Sheridan Park LLC
Westminster, CO

Sheridan Park 1, located at 8774 Yates Drive in Westminster, Colorado is a modern office building built in 1985. It is contemporary in style with wood trim and a soaring glass area above the lobby and in selected suites. Seventy-five percent of suites have their own kitchen area and ceiling heights of nine feet (compared to standard eight foot heights). The parking lot is new and there appears to be no deferred maintenance at the property. The building is currently 96.5% occupied.

The property is located in the Sheridan Business Park with nine other office buildings and a business class, 1986 room, Doubletree Hotel. The park is unified and attractive in appearance. Sheridan Business Park is in the Denver suburb of Westminster. It is five minutes from the Westminster Shopping Center which is currently the second highest grossing center in the metro. In addition, many restaurants and other stores are located close to the business park.

We see the investment plan for this property to be similar to those we employed in the early 1970's in California apartment properties. At that time, we purchased properties at substantial discounts from replacement costs because of earlier overbuilding in the late 1960's by Real Estate Investment Trusts. We were able to purchase buildings which were fully occupied and raise rents as values rose toward those of new construction. These investments were low risk because the market was moving up and the properties remained full. The investment plan for Sheridan Park I is to buy this property below replacement cost, with below market rents, in a burgeoning area and to raise rents to market as leases expire.