southwest plaza | multi-tenant office building offering€¦ · building features attractive,...

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

A division of NAI Maestas & Ward

OfferingMemorandum

Southwest Plaza | Multi-Tenant Office BuildingHigh-Yielding Investment | 8% Cap Rate | Strong Tenancy

810 W. San Mateo Rd. | Santa Fe, NM 87505

Jake Mechenbier cell 505 917 5514 [email protected]

Cole Flanagan, CPA, MBAcell 505 235 7585 [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. Principals of property seller are licensed NM real estate brokers and are selling this property for their own account.

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 Southwest Plaza located at 810 W San Mateo Rd in Santa Fe, NM. Southwest Plaza is an office building located in the heart of Santa Fe near the major intersection of St. Michaels Dr and St. Francis Dr. The property offers quick and easy access to downtown Santa Fe, Interstate 25, and many other services and amenities. The office building features attractive, quality construction and landscaping.

The approximately 24,351 sq. ft. building sits on about 1.41 acres. Southwest Plaza is a high-yielding investment with significant in-place cash flow. The property is priced at an 8% CAP rate on current, in-place income.

Southwest Plaza features a diverse mix of tenants with staggered lease terms. There are two main tenants in the building which are New Mexico Department of Health and Southwest CARE Center, both of which are strong credit tenants that occupy 93% of the building. The Santa Fe market has extremely high barriers to entry and this particular asset is priced below replacement cost. The building does feature an elevator to access the different levels.

The significant in-place cash flow combined with the strong, stable tenancy makes this an opportunity on which an investor can capitalize on now and into the future. The high barriers to entry in the Santa Fe market, along with the building’s premier location and low price per square foot (below replacement cost) give this building desirable real estate fundamentals.

Southwest Plaza

Offering Summary

Purchase Price $3,695,000

Price per Square Foot $151.74

Net Operating Income $295,569

Cap Rate 8.00%

Lease Type Full Service

� Significant in-place cash flow

� High-yielding investment- 8% Cap Rate based on current, in-place income

� The Santa Fe market has high barriers to entry

� Low price/SF (priced below replacement cost)

� Diverse mix of tenants with staggered leaserollovers

� Excellent, central location- Located near the major intersection of St.

Michael’s Dr. and St. Francis Dr. with manynearby amentities

- Easy and quick access to downtown Santa Fe,Interstate 25, and many other services

� Attractive, quality construction and landscaping

52,391+ Population within a 3-mile radius of site

$74,100+ Average Household Income

in a 3-mile radius

OperatingSummary


OperatingSummary

Square Footage: ±24,351 SF

Amount $ / SF

Current Projected Rental Income $498,785 20.48

Vacancy (7.4% Actual) - -ADJUSTED GROSS INCOME $498,785 20.48

Estimated Operating Expenses

Cleaning - Janitorial $35,945 1.48

Landscaping $2,266 0.09

Property Management $21,635 0.89

Repairs and Maintenance $21,001 0.86

Telephone $1,581 0.06

Utilities - Electric $63,600 2.61

Utilities - Gas $815 0.03

Utilities - Sewer $1,005 0.04

Utilities - Water $3,472 0.14

HOA Fees $1,833 0.08

Insurance $6,432 0.26

Property Tax $31,456 1.29

Reserve $12,176 0.50

TOTAL OPERATING EXPENSES $203,216 8.35

NET OPERATING INCOME $295,569 12.14

Southwest Plaza

A division of NAI Maestas & Ward Offering Memorandum | 5

Key Tenant Profiles

The New Mexico Department of Health works in many ways to promote, preserve, and protect the health of New Mexicans. The state agency handles all medical and health related fields within the state and offers numerous programs and services. The agency was founded in 1919 and employs about 3,250 employees across the state of New Mexico.

New Mexico Department of Health

Southwest CARE Center was founded in 1996 and is a center of excellence for the care and treatment of people living with HIV in New Mexico. The company is the largest provider of treatment for people living with Hepatitis C in northern New Mexico. It is the largest clinical research site in New Mexico for studies of new treatments for both HIV and Hepatitis C. The company has also expanded their scope of services which now include: family medicine, internal medicine, women’s health services, primary care, specialty pharmacy services and reproductive health among others.

Southwest CARE Center


Agua Fria St.

