college plaza south santa fe offering · gross scheduled income $823,838 $15.65 estimated operating...

Sandia Shuttle Pho Ava

Vietnamese

Nail ExpertsVogue Cosmetology

Livingston Hearing Aids

S I TE

To view property video visit our YouTube Channel!

CLICK HERE

Grocery Shadow-Anchored Shopping Center | High Barrier to EntryCollege Plaza South | Santa Fe

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

2400 Cerrillos Rd. | Santa Fe, NM 87505

A division of NAI Maestas & Ward

OfferingMemorandum

Cole Flanagan, CPA, MBAcell 505 235 7585 [email protected]

Carlos Garciacell 505 670 3181

[email protected]

Presented by

https://www.youtube.com/watch?v=H4i4hpy8fbA

Offering Memorandum | 2A division of NAI Maestas & Ward

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 OR dROBERTS REALTY, LLC ADVISOR FOR MORE DETAILS.

ConfidentialDisclaimer


InvestmentHighlights

Investment Property Advisors is pleased to offer for sale College Plaza South located at 2400 Cerrillos Road in the coveted, high barrier to entry Santa Fe, New Mexico market. This shopping center is shadow-anchored by a highly trafficked Smith’s (Kroger) grocery store that owns their own parcel, and is anchored by a high-performing Planet Fitness on a long-term lease. Additionally, Chick-fil-a has recently completed and is opening a brand new drive-thru on an outparcel (not a part) to the center, which further validates the location. The shopping center is positioned at the southeast corner of Cerrillos Road and St Michaels Dr. with over 70,000 cars per day at this intersection, with Cerrillos Road being the dominant thoroughfare throughout Santa Fe.

The approximately 52,648 sq. ft. building is situated on about 6.48 acres. The center is currently 86% occupied with varying lease terms and many long-tenured tenants. The property has a mix of national, regional, and local tenants; providing for a solid, stabilized tenant mix. Planet Fitness moved into this space about 2 years ago and this was quickly one of their top-performing locations in New Mexico. The property has high visibility from Cerrillos Road with a large pylon sign, as well as significant foot traffic driven by both Smith’s and Planet Fitness.

This investment benefits from the significant in-place cash flow, long tenured tenancy, strong, vibrant anchors driving foot traffic, and visibility from 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 in an extremely high-barrier to entry market. Current in place cash flow combined with the long-term predictability, make this property an opportunity on which an investor can capitalize.

� Significant in-place cash flow (8% Cap Rate)

� Coveted, high barrier to entry market

� Smith’s (Kroger) grocery shadow-anchored center

� Top-performing Planet Fitness anchor

� Significant foot traffic in high-profile center

� Staggered Lease Terms and long-tenured tenancy

� High-performing intersection with excellent visibility

� Strategically located at the major intersection of Cerrillos Rd. & St. Michaels Dr. with over 70,000 cars per day

� Dense in-fill location � Population exceeds 56,000 within a 3-mile radius

� Mix of national, regional, and local tenants

� Diverse tenant mix

Offering SummaryPurchase Price $8,350,000

Price per Square Foot $158.60

Net Operating Income $669,366

CAP Rate 8.0%

Occupancy 85.75%

HIGHLIGHTS


PropertyPhotos


Amount $/SFCurrent Rental Income $704,949 $13.39

Expense Reimbursements $118,888 $2.26

GROSS SCHEDULED INCOME $823,838 $15.65

Estimated Operating Expenses

Utilities 4,980 $0.09

Cleaning Services 60 $0.00

Landscaping 6,555 $0.12

Security 8,448 $0.16

Grounds & Parking 4,867 $0.09

General Building 19,735 $0.37

Administrative/Management Expenses 31,267 $0.59

Advertising 97 $0.00

Miscellaneous Repairs 6,908 $0.13

Property Tax 46,909 $0.89

Insurance 8,818 $0.17

Non Pass Through Utilities 11,773 $0.22

Non Pass Through Miscellaneous 4,055 $0.08

TOTAL OPERATING EXPENSES $154,472 $2.93

NET OPERATING INCOME $669,366 $12.71

ProformaOperatingSummary

1 2 3 4 5 6 7

Gross Rental Income $704,949 $786,578 $839,710 $856,504 $873,634 $891,107 $908,929

