High Yielding Center | Dominant Retail Corridor Offering Leasehold Interest on Long-Term Ground Lease Memorandum
2600 San Pedro Dr. NE | Albuquerque, NM 87110
6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109 office 1 505 878 0001 | www.IPArealty.com A division of NAI Maestas & Ward
Cole Flanagan, CPA, MBA Brett Hills Jake Mechenbier cell 505 235 7585 cell 505 998 1648 cell 505 917 5514 [email protected] [email protected] [email protected] Confidential Disclaimer
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.
A division of NAI Maestas & Ward Offering Memorandum | 2 Investment Fiesta Plaza Highlights 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 Investment Property Advisors is pleased to offer for sale Fiesta Plaza located at 2600 San Pedro Dr remaining, including option periods 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 Long-tenured tenancy the option periods. This shopping center is positioned on the corner of Menaul Blvd and San Pedro - Guitar Center recently signed a new lease for Dr with over 55,600 cars per day at this intersection. The Uptown submarket is one of the strongest an additional 10 years and most desirable retail trade areas in Albuquerque. High-performing intersection with excellent 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 visibility 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 Strategically located at the major intersection of Menaul Blvd and San Pedro Dr with a large, iconic pylon sign. Menaul Blvd & San Pedro Dr with over 55,600 This investment benefits from the significant in-place cash flow, long-tenured tenancy, and visibility Cars Per Day 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 Dominant retail corridor - Uptown Trade Area leasability for the center going forward. Current in-place cash flow, combined with the long-term - One of the strongest and most desirable retail ground lease, make this property an opportunity on which an investor can capitalize. trade areas within Albuquerque
Dense, in-fill Northeast Heights location
Offering Summary Purchase Price $4,690,000 132,000+ 325,000+ Population within a Population within a Price per Square Foot $93.81 3 Mile radius of site 5 Mile radius of site Net Operating Income $469,296 Mix of national and local tenants CAP Rate 10.00%
A division of NAI Maestas & Ward Offering Memorandum | 3 Operating Summary Square Footage ±49,997
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
A division of NAI Maestas & Ward Offering Memorandum | 4 Tenant Highlights
Staples is an office supply retailer with Guitar Center is the world’s largest Navy Federal Credit Union is an armed Hot Pink Thai Cuisine is a local over 1,200 stores in North America. musical instruments retailer. Guitar forces bank serving the Navy, Army, restaurant serving authentic Thai Staples offers office supplies, school Center offers the world’s largest Marine Corps, Air Force, Coast Guard, food. The restaurant offers quite the supplies, furnishings, electronics, selection of guitars, basses, amplifiers, veterans, Department of Defense and variety of options spanning curries, technology, and printing services both keyboards, drums, microphones, and their families. Navy Federal Credit rice dishes, noodles, and soups. The in store and online. Staples was studio gear. The company has grown Union was founded in 1933 and has restaurant has a loyal following and is founded in 1986 and is headquartered from its original store in Los Angeles grown from seven members to over a local Thai favorite to many. in Framingham, Massachusetts. to over 260 stores nationwide. seven million members. The Nail Spa Great Clips is a hair salon franchise that is headquartered in Minneapolis, World Finance has been helping Southwest Financial has been serving The Nail Spa is a locally-owned nail Minnesota. Great Clips has over 3,700 individuals borrow money for over the financial needs of Albuquerque salon. The Nail Spa offers a full menu locations across the United States 50 years and was founded in 1962. residents for 30 years. Southwest of services which include manicures, and Canada with system-wide sales Financial offers personal loans from exceeding $1 billion. The first Great World Finance offers fast approvals pedicures, and eyebrows. The nail $500 to $15,000 with payment Clips opened on September 22, 1982 for fixed rate and payment loan salon has a loyal following attributed and in early 1983 Great Clips started to solutions. The company has more schedules from nine to 48 months. to their quality service and reasonable expand and franchise. The company than 1200 locations nationwide. Southwest Financial also offers retail rates. is known for no-appointment, no-frills financing, auto financing, and a number salons that provide customers with of other products. affordable haircuts.
