high yielding center | dominant retail corridor · 2017-09-19 · high yielding center | dominant...

High Yielding Center | Dominant Retail Corridor Leasehold Interest on Long-Term Ground Lease

Cole Flanagan, CPA, MBA cell 505 235 7585 [email protected]

Offering Memorandum

6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109 office 1 505 878 0001 | www.IPArealty.com

2600 San Pedro Dr. NE | Albuquerque, NM 87110

A division of NAI Maestas & Ward

Jake Mechenbier cell 505 917 5514 [email protected]

Brett Hills cell 505 998 1648

[email protected]

Offering Memorandum | 2A division of NAI Maestas & Ward

ConfidentialDisclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving from NAI Maestas & Ward and should not be made available to any other person or entity without the written consent of NAI Maestas & Ward. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

NAI Maestas & Ward has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, NAI Maestas & Ward has not verified, and will not verify, any of the information contained herein, nor has NAI Maestas & Ward conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT A NAI MAESTAS & WARD ADVISOR FOR MORE DETAILS.


InvestmentHighlights

Investment Property Advisors is pleased to offer for sale Fiesta Plaza located at 2600 San Pedro Dr NE in the dominant Uptown trade area in Albuquerque, New Mexico. The sale includes the improved shopping center on a long-term ground lease with just under 50 years of term remaining, including the option periods. This shopping center is positioned on the corner of Menaul Blvd and San Pedro Dr with over 55,600 cars per day at this intersection. The Uptown submarket is one of the strongest and most desirable retail trade areas in Albuquerque.

The approximately 49,997 sq. ft. building is situated on about 3.8 acres. The center is currently 96% occupied with 94% of the rental income being generated from national tenants. The property has a mix of national and local tenants; many of which have long-tenures at the property. Guitar Center recently signed a new lease for an additional 10 years. The property has high visibility from both Menaul Blvd and San Pedro Dr with a large, iconic pylon sign.

This investment benefits from the significant in-place cash flow, long-tenured tenancy, and visibility from two main thoroughfares at a signalized intersection. In addition to the significant in-place income, this opportunity is positioned in a dominant retail corridor, which gives an investor long-term leasability for the center going forward. Current in-place cash flow, combined with the long-term ground lease, make this property an opportunity on which an investor can capitalize.

Fiesta Plaza

Offering Summary

Purchase Price $4,690,000

Price per Square Foot $93.81

Net Operating Income $469,296

CAP Rate 10.00%

� Significant in-place cash flow (10.00% CAP rate)

� Leasehold interest on long-term ground lease - Ground lease has about 48.5 years of term

remaining, including option periods

� Long-tenured tenancy - Guitar Center recently signed a new lease for

an additional 10 years

� High-performing intersection with excellent visibility

� Strategically located at the major intersection of Menaul Blvd & San Pedro Dr with over 55,600 Cars Per Day

� Dominant retail corridor - Uptown Trade Area - One of the strongest and most desirable retail

trade areas within Albuquerque

� Dense, in-fill Northeast Heights location

� Mix of national and local tenants

325,000+ Population within a

5 Mile radius of site

132,000+ Population within a

3 Mile radius of site


Amount $/SF

Current Rental Income $794,143 $15.88

Expense Reimbursements $141,160 $2.82

GROSS SCHEDULED INCOME $935,303 $18.70

ESTIMATED OPERATING EXPENSES

Management Fees $30,154 $0.60

Utilities $17,183 $0.34

Trash Removal $15,467 $0.31

Repairs and Maintenance $13,721 $0.27

Security $24,697 $0.49

Landscaping $4,628 $0.09

Property Taxes $56,401 $1.13

Insurance $8,756 $0.18

Ground Lease $295,000 $5.90

TOTAL OPERATING EXPENSES $466,007 $9.31

NET OPERATING INCOME $469,296 $9.39

Operating Summary

Square Footage ±49,997


Staples is an office supply retailer with over 1,200 stores in North America. Staples offers office supplies, school supplies, furnishings, electronics, technology, and printing services both in store and online. Staples was founded in 1986 and is headquartered in Framingham, Massachusetts.

Guitar Center is the world’s largest musical instruments retailer. Guitar Center offers the world’s largest selection of guitars, basses, amplifiers, keyboards, drums, microphones, and studio gear. The company has grown from its original store in Los Angeles to over 260 stores nationwide.

Navy Federal Credit Union is an armed forces bank serving the Navy, Army, Marine Corps, Air Force, Coast Guard, veterans, Department of Defense and their families. Navy Federal Credit Union was founded in 1933 and has grown from seven members to over seven million members.