Expense Reimbursements $118,888 $144,099 $153,438 $156,507 $159,637 $162,830 $166,086

Gross Scheduled Income $823,838 $930,677 $993,148 $1,013,011 $1,033,271 $1,053,937 $1,075,016

Expenses

Utilities $4,980 $5,080 $5,181 $5,285 $5,391 $5,498 $5,608

Cleaning Services $60 $61 $62 $64 $65 $66 $68

Landscaping $6,555 $6,686 $6,820 $6,956 $7,095 $7,237 $7,382

Security $8,448 $8,617 $8,789 $8,965 $9,144 $9,327 $9,514

Grounds & Parking $4,867 $4,964 $5,064 $5,165 $5,268 $5,374 $5,481

General Building $19,735 $20,130 $20,532 $20,943 $21,362 $21,789 $22,225

Administrative/Management Expenses $31,267 $35,204 $37,504 $38,254 $39,019 $39,800 $40,596

Advertising $97 $99 $101 $103 $105 $107 $109

Miscellaneous Repairs $6,908 $7,046 $7,187 $7,331 $7,477 $7,627 $7,780

Property Tax $46,909 $47,847 $48,804 $49,780 $50,776 $51,791 $52,827

Insurance $8,818 $8,994 $9,174 $9,358 $9,545 $9,736 $9,931

Non Pass Through Utilities $11,773 $3,942 - - - - -

Non Pass Through Miscellaneous $4,055 $4,136 $4,219 $4,303 $4,389 $4,477 $4,567

TOTAL OPERATING EXPENSES $154,472 $152,806 $153,438 $156,507 $159,637 $162,830 $166,086

NET OPERATING INCOME $669,366 $777,871 $839,710 $856,504 $873,634 $891,107 $908,929

Assumptions: 1. Rental Income grows at 2% Annually. 2. Lease-up 4,502 SF vacancy beginning year 2 at $15.00/SF with $10/SF Tenant Improvements. 3. Lease-up 2,200 SF vacancy beginning year 3 at $17.00/SF with $15/SF Tenant Improvements. 4. Expenses grow at 2% annually.


NOI 7-Year


1 2 3 4 5 6 7

GROSS SCHEDULED INCOME $823,838 $930,677 $993,148 $1,013,011 $1,033,271 $1,053,937 $1,075,016

Total Operating Expenses $154,472 $152,806 $153,438 $156,507 $159,637 $162,830 $166,086

NET OPERATING INCOME $669,366 $777,871 $839,710 $856,504 $873,634 $891,107 $908,929

Leasing Commissions $0 $21,968 $12,167 $0 $0 $0 $0

Tenant Improvements $0 $45,020 $33,000 $0 $0 $0 $0

Capital Reserve $13,162 $13,162 $13,162 $13,162 $13,162 $13,162 $13,162

CASH FLOW BEFORE DEBT $656,204 $697,721 $781,381 $843,342 $860,472 $877,945 $895,767

Annual Debt Service $475,436 $475,436 $475,436 $475,436 $475,436 $475,436 $475,436

CASH FLOW AFTER DEBT $180,768 $222,285 $305,945 $367,906 $385,036 $402,509 $420,331

Cash-on-Cash Return 8.66% 10.65% 14.66% 17.62% 18.44% 19.28% 20.14%

Cash Flow 7-Year

Assumptions: 1. Leasing Commissions of 6% (plus gross receipts tax) on new leases based on lease-up assumptions on NOI 7-Year Projection. 2. Tenant Improvements on new leases based on lease-up assumptions on NOI 7-Year Projection. 3. Capital Reserve at an average of $0.25/SF per year. 4. Mortgage based on 4.5% Interest Rate, 20 Year Amortization, 75% Loan-To-Value, $8,350,000 Purchase Price.

St. Michaels Dr.

2nd St.

Rail

Runn

er

Hopewell St.

Cerrillos Rd.

Cerrillos Rd. Cam

ino Carlos Rey

Santa Fe University of Art & Design

New MexicoState Library

Jackalope

Salazar Elementary

School

Ashbaugh Park

Mandela International

Magnet School

LaderaGolf Course

CPD 48,780

CPD 42,847

Davis Kitchens

Food King

Tecolote Cafe

S I TE

COLLEGE PLAZA SOUTH

COLLEGE PLAZA

ST. MICHAEL’S VILLAGE II

Nail ExpertsSandia Shuttle

Direct TaxLivingston Audiology

Pho Ava Vietnamese

Regional Finance

PLAZA DEL SOL

Chow’s Asian Bistro

Big R Farm & Ranch Supply

2nd St. Brewery

CPD 27,807


PropertyAerial

Cerrillos Rd.

S I T E

CPD 48,780

Regional Finance

Sandia Shuttle

Pho Ava Vietnamese

Nail ExpertsVogue

Cosmetology

Livingston Hearing Aids


PropertySite

Santa Fe

S I TE

25

285


1 Mile 2 Mile 3 Mile

Demographic and Income Profile2400 Cerrillos Rd, Santa Fe, New Mexico, 87505 2 Prepared by Esri2400 Cerrillos Rd, Santa Fe, New Mexico, 87505 Latitude: 35.66031Ring: 1 mile radius Longitude: -105.98151

Summary Census 2010 2017 2022Population 10,876 10,814 10,880Households 4,542 4,531 4,559Families 2,494 2,425 2,409Average Household Size 2.34 2.33 2.33Owner Occupied Housing Units 2,612 2,625 2,654Renter Occupied Housing Units 1,930 1,906 1,905Median Age 39.2 41.3 42.0

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.12% 0.32% 0.83%Households 0.12% 0.26% 0.79%Families -0.13% 0.09% 0.71%Owner HHs 0.22% 0.27% 0.72%Median Household Income 1.64% 1.80% 2.12%

2017 2022 Households by Income Number Percent Number Percent

<$15,000 732 16.2% 715 15.7%$15,000 - $24,999 586 12.9% 546 12.0%$25,000 - $34,999 546 12.1% 498 10.9%$35,000 - $49,999 762 16.8% 702 15.4%$50,000 - $74,999 851 18.8% 848 18.6%$75,000 - $99,999 501 11.1% 563 12.3%$100,000 - $149,999 384 8.5% 475 10.4%$150,000 - $199,999 100 2.2% 122 2.7%$200,000+ 69 1.5% 90 2.0%

Median Household Income $41,608 $45,128Average Household Income $54,726 $62,007Per Capita Income $23,767 $26,865

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

0 - 4 749 6.9% 669 6.2% 664 6.1%5 - 9 623 5.7% 575 5.3% 555 5.1%10 - 14 575 5.3% 538 5.0% 537 4.9%15 - 19 640 5.9% 555 5.1% 546 5.0%20 - 24 776 7.1% 804 7.4% 746 6.9%25 - 34 1,411 13.0% 1,415 13.1% 1,467 13.5%35 - 44 1,503 13.8% 1,353 12.5% 1,307 12.0%45 - 54 1,544 14.2% 1,366 12.6% 1,314 12.1%55 - 64 1,567 14.4% 1,565 14.5% 1,491 13.7%65 - 74 877 8.1% 1,230 11.4% 1,336 12.3%75 - 84 452 4.2% 538 5.0% 695 6.4%

85+ 161 1.5% 208 1.9% 221 2.0%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 8,034 73.9% 7,911 73.2% 7,928 72.9%Black Alone 108 1.0% 130 1.2% 149 1.4%American Indian Alone 259 2.4% 284 2.6% 299 2.7%Asian Alone 110 1.0% 128 1.2% 143 1.3%Pacific Islander Alone 12 0.1% 15 0.1% 17 0.2%Some Other Race Alone 1,941 17.8% 1,923 17.8% 1,917 17.6%Two or More Races 412 3.8% 423 3.9% 427 3.9%

Hispanic Origin (Any Race) 6,792 62.4% 6,780 62.7% 6,898 63.4%Data Note: Income is expressed in current dollars.

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

March 19, 2018

©2018 Esri Page 1 of 6



Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.12% 0.32% 0.83%Households 0.12% 0.26% 0.79%Families -0.13% 0.09% 0.71%Owner HHs 0.22% 0.27% 0.72%Median Household Income 1.64% 1.80% 2.12%


<$15,000 732 16.2% 715 15.7%$15,000 - $24,999 586 12.9% 546 12.0%$25,000 - $34,999 546 12.1% 498 10.9%$35,000 - $49,999 762 16.8% 702 15.4%$50,000 - $74,999 851 18.8% 848 18.6%$75,000 - $99,999 501 11.1% 563 12.3%$100,000 - $149,999 384 8.5% 475 10.4%$150,000 - $199,999 100 2.2% 122 2.7%$200,000+ 69 1.5% 90 2.0%



0 - 4 749 6.9% 669 6.2% 664 6.1%5 - 9 623 5.7% 575 5.3% 555 5.1%10 - 14 575 5.3% 538 5.0% 537 4.9%15 - 19 640 5.9% 555 5.1% 546 5.0%20 - 24 776 7.1% 804 7.4% 746 6.9%25 - 34 1,411 13.0% 1,415 13.1% 1,467 13.5%35 - 44 1,503 13.8% 1,353 12.5% 1,307 12.0%45 - 54 1,544 14.2% 1,366 12.6% 1,314 12.1%55 - 64 1,567 14.4% 1,565 14.5% 1,491 13.7%65 - 74 877 8.1% 1,230 11.4% 1,336 12.3%75 - 84 452 4.2% 538 5.0% 695 6.4%

85+ 161 1.5% 208 1.9% 221 2.0%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 8,034 73.9% 7,911 73.2% 7,928 72.9%Black Alone 108 1.0% 130 1.2% 149 1.4%American Indian Alone 259 2.4% 284 2.6% 299 2.7%Asian Alone 110 1.0% 128 1.2% 143 1.3%Pacific Islander Alone 12 0.1% 15 0.1% 17 0.2%Some Other Race Alone 1,941 17.8% 1,923 17.8% 1,917 17.6%Two or More Races 412 3.8% 423 3.9% 427 3.9%



March 19, 2018




Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.38% 0.32% 0.83%Households 0.40% 0.26% 0.79%Families 0.09% 0.09% 0.71%Owner HHs 0.41% 0.27% 0.72%Median Household Income 1.87% 1.80% 2.12%


<$15,000 2,383 15.4% 2,383 15.1%$15,000 - $24,999 2,086 13.5% 1,990 12.6%$25,000 - $34,999 1,721 11.1% 1,590 10.1%$35,000 - $49,999 2,297 14.8% 2,120 13.4%$50,000 - $74,999 2,976 19.2% 2,954 18.7%$75,000 - $99,999 1,595 10.3% 1,778 11.2%$100,000 - $149,999 1,540 9.9% 1,900 12.0%$150,000 - $199,999 521 3.4% 631 4.0%$200,000+ 378 2.4% 467 3.0%