A division of NAI Maestas & Ward Offering Memorandum | 5 Uptown Retail Trade Corridor
ABQ Uptown
Winrock Town Center
Louisiana Blvd. Louisiana San Pedro Dr. Pedro San SITE Menaul Blvd. 35,400 Coronado Mall ABQ 20,200 Uptown
Coronado Center Winrock Town Center
40 149,600
A division of NAI Maestas & Ward Offering Memorandum | 6 Site Aerial
Phoenix Ave.
St. John’s SITE United Methodist Church San Pedro Dr. San Pedro Arizona St. Arizona St.
Louie’s Barber Shop All of State Floors & 20,200 Gold & Izzy’s Furniture Silver Tailor Solid Exchange Shop Rustic Furniture
35,400 Menaul Blvd.
A division of NAI Maestas & Ward Offering Memorandum | 7 Site Plan & Signage Monument Sign
Iconic Monument Sign
Suite G 1,300 SF
Suite E 850 SF Menaul Blvd.
Monument Sign
San Pedro San Pedro Dr.
Menaul
A division of NAI Maestas & Ward Offering Memorandum | 8 Drone Photography
Winrock ABQ Coronado Mall Mall Uptown
San Pedro
Solid All of State Rustic Izzy’s Furniture Floors & Furniture Tailor Gold & Shop Silver Menaul Blvd. NE Exchange Louie’s Barber Shop
SITE
A division of NAI Maestas & Ward Offering Memorandum | 9 Site Photos
A division of NAI Maestas & Ward Offering Memorandum | 10 Site Photos
A division of NAI Maestas & Ward Offering Memorandum | 11 Demographic andDe DeIncmomoomgragerap Prohpihcifile cand andDe Inc moIncomgomrae peProh Proicfile andfile Income Profile
2600 San Pedro Dr NE, Albuquerque,2620600 San0 San Ne Pew droPe Mdroex Drico, DrNE, NE,87 Albuquerque,110 Albuquerque,2600 San Ne Pe Newdro Mwex MDrico,ex NE,ico, 87 Albuquerque,87110110 Prepar Needw by M exEsriico, 87110 PrepPreparedared by by Esri Esri Prepared by Esri Ring: 1 mile radius RinRg:in g:1 mi3 mile lrae diusradius Ring: 5 mile radius Latitude: 35.11004 Latitude:Latitude: 35. 35.1100411004 Latitude: 35.11004 Longitude: -106.57748 Longitude:Longitude: -106.57 -106.57748748 Longitude: -106.57748 1 Mile 3 Miles 5 Miles DemographicsSummary SuSmummamryary CeSnususmm a20ry10 CeCensusnsus 20 2010201107 Census 202011020120227 7 201202272022 2022 Population PopPoulpautiloantion Pop13,556ulation 13,55613013,790,816 320,613,7901321013,96,0941 325,813,9613384 ,4105 330,027 1, 3 & 5 MilesHouseholds HoHusoeuhsolehdols ds Hous6,eh361olds 6,583616,,945447 141,86,48594546,,052555 143,16,7359,421525 144,547 Families FamFailmiesilies Famil3,ies268 3,30,2992683,177 76,2963,29,4161773,149 74,6023,29,18149 1 74,239 Average Household Size AveAveragera geHo Houseuhsoelhdo Sldize Size Average2.13 Household Size 2.132.2.1713 2.212.132.2.1914 2.222.142.20 2.23 Owner Occupied Housing UnitsOwOnwern eOrccu Occupiedpied Housi Housing nUng UnitsitsOwne3,r 969Occupied Housing Units 3,29,0099693,901 75,1533,28,3129013,907 74,0793,28,44907 5 74,655 25 Renter Occupied Housing UnitsRentReentr eOrc Ocucpciuepdi eHdou Hsouingsing Un