , i �.: Eisenhower/Highway 34 corridor. 20alw rr(?posea ntier rnistructio ' ' 'f'ICe- Greeley Office Synopsis FORT COLLINS Greeley consists primarily of two office Major Occupant Building/Park Location City SF markets: the West Greeley market and Neenan/Western Prop Adv Preston Ctr Harmony/Corbett FC 120,000 the Downtown market. The Impact of the City of Fort Collins City Municipal Bldg Mason St FC 90,000 planned move of State Farm from their Cytomation The Centre/Adv Oakridge Bus Park ReseOakrarch FC 24,000 existing campus in Evans to the new Pacific Financial Project TheDrakeTech Tech Research Blvd FC 24,000 Promontory project (west of Greeley) will Miramont Center Research Blvd FC 24,000 be felt In the fourth quarter of 2001. The Banko be of ouncdo Oakridge Office ParkBoardwalk FC 20,000 low vacancy rates((5%) of new office space Bank -lease nt Bus Park BoaOakrdwaldgek/Landings FC 12,000 constructed over the past two years in the 5 pcc/Pre-lease Promontory Office Pk Boardwalk/Landings FC 12,000 Software Everitt Co Oakridge FC 10,000 Mosier Hill area in west Greeley 200,000 SF) will increase Dental Bldg McClelland Everitt Co McClelland FC 7,500 (approximately McClelland Dental McClelland Office ark RcClarlchd FC 7,500 substantially, resulting from the State Farm The Centre/Adv Tech Research Blvd FC 7,000 relocation. Downtown, rates remain very FORT COLLINS TOTAL 358,500 low (in comparison to neighboring communities) and vacancies are in excess of 15%, presenting some real opportunities for companies to lease and purchase Class LOVELAND A and B space. We predict that this Major Occupant Building/Park Location City SF conspicuously-low pricing will attract new Alliance/McWhinney Centerra Range View North Lvld 54,000 companies to both the west Greeley area, To be announced Benner-Bank&Offices Hwy 34/CR9 Lvld 19,014 and to downtown, gradually absorbing the To be announced Office Bldgs Taft&29th Lvld 15,000 excess supply. As was the case in 1999, a large disparity exists in rental rates, with To be announced Medical 37th&Hwy 287 Lvld 15,000 west Greeley offices commanding $13- LOVELAND TOTAL 103,014 $19/SF gross(depending upon age, quality), and downtown offices offered for$7-$14/SF gross. Minimal new office construction is GREELEY anticipated in 2001. Major Occupant Building/Park Location City SF rr, I,�r',1'(/'`1, State Farm Promontory US Hwy 34&Hwy 257 Grly 450,000 REALTEC` ` Ph Aa 9 Oysician�Office 34Grly 4,000 Promontory US Hwy 4675 20th Street Grly 104,000 cej COMMERCIAL REAL ESTATE SERVICES INC GREELEY TOTAL 563,000 g 350 E 7th St, Ste 3 801 8th St,Ste 110 T. Loveland,CO 80537 Greeley,CO 80631 ET (970)593-9900 (970)346-9900 g EALTEC Industrial r n f � 0s " V P D Industrial Vacancy Rates '4.M a 2 o 1 o Source:Realise r1 i Y " 35%1-2 I I I f� c a x;1'"'a w ) , ,•: - Fort 30%- Collins T t`K q 5 MEDIA SPONSOR j ; '......... Cl rit1Ha NORTNCRN COLORADO e4 t::a � R11` 25%- i ® Greeley 20%- $$ Loveland — Northern Colorado Industrial Market Lease Rates —15%- e WNse(3N) R+D(3N) a ^ o— n i o° e me°Ft Collins $5.00-8.30 $8.00-11.00 5%_ — — — —�— _°,'4 o .? a�le ,a,e,a Loveland v cif.g Se / H "q $3.50-7.00 $7.00-11.00 V# y '— Greeley $1.75-4.00 $4.00-6.00 0% • ril h. f �f 1990 1991 1992 1993 1994 r 1995 1996 1997 1998 1999 2000 Fort Collins Fort Collins Industrial Lease Rate 2000 Net Absorption Average or all reported transactions.Source: Real[ec Price/st Gross+Utilities 1999 Vacant SF 445,273 57.00 ■■■■■■■■■■ 2000 Vacant SF 261,321 Decrease in Vacancy SF 183,952 $6.00 n'• New Construction SF 141,000 ■■■■■ r-1N w Net Absorption SF 324,952 55.00 ■■ i CO' Nr r'. :O''., N I tic: 54.00 Il 'h �iii;: ;ii9 ls 1999vs 2000 nrf L 1999 200018 33194,941456,22510,830 13,825 I I r /sf $53.79 $55.74 00 GREELEY 1999 2000 1990 1891 1992 1993 1024 1995 1996 1997 1998 1999 2000 2401 # of Sales 16 15 Total Square Feet 192,962 186,199 `D?e� Hll T'�h, ail. .S 4Y' M .:ES f Average Size 12,060 12,413 -"•' tit&sr tali itil i ffila f „ aig .... Average Price/sf $37.20 $38.64 1 Tenant Address City SF Advanced Energy 4424 Innovation FC 92,099 Technipak 2428 4th Av Grly 43,800 PR Pharmaceuticals 1716 Heath Pkwy FC 24,026 T V-II Transportation 1101 Academy FC 14,000 V T ♦ T � -IlTechnipak 2417 4th Av LGrlyvld 13,860 �' 1�LH 1 , V-II Transportation 5802 Byrd Dr Lvld 12,600 Loveland Art Center 205 SW 12th St Lvld 11,000 Ferguson 1411 Magnolia COMMERCIAL REAL ESTATE SERVICES INC 9 FC 10,800 Sentinel Transportation 1716 1st Av Grly 10,000 255 East Monroe Dr,Ste 4 Grinnell Fire 2649 Mulberry ci Fort Collins,CO 80525 #2 0 FC 9,600 Fed-Ex Distribution s- Tel(970)229-9900 • Fax(970)282-1080 tion 903 Buckingham FC 8,650 Si Email reaitec@newamerica.com Denver Post 404 N Link Ln FC 8,448 Website http://CommercialSearch.com/Realtec Uesen Products 208 Commerce Dr FC 6,160 e Fisher 2601 Midpoint Dr A FC 5,512 27 Fort Collins Industrial Synopsis The industrial market in Fort Collins Location • City SF Price $/5f , 2continues to stay strong with a current302 SE 3rd Grly 59,927 $3,500,000 $58.40 SE 3rd St Lvld 48,600 $3,160,000 $65.02 vacancy of 2.4%. New construction has 421E 16th St Grly 35,490 $535,000 $15.08 (Th•I tapered off in the City and moved into the 225 Commerce Dr FC 23,918 $1,060,000 $44.32 county along I-25.The year 2000 activity 3210 N Garfield FC 16,500 $1,200,000 $72.72 was concentrated in the Mulberry 36475 8th Av Grly 15,050 $500,000 $33.22 Commercial project (90,720 sf built, 1318 Blue Spruce FC 14,750 $725,800 $49.20 53,220 sf leased, 13 condo units sold). 2021 W 8th St Lvld 11,100 $525,000 $47.29 102 Rome Ct FC 9,840 $665,910 $66.66 In 2001, we expect the activity to shift to Highway 14 and I-25 at the new 306 N 8th Av Grly 9,491 $330,000 $34.77 328 Airpark FC 6,171 $310,000 $50.23 Interchange Business Park. Construction 1611 E Lincoln FC 6,000 $472,500 $78.75 costs of new industrial properties are an 125 23rd St Grly 6,000 $223,900 $37.31 impediment to activity. However, strong 2649 E Mulberry FC 4,920 $365,000 $74.19 demand will precipitate new construction 2649 E Mulberry FC 4,860 $300,000 $61.73 in 2001, necessitating higher lease rates- which tenants reluctantly pay. •T IM't£y 1 dUSTrf � �`i' tt Oii Loveland Industrial Synopsis FORT COLLINS The industrial market in 2000 saw an Major Occupant Building/Park Location City SF Advanced Energy Prospect East 1625 Sharp Point FC 63,000 enormous increase in the development of Office Condo's Summit Commercial Center 309 Summitview FC 32,000 office-warehouse condos. Approximately V-2 Transportation Academy Court 1101 Academy FC 22,000 155,000 sf of condo space was built with Ferguson Enterprises Timberline Road 2321 Donella Court FC 14,000 100% absorption between 1998-99. New Belgium Linden Center 500 Linden FC 10,000 During 2000, nearly 220,000 sf was TOTAL 141,000 constructed, with roughly 55% of this LOVELAND space being purchased or leased. In 2001, Office-Warehouse Condos: approximately 140,000 sf of new space Occupant Building/Park Location City SF is planned for construction, which will Multi-tenant Anasazi Bus Ctr Denver Av Lvld 52,800 Multi-tenant Pederson Commercial Franklin Av Lvld 46,440 "overbuild"this market segment.The City Multi-tenant Loveland Commerce Ctr W 66th Av Lvld 43,400 of Loveland continues to encourage Multi-tenant Loveland Art Ctr 12th St SW Lvld 42,82 industrial development along the Fort Multi-tenant 67th Street Bus Ctr 67th St Lvld 32,1 Collins-Loveland Airpark and the I-25/US Buildings: 34 interchange where the majority of new Thornton Valley Storage Thompson Valley Tn Ctr Eagle Dr Lvld 55,250 and proposed owner-user space is located. UPS Longview Comm Ctr W 69th St Lvld 33,575 New industrial construction will be Teletech Ind Kness 3rd Subdivision Sherman St Lvld 17,740 Multi-tenant Fort Collins-Lvld Airpark Byrd Dr Lvld 12,000 impacted by 10% annual increases in QM Company Kness 3rd Subdivision Powell St Lvld 11,200 street capital expansion fees over the next TOTAL 347,342 three years. GREELEY Occupant Location City SF Greeley Industrial Synopsis Winograd WCR 391/2 and 64 Grly 150,000 Greeley's sale and lease rates continue to CG&S Co Inc 2000 Blk 2nd Avenue Grit 6,500 be among the lowest in northern Greeley Weld Airport 600 Crosier Avenue Grly 6,000 Ghent 2715 