Rail

Runn

er

St Michaels Dr.

Cerrillos R

d.

Cordova Rd.

St. F

ranc

is D

r.

Back Road Pizza

Santa Fe Indian School

Santa Fe University of Art & Design

St. Vincent Hospital

Second Street Brewery

Sweetwater Harvest Kitchen

Salvador Perez Park

San Mateo Rd.

CPD 3

7,87

7

CPD 34,789

Mandela International Magnet School

S I T E

Retail Trade Corridor

S I T E


SiteAerial

Chocolate Maven

Calle

Lor

ca

Santa Fe Water Division

Multi-Tenant Office Building

Molly’s Kitchen & Lounge

Dotfoil Computers

Daniels Insurance

Santa Fe Business Center

W. San Mateo Rd.

St. Michael’s Dr.

S I T E

Site Aerial


ExteriorPhotos


InteriorPhotos


Santa Fe

S I TE

25

1 Mile 2 Mile 3 Mile

Demographic and Income Profile810 W San Mateo Rd Prepared by Esri800-898 W San Mateo Rd, Santa Fe, New Mexico, 87505 Latitude: 35.66122Ring: 1 mile radius Longitude: -105.96269

Summary Census 2010 2018 2023Population 8,487 8,581 8,609Households 4,013 4,083 4,104Families 1,817 1,768 1,743Average Household Size 2.04 2.02 2.02Owner Occupied Housing Units 1,555 1,616 1,655Renter Occupied Housing Units 2,458 2,467 2,449Median Age 41.9 44.8 45.8

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.07% 0.43% 0.83%Households 0.10% 0.37% 0.79%Families -0.28% 0.20% 0.71%Owner HHs 0.48% 0.46% 1.16%Median Household Income 3.01% 2.07% 2.50%

2018 2023 Households by Income Number Percent Number Percent

<$15,000 782 19.2% 625 15.2%$15,000 - $24,999 668 16.4% 602 14.7%$25,000 - $34,999 403 9.9% 386 9.4%$35,000 - $49,999 573 14.0% 593 14.4%$50,000 - $74,999 686 16.8% 760 18.5%$75,000 - $99,999 363 8.9% 432 10.5%$100,000 - $149,999 375 9.2% 438 10.7%$150,000 - $199,999 128 3.1% 143 3.5%$200,000+ 105 2.6% 125 3.0%

Median Household Income $38,916 $45,136Average Household Income $56,729 $65,559Per Capita Income $27,848 $32,099

Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent

0 - 4 566 6.7% 503 5.9% 494 5.7%5 - 9 419 4.9% 398 4.6% 381 4.4%10 - 14 366 4.3% 352 4.1% 352 4.1%15 - 19 447 5.3% 386 4.5% 388 4.5%20 - 24 597 7.0% 594 6.9% 541 6.3%25 - 34 1,125 13.3% 1,121 13.1% 1,111 12.9%35 - 44 1,053 12.4% 959 11.2% 968 11.2%45 - 54 1,098 12.9% 984 11.5% 918 10.7%55 - 64 1,292 15.2% 1,280 14.9% 1,216 14.1%65 - 74 743 8.8% 1,099 12.8% 1,188 13.8%75 - 84 472 5.6% 554 6.5% 694 8.1%

85+ 309 3.6% 352 4.1% 358 4.2%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 6,396 75.4% 6,374 74.3% 6,352 73.8%Black Alone 93 1.1% 118 1.4% 135American Indian Alone 240 2.8% 269 3.1% 286Asian Alone 102 1.2% 133 1.5% 1Pacific Islander Alone 5 0.1% 6 0.1% 6Some Other Race Alone 1,289 15.2% 1,293 15.1% 1,282Two or More Races 362 4.3% 388 4.5% 395 4.6%

Hispanic Origin (Any Race) 4,793 56.5% 4,843 56.4% 4,907 57.0%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

March 27, 2019

©2019 Esri Page 1 of 6





<$15,000 782 19.2% 625 15.2%$15,000 - $24,999 668 16.4% 602 14.7%$25,000 - $34,999 403 9.9% 386 9.4%$35,000 - $49,999 573 14.0% 593 14.4%$50,000 - $74,999 686 16.8% 760 18.5%$75,000 - $99,999 363 8.9% 432 10.5%$100,000 - $149,999 375 9.2% 438 10.7%$150,000 - $199,999 128 3.1% 143 3.5%$200,000+ 105 2.6% 125 3.0%