UitsnitsRente2,r 392Occupied Housing Units 2,293922,,955338 66,62,95305532,,761844 69,02,9430,976618 69,892 Median Age MeMdieadni aAng Aege Median41.7 Age 41.736.742.5 37.142.537.642.4 38.242.438.2 38.9 Trends: 2017 - 2022 AnnualT RareTntredns:d s:20 21071 -7 2 -0 2022 An2 AnnunaluT alRare Ratnedts:eAre 20a17 - 2022 Annual Rate AreStAreaatea AreNatioStaateStatenal NatioStNatioatenalnal National Population PopPoulpautiloantion Popu0.la25%tion 0.25%0.0.20%32% 0.25%0.32%0.0.32%83% 0.32%0.83%0.83% 0.83% Albuquerque Households HoHusoeuhsolehdols ds Hou0.se22%holds 0.22%0.0.12%26% 0.19%0.26%0.0.26%79% 0.26%0.79%0.79% 0.79% Families FamFailmiesilies Fam-0.ilies18% -0.-18%0.0.16%09% -0.10%0.09%0.0.09%71% 0.09%0.71%0.71% 0.71% Owner HHs OwOnwern eHrH HsHs Own0.er03% HHs 0.03%0.0.09%27% 0.16%0.27%0.0.27%72% 0.27%0.72%0.72% 0.72% Median Household Income MeMdieadni aHoun Househsoelhdo Incold Incomeme Med1.ian23% Household Income 1.23%1.1.49%80% 1.58%1.80%1.2.80%12% 1.80%2.12%2.12% 2.12% 2017 20120120227 7 201202272022 2022 Households by Income HoHuosuehseohldosld bsy b Iyn cInomcoeme Households by IncomeNumber Percent NumNumNumberberber PercentPePercentrcent NumNumberberNumber PercentPercentPercent Number Percent SITE <$15,000 <$<15$,1050,000 <$15,000 916 14.2% 9169,754951 14.2%16.5%14.6% 23,4539519,732 16.4%14.6%16.4% 23,570 16.3% $15,000 - $24,999 $15$,1050,0 0-0 $2 - 4$2,949,999 $15,000 - $24,999 821 12.7% 828,1410800 12.7%14.2%12.3% 19,3338007,924 13.5%12.3%13.3% 18,311 12.7% $25,000 - $34,999 $25$,2050,0 0-0 $3 - 4$3,949,999 $25,000 - $34,999 802 12.4% 8027,436754 12.4%12.6%11.6% 17,1137546,899 12.0%11.6%11.6% 15,916 11.0% $35,000 - $49,999 $35$,3050,0 0-0 $4 - 9$4,999,999 $35,000 - $49,999 933 14.5% 938,3654849 14.5%14.7%13.0% 20,0408497,880 14.0%13.0%13.3% 18,341 12.7% $50,000 - $74,999 $50$,5000,0 0-0 $7 - 4$7,949,999 $50,000 - $74,999 1,410 21.8% 1,104101,,235322 21.8%17.3%20.7% 24,31,253539,962 17.0%20.7%16.8% 23,720 16.4% $75,000 - $99,999 $75$,7050,0 0-0 $9 - 9$9,999,999 $75,000 - $99,999 756 11.7% 755,6826824 11.7%12.6%9.9% 14,6148246,390 10.2%12.6%10.8% 16,011 11.1% $100,000 - $149,999 $10$01,0000,0 0-0 $ -1 4$91,49999,999 $100,000 - $149,999 594 9.2% 5945,645725 9.11.1%2%9.6% 15,1477256,782 10.6%11.1%11.4% 17,849 12.3% $150,000 - $199,94099 $15$01,5000,0 0-0 $ -1 9$91,99999,999 $150,000 - $199,999 150 2.3% 1501,771184 2.3%3.2.0%8% 5,4001842,176 3.8%2.8%3.7% 6,360 4.4% $200,000+ $20$02,0000,0+00+ $200,000+ 72 1.1% 1,7233786 1.1%2.1.3%3% 3,7461,86677 2.6%1.3%2.8% 4,466 3.1%
Median Household Income MeMdieadni aHoun Househsoelhdo Incold Incomeme Median Household Inco$45me,086 $45$40$47,918,086,616 $42$47,918,5$43,73575 $46,038 Average Household Income AveAveragera geHo Houseuhsoelhdo Ildn cIomencome Average Household Inc$55ome,871 $55$57$61,689,871,317 $60$61,689,6$64,87966 $67,971 25 Per Capita Income PerPe Cra Cpiatap itaIn coInmcoeme Per Capita Income $25,871 $25$25$28,523,871,967 $26$28,523,9$29,23785 $30,088 Census 2010 CensCensusus 2010 2201010 7 Census 20102012012022 7 7 201202272022 2022 Population by Age PoPpouplatiulationo bny b Ayge AgeNumber PopuPelatircenton by Age NumNNumumberberber PercentPePercentrcent NumNumberNumNumberberber PercentPercentPePercentrcent NumNumberberNumber PercentPercentPercent Number Percent 0 - 4 0 -0 4 - 4 682 0 - 4 5.0% 6828,089652 5.0%6.4.2%7% 19,6536527,688672 6.1%4.7%5.4.8%8% 18,5636727,893 5.7%4.8%5.9% 18,936 5.7% 5 - 9 5 -5 9 - 9 709 5 - 9 5.2% 7097,363653 5.2%5.4.6%7% 18,3756537,225648 5.7%4.7%5.4.5%6% 17,8396487,197 5.5%4.6%5.4% 17,635 5.3% 10 - 14 10 1-0 1 -4 14 666 10 - 14.49% 6666,706680 4.9%5.4.1%9% 17,3156806,693672 5.4%4.9%5.4.1%8% 17,1436726,787 5.3%4.8%5.1% 17,189 5.2% 15 - 19 15 1-5 1 -9 19 804 15 - 15.99% 8048,418665 5.9%6.4.4%8% 20,9936657,345672 6.5%4.8%5.4.6%8% 19,0996727,216 5.9%4.8%5.4% 18,875 5.7% 20 - 24 20 2-0 2 -4 24 954 20 - 27.40% 19542,182831 7.0%9.6.3%0% 28,10710,121831768 8.8%6.0%7.5.7%5% 25,0247689,335 7.7%5.5%7.0% 23,624 7.2% 25 - 34 25 2-5 3 -4 34 1,858 25 -13.7% 34 1,28580,2,004095 13.7%15.3%15.2% 47,7062,220952,,409480 14.9%15.2%17.0%15.0% 51,82,4822,228094 15.9%15.0%16.7% 51,105 15.5% 35 - 44 35 3-5 4 -4 44 1,697 35 -12.5% 44 1,16975,1,524728 12.5%11.9%12.5% 38,3121,15,8597281,925 11.9%12.5%12.0%13.8% 39,2681,17,56925 4 12.0%13.8%13.2% 42,670 12.9% 45 - 54 45 4-5 5 -4 54 2,097 45 -15.5% 54 2,10977,1,899845 15.5%13.7%13.4% 44,7731,158451,,666757 14.0%13.4%11.9%11.9% 39,01,4614,536667 12.0%11.9%10.9% 36,549 11.1% 55 - 64 55 5-5 6 -4 64 1,747 55 -12.9% 64 1,17475,2,117015 12.9%11.6%14.6% 39,1122,16,4140151,962 12.2%14.6%12.4%14.1% 42,3201,15,85962 8 13.0%14.1%11.9% 41,004 12.4% 65 - 74 65 6-5 7 -4 74 1,002 65 - 77.44% 1,0028,1,954336 7.4%6.9.8%7% 23,0131,113361,,859591 7.2%9.11.4%7%9.0% 30,81,3513,461595 9.11.4%5%10.1% 35,007 10.6% 75 - 84 75 7-5 8 -4 84 879 75 - 86.45% 8796,954790 6.5%5.5.3%7% 15,6487906,762852 4.9%5.7%5.6.1%1% 16,3228527,638 5.0%6.1%5.7% 19,002 5.8% 85+ 85+85+ 462 85+3.4% 4623,606502 3.4%2.3.8%6% 7,6045023,960433 2.4%3.6%3.3.0%1% 8,5794333,691 2.6%3.1%2.8% 8,430 2.6% Census 2010 CensCensusus 2010 2201010 7 Census 20102012012022 7 7 201202272022 2022 Race and Ethnicity RaRcea caen adn Edt hEnthicniticyityNumber Race Peanrcentd Ethnicity NumNNumumberberber PercentPePercentrcent NumNumberNumNumberberber PercentPercentPePercentrcent NumNumberberNumber PercentPercentPercent Number Percent White Alone WhWithe itAel onAleone 10,169 Whit75.0%e Alone 10,16993,35410,033 75.0%71.4%72.8% 231,10001,0919,33,494340 72.1%72.8%69.2%71.2% 227,89,3390,46943 5 69.9%71.2%67.8% 226,103 68.5% Black Alone BlaBclka cAkl oAnelone 