35th Avenue Grly 5,000 Colorado. We expect prices to increase in TOTAL 167,500 2001-2002 because of the extremely low vacancy rate of 1%; most of the vacancy s.1., a ,g,,.:, g+g?. sg .,�,?4i' cn +'.?,£'a"��` "'3' -g:�' + ye ae, s "` is concentrated in two large buildings. j�' °p j V E1'( �Inatis Y1a ""� oristI"li'CfiOlrt° Demand exists for industrial buildings in FORT COLLINS the 5,000-15,000 sf range, mainly coming Occupant Project Name Location City SF from companies needing warehouse/ Warehouse Condos Ironwood Plazas 3225E Mulberry FC 45,000 distribution facilities to support e- Multi-tenant Riverside 1400 Riverside FC 28,474 commerce and construction services. We Unknown International 2600 Zurich K 18,000 forecast Greeley's relatively low-cost Warehouse/Condo Red Cedar 1300 Red Cedar FC 16,875 industrial land coupled with the low TOTAL 108,349 vacancy rate to spur new construction LOVELAND over the next two years. Occupant Project Name Location City SF Multi-tenant Denver Av Comm Park Denver Av Lvld 61,250 Multi-tenant Midland-Four Park Monroe Av Lvld 24,400 Multi-tenant Kness 3rd Subdivision Woods Av Lvld 20,000 Multi-tenant Kness 3rd Subdivision Powell St Lvld 16,000 R�j /�T rr■n�41 Multi-tenant Loveland Art Center 205 12th St SW Lvld 16,0 REALTEC Colorado lire QM Company ny War Ind Park KnessE3rdast Subdivision WooSherman s vSt Lvld 0 40 Lvld 19,600 TOTAL 157,650 COMMERCIAL REAL ESTATE SERVICES INC65 GREELEY si 350 E 7th SL Ste 3 801 8th St,Ste 110 Occupant Project Name Location City SF Loveland,CO 80537 Greeley,CO 80631 oakridge 2881 31st Avenue Grly 15,900 a (970)593-9900 (970)346-9900 TOTAL 15,900 M °.: REALTEC Investment (--,,-,y. ,:: i; . , -p UP'DATEI2�001 A ,., %` 0 0-$100K 2000 Larimer County ■ $100-500K MEDIA SPONSOR Improved Commercial Sales ■ $500K-1M •. - THE NORThNORTHERN COLORADO }�SIN—'SS p1,rs��lyp Source'.lamer County Assessor's Office DW11�1.JL]1V].CVl�l ® $1-2M /v 9/V*-- 70/0 El $2M+ Northern Colorado Top Investment Sales OFFICE PRICE NOI CAP 59% 3400 W 16th Street-Grly $3,200,000 $320,000 10.0% 318 Canyon-FC $2,175,000 $185,000 8.5% 800 8th Avenue-Gry $1,130,000 $135,607 12.0% Number of Sale Transactions 149/155 W.Harvard-FC $975,000 $75,000 7.7% aiiiimmum 412 5 Howes-FC $320,000 $27,281 8.5% 2000MIIIIIIIIIIIIIIMMIIIIIIMIll 181 INNIISIMMMINI1RETAIL/MIXED USE PRICE NOI CAP --- 177 1999 Orchards Shopping Ctr $12,500,000 1998 — _ _ �—_ 163 as " Hillside Mall-Grly $9,150,000 1997 171 Red Robin-FC $2,550,000 �� Steele's Market-FC $2,340,000 1996animminfal-- 146 Office Max Plaza-FC $1,800,000 1995 in 1 24 Auto Ave-Lvld $1,780,000 nommin� 1994 221 609 8th Avenue-Orly $1,600,000 N/A N/A mimomm immi 134 S College Av-FC 0 50 100 150 200 250 g $980,000 $93,100 9.5% 220 Linden-FC $975,000 $68,250 7.0% Larimer County Improved 818 31st Street-Grly $950,000 $118,000 12.4% Commercial Sales History Source Isomer County Assessors Office 151 S College Av-FC $920,000 $87,400 95% $200 ------- INDUSTRIAL PRICE NOI CAP $180 �--------I M ' $160 In 295 71st Ave-Grly $3,500,000 $434,702 12.4% O 302 SE 3rd St-Lvld $3,160,000 $315,900 10.0% 0 $140 ----�rF I O I 225 Commerce-FC $1,060,000 $111,300 10.5% z $120 O 1611 E Lincoln-IC $472,500 $39,000 8.25% 0.$100 -----ell M , f+f ' I 328 Airpark-Lvld $310,000 $37,000. 11.9% w $80 n-- ^ ----I ;j " :II "4 " I I nMn� I ii III �� $60IghluvllrIrllNllin II II nI REALTEc $4° 1 III 11 *11 N ell 11 11 11 I $201 II II 11 11 II II II II COMMERCIAL REAL ESTATE SERVICES INC 1992 1993 1994 1995 1996 1997 1998 1999 2000 255 East Monroe Dr.Ste 4 SF Sold Inn 1.53 1.77 1.22 1.39 1.31 2.04 1.74 1.78 2.77 Fort Collins,CO 80525 Tel (970)229-9900 • Fax(970)282-1080 Avg 5/SF $44.79 $52.57 $62.15 $48.11 $57.14 $51.94 $76.66 $66.56 $66.87 Email realtec@newamerica.com cE Website http://CommercialSearch.com/Realtec ,35 Fort Collins Northern Colorado • Investment Synopsis Investment Real Estate Cycle The recent trend of low supply and high demand continues, resulting in a slight „tpt` k%ce versupply decline in overall capitalization rates. c t There has been significant .co interest in o .N. W "turnaround"or change-of-use properties, 2 Accelerated .r New Construction with buyers willing to buy at lower cap g rates when upside potential is present. High Vacancy Expect quality properties (when available) to sell at premium prices in a short amount of time. Due to scarcity and tax-deferment (1031) motivations, prime properties will continue to be difficult to find. Declining Prices, Rents & Loveland Construction iii Investment Synopsis Quality investment properties are in short supply and high demand, with fully leased Increasing ' ill/ new construction selling for cap rates Prices &Rents Absorption Absorption of below 9°k. Older properties command cap Excess Supply rates between 9.5% and 10.5%, ivt°° depending on the tenant mix, lease terms, rrrrE c% location, and quality. 1031 tax deferred c��r7Nq, Low gyp.+°�� exchanges still drive the market pricing. '�i Vacancy Because of scarcity of investment options, Current conditions in the 2000 Northern Colorado commercial real estate markets. The individual many investors are purchasing vacant markets are never exactly at one point in the cycle,but typically cover a range on the cycle. office/warehouse condominiums. Fort Collins Apartment Sales Occasional bargains remain for hands-on Source:Realise and Shannon B Associates investors willing to take a risk on a Units Sold distressed property. Such properties often require an investment of time and money 700 684 in order to change the character of the property and procure new tenants. These 600 ■■■■ ■559 rare,of opportunities are rare, however. 500 70 .� t 451 Greeley 357; 415 I Investment Synopsis 400 ► �3 3 " ` �1 Investment sales over the past year 288 reflected a 11-12% cap rate overall. 200 ' dIIIIIIII261 262 Investment properties are still in high demand by those investors seeking 1031 exchanges. Properties with cap rates below 10068 9% are met with resistance from buyers, 48 2 • despite the short supply of investment 18 0 options. Office/warehouse condominiums 87 l 88 89 90 91 92 93 94 95 96 97 98 99 2000 are popular as an investment vehicle because of the flexibility in size and Price/Unit reasonable cost. Downtown Greeley is ID perceived by many investors to be an $90,000 - ^1 opportunity. The Jerome Building, the ■■■■■ n ■■ Greeley Tribune Building, and the Ramada $80,000 ■■■■■�= o w Inn have all sold to investors who have $70,000 ert'" .+ a vision of downtown Greeley's future. ■■■■■ o a H in , a v $60,000 ■ aTr in +k a 'i in $50,000 c a 0 ro is a v ID oin u. w a REALTEC T■ r H $40,000 in o n N 10 w pi' i�LJAL LJ� N #_ I^ N N N $30,000 2T T v. N �■ in COMMERCIAL REAL ESTATE SERVICES INC $20,000 4A- t-1 ■�■ 350E 7th St,Ste 3 801 8th St, Ste 110 $10,000 � I Loveland.CO 80537 Greeley,CO 80631 (970)593-9900 (970)346-9900 $0 . 87 88 89 90 91 97 93 94 9c 04 07 00 ou 7nnn ` .` EALTEC , , ,, . 4 , Land UM Pb J TE 2 0 0 1 ' 2000 Fort Collins Building Permits ' S 4 Source:City of Fort Collins to O ifr MEDIA SPONSOR $80 INK NORTHERN COLORADO ;7° . OFFICE/GOV'T .... N $60 ❑ INDUSTRIAL -I in RETAIL Story of the Year $50 a min a The I-25 corridor is poised for ;40 Cr: a *^ °0 development. Office and Business +a Parks along I-25 are likely to j30 n �m, develop at a much faster pace than N v a , N rei other areas of Northern Colorado. f20 0 in F4; c .H o co i rn ti to ur Land prices along the I-25 corridor c CO o * N ui ,t?_ui m_a_t. 1 ui have started going up, yet they are $10 "' 'rr �'� '� significantly lower thanort Cllins, co : IN ur■ lN Loveland, or Greeley. Leland 1994 1995 1996 1997 1998 1999 2000 Consulting Group forecasts about 10 million square feet of buildings Fort Collins Inventory of Single Family Lots will be needed over the next 10- 20 years in the I-25 corridor, and Approximate. this area's employment will Year Approved Built-On Annual Surplus Expired 0DP Totals mushroom to 45,000 jobs. 1991 482 545 <63> 237 1992 1,382 747 635 872 1993 2,384 892 1,492 2,364 ort Collins Land Prices 1994 1,470 950 470 2,834 Approximate,within City of Fort Collins boundaries. 