location information 8€¦ · demographics report 22 additional photos 23 ... peak construction...

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PROPERTY INFORMATION 3

Executive Summary 4

Property Description 5

Complete Highlights 6

Additional Photos 7

LOCATION INFORMATION 8

Regional Map 9

Location Maps 10

Aerial Map 11

Aerial Map 12

Aerial Map 13

Site Plan 14

FINANCIAL ANALYSIS 15

Financial Summary 16

Income & Expenses 17

Rent Roll 18

DEMOGRAPHICS 21

Demographics Report 22

Additional Photos 23

ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

Shops at Main Street1400 Main Street, Los Lunas, NM 87031

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $5,800,000

Current Cap Rate: 8.91%

Current NOI: $516,885

Pro Forma Cap Rate: 9.77%

Pro Forma NOI: $566,388

Lot Size: 2.88 Acres

Year Built: 2006

Building Size: 30,550

Price / SF: $189.85

Marcus & Millichap is pleased to offer the opportunity to acquire a 30,550-square foot value-add multi-tenant retail center in LosLunas, New Mexico.

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 2,453 6,722 12,564

Total Population 6,626 18,231 34,840

Average HH Income $66,175 $61,579 $62,529


PROPERTY INFORMATION | EXECUTIVE SUMMARY

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Marcus & Millichap is pleased to offer the opportunity to acquire a 30,550-square foot value-add multi-tenant

retail center in Los Lunas, New Mexico. Shops at Main Street is currently 95percent occupied with 86 percent of

the gross leasable area having triple-net leases, providing upside potential. The center has a complementary mix of

national and local tenants, including H&R Block, State of New Mexico National Guard, United States Marines, UPS

Store, Metro PCS, Bella Vida Health Care Clinic and Medi-Spa, Assured Imaging, Armada Physical Therapy, Sukura

Japanese Restaurant, Beverly’s Quality Cleaners, and others. Constructed in 2006, the property consists of two

buildings situated on 2.88 acres.

PROPERTY OVERVIEW

The subject property is located at the signalized hard corner of Main Street and Los Cerritos Road in a dense retail

trade area off of Interstate 25. The center is across from Lowe’s Home Improvement and The Home Depot, and

other retailers in surrounding area include Famous Footwear, Rue 21, Hibbett Sports, Maurices, Applebee’s, IHOP,

Petsense, AutoZone, Starbucks, Wendy’s, Denny’s, Del Taco, Walgreens, Sonic, Walmart Supercenter, Panda

Express, Carl’s Jr, Chili’s Grill & Bar, KFC, Discount Tire, and more. Los Lunas High School is northwest of the

property. Walmart Distribution Center is less than two miles northwest of the property.

The subject property is also in close proximity to the Facebook data center development, which upon completion

will consist of six buildings totaling 2.8 million square feet and have a construction cost of over $1 billion. The

massive project has been a tremendous economic stimulator, providing 800-1,000 workers on site per day during

peak construction activity with construction crews expected to be on site well into 2023. Once operational, the

data center will employ about 300 permanent positions. The Los Lunas Data Center is on target to be one of the

most advanced and energy-efficient data center facilities in the world. The entire campus will be powered with 100

percent clean and renewable energy powered by three new solar plants.

The Village of Los Lunas is located 22 miles south of Albuquerque, New Mexico, along the scenic Rio Grande. It is

county seat of Valencia County. The village population is 14,835 inside the village limits due to the new housing

developments at El Cerro de Los Lunas. The New Mexico Rail Runner Express provides a rail connection to

Albuquerque, Santa Fe, and other communities along the Rio Grande.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

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SALE HIGHLIGHTS

• 30,550-Square Foot Multi-Tenant Retail Center

• Value-Add Opportunity | 95 Percent Occupied | 86 Percent of the Gross Leasable Areahas Triple-Net Leases | Pro Forma Cap Rate is 9.77 Percent

• Complementary Mix of National and Local Tenants | Many Provide Internet ResistantServices

• Property Consists of Two Buildings on 2.88 Acres

• Signalized Hard Corner Location in the City's Main Retail Trade Area

• Main Street is Los Lunas’ Major East/West Traffic Carrier with Traffic Counts in Excessof 25,000 Vehicles per Day

• Across from Lowe's Home Improvement and The Home Depot with Numerous otherNational Retailers in the Area