0 - 4 1,832 5.6% 1,703 5.1% 1,708 5.0%5 - 9 1,677 5.2% 1,581 4.7% 1,538 4.5%10 - 14 1,643 5.1% 1,586 4.7% 1,574 4.6%15 - 19 1,715 5.3% 1,596 4.8% 1,585 4.7%20 - 24 1,840 5.7% 1,980 5.9% 1,897 5.6%25 - 34 4,019 12.4% 4,053 12.1% 4,142 12.2%35 - 44 4,215 13.0% 3,967 11.9% 3,909 11.5%45 - 54 4,852 14.9% 4,364 13.1% 4,119 12.1%55 - 64 5,290 16.3% 5,375 16.1% 5,090 14.9%65 - 74 2,979 9.2% 4,279 12.8% 4,896 14.4%75 - 84 1,677 5.2% 2,008 6.0% 2,588 7.6%

85+ 769 2.4% 939 2.8% 1,031 3.0%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 24,827 76.4% 25,095 75.1% 25,379 74.5%Black Alone 359 1.1% 466 1.4% 551 1.6%American Indian Alone 771 2.4% 881 2.6% 945 2.8%Asian Alone 374 1.2% 462 1.4% 523 1.5%Pacific Islander Alone 26 0.1% 34 0.1% 38 0.1%Some Other Race Alone 4,876 15.0% 5,114 15.3% 5,218 15.3%Two or More Races 1,275 3.9% 1,380 4.1% 1,422 4.2%



March 19, 2018




Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.55% 0.32% 0.83%Households 0.56% 0.26% 0.79%Families 0.27% 0.09% 0.71%Owner HHs 0.56% 0.27% 0.72%Median Household Income 1.91% 1.80% 2.12%


<$15,000 4,141 15.7% 4,179 15.4%$15,000 - $24,999 3,399 12.9% 3,271 12.0%$25,000 - $34,999 2,795 10.6% 2,600 9.6%$35,000 - $49,999 3,660 13.9% 3,392 12.5%$50,000 - $74,999 4,832 18.3% 4,810 17.7%$75,000 - $99,999 2,737 10.4% 3,044 11.2%$100,000 - $149,999 2,868 10.9% 3,479 12.8%$150,000 - $199,999 978 3.7% 1,170 4.3%$200,000+ 1,004 3.8% 1,216 4.5%



0 - 4 3,000 5.6% 2,880 5.1% 2,953 5.1%5 - 9 2,780 5.2% 2,763 4.9% 2,747 4.7%10 - 14 2,757 5.1% 2,776 4.9% 2,807 4.8%15 - 19 2,767 5.1% 2,735 4.8% 2,744 4.7%20 - 24 2,976 5.5% 3,239 5.7% 3,180 5.5%25 - 34 6,696 12.5% 6,959 12.3% 7,247 12.5%35 - 44 6,980 13.0% 6,742 11.9% 6,783 11.7%45 - 54 8,100 15.1% 7,449 13.2% 7,041 12.1%55 - 64 8,850 16.5% 9,017 15.9% 8,560 14.7%65 - 74 4,908 9.1% 7,244 12.8% 8,148 14.0%75 - 84 2,724 5.1% 3,284 5.8% 4,340 7.5%

85+ 1,229 2.3% 1,510 2.7% 1,634 2.8%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 41,692 77.5% 43,009 76.0% 43,840 75.3%Black Alone 548 1.0% 733 1.3% 876 1.5%American Indian Alone 1,169 2.2% 1,365 2.4% 1,478 2.5%Asian Alone 639 1.2% 802 1.4% 919 1.6%Pacific Islander Alone 41 0.1% 54 0.1% 61 0.1%Some Other Race Alone 7,582 14.1% 8,299 14.7% 8,580 14.7%Two or More Races 2,095 3.9% 2,335 4.1% 2,430 4.2%



March 19, 2018


Demographics1, 3 & 5 Miles

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 REPORT CARD 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 ChoiceTop 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.

151,567 MSA Population

$76,589 Average Household Income

65,022 Households

$44,737 Median Disposable Income

8,430 Total Businesses

The State

Capital 94,096

Total Employees

25

2525

40

4040

40

college plaza south santa fe offering · gross scheduled income $823,838 $15.65 estimated operating...

Documents