1995 2,100 867 1,233 4,067 TYPE PRICING 1996 1,017 1,080 <63> 4,004 Apartments $8,500-$12,000/unit 1997 796 930 <134> 3,770 Retail $5-$25/SF 1998 235 1,162 <927> <1,200> 1,643 Industrial $2-$5/sf 1999 1,060 1,144 <84> 1,559 Office $3-10/SF 2000 1584 985 599 2158 Transition Depends on use Fort Collins Land Absorption Residential $20,000-100,000/ac 2000 New Commercial Construction Summary Lots $45,000-75,000 *thousands of dollars Estate Lots $90,000-250,000 Unit $Value Permits $Value Permits Percent Land Acres Type Issued 1999 Issued 2000 Change Absorbed Retail $9,993 $13,459 34% 15 Office $71,262 $20,906 <70%> 23 Industrial $51,203 $5,580 <89%> 9 Government $9,311 $9,510 2°/0 11 COMMERCIAL TOTAL $141,769 $49,455 <65°/0> 58 2000 New Residential Construction Summary Unit Total Units Total Units Percent Land Acres Type 1999 2000 Increase Absorbed Multifamily (<15) 12,500 12,575 0.6% 5 �T Apartments (>15) 6,672 7,194 7.8°/D 33 K l�' T � Single Family 28,843 29,828 3.4% 197 1Wt�a� Mobile Home 3,457 3,542 2.46°k 14 .' COMMERCIAL REAL ESTATE SERVICES INC TOTAL MULTIFAMILY 19,172 19,769 3.1°k 38 r. 255 East Monroe Dr,Ste 4 RESIDENTIAL TOTAL 51,472 53,177 3.3% 249 Fort Collins,CO 80525 COMMERCIAL TOTAL 58 Tel(970)229-9900 • Fax(970)282.1080 NATURAL AREA/OPEN SPACE TOTAL 1,110 Email realtec®newamerica.com Website http://CommercialSearch.com/Realtec Total 2000 Land Absorption 1,455 36 Annual Housing Growth Giree�`ey° L`arrcl Asorptlon YEAR Ft Collins Grly* 2000 New Commercial Construction Summary . 1970-80 (avg) 7.6% 1980-90 (avg) 3.9% Unit $Value Permits $Value Permits Percent Land Acr 1991 2.1% Type Issued 1999 Issued 2000 Change Absorb 1992 1.8% 1.1% Commercial $17,030,432 $38,004,294 45% 47 1993 3.0% 1.9% 1994 s.a°r° 1.7°ro 2000 New Residential Construction Summary 1995 3.7% 2.1% 1996 3.7% 2.5% Unit Total Units Total Units Percent Land Acres 1997 3.0% 3.3% Type 1999 2000 Increase Absorbed 1998 3.8% 2.7% Multifamily 179 57 <68%> 3.8 1999 4.6% 2.7% Single Family 737 937 27% 218 2000 3.4% 3.4% Mobile Home 132 116 <12%> 10 RESIDENTIAL TOTAL 278 Single Family Starts COMMERCIAL TOTAL 47 Source: Hamebullders A55oUatlon NATURAL AREA/OPEN SPACE TOTAL 0 1999 2000 Fort Collins Area 1,319 1,172 Total 2000 Land Absorption 325 Loveland Area 739 796 p Greeley Area 932 1,687* Windsor Area 390 673 Rural Areas 1,369 1,318 Region U 19% 4 749 5 646 mTM a a x x+ rk��x rile x,x a ��ersc� ,li •xm*`w. 'x., a : s A 9 ( P ) r r "{. '17tf�xJs35t�r �©nASr A.. .. ...,. Greeley&Windsor homebuilding has taken the market-share away from Fort Collins. 'Includes Evans, Eaton, Johnstown, & Milliken 2000 New Commercial Construction Summary Fort Collins-Loveland Unit $Value Permits $Value Permits Percent Land Acres Apartment Demand Typ Issued 1999 Issued 2000 Change Absorbed Indicated Demand: 700 units/year Commercial $24,190,165 $23,129,395 <4.4%> o Current Vacancy : 320 units , 2000 New Construction: 522 units 2000 New Residential Construction Summary Needed for 2000: 700 units (44 acres) Unit Total Units Total Units Percent Land Acres Type 1999 2000 Increase Absorbed Apartment Rental Rates Single Family 685 755 10.2% 199 Fort Collins Duplexes 102 189 85.3% 38 1 BDRM 2 BDRM Apartments 185 167 <9.7%> 11 YEAR (675 sf) (890 sf) 1992 $450/67¢ $540/61¢ RESIDENTIAL TOTAL 248 1993 $485/73¢ $595/67¢ COMMERCIAL TOTAL 37 1994 $539/80¢ $645/72¢ Total 2000 Land Absorption 285 1995 $552/82¢ $656/74¢ 1996 $576/85¢ $701/79¢ 1997 $601/89¢ $726/82¢ 1998 $616/91¢ $736/83¢ 1999 $641/95¢ $832/93¢ Ft Collins 1990-2000 Greeley 1990-2000 2000 $660/$1.03 $832/93¢ Annexed Acres 3,747 Annexed Acres 4,533 Greeley 1 BDRM 2BDRM Absorbed Acres 5,290 Absorbed Acres 2 229 YEAR (675 sf) (890 sf) T 1998 $469/69¢ $545/61¢ Deficit Acres 1,543 Surplus Acres 2,304 1999 $469/69¢ $554/62¢ 2000 $488/72¢ $593/66¢ Loveland 1990-2000 Windsor 1996-2000 REA T r�,L,r Annexed Acres 4,207 Annexed Acres 4,05 H� �1 ril. Absorbed Acres 2,348 Absorbed Acres 61 COMMERCIAL PEAL ESTATE SERVICES INC Surplus Acres 1,859 Surplus Acres 3,447 ci 350E 7th St,Ste 3 801 8th St,Ste 110 Loveland,CO 80537 Greeley,CO 80631 a (970)593-9900 (970)346-9900 0 2001 GENERAL MARKET INFORMATION 37 , lea . �1 UPDATE Office e( * visit , SOP Or e1,Ilt Office Vacancy Rates Source:Reeltec 20002 �CS S f 30% ed FORT COLLINS 25%- ® GREELEV Northern Colorado Office Market Lease Rates 20%- LOVELAND (annual/sf,full gross) p 81Class FL Collins Loveland Greeley s—c 15%- 9 o A $18-22 $18-22 $14-19 i o ° So j o'R B $15-18 $14-18 $10-14 O1 0_ '-LC o o ryo -,?;-,/o oaf $6-10 10%- e° o �� ry�—mm0 �iP ' C $12-14 $8-13m n ro t° S Medical $18-25 $18-25 $17-22 m 1p r-4/12 4 e i m —i— e ice /U f _ New/Designed to suit space,add additional$5/sf. 5%- a/ y, s 0% ' r ii i ,Alt i t . r / < A i'll/ Office Sales 2000 vs 2001 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 FORT COLLINS 2000 2001 # ofSales 19 16 Fort Collins Building Permit Values Source:City of Fort Collins Total Square Feet 220,163 180,826 $80M $71,253,000 Average Size 11,588 11,249 $70M Average Price/sf $106.86 $86.65 $60M $50M r GREELEY 2000 2001 $40M R:rd:lSiti _ # of Sales 17 9 $30M ' ' Total Square Feet 344,908 41,294 $20M i_ 'I I I Average Price/sf $57.04 $74.90 $IOMPEGCrl $0 LOVELAND 2000 2001 1996 1997 1998 1999 2000 2001 #of Sales 11 12 Total Square Feet 40,775 21,853 Identification Location City, SF Average Size 3,707 1,871 Cytomation 4868 Innovation#2 FC 18,833 SA Robotics 3985 S. Lincoln Lvnd 15,385 Average Price/sf $103.11 $90.21 Alliance Constr 2725 Rocky Mtn Ave Lvnd 11,598 Intel 4600 Innovation FC 10,000 GSA 1629 Blue Spruce FC 9,220 McWhinney Ent. 2725 Rocky Mtn Ave Lvnd 7,000 Calpine 702 W.Drake FC 7,000 S_.II Microsoft 4703 Boardwalk FC 6,500 Riveria Electric 6835 Sherman Lvnd 5,600 McCoy, Inc 3665 JFK FC 5,364 Chicago tle AL C AndersonTConsulting 772 WhalersetoothWay FC FC 5,096 4,829 COMMERCIAL REAL ESTATE SERVICES RATA International 736 Whalers Way FC 3,838 255 East Monroe Dr,Ste 4 Creekside Two 2629 Redwing FC 3,670 Fort Collins,CO 80525 Northern FR Trans 220 E. Olive FC 3,600 Tel(970)229-9900 • Fax(970)282-1080 Lee, Hecht, Harrison 2537 Research FC 3,400 Email Realtec@RealtecCommercial.com Process Analysts 1901 Sharp Pt. FC 3,350 a Website www.RealtecCommercial.com Directed Energy 2401 Research FC 3,150 8 Fort Collins Office Market U' x.`11 urTICtSaJer In the year 2001,vacancies increased to 10%due Identification Location City SF Price s/Sf to a number of factors: 1)consolidation/constrictIon ClubHse/20th 2020 Clubhouse Grly 26,336 $1,500,000 $56.96 of business operations(particularly in the technology Norwest Bank 1025 9th Ave Grly 56,974 $1 280,000 $22.47 , sector); 2) delivery to market of approximately Spring Crk 2001 S Shields#K FC 6,300 800,000 $126.98 300,000 sf of new office product(planned In 1999 AHFY 1442 11th Ave Grly 8,400 750,000 $$89.29 and 2000); 3)lackluster(to poor)performance of Landings 4745 Boardwalk FC 6,053 594,848 $98.27( corporate stocks(derailing many companies' Nicol Building 530 S College FC 4,136 450,000 $1108.60 expansion/growth plans);and 4)a cautious overall $$ business climate,resulting from concerns over rising Walkowicz Rentals 4208 N Garfield Lvnd 2,261 336,000 148.61 unemployment and the economic impact of political First Tower 215 Oak St FC 3,040 322,500 106.09 events and crises affecting the U.S. Fortunately, NA 419 W Mountain FC 9,546 290,000 $30.38 conditions of oversupply in office space in Fort Collins 1st Choice Bank 1229 10th Ave Guy 2,744 277,500 $101.13 are not nearly as severe as in the Denver metro NA 2005 S.College FC 2,976 270,000 $90.73 market,where vacancies in the Interlochen corridor NA 1006 Robertson FC 3,411 256,250 $75.12 exceed 30%. Collindale Ofc 4025 Automation FC 1,188 185,000 $155.72 With corporate downsizing has come a new Collindale Ofc 4025 Automation FC 1,188 178,500 $150.25 phenomenon to the Fort Collins office market: sublease space.Companies with excess office space -: g e`-e a ._ r .a - _ . -,•;;;- -r; -'r -• - are highly-motivated to divest themselves of this burden,consequently,sublease space is being offered FORT COLLINS at rates considered below market,in order to entice tenants. Major Occupant Building/Park Location City SF This has created some downward pressure on rents, City of FTC Municipal Bldg NA Mason Street FC 120,000 at least for the short term, until the inventory of USDA/NRRC Ctr for Adv Tech Centre Dr FC 