Great Clips is a hair salon franchise that is headquartered in Minneapolis, Minnesota. Great Clips has over 3,700 locations across the United States and Canada with system-wide sales exceeding $1 billion. The first Great Clips opened on September 22, 1982 and in early 1983 Great Clips started to expand and franchise. The company is known for no-appointment, no-frills salons that provide customers with affordable haircuts.

World Finance has been helping individuals borrow money for over 50 years and was founded in 1962. World Finance offers fast approvals for fixed rate and payment loan solutions. The company has more than 1200 locations nationwide.

Southwest Financial has been serving the financial needs of Albuquerque residents for 30 years. Southwest Financial offers personal loans from $500 to $15,000 with payment schedules from nine to 48 months. Southwest Financial also offers retail financing, auto financing, and a number of other products.

The Nail Spa is a locally-owned nail salon. The Nail Spa offers a full menu of services which include manicures, pedicures, and eyebrows. The nail salon has a loyal following attributed to their quality service and reasonable rates.

Hot Pink Thai Cuisine is a local restaurant serving authentic Thai food. The restaurant offers quite the variety of options spanning curries, rice dishes, noodles, and soups. The restaurant has a loyal following and is a local Thai favorite to many.

TenantHighlights

The Nail Spa


Uptown Retail Trade Corridor

S I TE

Winrock Town Center

Coronado Mall

ABQUptown

Loui

sian

a Bl

vd.

40 149,600

San

Pedr

o Dr

.

Menaul Blvd.

Coronado Center

20,2

00

35,400

Winrock Town Center

ABQ Uptown


Site Aerial

20,2

00

Menaul Blvd.

San

Pedr

o Dr

.

S I TE

Ariz

ona

St.

Phoenix Ave.

Louie’s Barber Shop

Gold & Silver

Exchange

Izzy’s Tailor Shop

All of State Floors & Furniture

SolidRustic

Furniture

35,400

St. John’s United Methodist

Church


Site Plan & Signage

Suite G 1,300 SF

Suite E 850 SF

Monument Sign

Monument Sign

San Pedro

Iconic Monument Sign

Menaul

San Pedro Dr.

Men

aul B

lvd.


Coronado MallABQUptown

Winrock Mall

Louie’s Barber Shop

Gold & Silver

Exchange

Izzy’s Tailor Shop

All of State Floors & Furniture

SolidRustic

Furniture

Menaul Blvd. NE

San Pedro

SI T

E

DronePhotography


SitePhotos


Site Photos

25

40

25


Albuquerque

S I TE

1 Mile 3 Miles 5 Miles

Demographic and Income Profile2600 San Pedro Dr NE, Albuquerque, New Mexico, 87110 Prepared by EsriRing: 1 mile radius Latitude: 35.11004

Longitude: -106.57748

Summary Census 2010 2017 2022Population 13,556 13,790 13,961Households 6,361 6,454 6,525Families 3,268 3,177 3,149Average Household Size 2.13 2.13 2.14Owner Occupied Housing Units 3,969 3,901 3,907Renter Occupied Housing Units 2,392 2,553 2,618Median Age 41.7 42.5 42.4

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.25% 0.32% 0.83%Households 0.22% 0.26% 0.79%Families -0.18% 0.09% 0.71%Owner HHs 0.03% 0.27% 0.72%Median Household Income 1.23% 1.80% 2.12%

2017 2022 Households by Income Number Percent Number Percent

<$15,000 916 14.2% 951 14.6%$15,000 - $24,999 821 12.7% 800 12.3%$25,000 - $34,999 802 12.4% 754 11.6%$35,000 - $49,999 933 14.5% 849 13.0%$50,000 - $74,999 1,410 21.8% 1,353 20.7%$75,000 - $99,999 756 11.7% 824 12.6%$100,000 - $149,999 594 9.2% 725 11.1%$150,000 - $199,999 150 2.3% 184 2.8%$200,000+ 72 1.1% 86 1.3%

Median Household Income $45,086 $47,918Average Household Income $55,871 $61,689Per Capita Income $25,871 $28,523

Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent

0 - 4 682 5.0% 652 4.7% 672 4.8%5 - 9 709 5.2% 653 4.7% 648 4.6%10 - 14 666 4.9% 680 4.9% 672 4.8%15 - 19 804 5.9% 665 4.8% 672 4.8%20 - 24 954 7.0% 831 6.0% 768 5.5%25 - 34 1,858 13.7% 2,095 15.2% 2,094 15.0%35 - 44 1,697 12.5% 1,728 12.5% 1,925 13.8%45 - 54 2,097 15.5% 1,845 13.4% 1,667 11.9%55 - 64 1,747 12.9% 2,015 14.6% 1,962 14.1%65 - 74 1,002 7.4% 1,336 9.7% 1,595 11.4%75 - 84 879 6.5% 790 5.7% 852 6.1%

