Executive Summary & Cost Estimate

Project Address: 24346 E 5th Place, Aurora, CO 80018

Target ARV: $600,000 | Design: Flat-Lot Modern Rustic | Certification: Triple Crown

1. Executive Summary

This document outlines the strategic construction plan and financial estimate for a custom residential

build at 24346 E 5th Place in Aurora, Colorado. The primary objective is to construct a modern-rustic,

highly energy-efficient home targeting a strict After Repair/Construction Value (ARV) of $600,000.

To achieve this financial target while maintaining the architectural aesthetic and achieving the rigorous

"Triple Crown" green building certification (ENERGY STAR, LEED for Homes, and EPA Indoor airPLUS),

the project has been adapted to leverage the lot's flat topography. By transitioning from a hillside "walk-

out" design to a slab-on-grade or traditional basement foundation, we eliminate approximately $45,000

in heavy site engineering and retaining wall costs. This strategic shift reallocates budget directly into

maximizing the home's square footage (approx. 1,820 sq. ft.) and funding the high-performance building

envelope required for certification.

Strategic Advantages of the Flat-Lot Adaptation

Maximized Square Footage: By eliminating retaining walls, the construction budget expands

to support an ~1,820 sq. ft. footprint, aligning perfectly with neighborhood comparable to hit

the $600k ARV.

Performance Over Luxury: The budget focuses on high-performance infrastructure

(insulation, air sealing, HVAC) rather than luxury finishes, achieving top-tier environmental

certifications without breaking the budget.

HOA Compliance: A flat foundation ensures the roofline and deck heights align with the

established Cross Creek streetscape, smoothing the Architectural Review Committee (ARC)

approval process

2. Certification Strategy: The "Triple Crown"

Achieving the Triple Crown is a mark of elite residential performance. Rather than spending capital on

expensive cosmetic finishes, this build prioritizes the structural and mechanical components required to

pass third-party testing.

ENERGY STAR: Focuses on a tightly sealed building envelope. Costs are allocated toward

advanced spray-foam/rigid insulation, meticulous air-sealing (taping/caulking), and high-efficiency

triple-pane windows.

EPA Indoor airPLUS: Requires standard materials to meet strict health codes. Budget is allocated

to an ERV (Energy Recovery Ventilator) for continuous fresh air exchange, formaldehyde-free

cabinetry, and low-VOC paints and adhesives.

LEED for Homes: Evaluates holistic sustainability. Points will be achieved through WaterSense

plumbing fixtures, optimal solar orientation for the flat lot, and minimized construction waste.

3. Comprehensive Construction Estimate

The following estimate reverse-engineers the budget from the hard $600,000 ARV cap. It assumes a

performance-focused build utilizing standard, cost-effective cosmetic finishes while meeting all strict

green-building codes.

Line Item Description

Estimated

Cost

Land Acquisition Purchase of 0.17 Acre Lot at 24346 E 5th Place $140,000

Soft Costs &

Permitting

Architecture/Engineering, Permits, Water/Sewer

Tap Fees

$38,000

Triple Crown

Certification

HERS Rater, LEED Registration, Blower Door

Testing

$5,000

Site Prep &

Foundation

Standard excavation, slab-on-grade or traditional

basement (No retaining walls)

$35,000

Framing & Exterior

Lumber, modern-rustic siding, roofing, and Triple-

Pane Windows

$135,000

Mechanical, Electrical,

Plumbing

High-efficiency Heat Pump, ERV system,

WaterSense plumbing, electrical rough-in

$75,000

Insulation & Drywall

High R-value spray foam, air sealing, drywall

installation & finishing

$42,000

Interior Finishes

(Standard)

Low-VOC paint, formaldehyde-free standard

cabinets, flooring, basic fixtures

$90,000

Landscaping &

Exterior

Basic flat-lot landscaping, ground-level concrete

patio

$20,000

Project Contingency

5% reserve for unexpected material fluctuations

or HOA requirements

$20,000

Total Estimated Project Cost (Target ARV) $600,000

Page 3 of 4

4. Next Steps & Timeline

To keep this budget strictly within the $600,000 limit, the next phases of development must be handled

sequentially:

Architectural Drafts: Commission a draftsperson to flatten the lower level of the inspiration

design into a standard ground-floor footprint, ensuring the square footage hits approximately

1,820 sq. ft.