100,000 subleased space(estimated at 70,000 sf)is absorbed. Spec Preston Center Harmony Road FC 58,000 A large disparity in pricing still exists between CentreTech III Ctr for Adv Tech Center Dr FC 18,000 existing Class A space and the rental rates of new Spec Boardwalk Office 772 Whalers Wy FC 14,000 projects.Despite oversupply conditions,new projects Spec Miramont Office Park Boardwalk FC 12,000 are leasing up,with tenants willing to pay higher Bank of Colorado Oakridge McMurray/Harmony FC 12,000 rents to gain certain benefits: new physical facilities, Spec Willow Springs 2021 Battlecreek FC 8,519 improved location, greater functionality of office Home State Bank Home State Plaza Vermont&Timberline FC 6,000 layouts (design to suit),etc. Spec Center for Adv Tech Drake FC 4,200 With the addition of new space delivered In 2001, TOTAL 352,719 Fort Collins'office market now has in excess of 4.8 million square feet.Unlike the previous year,however, LOVELAND there will be dramatically less new office construction or in the private sector in 2002. New projects already Major Occupant Building/Park Location City SF completed under"City Plan"parking restraints(3 City of Lvld Justice Ctr 810 10th St Lvnd 100,000 vehicle spaces per 1,000 sf),are finding expected Terraview Office Bldg Centerra US Hwy 34 Lvnd 54,446 resistance from prospective tenants. For most First Ter Bank Centerra 5275 McWhinney Blvd Lvnd 23,930 businesses'needs this parking allowance is Multi-Tenant NA 383 W 37th Lvnd 9,476 inadequate and this restraint precludes many Multi-Tenant NA 2992 Ginnala Dr bind 7,250 employers inadequate, considering Fort Collins(new Class Spec North Park Place 3025 N.Taft Lvnd 4,990 A space in metro Denver parks offer 4.5 to 6 • spaces/1,000 sf). TOTAL 200,092 Loveland Office Market GREELEY Loveland continues to have strong demand,es ecially Major Occupant Building/Park Location City SF for Class A space,although there is more availability j P g/ than one year ago. Vacancies have increased in State Farm Bldg A Promontory US Hwy 34 Grly 150,000 2001 to 11%,up from a low of approximately 5% Conagra Beef Promontory US Hwy 34 Grly 120,000 at year-end 2000. New office construction has TOTAL 270 000 occurred primarily in the Centerra project where space commands$17.00-$22.00/SF NNN. Office condominiums are well received for smaller owner- occupant type users who desire to own,rather than lease. Financing rates for such purchases are at p �; 3 r' !, 1 the lowest levels in thirty years(6.5 to 7.5%),so t --o a e - a j timing is opportune. As was the case In 2001 Centerra will once again be the area of hottest office FORT COLLINS development activity,serving new residential and Major Occupant Building/Park Location City SF retail projects planned for completion along the USDA-NRRC Ctr for Adv Tech Centre Dr FC 80,000 Highway 34 corridor. Preston II Harmony/Corbett Harmony Rd FC 58,000 Greeley Office Market Big Horn II Horsetooth East 1 Elk Rd FC 31,960 Pacific Financial Project Centre/Adv Tech Centre Dr FC 24,000 The Promontory project(west of Greeley)is the Unknown Oakddge 1111 Oakridge Dr FC 22,400 major news in the 2001 office market,as regional Cutomation Oakridge Oakridge FC 24,000 headquarters of State Farm Insurance and ConAgra Spec Boardwalk Ofc Pk 772 Whalers Way FC 14,000 Foods moved into their spectacular facilities.The Promontory Ofc Pk Boardwalk Dr Whalers Wy FC 13,000 vacancies created by these relocations were Home State Bank Home State Plaza Vermont&Timberline FC 12,000 anticipated by the market and are being absorbed Everitt Companies/software Oakridge Bus Pk Oakridge FC 10,000 at respectable rates.Greeley's office market consists Aller Lingle Boardwalk Ofc Pk 701 Whalers Way FC 9,000 primarily of two segments:the West Greeley market Everitt Companies/dental Oakridge Bus Pk Oakridge FC 8,000 and the Downtown market. Vacancy rates for Miramount Office Park Boardwalk Ofc Pk Boardwalk FC 6,000 predominately new buildings in west Greeley are approximately 5%,however,vacancies in downtown Unknown NA 1109 Oak Pk Rd FC 5,273 Greeley exceed 15%.Consequently,downtown TOTAL 317,633 rental rates are quite low,in the$9 to$14/sf range (on a full-service basis,the landlord pays all LOVELAND expenses)compared to west Greeley,where new Major Occupant Building/Park Location City SF space commands$14 to$16/5F on a NNN basis jorl ccu 4 Centerra/ NA C 32,000SF (tenants pay all operating expenses). In most instances there are opportunities for companies to Sundance Medical Plaza NA 3800 N.Grant Lvnd 21,000 lease and/or purchase office space in Greeley at Centennial Bank NA 1401 S.Taft Lvnd 12,970 pricing levels dramatically less than in Larimer Multi-Tenant/Nasello NA 3720 E. 5th Lvnd 9,873 County. Vacanies are expected to be significantly Advantage Bank NA CR 9&Eisenhower bind TBA lower by year end and will push rents higher. Multi-Tenant NA North Park Place Lvnd 4,990 TOTAL 80,833 REALTEC GREELEY ,; „.,,,,,",",,,,,,,,,,,,,,,, Major Occupant Building/Park Location City SF State Farm Bldg B Promontory US Hwy 34 Grly 203,000 0 1767 Rocky Mtn Ave 801 8th St,Ste 110 State Farm Bldg C Promontory US Hwy 34 Grly 117,000 Loveland,CO 80538 Greeley,CO 80631 Greeley Medical Clinic NA 5881 16th St Grly 23,000 tc e (970)593-9900 (970)346-9900 TOTAL 343,000 *feet UPDATE Industrial c--) 4p.►Rt�,1ltt.iti�11L� Industrial Vacancy Rates Source:Realise ae 25%./a II Fo 211J €Y2 20%. MI Collins ElGreeley �o , 15%- v, ■ Loveland Northern Colorado Industrial Market Lease Rates — gy 10%. m' IiJr1 Whse(gross) R+D(ax)Ft Collins $6.00-8.30 $8.00-11.00 5%. — — —°' — ,...: I *iOiiil Loveland $6.22-8.50 $5.00-11.50 Greeley $2.75-5.00 $4.00-8.25 Jez o% - 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Fort Collins Fort Collins Industrial Lease Rate 2001 Net Absorption Average of all reported transactions.Source: Realtec 2000 Vacant SF 261,321 Price/sf Gross Utilities 2001 Vacant SF -566,195 S717.00 ■■■■■■■■■■ Increase in Vacancy M SF <304,874> , m r New Construction SF p +237,692 56.00 ■■■■■ td-)1 LO N,. Negative Net Absorption SF <67,182> wl l' US! a n $5.00 ■■■ 'a m. iaI is; a LOI ri $4.00 L. a:I Li} VY Industrial Sales 2000 vs 2001 la a' a tn, z N'Ln in FTC&LOVELAND 2000 2001 S3 N � I 21 ' I— • # of Sales 33 33 S2.00 co w Total Square Feet 456,225 187,271 a Average Size 13,825 5,675 cc Average Price/sf $55.74 $62.49 $1.00 a LI GREELEY 2000 2001 60.00 1890 1991 1992 1993 1994 1995 1999 1997 1999 1999 20O0 2001 2002 # of Sales 36 17 Total Square Feet 362,483 192,554 Average Size 10,069 11,327 Average Price/sf $42.36 $43.59 Tenant Address City SF King Storage 715 7th St Grly 35,292 Augustine Machinery 1941 Heath Pkwy,LLC FC 24,480 Eagle Star Electronics 129 S Madison Lvnd 20,269 Beverage Express 611 8th St Grly 20,000 -.r 1-25 Power Sports 825 SW Frontage Rd FC 15,000 sisal Western Construction Pump 3515 W Service Rd Evans 14,050 R Warehouse/Storage 510 4th Ave Grly 13,333 =W� v■wry At Home The Denver Post 800 Link Ln101 SW FC rontage Rd FC 12,671 11,850 COMMERCIAL REAL ESTATE SERVICES Integrity Auto Works 300 8th Ave Gdy 11,544 255 East Monroe Dr,Ste 4 Mulberry Summit Investments 1833 Mulberry FC 10,000 Fort Collins,CO 80525 Guy's Floor Service 5857 Wright Drive Lvnd 8,470 Tel(970)229-9900 • Fax(970)282-1080 Ewing Irrigation 901 SW Frontage Rd#A FC 7,398 tom Email Realtec@RealtecCommercial.com Aqua Medic 546 SE 8th St Lvnd 5,280 Website www.RealtecCommercial.com ® Pack Rat Freight Co 2627 S College Ave FC 5,100 3? .an Fort Collins Industrial Synopsis tocatioo�r�:�Ifv saiaiC y aQa-� SF Pike The industrial market in Fort Collins has 31181 39.5 CR Grrlly 116,094 $5,494,700 $47.33 softened but remains healthy with a 10005UncolnAve Lvnd 63,311 $1,200,000 • $18.95 current vacancy of 5.17%. New 152 30th St Gdy 24,141 $929,600 $38.51 ' 500 N Denver Ave(Multi) Lvnd 23,200 $1,380,000 $59. construction has tapered off in the City 527 8th St Gdy 21,550 $500,000 $23, and moved into the county along I-25. 