85+ 462 3.4% 502 3.6% 433 3.1%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 10,169 75.0% 10,033 72.8% 9,943 71.2%Black Alone 377 2.8% 396 2.9% 412 3.0%American Indian Alone 603 4.4% 705 5.1% 783 5.6%Asian Alone 378 2.8% 430 3.1% 471 3.4%Pacific Islander Alone 7 0.1% 7 0.1% 7 0.1%Some Other Race Alone 1,436 10.6% 1,574 11.4% 1,660 11.9%Two or More Races 586 4.3% 645 4.7% 686 4.9%

Hispanic Origin (Any Race) 5,199 38.4% 5,630 40.8% 5,999 43.0%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022.

August 24, 2017

©2017 Esri Page 1 of 6






<$15,000 916 14.2% 951 14.6%$15,000 - $24,999 821 12.7% 800 12.3%$25,000 - $34,999 802 12.4% 754 11.6%$35,000 - $49,999 933 14.5% 849 13.0%$50,000 - $74,999 1,410 21.8% 1,353 20.7%$75,000 - $99,999 756 11.7% 824 12.6%$100,000 - $149,999 594 9.2% 725 11.1%$150,000 - $199,999 150 2.3% 184 2.8%$200,000+ 72 1.1% 86 1.3%



0 - 4 682 5.0% 652 4.7% 672 4.8%5 - 9 709 5.2% 653 4.7% 648 4.6%10 - 14 666 4.9% 680 4.9% 672 4.8%15 - 19 804 5.9% 665 4.8% 672 4.8%20 - 24 954 7.0% 831 6.0% 768 5.5%25 - 34 1,858 13.7% 2,095 15.2% 2,094 15.0%35 - 44 1,697 12.5% 1,728 12.5% 1,925 13.8%45 - 54 2,097 15.5% 1,845 13.4% 1,667 11.9%55 - 64 1,747 12.9% 2,015 14.6% 1,962 14.1%65 - 74 1,002 7.4% 1,336 9.7% 1,595 11.4%75 - 84 879 6.5% 790 5.7% 852 6.1%

85+ 462 3.4% 502 3.6% 433 3.1%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 10,169 75.0% 10,033 72.8% 9,943 71.2%Black Alone 377 2.8% 396 2.9% 412 3.0%American Indian Alone 603 4.4% 705 5.1% 783 5.6%Asian Alone 378 2.8% 430 3.1% 471 3.4%Pacific Islander Alone 7 0.1% 7 0.1% 7 0.1%Some Other Race Alone 1,436 10.6% 1,574 11.4% 1,660 11.9%Two or More Races 586 4.3% 645 4.7% 686 4.9%



August 24, 2017







<$15,000 9,754 16.5% 9,732 16.4%$15,000 - $24,999 8,410 14.2% 7,924 13.3%$25,000 - $34,999 7,436 12.6% 6,899 11.6%$35,000 - $49,999 8,654 14.7% 7,880 13.3%$50,000 - $74,999 10,222 17.3% 9,962 16.8%$75,000 - $99,999 5,826 9.9% 6,390 10.8%$100,000 - $149,999 5,645 9.6% 6,782 11.4%$150,000 - $199,999 1,771 3.0% 2,176 3.7%$200,000+ 1,337 2.3% 1,677 2.8%



0 - 4 8,089 6.2% 7,688 5.8% 7,893 5.9%5 - 9 7,363 5.6% 7,225 5.5% 7,197 5.4%10 - 14 6,706 5.1% 6,693 5.1% 6,787 5.1%15 - 19 8,418 6.4% 7,345 5.6% 7,216 5.4%20 - 24 12,182 9.3% 10,121 7.7% 9,335 7.0%25 - 34 20,004 15.3% 22,480 17.0% 22,228 16.7%35 - 44 15,524 11.9% 15,859 12.0% 17,564 13.2%45 - 54 17,899 13.7% 15,657 11.9% 14,536 10.9%55 - 64 15,117 11.6% 16,414 12.4% 15,858 11.9%65 - 74 8,954 6.8% 11,891 9.0% 13,461 10.1%75 - 84 6,954 5.3% 6,762 5.1% 7,638 5.7%

85+ 3,606 2.8% 3,960 3.0% 3,691 2.8%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 93,354 71.4% 91,440 69.2% 90,465 67.8%Black Alone 4,285 3.3% 4,362 3.3% 4,448 3.3%American Indian Alone 7,939 6.1% 8,866 6.7% 9,613 7.2%Asian Alone 3,339 2.6% 3,785 2.9% 4,138 3.1%Pacific Islander Alone 131 0.1% 129 0.1% 128 0.1%Some Other Race Alone 15,438 11.8% 16,621 12.6% 17,339 13.0%Two or More Races 6,330 4.8% 6,891 5.2% 7,274 5.5%



