What changed in this filing

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Item 2. Properties

2021-03-30 compared with 2020-03-13 · 56 added, 71 removed, 87 unchanged (59% of the section changed)

PROPERTIES  

General Information

We invest in a diverse multi-tenant portfolio of real estate assets primarily consisting of office/industrial, retail, and model home properties located in the western United States.

As of December 31, 2019, we owned or had an equity interest in 13 office/industrial buildings totaling approximately 1,192,566 rentable square feet and four retail centers totaling approximately 131,722 rentable square feet.

In addition, through our Model Home subsidiary and our investments in five limited partnerships and one corporation, we own a total of 136 Model Home properties located in 7 states.

As of December 31, 2020, we owned or had an equity interest in 11 office/industrial buildings totaling approximately 982,796 rentable square feet and four retail centers totaling approximately 131,722 rentable square feet.

In addition, through our Model Home subsidiary and our investments in six limited partnerships and one corporation, we own a total of 118 Model Home properties located in 6 states.

We directly manage the operations and leasing of our properties.

Substantially all of our revenues consist of base rents received under leases that generally have terms that range from one to five years.

We estimate that approximately 79% of our existing leases as of December 31, 2019 contain contractual rent increases that provide for increases in the base rental payments.

We estimate that approximately 69% of our existing leases as of December 31, 2020 contain contractual rent increases that provide for increases in the base rental payments.

Our tenants consist of local, regional and national businesses.

Our properties generally attract a mix of diversified tenants creating lower risk in periods of economic fluctuations.

Our largest tenant represented less than 7% of total revenues for the year ended December 31, 2019.

Our largest tenant represented less than 7% of total revenues for the year ended December 31, 2020.

Geographic Diversification Table

1 unchanged sentence

Office/Industrial and Retail Properties:

Approximate %

of Square Feet

Approximate %

California 3 134,787 10.2% $ 2,351,271 13.4%

Colorado 10 792,462 59.8% 11,767,275 67.3%

North Dakota 4 397,039 30.0% 3,369,334 19.3%

Total 17 1,324,288 100% $ 17,487,880 100%

of Properties

Aggregate Square Feet

Approximate % of Square Feet

Current Base Annual Rent

Approximate % of Aggregate Annual Rent

Model Home Properties:

Approximate %

of Square Feet

Approximate %

Southwest 104 303,602 79.5% $ 3,109,428 76.6%

West 1 2,324 0.5% 16,020 0.4%

Southeast 24 54,525 14.3% 647,784 15.9%

Midwest 2 6,602 1.8% 99,276 2.4%

East 2 5,255 1.5% 70,716 1.7%

Northeast 3 9,271 2.4% 121,020 3.0%

Total 136 381,579 100% $ 4,064,244 100%

of Properties

Aggregate Square Feet

Approximate % of Square Feet

Current Base Annual Rent

Approximate % of Aggregate Annual Rent

The following table summarizes information relating to our properties (excluding model homes) at December 31, 2020:

Property Summary

Property Location

Purchase Price (1) Occupancy Percent

Estimated Renovation or

Improvement Cost (2)

($ in000's) Property Location

Date Acquired

Year Property Constructed

Purchase Price (1)

Percent Ownership

Mortgage On property

Estimated Renovation or Improvement Cost (2)

Office/Industrial Properties:

4 unchanged sentences

Grand Pacific Center, Bismarck, ND

Union Terrace, Lakewood, CO (5) 84,145 08/14 1982 9,400 88.6% 100.0% 6,240 487

Centennial Tech Center, Colorado Springs, CO (5) (6) 110,405 12/14 1999 15,500 90.9% 100.0% 9,562 549

Arapahoe Center, Colorado Springs, CO

11 unchanged sentences

Total Retail Properties

(1) Prior to January 1, 2009, “Purchase Price” includes our acquisition related costs and expenses for the purchase of the property.

Prior to January 1, 2009, “Purchase Price”

includes our acquisition related costs and expenses for the purchase of the property.

After January 1, 2009, acquisition related costs and expenses were expensed when incurred.

3 unchanged sentences

Property held for sale as of December 31, 2020.

(6) Centennial Tech Center sold on February 5, 2020 for approximately $15.0 million and we recognized a gain of approximately $4.3 million.

Waterman Plaza sold on January 28, 2021 for approximately $3.5 million.

Garden Gateway sold on February 19, 2021 for approximately $11.2 million.

Top Ten Tenants Physical Occupancy Table

The following table sets forth certain information with respect to our top 10 tenants at our Office/Industrial and Retail Properties.