3700 Canal FC 19,200 $800,000 $41.6! The year 2001 was active but weakened 1833 E Mulberry FC 16,628 $1,000,000 $60.14 3555 S Lincoln Lvnd 13,847 $1,085,000 $78.36 due to increase In vacancies. In 2002, 1926 SE Frontage Rd FC 13,080 $960,000 $73.39 we expect the activity to shift to Highway SW 12th St(Lvnd Arts Center,Multi) Lvnd 11,632 $705,000 $60.61 14 and 1-25 at the new Interchange 3008th Ave Grly 11,544 $136,500 $11.82 812 Stockton FC 10,600 $669,000 $65.00 Business Park. Construction costs of 209 Racquette Dr FC 10,000 $615,000 $61.50 new Industrial properties are an 2321EMulberry K 9,404 $450,000 $47.85 625 8th Ave Gdy 9,176 $275,000 $29.97 impediment to activity. The soft market Franklin Ave(Condos) Lvnd 8,552 $780,000 $91.21 will minimize new construction in 2002 1065 Poplar Lvnd 7,200 $440,000 $61.11 and lease rates will remain stable. 1979 2nd Ave Grly 7,200 $165,000 $22.92 430 5th St Gdy 5,000 $185,000 $37.00 Loveland Industrial Synopsis :: -�, -ai s I ��:: 1 0 •� i �ro The industrial market was dominated by the continued construction of FORT COLLINS office/warehouse condominium projects Major Occupant Building/Park Location City SF in 2001. While 75,000 sf of condo space Multi-Tenant Iron Wood Plaza 3201 E Mulberry FC 60,200 P Poudre Valley Air NA 2416 Donnella FC 41,000 was sold in 2001, over 200,000 sf of Educators Outlet International Bus Park 2479 International FC 24,852 new product was constructed. The Mini-Storage NA 3726 Manhattan FC 35,500 Mini-Storage Midpoint Bus Park 2655 Midpoint Dr FC 30,640 industrial vacancy rate has risen to 7.5% Latimer County Larmer County Bldg 702 Linden St FC 14,400 due in part to this over supply. New Belgium New Belgium Brewery 500 Linden St FC 22,100 Tire Shop NA 301 Smokey St FC 9,000 TOTAL 237,692 Greeley Industrial Synopsis LOVELAND The big industrial story in Greeley is Occupant Building/Park Location City SF the current lack of industrials ace in Amercian Eagle Distribution 1-25 3800 Rochester Dr Lvnd 123,549 P Multi-Tenant 67th St Bus Center 500-540 W 67th St Lvnd 35,258 sizes of 5,000-15,000 sf. This limited Multi-Tenant Longview 33 Bus Center 400-440 W 67th St Lvnd 35,06 supply has caused an increase in lease Loveland Robotics NA 3985 Lincoln Ave Lvnd 31,8 Multi-Tenant Denver Ave Comm Park 449-447 N Denver Ave Lvnd 31,5 rates and sales prices. Multi-Tenant TBD 563.599 W 66th Ave Lvnd 24,400 Multi-Tenant Denver Ave Comm Park 481-497 N Denver Ave Lvnd 22,050 Despite demand for smaller industrial Multi-Tenant Monroe Station 1102-1138 N Monroe Ave Lvnd 21,000 P Multi-Tenant TBD 375-395 W 67th St Lvnd 19,515 space during 2001, there were few new Arrakis Sys Inc Crossroads Bus Park 6604-6628 Powell St Lvnd 16,800 or proposed industrial construction Storage NA 1230-1290 S Grant Ave Lvnd 15,600 Multi-Tenant NA 1260-1284 S Grant Ave Lvnd 14,000 projects in the pipeline, meaning that Multi-tenant Loveland Arts Center 2055W 12th St Lvnd 12,000 anticipated demand will not be fulfilled Colorado Tire Ward East 4411 Woods Ave Lvnd 10,456 again during 2002. Future supply of Dal Tile Lvnd-FC Airpark 5741 Earhart Dr Lvnd 9,600 9 pP Y Husky International Crossroads Bus Park 6724 Powell St Lvnd 9,000 industrial product is also impacted by D B Productions Crossroads Bus Park 4000 Patton Dr Lvnd 6,000 the fact that the supply of industrially- TOTAL 437,671 zoned lots in Greeley is limited. Office Occupant Building/Park REELEY Location City SF warehouse space was overbuilt in 1998- D&D Commodities NA 420 0 Street Grly 80,000 1999, but mostly absorbed during 2001. Ashcroft Storage Ashcroft 3253 35th Ave Evans 28,700 NA NA 3693 E Cty Rd 30 Wndr 22,100 Multi-tenant Oakddge 2881 31st Ave Grly 15,900 The 6.1% vacancy rate almost solely Campus Storage NA 505 18th St Grly 14,000 reflects the supply of industrial product Weld County Garage NA 1415 1st Ave et/ 7,200 Timber Investments NA 6525 4th St Grly 4,200 larger than 25,000 sf, which is slowly TOTAL 172,100 being absorbed. Transactions pending in early 2002 may reduce the vacancy c "ii i' ' e lie - Si'� - ^` S i i rate below 4%. FORT COLLINS Occupant Project Name Location City SF Warehouse Condos Ironwood Plazas 3225 E Mulberry FC 45,000 Multi-tenant Riverside 1400 Riverside FC 28,474 �� Multi-tenant Academy Condos 1201 Academy FC 12,000 ME Warehouse/Condo Red Cedar 1300 Red Cedar FC 16,875 1tT . . C TOTAL 182,34 �R_lNJAA 1■J LOVELAND Occupant • Project Name Location City SF COMMERCIAL REAL ESTATE SERVICES Spec Anasazi Bus Park 700 N Denver Ave Lvnd 40,000 1767 Rocky Mtn Ave 801 8th St,Ste 110 Kraft Building Ward Ind Park East 45th St 8 Woods Lvnd 19,800 i Loveland,CO 80538 Greeley,CO 80631 Johnson Corner Trucking Crossroads Bus Park Woods Ave Lvnd 13,000 Q (970)593-9900 (970)346-9900 Spec Delta Construction Crossroads Blvd Lvnd 6,000 o TOTAL 78,800 . DATE InvestmentitisLon, . LLvvit tict 3 0-$100K 2012 I p Larimer County . $1002rImproved roved Commercial Sales ® $500K-1M Source:Larimer County Assessors Office 40��' Northern Colorado In $2M+ Top Investment Sales OFFICE PRICE NOI CAP tsif3/40„;‘,F;001 530 S College-FC $450,000 $58,948 13.1% 215E Oak-FC $322,500 NA NA 1� 1101 8th St-Gdy $160,000 $14,400 9.0% Number of Sale Transactions RETAIL/MIXED USE PRICE NOI CAP lemnin im 2001 180 Berthoud Village $3,350,000 $331,650 9.9% ��seim Cottonwood Comers-FC $7,400,000 $639,500 8.64% 2000 _ __ 181 Cinemark-FC $7,060,800 NA NA 1999 --leraa� 177 1739-1775 sammila am Rocky Mt.Ave-Lvld $2,625,000 $242,703 9.25% 1998 - 163 01 mmiammimminati '" 125 5 College-FC $2,239,700 NA NA mamimi 1997 171 ammi a INDUSTRIAL PRICE NOI CAP 1996 ma=maim 146 . awn 3555 5 Garfield-Lvld $1,079,000 NA NA 1995 124 ammaii 3700 Canal-FC $800,000 $87,500 10.9% amminimmiamme=a 1994 1833 E Mulberry-FC $1,000,000 NA NA amminme221 nie 0 50 100 150 200 250 APARTMENTS PRICE NOI CAP Cambridge House Larimer County Improved Apartments-FC $6,200,000 NA NA Commercial Sales History Westfield Apartments Swot Latimer County Assessors Office 4021-4041 Goodell-FC $800,000 $74,000 9.25% $200 --------�- 919 44th Av - $385,000 NA NA $160 --------1 N 1- 609 8th Ave-Grly $1,572,500 NA NA $160 = $140 120 n " 1� 1 1� °$100 ��!!II1 M 1 M 11� API l Ilvfll ill In $80 lnl■rn Ka $60 Ir. O rh 1 a 11 ll 'll 11 I REALTEC 1on11 "11 % 11 , 1111 11 11 11 II :I COMMERCIAL REAL ESTATE SERVICES $402 0 111 11 11 11 X11 11 ii 11 II i 255 East Monroe Dr,Ste 4 $$0 1 11 II 11 II II II 11 11 II I Fort Collins,CO 80525 Tel(970)229-9900 • Fax(970)282-1080 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 EmailRealtec@ReahecCommercial.com SFSold04) 1.53 1.77 1.22 1.39 1.31 2.04 1.74 1.78 2.77 1.23 a Website www.ReatlecCommercial.com ® Avg$/sr $44.77 $45.67 $61.97 $48.20 $57.43 $51.91 $76.49 $66.51 $66.90 $7438 90 ■ •I6/II %.U I r■ ■ ■ V V O V■ M M V Fort Collins Investment Real Estate Cycle Investment Synopsis Fort Collins real estate investment Q�1P�` "N. 0e supply opportunities continue to be in strong Fc �o \. demand and short supply. Good Accelerated investment properties, if leased and11 New Construction priced reasonably,sell quickly. Properties Z..' High Vacancy stay on the market for lengthy periods 'S if over priced or have vacancy problems. Q Q 1031 tax deferred exchanges remain a Q ,t strong force on the demand side. We expect to see these trends continue for Declining Prices, 2002. Rents & t t Construction Loveland Investment Synopsis Quality investment properties are in Increasing short supply and high demand, with Prices&Rents Absorption of fully leased new construction selling for Excess Supply cap rates below 9%. Older properties yte oFflrf off& command cap rates between 9.5% and 10.5%, depending on the tenant mix, Low 6e�� lease terms, location, and quality. 1031 Vacancy tax deferred exchanges still drive the Current conditions in the 2001 Northern Colorado commercial real estate markets. The Individual markets are market pricing. Because of scarcity of never exactly at one point in the cycle,but typicallycover a range on the cycle. investment options, many investors are purchasing vacant office/ warehouse Fort Collins Apartment Sales condominiums. Occasional bargains �+ Source:Reehse and Shannon&Associates remain for hands-on investors willing to take a risk on a distressed property. Units Sold Such properties often require an 700 . 684 Investment of time and money in order = to change the character of the property 600 559 and procure new tenants. These types of opportunities are rare, however. 500 470i\L 451 400 ;387 415383 3r 98 Greeley ' Investment Synopsis 300 288 ` 262 Greeley's investment market during 200 . 7 li A 120 2001 experienced a decrease in activity. 126 The transactions in our database indicate 1001 48 ' er, that average cap rates in Greeley were - ■ 18 lir between 9.0% and 10.0%. Pricing at 0 ' IN lower cap rates during 2001 discouraged 03 ro 01 0 Os a a a aai m a rn 01 as o 0 investors from making purchases in Greeley, and many buyers looked price Unit elsewhere. There are currently several o in investment properties for sale in ;90,000 N Greeley, but they remain available at $80,000 ■■■■■■■■■ w ■■■ M fromlow cbuyerses, prompting resistance ;70,000 ■■■■■■■■ 4- 0 1n ■ ^ M ■■■■■■ o rP at ' v ■ ea is m $60,000 ■ ■■■ o a a J�■ e e N�� $50,000 r, o n N ■■■ N PI mN '■ D NT�, NE 440,000 .pi l: if;; N N a S■■■■■ ■ ■■ • ItEALTEC $30,000 w . IC Jr, ■■■■■■■■■ $20,000 ■■ ■■■■■■■■■■■■ COMMERCIAL REAL ESTATE SERVICES Y $10,000 ■■■■■■■■■■■■■■■ 1767 Rocky Mtn Ave 801 8th St,Ste 110 i Loveland,CO 80538 Greeley,CO 80631 $0 rc (970)593-9900 (970)346-9900 N 03 01 0 .+ N Ih e In ID N 03 0r 0 ei O 03 CO 03 01 0 N 01 01 01 01 01 01 01 0 0 2002 GENERAL MARKET INFORMATION 9/ Office Retail Industrial T UPDATE 1 -+ / Greeley Vacancy Rates Source:Reenec 9R^4 iD ■ 1 18.00% - , And ® OfficeRetail ® Industrial . 16.00%- O fl E E L E V r- a 1 � { 14.00%= m 12.00%H 10.00%-2 a"` o 44 • Greeley Market 8.00 ® s o 0 o 8 Lease Rates s.00% 0 7 ei 8 ' °-w m '. n may" g Industrial pro ; Whse R+D 4.00/— p', o 8, - F wig $35 $48 2.00% "y ^ ` on i k I < 0.00 .I r �i . i r Retail (3N) Class A Class B Class C 1995 1996 1997 1998 1999 2000 2001 2002 $18-22 $14-18 $7-14 Retail Sales Tax Collections Office(gr) Class A Class B Class C Source:City of Greeley $1522 $11-15 $&11 ill $$35 30 ■■■■■■■■■ n Wie eld County Sales $25 ■■■■�■�I �; ,I N II M 2000 vs. 2001 z ■■ww^ a I III "II VIII o $2D I"I 6 INIIillinll II 11 II Industrial 2001 2002 d ^+ T of talSgsales 50 30 Z $1$15I :II IIIiIIvfll �ll II II II II Total Square Feet 601,727 444,191 Average Size 12,034 14,806 11111111111 II II 11 II Average Price/sf $48.25 $52.18 $5 111 II II 11 II II 11 11 II Retail 2001 2002 $0 # of sales 29 23 - 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Total Square Feet 124,617 180,814, Average Size 4,297 7,861 2002'S' Top"Weld COunty Sales ... -1 '' Average Price/sf $63.50 . $122.60 Property/Tenant Address City SF Type $/sf Price Market Square 3820 10th St GRLY 38,283 Shop Ctr $141.05 $5,400,000 Office 2001 2002 Structural Component Sys. 2401 2nd Ave GRLY . 106,830 tit MFG $21.05 $2,320,000 Bears Mlni Storage 3417 28th St GRLY 18,467 Whse Mini $111.55 $2,060,000 # of sales 16 17 Stamped Travel Plaza 665 31st St EVANS 14,521 C-Store $158.39 $1,900,000 Total Square Feet 57,485 113,901 Village Center 3625 23rd Ave EVANS 20,400 Shop Ctr $90.31 $1,842,400 Champion Chevrolet 9050 Hwy 392 WNDSR 11,900 Car sales $134.90 $1,703,300 Average Size 3,592 6,700 Cottonwood Health Center 2412 17th St GRLY 9824 Retail $161.85 $1,590,000 Average Price/sf $73.43 $71.67 Signature Stone 211 30th St GRLY 40,798 Warehouse $37.38 $1,525,000 Everyday 2603 8th Ave GRDN CIY 2,400 C-Store $525.67 $1,261,600 Coyote Grill 5250 9th St Dr GRLY 4,449 Restaurant $247.25 $1,100,000 B&G Equipment 301 E 8th St GRLY 31,854 Warehouse $33.79 $1,076,300 Suds City 2460 35th Ave Ct GRLY 2,760 Car Wash $356.88 $985,000 ComCast 3737 10th St GRLY 6,556 Office $140.71 $922,500 Food Court 5415 11th St GRLY 6,380 Fast Food $129.47 $826,000 G&M Implement 1717 2nd St GRLY 12,264 Auto $61.97 $760,000 Weld County 810 10th St GRLY 49,966 Service Gar $15.01 $750,000 Everyday 504 11th Ave GRLY 2,400 C-Store $273.83 $657,200 Everyday 1025 13th St GRLY 2,442 C-Store $243.37 $594,300 Family Dollar 2626 10th St GRLY 17,360 Retail $33.99 $590,000 Lazy M Trading Co. 401 E.16th St GRLY 35,490 Ind $16.20 $575,000 Good Hair Day 110 1st St JSTN 474 Barber $1160.34 $550,000 S R8-I Centel Station 106 1st St ]STN 1,623 C-Store $338.88 $550,000 Lead Fabrication Service 257 6th St GRLY 21,550 Lgt MFG $23.20 $500,000 REAT � Taco Bell 101 12th St WNDSR 2,074 Fast Food $214.56 $445,000 1 , The Car Spa 3101 10th St GRLY 2,240 Service Gar $185.27 $415,000 Multi Tenant 30221st Ave GRLY 6,000 Warehouse $66.67 $400,000 COMMERCIAL REAL ESTATE SERVICES Unique Auto Center 529 Main St WNDSR 1,538 Car Sales $256.83 $395,000 Country Inn Restaurant 1415 8th Ave GRLY 4,074 Restaurant $83.46 '$340,000 801 8th St,Ste 110 Moyer Tool 2261 Basher Dr BIN 15,639 Ind Rex $21.66 $338,000 2 Greeley,CO 80631 Multi-tenant 1200 W Ash St WNDSR 3,175 Office $97.64 $310,000 Tel(970)348-9900 • Fax(970)304-0707 Email bblach@reattecgreeley.com www.reattecgreeley.com Information Sources:Weld County Assessor's office,City of Greeley,Town of Milliken,Town of Johnstown, cc Town of Windsor,Town of Eaton,Town of Ault,Town of Evans O 92 \� �4 t Office Market Il t, • t 4`` Office Vacancy Rates \,\• Source:Realtec fi 4 FORT COLLINS ll y:.i (i a 18% o y;t GREELEY b c n 16% 0° Li LOVELAND m vi 14% Northern Colorado Office 6.° o Market Lease Rates 12% o i o C .- (annual/sf,full gross) e ° o a °4,. O o , ici 10% a' i NO 1 O O' d Class Ft Collins Loveland Greeley o m m rn 0 m rL A $18-23 $16-23 $15-19 8/0 "'_r`, F � 1 ° I B $15-18 $12-15 $11-15 0 e ^o v r°'f I C $12-14 $8-13 $8-11 m • m ui 6% o - I New $18-25 $18-25 $17-22 : JI i N le ri ' I L 4% Office Sales 2001 vs 2002 2% ' ' Ip ' ' l ' FORT COLLINS 2001 2002 t # of Sales 24 21 0% ` ` Total Square Feet 83,425 135,568 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Average Size 3,476 6,456 Average Price $112.85 $124.78 Fort Collins Building Permit Values Source:City of Fort Collins GREELEY 2001 2002 $gOM # of Sales 9 13 Mg Total Square Feet 41,294 65,522 $70M $GO _ Average Size 4,658 5,040 $60M o m Average Price/sf $74.90 $81.00 o co _ $5OM N N N N 0 LOVELAND 2001 2002 $4014 tO Ti cn _ m # of Sales 12 14 $30M c r- N to I o ' r` m N Total Square Feet 21,853 46,430 `" Average Size 1,871 3,317 $20M o I P., I I N co Average Price/sf $90.21 $102.25 $5OM 69 I I to 1996 1997 1998 1999 2000 2001 2002 2002's Top Office Leases Identification Location City SF Factual Data 5200 Hahns Peak Drive LVND 54,000 Bank One Plaza Bldg 822 7th St GRLY 37,182 Tertaview,LLC 2725 Rocky Mountain Ave LVND 18,780 Centre Tech III 2409 Research,Bldg B FC 15,064 Advantage Bank 1475 N Denver Ave LVND 14,536 Alliance Construction 2725 Rocky Mountain Ave LVND 11,598 Social Security 5400 11th St GRLY 10,000 Anderson&Whitney 5801 W 11th St,Ste 300 GRLY 10,000 Nase 9,675 l lo 3760 E 15th St T N�l Land Title 772 Whalers Way#F-100 FC LVND 9,482 REAK T ,� TC AT&T Broadband 2809 E Harmony FC 8,700 Maximal Systems 220 E Olive St FC 8,530 AIMS Community College 2020 Clubhouse Dr GRLY 7,200 COMMERCIAL REAL ESTATE SERVICES Greeley Building 710 11th Ave GRLY 6,739 255 East Monroe Dr,Ste 4 Colorado State Board of Agriculture 2925 5 College Ave#9, 10 FC 5,971 2Fort Collins,CO 80525 1st City Mortgage 3615 Mitchell Dr#1D FC 5,800 Tel(970)229-9900 Fax(970)282-1080 Colorado Customware 1109 Oak Park Dr#100 FC 5,333 = Email Realtec@RealtecCommercial.com 5,023 co infe�.