HOA Pre-Approval: Submit the conceptual flat-lot design and exterior elevations (dark vertical

siding, timber columns) to the Cross Creek HOA ARC to ensure aesthetic compliance before

investing in full structural engineering plans.

Engage Green Raters: Hire the LEED and HERS raters immediately. They must review the

architectural plans before construction begins to ensure the insulation and HVAC designs will

pass the final Triple Crown audits.

Contractor Bidding: Solicit bids from contractors with explicit instructions that the interior

finishes are standard/builder-grade, and the premium budget is strictly reserved for the building

envelope and HVAC.

The Asset

• Location: 4760 W Evans Ave (0.52-Acre Private Lakefront)
• Structure: ~6,000 Sq Ft | Elevated on Board-Formed Concrete Columns
• Target ARV: $6.2M – $6.5M
• Timeline: 16–18 Months

The Market Differentiator

Project Vanguard is a complete market disruption. We are delivering a zero-emission, Triple-Crown certified modern fortress floating above a private lakefront beach. It offers resort-style water skiing and paddleboarding in the summer, and hyper-efficient, off-grid luxury in the winter—all within the Denver city limits.

Engineering & Design Masterclass

• The Triple Crown Standard: Engineered to achieve LEED, ENERGY STAR, and EPA Indoor airPLUS certifications simultaneously.
• Zero-Emission Tech Stack: 100% electrified. Powered by hidden solar arrays, Tesla battery backups, and a SPAN intelligent electrical panel. Heated and cooled by ultra-efficient Cold-Climate Air-Source Heat Pumps.
• Hospital-Grade Air Quality: Commercial-grade ERV systems with HEPA/MERV-16 filtration ensure pristine, purified indoor air, impervious to outdoor pollutants or wildfire smoke.
• Uncompromising Materials: A commercial-grade airtight rainscreen envelope clad in large-format European fiber cement and Shou Sugi Ban (charred timber). Interiors feature zero-VOC FENIX NTM cabinetry, Dekton sintered stone, and polished thermal-mass concrete.
• Elevated Outdoor Living: The space beneath the elevated structure serves as a shaded lakefront lounge, while the upper deck features an integrated, year-round infinity-edge "spool" bleeding visually into Riviera Lake.

1. Acquisition

• Lot Cost (4760 W Evans Ave): $795,000 (Note: GC fees are traditionally not applied to the land acquisition).

2. Construction Subtotal (Hard + Soft Costs)

• Total Hard Costs: $3,100,000 (Elevated column structure, Triple-Crown envelope, ultra-luxury finishes, solar/HVAC tech, infinity spool).
• Total Soft Costs: $250,000 (Architecture, structural/soils engineering, green certification fees, Denver permits).
• Base Construction Cost: $3,350,000

3. Contingency & Builder Compensation

• Project Contingency (10% of Base Construction): $335,000 (Protects against steel price fluctuations, floodplain surprises, and winter weather delays).
• Total Subject to Markup: $3,685,000
• General Contracting Fee (20%): $737,000 (This is El Gatos State of the Art Construction's gross profit/fee for running the site, managing subs, and delivering the certifications).

The Final Financial Overview

• Total All-In Project Cost (Break-Even): $5,217,000 (Land + Construction + Contingency + GC Fee)

The ARV Reality Check

With a $5.2M all-in cost, to show an attractive return for your investors (typically aiming for an 18-20% developer margin on the backend), your Target ARV needs to be listed at roughly $6.2M to $6.5M.