0 - 4 566 6.7% 503 5.9% 494 5.7%5 - 9 419 4.9% 398 4.6% 381 4.4%10 - 14 366 4.3% 352 4.1% 352 4.1%15 - 19 447 5.3% 386 4.5% 388 4.5%20 - 24 597 7.0% 594 6.9% 541 6.3%25 - 34 1,125 13.3% 1,121 13.1% 1,111 12.9%35 - 44 1,053 12.4% 959 11.2% 968 11.2%45 - 54 1,098 12.9% 984 11.5% 918 10.7%55 - 64 1,292 15.2% 1,280 14.9% 1,216 14.1%65 - 74 743 8.8% 1,099 12.8% 1,188 13.8%75 - 84 472 5.6% 554 6.5% 694 8.1%

85+ 309 3.6% 352 4.1% 358 4.2%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 6,396 75.4% 6,374 74.3% 6,352 73.8%Black Alone 93 1.1% 118 1.4% 135 1.6%American Indian Alone 240 2.8% 269 3.1% 286 3.3%Asian Alone 102 1.2% 133 1.5% 153 1.8%Pacific Islander Alone 5 0.1% 6 0.1% 6 0.1%Some Other Race Alone 1,289 15.2% 1,293 15.1% 1,282 14.9%Two or More Races 362 4.3% 388 4.5% 395 4.6%



March 27, 2019






<$15,000 2,292 13.6% 1,845 10.8%$15,000 - $24,999 1,998 11.9% 1,789 10.5%$25,000 - $34,999 1,879 11.1% 1,777 10.4%$35,000 - $49,999 2,417 14.3% 2,439 14.3%$50,000 - $74,999 3,125 18.5% 3,405 19.9%$75,000 - $99,999 1,894 11.2% 2,221 13.0%$100,000 - $149,999 1,820 10.8% 2,042 11.9%$150,000 - $199,999 642 3.8% 679 4.0%$200,000+ 787 4.7% 907 5.3%



0 - 4 1,789 5.2% 1,614 4.6% 1,637 4.6%5 - 9 1,615 4.7% 1,477 4.2% 1,436 4.0%10 - 14 1,595 4.6% 1,509 4.3% 1,469 4.1%15 - 19 1,685 4.9% 1,543 4.4% 1,509 4.2%20 - 24 1,856 5.4% 1,994 5.7% 1,924 5.4%25 - 34 4,218 12.2% 4,282 12.2% 4,522 12.7%35 - 44 4,403 12.7% 4,005 11.4% 4,043 11.3%45 - 54 5,279 15.2% 4,558 12.9% 4,266 11.9%55 - 64 5,970 17.2% 5,839 16.6% 5,448 15.2%65 - 74 3,354 9.7% 4,951 14.1% 5,300 14.8%75 - 84 1,945 5.6% 2,333 6.6% 3,021 8.5%

85+ 914 2.6% 1,110 3.2% 1,161 3.2%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 27,349 79.0% 27,408 77.8% 27,618 77.3%Black Alone 363 1.0% 449 1.3% 521 1.5%American Indian Alone 763 2.2% 856 2.4% 912 2.6%Asian Alone 427 1.2% 536 1.5% 622 1.Pacific Islander Alone 28 0.1% 35 0.1% 37 0.1%Some Other Race Alone 4,338 12.5% 4,465 12.7% 4,512 12.6%Two or More Races 1,354 3.9% 1,466 4.2% 1,514 4.2%



March 27, 2019




Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.42% 0.43% 0.83%Households 0.41% 0.37% 0.79%Families 0.09% 0.20% 0.71%Owner HHs 0.48% 0.46% 1.16%Median Household Income 1.69% 2.07% 2.50%


<$15,000 3,305 12.9% 2,691 10.3%$15,000 - $24,999 3,044 11.9% 2,748 10.5%$25,000 - $34,999 2,775 10.8% 2,649 10.1%$35,000 - $49,999 3,350 13.1% 3,408 13.0%$50,000 - $74,999 4,696 18.3% 5,119 19.6%$75,000 - $99,999 2,863 11.2% 3,352 12.8%$100,000 - $149,999 3,037 11.9% 3,416 13.1%$150,000 - $199,999 1,096 4.3% 1,131 4.3%$200,000+ 1,462 5.7% 1,638 6.3%