°ito,.,uw, RoaltarCnmmercial.com Cheetah Advanced Technologies 155E Boardwalk FC ,.... c. CM 4,7,00_ 93 Fort Collins Office Synopsis "` " ' b re CG a The rtiarket segment most affected by the Identification Location City SF Price $/Sf economic downturn nationally has been the Otsuka/larimer Cty 2555 Midpoint Dr FC 47,881 $4,795,927 $100.16 office market. Fort Collins has experienced an Cache Bank&Trust 4601 20th St GRLY 12,828 $4,200,000 $327.41 increase in office vacancies,but not as dramatic as the Denver metro market. The main PR Pharmaceuticals 1716 Heath Pkwy FC 23,200 $1,950,000 $84.05 difference (from Denver metro) is that Fort West Prospect Park 1121 W Prospect FC 9,192 $1,550,000 $168.61 Collins is not over-supplied in office space. General Office 132 Troutman Pkwy FC 6,600 $1,018,500 $154.32 Virtually no new private ownership projects AT&T Broadband 3737 10th St GRLY 6,556 $922,500 $140.71 were started in 2002. All office projects that Highland Meadows 7791 Highland Meadow Pkwy WNDS 6,853 $866,000 $126.37 commenced construction in 2001 (i.e. Preston Center, Miramont Office Park)were completed Bittersweet Office Park 1035 37th Ave Ct GRLY 5,425 $765,600 $141.12 last year, adding to the available inventory. Seven Lakes Bus Park 2362 E Prospect Rd FC 4,410 $627,500 $142.29 City of Greeley 1001 9th Ave GRLY 10,299 $625,000 $60.69 The demand side of the equation is very soft, General Office 2120 S College Ave FC 9,520 $595,000 $62.50 with a significant amount of space available Nasello 3780 E 15th St LVND 2,890 for sub-lease. Tenants who are still paying on $570,634 $197.45 primary lease obligations are very motivated Medical Office 1260 Doctors Lane FC 4,911 $520,000 $105.88 to divest themselves of excess space; Multi-Tenant Office 2550 Stover Bldg C FC 4,631 $500,000 $107.97 consequently,these deals are priced lower Windsor Manor Center 1200 W Ash WNDS 5,527 $310,000 $56.09 than market. Rental rates have remained relatively stable; however,some buildings with higher vacancies have reduced rates slightly. Q it In many cases, incentives are being offered to FORT COLLINS Tenants for both existing and newly-finished space for new leases, as well as for renewals. Project/Major Occupant Building/Park Location SF Preston I Preston Center 2809 E Harmony 57,000 For new space, more generous tenant improvement(TT)allowances are being offered Microsoft Miramont Office Park 4745 Boardwalk 13,500 to tenants than in 2001. Dentist Willow Springs 2021 Battlecreek 8,519 Aller Lingle Architects Boardwalk Office Park 712 A Whalers Way 7,000 Loveland Office Synopsis TOTAL 86,019 Whereas very little Class A space was available LOVELAND in 2001,this past year saw an increase in Project/Major Occupant Building/Park Location SF availability,with several options for tenants to consider. High quality new projects (such as The Group Building Cadard 5401 Stone Creek Crde 22,500 the Rangeview Building in Centerra, and the Advantage Bank 34 Market Place 1475 N Denver Ave 14,536 Nasello project on US 34), were completed In Centennial Bank 1401 S Taft Ave 12,970 2002. Of the new space currently available Veterinary Oink Naselb 3850 E 15th St 12,337 (primarily In Centerra), rates range from Kid's Harbor Day Care Centerra 1801 Piney River Dr 11,234 $16/SF NNN to $18/SF NNN. Multi Tenant Nasello 3760 East 15th 9,67( The demand for both Class A and Class B space Long's Peak Credit Union LVND Business Plaza 2495 E 13th St 2,490 is down from 2001. Availability of Class B TOTAL 85,742 space is substantial. In order to be competitive, owners are offering inducements to tenants to GREELEY renew leases and execute new deals.The positive news is that like Fort Collins, Loveland's Project/Major Occupant Building/Park Location SF new office development has proceeded State Farm Bldg B Promontory 1555 Promontory Cir 203,000 cautiously. Loveland's 15%vacancy rate will State Farm Bldg C Promontory 1555 Promontory Cir 120,000 restrict new office development to construction Bittersweet Office Condos Bittersweet 37th Ave/10th St 40,000 of owner occupied space until supply/demand Weld County Ubrary West Greeley 1939 61st Ave 38,000 factors return to balance. Construction of spec Greeley Medical Clinic West Greeley 5881 16th St. 23,000 office space will be minimal. Cache Bank West Greeley 4601 20th St 12,828 Greeley Office Synopsis Multi-Tenant Horizon Pointe Business Park 3109 35th Ave 13,200 From 1999 through 2001, several new office TOTAL 450,028 projects were completed in west Greeley, ��. - a- - —a"~ -•^; - r —o;. �m>r- „.a., addressing a need for high-quality space priced under levels of similar space in Loveland and FORT COLLINS Fort Collins. Most of this space has been Building /Park Occupant Location SF absorbed,although with State Farm's move to The Promontory, additional space has recently Larimer County Courthouse Courthouse Mason St 153,416 become available. NRRC Center Advanced Technology 2150 Centre Ave 100,000 Absorption of excess space downtown has also TBD Miramont 4775 Boardwalk 12,500 occurred, with attractive rental rates serving North American Title Boardwalk Office Park 712 B Whalers Way 9,620 as the primary impetus. Completion of Promontory Promontory Office Park 4033 Boardwalk 6,056 additional buildings in State Farm's new TOTAL 281,592 Promontory headquarters(323,000 SF)marked the major significant event in the office market. LOVELAND Overall vacancies remain at manageable levels, Project/Major Occupant Building/Park Location SF and the excess space available In Class A and Medical Office Sundance Medical Plaza 3800 N Grant 22,800 B product will be gradually absorbed. Medical Offices Egan Park 2998 Ginalla Dr 12,040 -.I Comfort Dental Thompson Valley Towne Centre 1405 10th St SW 2,190 N�j r� il TOTAL 37,03t, IREAL EC GREELEY COMMERCIAL REAL SERVICES Project/Major Occupant Building/Park Location SF Multi-Tenant NCMC Medical Bldg 20th St&71st Ave 73,900 8 1767 Rocky Mtn Ave 801 8th St,Ste 110 Multi-Tenant Mountain Vista 20th St&71st Ave 70,400 Loveland,CO 80538 Greeley CO 80631 Island Grove Community Center Island Grove 1260 H St 16,000 149 Market I to ` ' tIndustrial s ' _.< 7,,.i.::::f4ti:„r.:..,,. 1 ,-;; ;:,,..4.„0:\‘‘.` Industrial Vacancy Rates is fir\t - r eoume'.Realtec o RS m ❑ Cull ns 10°/a—oi w ,,.::,1i.+}I ' . 9%_ j Greeley e 6°/0— " A Loveland n Northern Colorado Industrial 7% , ° e ° Lir Market Lease Rates 6%— —N�— °° • v; e o v . Whse(NNN) R+D(NNN) 4°M— —, cis rn n .$ v p Ft Collins ,, ° - m—"iron $5.00 -$8.00 $9.00-$13.00 , r n I a° o � Loveland $4.00-$8.00 $8.00-$10.00 ° 5 s m 1 N { i. Greeley $3.00 -$5.50 $4.00 -$8.00 20/o- - " t. 0% Fort Collins 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2002 Net Absorption Fort Collins Industrial Lease Rate 2001 Vacant SF 566,195 Average of all reported transactions.Source:Realtec 2002 Vacant SF -424,110 LiPdce/sl Gross+Utilities • Decrease wr tcanSy SF 193,375 5700 ■■■■�■' YI New Construction SF 93,376 Positive Net Absorption SF +235,461 6.00 z! ■■■PIIIPI "H' r.N '�' r.-„f IN II II '' Industrial Sales 2001 vs 2002 s.00 ! iII 'II III II II 11 , 1 „., soo fs 2001 2002 m II T` II ,. II 3 Ill,- II 1,'I 7, # of Sales 46 58 I u II ��, II II 44;A4 II II II a „1 III � II v) II Total Square Feet 230,313 272,841 k Average Size 5,007 4,704 $200 4 Average Price/sf $62.49 $68.44 100 I fI i iijIi1iliiIIJiI 1GREELEY 2001 2002 x0.00 -_u _ .a .�. � k II..,__ 1992 1993 1994 1995 1996 1997 199@ 1999 2000 2gQ1 2002 # of Sales 17 20 Total Square Feet 192,554 327,407 . - Average Size 11,327 16,370 2002's Top Industrial Leases - Average Price/sf $43.59 $54.05 Tenant Address - City SF Industrial 211 30th St GRLY 40,798 North Pass,LTC Heath Pkwy FC 40,563 JEH Roofing 4414 Harmony FC 17,195 Thunder Mountain Custom Cycles 5836 Wright Dr FC 16,875 Affordable Homes 3515 Service Rd GRLY 14,050 Gibson Heating&Air 205 SW12th St LVND 14,000 N4l Shamrock Taxi of Fort Collins,Inc 4414 Harmony FC 12,730 T Virgil F Rice 140 SW 2nd St FC 10,000 1K�LuJ'C7�1,1J Empire Gas&Electric 825 SW Frontage Rd#3 FC 8,480 Airgas Intermountain,Inc 305 Airpark Dr.#1,2,3,4 FC 7,200 COMMERCIAL REAL ESTATE SERVICES Lumbard Holdings 1304 Duff Dr FC 7,000 Traffic Masters 1304 Duff Dr#11,12, 14,15 FC 7,000 255 East Monroe Dr, Ste 4 Empirical Labs 516 W 66th St LVND 6,975 Fort Collins,CO 80525 Amik/North American Van Lines 1415 Blue Spruce Dr#2 FC 6,720 - Tel(970)229-9900 • Fax(970)282-1080si p so. Email Realtec@RealtecCommercial.com Concept Lighting 175 Madison LVND 6,099 To Website www.RealtecCommercil.com Kraft Food 6775 E 45th LVND 6,050 is acc CPS Distributors 207 Summit View FC 6,000 .Fort Collins Industrial Synopsis Location City SF Price $/Sf The Fort Collins industrial market is very 2401 2nd Ave GRLY 106,800 $2,320,000 $21.72 healthy, despite the economy. Vacancy 3417 28th St GRLY 18,467 $2,060,000 $111.55' rates being less than 5% suggest an 1190 N Denver Ave LVND 26,882 $1,800,000 $661" opportunity for new development. 211 30th GRLY 40,848 - $1,600,000 $39'. However, at the current level of lease 3900 Canal FC 40,789 $1,600,000 $39.23 rates, it is difficult for developers to 1833 E Mulberry FC 16,628 $1,280,000 $76.98 justify new construction. 