Riviera Lake is one of the only micro-markets in Denver proper where a $6M+ price tag is achievable, simply because private water-skiing access inside the city limits is a finite, impossible-to-replicate asset. When you combine that exclusivity with a zero-emission, architecturally significant fortress, you are creating a "category of one" property.

Cost (Denver Metro)*High-Performance Notes Soft Costs (Design, Engineering, Permits)$45,000 – $65,000High engineering requirements for dynamic shading/solar angles; certification fees and consultant documentation time.Hard Costs (Construction & Finishes)$215,000 – $285,000+Premium for skillion structure, high-performance (e.g., triple-pane) expansive south glazing, superior envelope insulation, optimized HVAC/ventilation systems, and verified labor/materials.Contingency & Market Fees$15,000 – $25,000Addressing potential local regulatory variances (e.g., zoning adjustments for dynamic orientation).Total Estimated Illustrative Project Cost$275,000 – $375,000+Note: Final budget depends heavily on specific site conditions, local code interpretation, finish levels, and real-time market volatility. Refer to the interactive tool for customizable scenarios.

Valuation StepIllustrative Denver Metro Estimates*NotesStandalone 650 sq ft ADU Value$375,000 – $475,000Appraised as an independent small home (e.g., $580/sqft to $730+/sqft illustrative), reflecting high-demand urban infill.Certification & Performance Premium+$15,000 – +$35,0004%–8% illustrative standalone uplift because it’s a new, healthy, efficient independent home.Total Est. Completion Value (Standalone ADU)$390,000 – $510,000+This represents the potential highest capital unlock, but carries the highest regulatory risk.

Development Synopsis:

This project elevates the 6,000 sq ft custom modern home on the 4251 E. Harvard Ave flag lot from a standard luxury build to a state-of-the-art, hyper-efficient, healthy home. By securing LEED, ENERGY STAR, and Indoor airPLUS certifications, the property targets a highly specific, affluent demographic in Denver willing to pay a premium for verified sustainability, zero drafts, near-zero energy bills, and pristine indoor air quality.

Investment Assumptions:

• Land Acquisition (Hypothetical): $900,000
• Green Build Cost: $4,300,000 (Conservative baseline for the Triple Crown upgrades).
• Total Project Cost: $5,200,000.
• Project Timeline: 20-26 Months (Adding 2 months for green inspections/commissioning).
• Target Market: Ultra-high-net-worth buyers, tech executives, or health-conscious buyers seeking turnkey, zero-compromise luxury.
• Target Sale Price (ARV): $7,400,000 - $8,200,000+. Certified green luxury homes in Denver frequently command a 5% to 10% premium over non-certified comparables. We will use a conservative $7.4M as the baseline.

Financial Return Analysis:

MetricCalculationEstimated Return ($) / (%)Gross Development ProfitARV ($7.4M) - Total Project Cost ($5.2M)$2,200,000Developer ROIProfit / Total Cost42.3%Cash-on-Cash Return(Profit / Developer Equity). Assume 25% down ($1.3M Equity).169.2%

The Bottom Line:

While the Triple Crown standard adds roughly $400,000 to $500,000 in hard and soft costs, the corresponding increase in the final valuation outpaces the expense. Your overall profit margin remains incredibly strong, and the property becomes a highly unique asset that stands out from standard luxury inventory, effectively recession-proofing the asset by appealing to the most discerning buyers in the market

• Total Area: 4,320 square feet
• Acreage: 0.1 acres
• Lot Type: Corner lot (intersecting E 48th Ave and Vine St)

Note: In older Denver neighborhoods like Elyria-Swansea, a 4,320 sq ft lot typically translates to dimensions of roughly 36 feet wide by 120 feet deep.

Current "As-Is" Value (The Lot)

2. Estimated Future Value (The Proposed Custom Home)

If you execute the proposed build—a ~2,700 square foot, two-story custom home with a detached garage, triple-certified green ratings (LEED, Energy Star, Indoor airPLUS), and strict passive solar architecture—you are building a premium, top-of-the-market product for the Elyria-Swansea neighborhood.