0 - 4 2,448 4.8% 2,244 4.3% 2,290 4.3%5 - 9 2,313 4.5% 2,160 4.1% 2,130 4.0%10 - 14 2,352 4.6% 2,263 4.3% 2,242 4.2%15 - 19 2,408 4.7% 2,248 4.3% 2,233 4.2%20 - 24 2,516 4.9% 2,670 5.1% 2,583 4.8%25 - 34 5,869 11.5% 5,943 11.3% 6,182 11.6%35 - 44 6,233 12.2% 5,788 11.0% 5,891 11.0%45 - 54 7,728 15.1% 6,683 12.8% 6,290 11.8%55 - 64 9,241 18.1% 9,117 17.4% 8,484 15.9%65 - 74 5,356 10.5% 7,851 15.0% 8,521 15.9%75 - 84 3,118 6.1% 3,683 7.0% 4,808 9.0%

85+ 1,432 2.8% 1,743 3.3% 1,852 3.5%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 40,936 80.2% 41,396 79.0% 41,951 78.4%Black Alone 510 1.0% 640 1.2%American Indian Alone 1,028 2.0% 1,165 2.2%Asian Alone 625 1.2% 789 1.5%Pacific Islander Alone 40 0.1% 50 0.1%Some Other Race Alone 6,010 11.8% 6,306 12.0%Two or More Races 1,866 3.7% 2,043 3.9% 2,127 4.0%



March 27, 2019


Demographics1, 2 & 3 Miles

25

Santa FeTrade AreaAnalysis

Santa Fe by the Numbers (ESRI 2017 Demographics)

Santa Fe | The City Different and the State CapitalThe oldest capital city in the United States and the oldest city in New Mexico, Santa Fe is well-known as a center for arts that reflects the multicultural character of the city. Tourism is a major element of the Santa Fe economy, with visitors attracted year-round by the climate and related outdoor activities (such as skiing in years of adequate snowfall; hiking in other seasons) plus cultural activities of the city and the region. Most tourist activity takes place in the historic downtown, especially on and around the Plaza, a one-block square adjacent to the Palace of the Governors, the original seat of New Mexico’s territorial government since the time of Spanish colonization. Other areas include Canyon Road and “Museum Hill”, the site of the major art museums of the city as well as the Santa Fe International Folk Art Market, which takes place each year during the second full weekend of July.

Ski Santa Fe

Española

±65

mi.

from

Albuquerque

SANTA FE ART Santa Fe Accolades

A half-mile stretch of Santa Fe’s Canyon Road has more than 100 galleries, boutiques and restaurants “making it the world’s densest concentration of art galleries,” according to the

Four Seasons website

19minutes:

average commute

SKI SANTA FE averages

225 inches of snow a year.

Santa Fe is the third-largest art market in the United States, after New York and Los Angeles.

#1 Best Shopping Destination in the West by Sunset#4 Best Food Town in the West by Sunset#4 Best Cities in the United States by Travel and Leisure #2 Best Small City in the US by Conde Nast Reader’s Choice #6 Best Small City in the World by Conde Nast Reader’s Choice2014 Top Treks for your Family by Trekaroo#2 Cleanest Air by American Lung AssociationDestinations on the Rise TripAdvisor Travelers’ Choice Winner#3 for Visitor Experience from Travel and Leisure5th Most Romantic City by Livability.com#1 Cultural Getaway from Travel and Leisure

Santa Fe(COUNTY

METRO AREA)

Santa Fe

CITY CONTEXT

Albuquerque

Santa Fe

Albuquerque

FOUNDED IN 1608, SANTA FE IS THE OLDEST STATE CAPITAL IN THE UNITED STATES

SANTA FE | Metro Area

Santa Fe Municipal Airport

offers daily commercial flights connecting

Northern New Mexico to the world.

151,908 MSA Population

$81,777 Average Household Income

64,987 Households

$45,872 Median Disposable Income

8,681 Total Businesses

The State Capital

95,673 Total Employees

25

2525

40

4040

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A division of NAI Maestas & Ward Offering Memorandum | 11

southwest plaza | multi-tenant office building offering€¦ · building features attractive,...

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