129 S Madison LVND 19,956 $1,230,000 $61.64 1600 E Mulberry St FC 18,140 $1,100,000 $60.64 We have experienced a reduction in 301 E 8th St GRLY 31,854 $1,076,300 $33.79 average lease rates, with tenants 1101 Academy Ct FC 14,000 $895,000 $63.93 realizing 220 N Howes FC 14,160 $840,000 $59.32 an opportunity to negotiate 1336 E 1st St LVND 18,650 $750,000 $40.21 aggressively. Though many companies 301 E uncoln FC 6,195 $685,000 $110.57' have experienced a contraction in 2610 SE Frontage Rd FC 5,328 $615,000 $115.43' business, Fort Collins continues to grow 1314 Webster FC 13,200 $610,000 $46.21 and we anticipate significant pent up 729 S Madison LVND 5,000 $600,000 $120.00' demand for additional industrial space 401 16th St GRLY 35,490 $575,000 $16.20 in the upcoming year. Regardless of 101-105 W 66th St LVND 9,906 $550,800 $55.60 the trend in rental rates, sale prices 105 2nd St LVND 18,458 $542,500 $29.39 continue to escalate, due to high 6051 E Cty Rd 16 LVND 4,536 $525,000 $115.74' replacement costs and low interest rates. 2832 E Mulberry FC 5,181 $492,500 $95.06 Compared to other property types, 6314 S College Ave FC 9,768 $480,000 $49.14 industrial properties are a stable 133 Commerce Dr FC 7,275 $425,000 $58.42 P P *The s prices have not been adjusted for additional land ar other premiums. • investment alternative. Loveland Industrial Synopsis FORT COLLINS During 2002, low interest rates and an Major Occupant Building/Park Location SF oversupply of office/warehouse First Cass Direct Interchange Bus Park 4389 Denrose Ct 25,000 condominium units in Loveland created Sinnett Builders Interchange Bus Part 4557 Denrose Ct 20,000 a stronger demand for purchasing rather Spec Building Interchange Bus Park 4562 Denrose Ct 13,376 than for leasing. In the fourth quarter Abix Centre for Advanced Tech 701 Centre Ave 35,000 of 2002, lease rates for smaller TOTAL 93,376 warehouse space softened and some investor-owned units remained vacant. LOVELAND Occupant Building/Park Location SF Absorption has begun to catch up with Governmental Event Center 5300 SE Frontage Rd 377,684 supply, as evidenced by a year-end American Eagle Distributing Crossroads 3800 Rochester Dr 127,629 vacancy rate of 5%. Demand for larger Yancey's LVND/FC Airpark 5820 Piper Dr 97,500 warehouse space has with Supervac Ward Industrial Park 1511 E 11th St 41,370 most leases over has10, been00 soft,occurring Ward Construction Ward East Industrial Park 6775 E 45th St 19,800 on a short-term basis. An uncertain Multi-Tenant Longview 504-528 69th 18,375 Multi-Tenant Anderson N Denver Sub. 427-445 N Denver 12,000 economy has led to cautious long-term Multi-Tenant Longview 532-548 W 69th 9,600 leasing commitments by tenants. Thomas Justus LVLD/FC Airpark 5801-5809 Wright Dr 8,600 Demand for dock-high industrial space TOTAL 712,558 has Improved, but not enough to prompt new industrial construction. Prospective GREELEY tenants are very sensitive to issues of Occupant Building/Park Location SF location and access. Multi-Tenant Bliss Industrial Park 2074 8th St 13,840 Wireless Advanced Comm Evans 3901 Service Rd 8,160 Greeley Industrial Synopsis Buckboard Bean 917 6th Ave 6,480 Greeley's industrial vacancy rate TOTAL 28,480 dropped in 2002. As several large buildings were sold, a substantial - e amount of vacant office/industrial space was absorbed. We predict the vacancy FORT COLLINS rate to remain low, but there will be Occupant Project Name Location City SF minimal speculative construction until To Be Built Academy 1201 Academy Ct FC 15,000 overall market demand dictates rent Spec Interchange Bus Park 4563 Denrose Ct FC 14,000 McCoy Sales Interchange Bus Park 834 SE Frontage Rd FC 10,000 increases. TOTAL 39,000 77--�� A 1 ,1 Li Si LOVELAND ♦ T r�-�� Occupant Project Name Location City r. Advanced Mfg Tech Kness 3rd Crossroads Blvd LVND 27,000 TOTAL 27,000 COMMERCIAL REAL ESTATE SERVICES 1767 Rocky Mtn Ave 801 8th St,Ste 110 GREELEY 8 Loveland,CO 80538 Greeley,CO 80631 Occupant Project Name Location City SF Q (970)593-9900 (970)346-9900 Multi-Tenant Bliss Industrial Park 2040 E 8th St GRLY 52,000 TmAI 52.000 yL Investment Synopsis Northern Colorado -As was the case in 2001,quality investment properties Investment Real Estate Cycle were in short supply in 2002. Demand for such y properties continued strong,driven primarily by the following factors: 1)opportune financing at record low interest rate levels;2)capital moving out of the ft nvkatnER1s stock market and into real estate ownership;and 3) c r tce I reinvestment of proceeds from the sale of real estate e •versupply assets into 1031 exchange replacement properties. t1T;:\` 4-yo With interest rates at unprecedented levels and an FOP Accelerated e/. 4��✓ abundance of capital available for investment,Investors New Construction r oe,, have demonstrated a strong appetite for quality rof commercial properties in virtually every property High Vacancy segment: apartments,retail,industrial,and office. - 1 The hottest segment is retail,followed by apartments, industrial,and office. � Retail properties had relatively low vacancy rates in all three communities(Loveland,Greeley,and Fort Collins); . \ consequently,income performance is favorable for this Declining Prices, property type.Cap rates for quality multi-tenant retail Iii, Rents& centers ranged from a low of 7.34%to a high Construction of 11%. d:. Apartment investments have continued to be in high demand despite very high vacancy rates(Loveland t, has the highest vacancies,followed by Fort Collins, 1,0", and then Greeley). In the Fort Collins market,a record Prices a Rents Absorption of high value per unit was achieved in 2002($78,772). P Apartment investments offer advantageous property Excess Supply x treatment to p s),which is other non-residential f ctoriin � commercial properties),which is a significant factor in their overall appeal. Low Industrial properties are also in favor among investors, Vacancy due to low vacancies and net-leased arrangements nLx oFrtcE between owners and tenants. Industrial buildings are relatively simple to operate,and do not typically involve the complex tenant improvement issues that affect Current conditions in the 2003 Northam Colorado commercial real estate markets. The individual markets are office investments. never exactly at one point in the cycle,but typically cover a range on the cycle. The segment that was the weakest in2002 was the Fort Collins Apartment Sales office area,due to higher vacancies and increasing operating expenses The office segment has been most Source:Realtec and Shannon&Associates affected by consolidations,downsizing,and closures. — . Sold Fortunately,the office inventories in all three Northern Colorado cities are not greatly oversupplied.Demand, Only 12 Units and Above Counted however, is soft,and until excess space is absorbed, 700 684 the office segment will e be the leastcanbappealing s , ...-..- Id nr;nho a r,performance ecan e offset by 600 559 reduced pricing; however,we have not seen price ./'. ..... reductions as yet. 0 ■,.'. 398 400451 Forecast ..... Supply of quality investment opportunities will remain limited due to the reluctance of owners to sell properties ...�,. ..(due to tax considerations),and the high cost of 300 262 277 developing that new it rates may n de properties. It is -.'...._ .. likely that interest rates may increase in Itwhichis could negatively affect demand,thereby raising 200 capitalization rates. Rents will continue to be stable, �6 120 or declining slightly,but occupancy costs continue to 100 68 increase,with property taxes being the major is 0 ....- .. component. ■ With relatively high vacancies,net income performance 93 94 95 96 97 98 99 2000 2001 2002 for office properties typically decreased in 2002. Real estate Investment trusts(REIT's),which consist of a AveragePrice Unit o ~ stock ownership of real estate portfolios,are in a strong ro n buying mode,and apartments are their property Y 9 Pa P PNor type er $90,000 ---- o N. --- m AO t' of choice.If REIT's continue their interest in Northern n Colorado real estate,this could drive up apartment $80,000 - In prices even further. -- cz v in _ .-Im $70,000 a Rn p n e PI a ' e ti 00 m $60,000 - i V in 411-i_iLS�i-Jl iL l $40,000 AR-$50,000 m tic r) .--- C $30,000 -�----- in- COMMERCIAL REAL ESTATE SERVICES $20,000 ---------- i Loveland,kyy CO 80538 GreeleySCO 80631 $10,000 0 - ri m7 Mtn Ave 801 8th Q , m con noon rn-,m oec noon fIF Hello