As of December 31, 2019

Annualized Base

Comcast of Colorado X, LLC (1) 1 $ 1,095,945 6.07%

As of December 31, 2020 Tenant

Number of Leases

Annualized Base Rent

% of Total Annualized Base Rent

Halliburton Energy Services, Inc.

Finastra USA Corporation

Restaurant Technology Services LLC 1 400,800 2.22%

The College for Financial Planning, Inc.

Restaurant Technology Services

MasTec North America, Inc.

1 350,778 1.94%

Fredrikson & Byron P.A.

1 229,267 1.27%

Walter Kidde Portable Equipment, Inc.

(1) 1 221,988 1.23%

WestRock Colorado Cards, LLC 1 197,923 1.10%

Rodenburg LLP 1 155,956 0.86%

Wells Fargo Bank, N.A.

Cobham Colorado Springs (2)

MGA Home Healthcare Colorado, Inc.

Merrill Lynch

Joyce Heffner-Williams 1 130,003 0.72%

$ 3,541,055 19.61%

(1) This tenant occupies space in the Centennial Tech Center, which was classified as held for sale as of December 31, 2019 and was sold on February 5, 2020.

Fredrikson & Byron P.A.

T his tenant occupies space in the Highla nd Court, which was classified as held for sale as of December 31, 2020.

T his tenant occupies space in the Garden Gateway Plaza , which was classified as held for sale as of December 31, 2020.

Lease Expirations Tables

1 unchanged sentence

Office/Industrial and Retail Properties:

Expiration Year Number of Leases

Square Footage Annual Rental

2020 48 211,914 $ 3,351,301 19.8%

2021 49 217,083 3,608,051 21.3%

2022 45 220,855 3,348,691 19.8%

2023 25 95,429 1,590,023 9.4%

2024 23 146,548 2,415,567 14.3%

Thereafter 27 203,114 2,606,512 15.4%

Totals 217 1,094,943 $ 16,920,145 100%

Expiration Year

Number of Leases Expiring

Square Footage

Annual Rental From Lease

Percent of Total

Model Home Properties:

Expiration Year (1) Number of Leases

Square Footage Annual Rental

2020 103 299,786 $ 3,016,320 74.2%

2021 33 81,793 1,047,924 25.8%

136 381,579 $ 4,064,244 100.0%

(1) These leases are subject to extensions by the home builder depending on sales of the total development.

All model homes are sold at the end of the lease period.

Expiration Year (1)

Number of Leases Expiring

Square Footage

Annual Rental From Lease

Percent of Total

These leases are subject to extensions by the home builder depending on sales of the total development.  All model homes are sold at the end of the lease period.

Physical Occupancy Table for Last 5 Years

1 unchanged sentence

Percentage Occupancy as of the Year Ended December 31,

2015 2016 2017 2018 2019

Office/ Industrial Properties:

4 unchanged sentences

Grand Pacific Center

Union Terrace (1) 08/14 85.0% 96.4% 89.2% 91.0% 88.6%

Centennial Tech Center (1) (2) 12/14 97.3% 100.0% 81.6% 81.6% 90.9%

Arapahoe Center

West Fargo Industrial

08/15 86.4% 86.1% 98.4% 82.3% 73.0%

Highland Court (1)

7 unchanged sentences

Property held for sale as of December 31, 2020.

(2) Centennial Tech Center was sold on February 5, 2020.

Waterman Plaza was sold on January 28, 2021.

Garden Gateway was sold on February 19, 2021.

Annualized Base Rent Per Square Foot for Last 5 Years

The following table presents the average effective annual rent per square foot for each of our properties, excluding our Model Home Properties, as of December 31, 2020.

Annualized Base Rent per Square Foot (1)

For the Years Ended December 31,

2015 2016 2017 2018 2019 Annualized Base

Annualized Base Rent per Square Foot (1) For the Years Ended December 31,

Annualized Base Rent (2)

Net Rentable Square Feet

5 unchanged sentences

Grand Pacific Center

Union Terrace (3) $ 18.36 $ 17.65 $ 19.63 $ 19.89 $ 19.53 $ 1,455,982 84,145

Centennial Tech Center (3) (4) $ 12.52 $ 12.92 $ 13.62 $ 12.68 $ 14.30 $ 1,435,475 110,405

Arapahoe Center

West Fargo Industrial

$ 10.91 $ 11.49 $ 12.63 $ 16.51 $ 13.67 $ 344,527 34,517

Highland Court (3)

9 unchanged sentences

Property held for sale as of December 31, 2020.

(4) Centennial Tech Center was sold on February 5, 2020.

Waterman Plaza was sold on January 28, 2021.

Garden Gateway was sold on February 19, 2021.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties