119 High St SE ABQ, NM 87102 119 High Original 16 Units: Property Tour: 4/27/21, Tuesday @ noon Size: 7,131 sf Offers Due: 4/29/21, Thursday @ noon Land: 0.155 ac Register for Tour: www.nmapartment.com/high Ask Price: $218,000 Asset Ripe for Redevelopment 1 The Offering to own a piece of history The Property Address: 119 High Street SE On behalf of the owners, NM Apartment Advisors and Deacon Property Number of Services are excited to bring to market this rare opportunity to redevelop original units: 16 this building in the historic Huning Highlands neighborhood. Year of 1901 per county construction: assessors records Located walking distance from iconic Albuquerque venues like the Parq Bldg. Size: 7,131 sf +/- hotel, Holy Cow, the Grove, the Artichoke Café, this property offers the trifecta in high walk, bike and transit scores. Site Size: 0.1671 acres Avg. Unit Size: 446 sf The property’s current use was not recognized when the new IDO zoning went into place - if you choose to renovate/rehab into apartments, you will UPC#: 101405750634511803 need to apply for a zone change. Legal: Lot 5, Block 26 Huning Highland Addition Additionally, the property experienced a resident caused Þre in the upper floor east side. Criterium Engineers has reviewed the property and deemed it salvageable. Ask Price: $218,000 Whether you desire to renovate into a large house with a guest quarters, $/ unit: $13,625 apply for zoning approval to continue its previous use of 16 units, or $ /sf: $30.57 scrape the site and start over, the ask price of $218,000 is a once in a Potential if (will require Renovated zoning generational opportunity to improve the area by transforming this asset. into 16 units approval) Potential Market $1,495,000 value Avg. Rent: $746 GRM: 10.43 Cap Rate Before 5.76% reserves: Year 1 NOI: $81,943 Potential Before Tax IRR: 20.20% 16.50% After Tax IRR: 2 Location - Epicenter of Albuquerque Activity 3 Location - East Downtown (EDO) development activity 4 Steps to the Potential A. As-is condition today– value at $218,000 B. Estimated renovations to turn it into your dream (Large house? Rental? New development?) C. Potential Future value as an apartment $1,495,000 (if you can secure the zoning) = Buyer’s potential upside - is considerable! 5 A. Annual Property Operating Data (APOD) - Potential 6 Internal Rate of Return - Potential Renovation 1. 2. 2. 3. As a commercial real estate investor, the federal tax code gives you three advantages compared to other investments including: 1. Deduct your annual mortgage interest before you calculate your taxable amount; 2. Deduct your cost recovery/depreciation before you calculate your taxable amount, in the future when you sell the property, you only pay back 25% of the beneÞt you received; 3. Your long term proÞt, or capital gain, is taxed at 20% The combination of these beneÞts could help lower an investor’s effective federal tax rate from 35% federal tax rate to only 18%. 7 Comparable Sales - Potential Renovation 8 Amazing potential - But what can I do with it? Hi Todd, Good Morning Todd, The nature of properties within a Historic District is that all contributing properties in the district are considered to be registered properties. The house at 119 High is a con- I think I talked to someone about this property very briefly back when I worked tributing property. I am not sure what plans you have for the property, but whatever is at the City, at least regarding the zoning issue for multiple units. The pre-IDO done will need to go through the Landmarks Commission for review. Demolition is not zoning was from a 1988 Sector Plan that based the zoning on the R-1 district but really an option, although some portions which were added might be able to be re- allowed existing apartments to continue if they existed when the plan was adopt- moved. Returning to 16 units is most unlikely and anything other than single-family will ed. The R-1 reference resulted in the IDO R-1 designation so that clause about require a variance. pre-existing apartments was lost and now the normal nonconformities rules ap- ply. Since it has been vacant so long, I imagine the use cannot be restarted with- Here is the link to the design guidelines for the neighborhood: out a zone change. https://documents.cabq.gov/planning/historic-zones/HPO-Guidelines- There are several R-ML properties just off Central in this area, so I think a zone HuningHighland-FourthWard-8th&Forrester.pdf change is feasible. Jim and I also did the zone change from R-1 to MX-L for the commercial building at Arno and Tijeras and the neighborhood was supportive Feel free to call me if you want to discuss anything more specifically. of that request for improvement of the property. The historic review aspect by the Landmarks Commission should reduce any fears that someone would tear it Sincerely, down and make boxier like a regular apartment complex considering there is a house between it and the building