• Less than Two Miles from the Walmart Distribution Center

• Approximately Two Miles from the Facebook Data Center Development, ProvidingTremendous Economic Impact | Six Buildings Totaling 2.8 Million Square Feet and TotalConstruction Cost of Over $1 Billion Upon Completion | the Facebook Project is theMost Spent in a Single Location in New Mexico Since the Construction of the IntelMicrochip Processing Plant in Rio Rancho 37 Years Ago | Construction Crews of 800 to1,000 Workers are on Site Daily During Peak Season and Construction Expected to beSteady Through 2023 | 300 Permanent Employees on Site Following Completion

• The Los Lunas Facebook Data Center will be one of the Most Advanced and Energy-Efficient Data Facilities in the Word | Entire Campus will be Powered with 100 PercentClean and Renewable Energy Powered by Three New Solar Plants

• Recent Groundbreaking for the Central New Mexico Rail Park | Located in the Villageof Los Lunas Near the Burlington Northern Santa Fe Rail Line | The Rail Center willInclude a New Warehouse, Manufacturing and Distribution Center on more than 400Acres | Potential to Create Thousands of Jobs Throughout the Region and ConnectingMajor Markets Across the Country

• Los Lunas is 22 Miles South of Albuquerque with Rail Connection to Albuquerque,Santa Fe and other Communities Along the Rio Grande River


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS


PROPERTY INFORMATION | ADDITIONAL PHOTOS

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Section 2 LOCATION INFORMATION

9

Shops at Main Street


LOCATION INFORMATION | REGIONAL MAP

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LOCATION INFORMATION | LOCATION MAPS

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LOCATION INFORMATION | AERIAL MAP

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LOCATION INFORMATION | FACEBOOK DATA CENTER & NEW MEXICO RAIL PARK

Section 3 FINANCIAL ANALYSIS

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INVESTMENT OVERVIEW CURRENT PRO FORMA

Price $5,800,000 $5,800,000

Price per SF $189.85 $189.85

CAP Rate 8.91 % 9.77 %

Total Return (yr 1) $516,885 $566,388

OPERATING DATA CURRENT PRO FORMA

Gross Income $620,084 $674,087

Operating Expenses $103,199 $107,699

Net Operating Income $516,885 $566,388

FINANCING DATA CURRENT PRO FORMA

Down Payment $5,800,000 $5,800,000

Loan Type All Cash All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

*Base Rent is based on the future base rent of $536,238 as of 1/01/19.

INCOME SUMMARY CURRENT PER SF PRO FORMA PER SF

*Base Rent $536,238 $18.57 $536,238 $18.57

Vacant Space at Market Rents $0 $0.00 $30,150 $18.01

Real Estate Taxes Reimbursements $27,658 $0.91 $31,795 $1.04

Insurance Reimbursements $6,522 $0.21 $7,497 $0.25

CAM Reimbursements $31,833 $1.04 $43,407 $1.42

Management Fee Reimbursements $17,833 $0.58 $25,000 $0.82

Gross Income $620,084 $20.30 $674,087 $22.07

EXPENSE SUMMARY CURRENT PER SF PRO FORMA PER SF

Real Estate Taxes $31,795 $1.04 $31,795 $1.04

Insurance $7,497 $0.25 $7,497 $0.25

Utilities $24,500 $0.80 $24,500 $0.80

Maintenance and Landscaping $7,914 $0.26 $7,914 $0.26

Legal Fees $8,500 $0.28 $8,500 $0.28

Supplies and Miscellaneous $2,448 $0.08 $2,448 $0.08

Permits $45 $0.00 $45 $0.00

Management Fee $20,500 $0.67 $25,000 $0.82

Gross Expenses $103,199 $3.38 $107,699 $3.53

Net Operating Income $516,885 $16.92 $566,388 $18.54

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FINANCIAL ANALYSIS | INCOME & EXPENSES

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

A1 1,250 4.09 10/01/17 9/30/20 $25,673

10/10/2019

$20.54

$21.15

NNN (2) 5-Yr $6,032.60

A2 1,200 3.93 4/01/14 3/31/19 $25,200 $21.00 NNN (2) 3-Yr $5,794.27

A3 1,500 4.91 10/01/17 4/30/23 $25,500 $17.00 NNN (2) 5-Yr $4,466.43

B 1,100 3.6 5/12/15 6/30/21 $23,807 $21.64 NNN (2) 5-Yr $3,274.78

C 1,500 4.91 10/01/17 9/30/22 $30,000 $20.00 Gross

D 650 2.13 6/01/18 5/31/21 $11,050 $17.00 NNN (2) 5-Yr $1,937.58

E 1,125 3.68 9/01/18 8/31/21 $19,125

10/1/2019

10/1/2020

$17.00

$17.51

$18.03

NNN (2) 3-Yr $3,347.55

E 875 2.86 $0 $0.00

G 800 2.62 $0 $0.00 (2) 5-Yr

Recompute

Imperial Vapors

H & R Block

Beverly's Quality Cleaners

State of NM National Guard

Herbalife

Growing Nations LLC

Vacant

Vacant

US MarinesF 800 2.62 8/01/17 7/30/20 $20,416 $25.52 Gross

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FINANCIAL ANALYSIS | RENT ROLL

TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Sukura Japense Restaurant H 3,400 11.13 1/01/18 12/30/23 $49,028

1/1/2020

1/1/2021

1/1/2022

$14.42

$14.85

$15.30

$15.75

NNN NNN $10,124.52

Armada Therapy I 2,000 6.55 11/01/17 10/31/20 $35,020

11/1/2019

$17.51

$18.04

NNN (2) 3-Yr $5,958.27

Realty One J 1,000 3.27 8/01/17 7/31/20 $15,450

8/1/2019

$15.45

$15.91

NNN (2) 3-Yr $2,974.59

Assured Imaging K 1,500 4.91 11/01/15 10/31/20 $23,100 $15.40 NNN (2) 5-Yr $4,466.43

Bella Vida L 800 2.62 7/01/15 6/30/20 $13,505

7/1/2019

$16.88

$17.22

NNN (2) 5-Yr $2,383.31

Bella Vida M 3,800 12.44 7/01/15 6/30/20 $64,777

7/1/2019

$17.05

$17.55

NNN (2) 5-Yr $11,316.17

Jalapenos (1) A 1,500 4.91 11/01/18 10/31/23 $37,500

11/01/2019

11/01/2020

11/01/2021

11/01/2022

$25.00

$25.75

$26.52

$27.32

$28.14

NNN (2) 3-Yr $4,650.00

UPS Store B 1,500 4.91 9/18/14 8/31/19 $32,939 $21.96 NNN (2) 5-Yr $4,466.43

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TENANT

NAME

UNIT

NUMBER

UNIT

SIZE (SF)

% OF

GLA

LEASE

START

LEASE

END

ANNUAL

RENT

ESC

DATE

PRICE

PER YEAR

LEASE

TYPE OPTION

EXPENSE

REIMBURSEMENT

Nail Spa C 1,250 4.09 9/01/17 8/31/22 $25,222

9/1/2019

9/1/2020

9/1/2021

$20.18

$20.78

$21.40

$22.05

NNN (2) 5-Yr $3,720.51

Metro PCS D 1,000 3.27 10/06/10 8/31/20 $21,846

10/10/2019

$21.85

$22.50

NNN (2) 3-Yr $2,974.59

Bloom Flowers & Gifts E 2,000 6.55 11/01/13 10/31/18 $37,080 $18.54 NNN (3) 5-Yr $5,958.27

Totals/Averages 30,550 $536,238 $17.55 $83,846.30

*Base Rent is based on the future base rent of $536,238 as of 1/01/19.

(1) Rent commences on 4/01/2019.

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Section 4 DEMOGRAPHICS

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1 MILE 3 MILES 5 MILES

Total population 6,626 18,231 34,840

Median age 35.4 36.5 39.3

Median age (Male) 35.3 34.3 38.6

Median age (Female) 35.5 38.9 39.8

Total households 2,453 6,722 12,564

Total persons per HH 2.5 2.6 2.6

Average HH income $66,175 $61,579 $62,529

Average house value $195,711 $164,322 $178,332

Total Population - White 1,618 10,843 20,991

% White 24.4% 59.5% 60.2%

Total Population - Black 30 141 234

% Black 0.5% 0.8% 0.7%

Total Population - Asian 9 71 319

% Asian 0.1% 0.4% 0.9%

Total Population - Hawaiian 0 0 7

% Hawaiian 0.0% 0.0% 0.0%

Total Population - American Indian 85 763 1,110

% American Indian 1.3% 4.2% 3.2%

Total Population - Other 635 4,787 8,419

% Other 9.6% 26.3% 24.2%

Total Population - Hispanic 1,374 10,579 17,809

% Hispanic 20.7% 58.0% 51.1%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT


DEMOGRAPHICS | ADDITIONAL PHOTOS

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location information 8€¦ · demographics report 22 additional photos 23 ... peak construction...

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