377 Black2. A8%lone 3774,285396 2.8%3.2.3%9% 11,0043964,362412 3.4%2.9%3.3.3%0% 11,3064124,448 3.5%3.0%3.3% 11,570 3.5% American Indian Alone AmAemriecarinc aIn dIinadni aAnlone Alone603 Amer4.ica4%n Indian Alone 6037,939705 4.4%6.5.1%1% 16,0697058,866783 5.0%5.1%6.5.7%6% 18,1727839,613 5.6%5.6%7.2% 19,827 6.0% A division of NAI Maestas & WardAsian Alone AsiAasni aAnl oAnleone 378 Asian2. A8%lone 3783,339430 2.8%2.3.6%1% 9,471430Offering3,785471 3.0%3. 1%Memorandum2.3.9%4% 10,8474714,138 | 3.123%3.4%3.1% 11,904 3.6% Pacific Islander Alone PacPaificci fIslic aIslndaendr eArl oAnleone 7 Pacifi0.c Isl1%ander Alone 71317 0.1%0.0.1%1% 368 71297 0.1%0.1%0.0.1%1% 354 7128 0.1%0.1%0.1% 351 0.1% Some Other Race Alone SoSmoem Oeth Oerth erRa cRae cAelo An1,loen436e Som10.6%e Other Race Alon1,e14365,1,438574 10.6%11.8%11.4% 37,9071,165741,,666021 11.8%11.4%12.6%11.9% 41,01,8717,339660 12.6%11.9%13.0% 42,984 13.0% Two or More Races TwTwo oro orMo Mreo rRae cRaesces 586 Two or4. 3%More Races 5866,330645 4.3%4.4.8%7% 14,7906456,891686 4.6%4.7%5.4.2%9% 16,2856867,274 5.0%4.9%5.5% 17,288 5.2%
Hispanic Origin (Any Race) HisHispanicpanic Or iOgrinig (Ain ny(A nyRa5, cRa199e)ce) Hisp38.4%anic Origin (Any Ra5,5c1991,5,e)079630 38.4%39.0%40.8% 125,45,2854,6686305,999 39.1%40.8%41.4%43.0% 135,05,2157,73999 2 41.4%43.0%43.3% 142,879 43.3% Data Note: Income is expressed inD cauDtarraent Ntao doNteoll:te arsIn:co .I nmcoem ise eixs perxepsseressed ind D cinua rtacruent rNrento dote ll:doars Inllcoars. m. e is expressed in current dollars.
Source: U.S. Census Bureau, CensuSso 2uS010rocuer: cSum U.e:S. U.ma CeS.r nyCes Filunsse uBu 1.s rBu e Esaruer,ia Cuforens, CecastsensuSso u2us010 rfor c2e010 :2017Sum U. SumS.ma andCemarny s2022.Filruyse FilBu 1.er e1.Esa u rEs,i forCrensi ecastsforuecastss 2 010for for 2017Sum 2017ma and randy 2022. Fil e2022. 1. Esri forecasts for 2017 and 2022.
August 24, 2017 AuguAugust st24, 2 4,20 201717 August 24, 2017
©2017 Esri ©2©01270 1E7s rEi sri ©2017 Esri Page 1 of 6 PagePage 1 of 3 6of 6 Page 5 of 6 City Albuquerque, New Mexico Why Here? Why Now? Overview “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 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.
ABQ by the numbers (not including metro area) 2016 Forecasted by Esri
908,252 260,355 372,809 Metro Area Population Households Total Employees $47,697 Median Household Income
$179,200 6.3% 29,372 Total $11,289,318,480 Median Sales Price of Retail Total Retail Trade & Food/Drink single-family homes (2016 Q2) Vacancy Businesses
New Mexico Albuquerque Metro Albuquerque City Limits
UTAH COLORADO 25
Santa Fe Albuquerque 40 ARIZONA OKLAHOMA Rio Bernalillo Rancho 40 25 Albuquerque 40 Albuquerque Las Cruces TEXAS Los Lunas
Belen 25
A division of NAI Maestas & Ward Offering Memorandum | 13