• A similarly sized 2,808 sq ft home just a few blocks away on Fillmore St is currently valued at around $1,250,000..

Estimated Finished Value: $1.2M to $1.35M

The ROI Breakdown

• Land Acquisition: $145,000
• Estimated Build Cost: $868,000 
• Total Estimated Investment: ~$1,013,000
• Estimated Market Value (ARV): ~$1,250,000+

This means building this specific high-performance home on this lot not only gives you an incredibly energy-efficient house, but it also leaves you with strong potential equity right out of the gate.

The Future of Urban Living: A Masterpiece of Passive Solar Design

Welcome to a new standard of high-performance luxury. Conceived for the corner lot at 4790 Vine St in Denver, this bespoke ~2,700-square-foot custom home proves that you don't have to sacrifice striking modern design to achieve world-class sustainability.

Wrapped in a crisp, high-reflectance white exterior with bold black architectural accents, this home is engineered to be as beautiful as it is brilliant. The defining feature is its dramatic skillion roofline—a design choice that isn't just about modern aesthetics, but serves as the engine for the home's unparalleled energy efficiency.

Here is what makes this proposed residence a true one-of-a-kind property:

The Triple-Crown of Green Building

This isn't just a "green" home; it is built to the absolute highest standards of environmental performance. Designed to achieve LEED for Homes, Energy Star, and EPA Indoor airPLUS certifications, this home offers an elevated living experience:

• Ultra-Low Utility Bills: Advanced insulation and energy-recovery systems mean your home costs a fraction to heat and cool compared to standard new builds.
• Pristine Air Quality: The Indoor airPLUS standards ensure hospital-grade air filtration, continuous fresh air exchange, and non-toxic materials, making it a sanctuary for health and wellness.

Genius Passive Solar Architecture

Every inch of this home was designed with the sun in mind. By positioning the home's long axis perfectly east-west, the architecture works with the Colorado climate, not against it:

• Walls of Light: The soaring south elevation features 50% more glazing than the east and west sides combined, flooding your main living spaces with natural light.
• Climate-Controlled by Design: Precision-engineered black architectural awnings and the deep overhang of the skillion roof provide 90% shading during the peak of the summer, keeping the house naturally cool.
• Free Winter Heating: In the winter, when the sun dips lower in the sky, those same windows are 100% unshaded, capturing maximum solar gain to naturally warm the home.

Urban Luxury Meets Thoughtful Function

Tucked neatly onto an urban corner lot, the layout is a masterclass in spatial efficiency.

• Strategic Layout: Utility rooms, stairwells, and bathrooms are positioned along the solid north wall, insulating the home against cold winter winds, while the open-concept living areas and bedrooms bask in the south-facing glow.
• Detached Garage: A spacious two-car detached garage sits at the rear alley, perfectly positioned so it never interrupts your home's solar access while maximizing your usable backyard space.

This is more than a house; it is a meticulously engineered environment designed for the future of Denver living

Project Proposal: The High Street Triple-Cert Townhomes

A 5-Row, 10-Unit Urban Enclave

This strategic redesign transforms the divided parcels into a cohesive, gated community of five distinct townhomes, each integrated with a detached Accessory Dwelling Unit (ADU). This maximizes the developmental potential of the 15,800 sq. ft. land while retaining individual parcel utility as platted for Ford's Addition, Block 24.

The "Gated Townhome" Site Plan

• The Gated Corridor: The five street-facing townhomes are connected by a secure, shared pedestrian walkway and landscaped "Green Infrastructure" corridor.
• The Shared Entry: A single, automated community gate controls secure vehicle access to the rear alleyway and ADU/garage cluster.
• The 5-Unit Row: Five identical, 2.5-story modern townhomes front High Street, designed to meet strict U-SU-A1 setbacks and height restrictions.
• Central Permeable Courtyards: Each of the five townhomes has a private, central "Green Zone" to manage stormwater runoff on-site.
• The 5-ADU Carriage Cluster: Five detached, 2-story accessory dwelling units (with 2-car garages below) line the rear alley.