the Grove is in. I think we could get support if someone is willing to put in the right effort with the renovation. For what it’s worth, the City cannot completely deny the due process of trying to demolish the structure. You will need to request a Historic Certificate of Appro- priateness for the demolition (likely need plans for what will replace it) and if the Commission denies the request, it only institutes a one-year moratorium where the City shall try to preserve the structure. If the City Council determines there is no reasonable return or way to preserve it, they “shall issue a demolition permit.” There is a lot of information and criteria to determine that return/preservation. The Landmarks Commission would then review any building plans for new con- struction that would replace it if they didn’t approve that in conjunction with demolition. We would be happy to provide a proposal that could include both a zoning change and a Historic Certificate of Appropriateness – Major (for demolition or alterations) for any prospective buyers to review. Let me know if you have any questions. Thanks, Michael Vos, AICP CONSENSUS PLANNING, INC. phone (505) 764-9801 / [email protected] 9 Property Info - GIS 10 Dimensional Sketch of property outline 11 Property Photo 12 119 High SE past advertisements 13 119 High SE past advertisements 14 Property Photographs 15 Property Photographs - Exterior 16 Property Photographs - Interior 17 Property Photographs - Interior 18 Property Photographs - Interior 19 Property Photographs - Interior 20 Property Photographs - Interior 21 Property Photographs - Fourplex Building 22 Property Photographs - Fourplex Building 23 Property Info - Location 24 Huning Highland Historic District From “huninghighlands.org” 25 Arno Huning from Albuquerque Journal 26 Huning Highland Historic District - Wikipedia Wikipedia The Huning Highlands Historic District is a historic district in Albuquerque, New Mexico which encompasses the entirety of the Huning Highlands neighborhood. The district is bounded by Dr. Martin Luther King Jr. Avenue to the north, Locust Street to the east, Iron Avenue to the south, and the Burlington Northern Santa Fe railroad tracks to the west, covering an area of about 0.3 square miles (0.78 km2). The neighborhood was Albuquerque's first residential subdivision and was mostly developed between the 1880s and 1920s. It is known for its high concentration of Victorian and early 20th-century houses. [3] The district was added to the New Mexico State Register of Cultural Properties in 1976 and the National Register of His- toric Places in 1978.[2] The Atchison, Topeka, and Santa Fe Railway reached Albuquerque in 1880, fueling land speculation as investors hoped to profit from its arrival. The New Mexico Town Company, formed by local businessmen Franz Huning, Elias S. Stover, and William Hazeldine, succeeded in attracting the railroad facilities to their chosen site about 1.5 miles (2.4 km) from the existing community at Old Town. The 3.1-square-mile (8.0 km2) parcel they assembled quickly developed into the booming community of New Town—today's Downtown.[4] Huning also owned land in the rolling sandhills further to the east, which was known as the Highlands due to its elevation. In 1880, the land was platted as the first subdivision to be added to the original townsite. This new neighborhood was named Huning's Highland Addition, which later shifted to Huning High- lands.[5] The neighborhood was laid out by civil engineer Walter G. Marmon, who named the main north-south streets Arno, after Franz Huning's son, Walter and Edith after his own son and daughter, and Broadway, because "every town should have a Broadway".[5] The uppermost street of the gently sloping neighborhood was named High Street. The Highlands quickly became one of Albuquerque's most popular residential areas and was home to many of the city's prominent early residents. Unlike the old Hispanic neighborhoods like Old Town, Barelas, and Atrisco, Huning Highlands was primarily built by recently arrived Anglo-Americans and European immigrants. As such, the houses in the neighborhood reflected styles and materials popular in the eastern and Midwestern United States—Queen Anne, Italianate, and other Victorian styles—rather than traditional regional forms. Most of the houses were built using prefabricated trim and architectural elements in a mix-and-match approach not adhering to any particular style, though some are more cohesive.[5] The neighborhood continued to fill in between the 1880s and 1920s, by which time it was almost completely built up.[5] Residents enjoyed amenities like Highland Park, one of the city's oldest public parks, the Old Main Library, and an electric streetcar line which went into service in 1911.[6] However, as the city continued to grow, many wealthy residents abandoned the older inner-city neighborhoods in favor of the more suburban developments further to the east.