August 24, 2017







<$15,000 23,453 16.4% 23,570 16.3%$15,000 - $24,999 19,333 13.5% 18,311 12.7%$25,000 - $34,999 17,113 12.0% 15,916 11.0%$35,000 - $49,999 20,040 14.0% 18,341 12.7%$50,000 - $74,999 24,325 17.0% 23,720 16.4%$75,000 - $99,999 14,614 10.2% 16,011 11.1%$100,000 - $149,999 15,147 10.6% 17,849 12.3%$150,000 - $199,999 5,400 3.8% 6,360 4.4%$200,000+ 3,746 2.6% 4,466 3.1%



0 - 4 19,653 6.1% 18,563 5.7% 18,936 5.7%5 - 9 18,375 5.7% 17,839 5.5% 17,635 5.3%10 - 14 17,315 5.4% 17,143 5.3% 17,189 5.2%15 - 19 20,993 6.5% 19,099 5.9% 18,875 5.7%20 - 24 28,107 8.8% 25,024 7.7% 23,624 7.2%25 - 34 47,706 14.9% 51,848 15.9% 51,105 15.5%35 - 44 38,312 11.9% 39,268 12.0% 42,670 12.9%45 - 54 44,773 14.0% 39,046 12.0% 36,549 11.1%55 - 64 39,112 12.2% 42,320 13.0% 41,004 12.4%65 - 74 23,013 7.2% 30,835 9.5% 35,007 10.6%75 - 84 15,648 4.9% 16,322 5.0% 19,002 5.8%

85+ 7,604 2.4% 8,579 2.6% 8,430 2.6%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 231,001 72.1% 227,833 69.9% 226,103 68.5%Black Alone 11,004 3.4% 11,306 3.5% 11,570 3.5%American Indian Alone 16,069 5.0% 18,172 5.6% 19,827 6.0%Asian Alone 9,471 3.0% 10,847 3.3% 11,904 3.6%Pacific Islander Alone 368 0.1% 354 0.1% 351 0.1%Some Other Race Alone 37,907 11.8% 41,087 12.6% 42,984 13.0%Two or More Races 14,790 4.6% 16,285 5.0% 17,288 5.2%



August 24, 2017


Demographics1, 3 & 5 Miles

2016 Forecasted by Esri

Centrally-located at the intersection of I-25 and I-40, Albuquerque is the most populace city in New Mexico with an estimated metropolitan population of 908,252 in 2016. The city serves as a southwestern commercial hub, with BNSF Railroads rail service, air cargo shipped from the Albuquerque International Sunport, as well as the commuter train, the Rail Runner, spanning from Belen to Santa Fe.

Albuquerque’s economic environment is experiencing growth due in part to the city being the center of the New Mexico Technology Corridor. The largest employers located in Albuquerque include Kirtland Air Force Base, the University of New Mexico and Sandia National Laboratories. Recent economic news includes Comcast selecting Albuquerque for a 500-employee bilingual customer support center; Bendix/King a Honeywell aerospace company, also located its headquarters in Albuquerque, with 140 quality jobs; General Mills finished a $100 million expansion of its plant with more than 100 new employees; Lowes Home Improvement opened a $15 million customer support center in 2012. Because of these business developments and Albuquerque’s great quality of life, Forbes Magazine named the city #1 in its survey of the best places in the USA for Business and Careers. For more information, visit www.abq.org.

Offering Memorandum | 13

Albuquerque, New MexicoCity Overview

A division of NAI Maestas & Ward

908,252 Metro Area Population $47,697

Median Household Income

260,355 Households

$11,289,318,480 Total Retail Trade & Food/Drink

29,372 Total Businesses

372,809 Total Employees

$179,200 Median Sales Price of single-family homes (2016 Q2)

6.3% RetailVacancy

“One of the top 50 places to live” - U.S. News and World Report

“One of the ‘greenest’ cities in the country” -Popular Science“Ranks among American’s best cities for global trade.” - Global Trade Magazine

UTAH

TEXAS

OKLAHOMA

COLORADO

ARIZONA40

25

Santa FeAlbuquerque

Las CrucesAlbuquerque

Bernalillo

Albuquerque Metro

Rio Rancho

Los Lunas

Belen

4040

25

Albuquerque City Limits

Albuquerque

25

New Mexico

ABQ by the numbers (not including metro area)

Why Here? Why Now?

high yielding center | dominant retail corridor · 2017-09-19 · high yielding center | dominant...

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