Triple-Certified Performance & Drafting

• LEED For Homes AP: Our Accredited Professional implements standardized "Airtight Thermal Envelope" and "Permeable Paving" specifications across all 10 units.
• Harold Packer Drafting: Each individual parcel plan is expertly drafted to accommodate unique variations for the 5 townhome rows while sharing a core, energy-efficient engineering DNA.
• Third-Party Stamping: Every final construction drawing is stamped by a third-party Architect to ensure all LEED, EPA, and Denver building code requirements are satisfied for Ford's Addition, Block 24..

EXECUTIVE SUMMARY

Project: The High Street Sustainable Enclave (3216 N High St, Denver, CO)

Developer: EL GATO’S State of the Art Construction

Date: March 2026

1. Project Overview

The High Street Sustainable Enclave is a proposed high-density, eco-luxury development in Denver’s 80205 zip code. Utilizing a 15,800 sq. ft. assemblage, the project features a 5-row configuration yielding 10 total living units: 5 primary modern townhomes and 5 detached Carriage House ADUs.

The project distinguishes itself through a "Triple-Certified" sustainability standard: LEED for Homes, ENERGY STAR® for Homes, and EPA Indoor airPLUS, targeting the premium eco-conscious buyer demographic.

2. Financial Baseline

Based on high-end urban construction metrics ($375–$500+/sq ft), the following represents the estimated capital required to bring the fully upgraded project (including skillion roofs and custom curtain-wall glazing) to market.

Financial MetricEstimated CostTotal Build Cost (Hard, Soft, Site, Contingency)$8,203,250Estimated Land Acquisition (5 Parcels)$1,000,000Total Estimated Capital Outlay$9,203,250

3. Investment Scenarios & ROI

We evaluated two primary exit strategies against current neighborhood comparables. Because the area's median home prices are lower than the cost of luxury green construction, achieving a positive ROI requires a targeted marketing approach or strategic cost reductions.

• Scenario A: Build-to-Sell (The Exit Strategy)
  Conservative Market: Selling at $1.6M per lot (Townhome + ADU) yields an $8.0M gross sellout resulting in a -13% ROI.
  Aggressive Eco-Luxury Premium: Selling at $2.05M per lot yields a $10.25M gross sellout resulting in a +11.4% ROI.
• Scenario B: Build-to-Rent (The Hold Strategy)
  Renting all 10 units at market premium yields approximately $402,000 in Annual Gross Operating Income.
  This generates an initial Capitalization Rate of ~4.3%. Long-term yields will benefit from extreme energy efficiency and minimal maintenance overhead.

4. Strategic Value Engineering

To mitigate the risks outlined in Scenario A and ensure a profitable Build-to-Sell exit, we recommend implementing the following Value Engineering (VE) strategies to lower the $8.2M build cost without compromising the Triple-Certification:

1. Glazing Optimization: Replace the continuous, custom curtain-wall glazing on the side elevations with strategic, high-efficiency punched windows. Estimated Savings: $100,000+
2. ADU Standardization: Utilize identical, pre-approved structural plans for all 5 Carriage Houses to significantly reduce architectural soft costs and framing labor. Estimated Savings: $75,000+
3. Facade Material Consolidation: Limit the mixed-material facade to two primary textures (e.g., stucco and architectural metal) rather than three, reducing specialized subcontractor labor. Estimated Savings: $50,000+

5. Conclusion

The High Street Sustainable Enclave is a visionary project that sets a new benchmark for sustainable urban living in Denver. By adopting the recommended Value Engineering strategies, EL GATO’S can bridge the gap between high-end construction costs and neighborhood market realities, ensuring a secure and profitable return for our investor partners.