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E X E C U T I V E S U M M A R Y
SANTA FE’S SIGNATURE OFFICE/RETAIL PROPERTYPREMIER DOWNTOWN LOCATION
125 L INCOLN 150 WASHINGTONSanta Fe, New Mexico
THE OPPORTUNITY
CBRE, as exclusive advisor, is pleased to present to qualified investors the opportunity to
acquire 125 Lincoln | 150 Washington (the “Property”), Downtown Santa Fe’s signature
office/retail property. The Property is exceptionally located in the heart of Downtown
Santa Fe and is comprised of two Class A buildings with a total of 139,119 net rentable
square feet. The buildings share a central courtyard and a single-level underground
parking garage — a unique and valuable on-site amenity. Each building is subject to long-
term ground lease. Additional detail is provided within the Offering Memorandum.
125 Lincoln | 150 Washington boasts a premier location within a prestigious market. It
comprises nearly a full city block and is just north of Santa Fe’s historic Plaza — home to the
Palace of the Governors — and adjacent to the New Mexico State Museum. The exclusive
restaurants, retail shops and hotels that surround the Property provide unmatched access
to best-in-class amenities. With Santa Fe’s strict building restrictions — particularly within
the Downtown historic district — the Property is well-insulated from the competition of
future development. It is also bolstered by historically strong demand and the ability to
command the market’s top rents.
125 Lincoln | 150 Washington is 60% leased to a diverse base of investment-credit and local
tenants, resulting in a secure, in-place cash flow. The Property offers significant upside
through the lease-up of current vacancy and the mark-to-market of near-term rollover
with in-place rents ±12% below current market rents. Further upside can be achieved
through converting the Property’s full-service rents to a more favorable “Plus E” structure.
The 125 Lincoln | 150 Washington offering presents investors with a unique opportunity to acquire
a landmark property in a premier destination market.
125 LINCOLN | 150 WASHINGTON2
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ASSET PROFILE
Address:125 Lincoln Avenue 150 Washington AvenueSanta Fe, New Mexico 87501
Net Rentable Area:139,119 RSF
Leased:60%
Building Details:125 Lincoln: 4 Tenant Floors150 Washington: 3 Tenant Floors
Years Built:1983-1984
Typical Floor Sizes:Ranges from 14,500 RSF to 28,500 RSF
Site:1.5 Acres
On-Site Parking/Ratio:166 Total Garage Parking Spaces1.3/1,000 RSF
INVESTMENT HIGHLIGHTSNear-Term Upside Potential
• Lease-up of Current Vacancy• Conversion of Rents to a “Plus E” Structure • Mark-to-Market of Near-Term Rollover
Secure In-Place Cash Flow
• Diversified, Investment-Credit Quality Tenants • Loyal, Long-Term Tenancy • Limited Large Tenant Exposure
Santa Fe’s Premier Office & Retail Space
• Class A Buildings with High-End Finishes• Recent Capital Improvements of ±$6 Million• On-Site, Underground Parking• Upscale, Amenity-Rich Location Adjacent to the Historic Santa Fe Plaza• Best-in-Class Restaurants, Shops, Hotels & Cultural Destinations
Premier Downtown Santa Fe Submarket
• Coveted Downtown Address• Significant Barriers to Entry • Stable Office Market Fundamentals
• Affluent Residential Neighborhoods
Santa Fe, New Mexico
• Oldest State Capital in the U.S. • World-Renowned Tourist Destination• Strong Local Economy• Tremendous Value for CRE Investors
3EXECUTIVE SUMMARY
SECURE IN-PLACE CASH FLOW
Diversified, Investment Credit Quality
Loyal, Long-Term Tenancy
Two of the Three Largest Tenants in Place through December 2023 and March 2026
Limited Large Tenant Exposure
Average Tenant Size of ±4,585 SF
NEAR-TERM UPSIDE POTENTIAL
Lease-up of Current Vacancy
±55,000 Total SF
Suites Range from ±1,000 SF to ±13,500 SF
Conversion to “Plus E” Rents
More Favorable Lease Structure for Investors
Reflective of the Property’s Strong Market Position
Mark-to-Market of In-Place Leases
±12% Below Current Market Rents
Substantial NOI Growth
Offered free of in-place financing, 125 Lincoln | 150 Washington allows an investor to take
advantage of strong lending markets — generating significant leveraged returns.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
CY 2019 CY 2020 CY 2021 CY 2022 CY 2023
Financial Services
27%
Business Consulting
20%
Real Estate Services
17%
Art Galleries/Retail
10%
Restaurants
9%Information Technology
7%Retail Services
5%
Legal Services4%
Real Estate Investment 1%1%
Tenants leasing more than 25,500 square feet, or 30% of the Property’s leased space, have been at 125 Lincoln | 150
Washington for 10 or more years.
Nearly 1.5x Growth over th
e Hold
4 125 LINCOLN | 150 WASHINGTON
SANTA FE’S PREMIER OFFICE & RETAIL SPACE
Market-Leading Asset Quality
High-End Finishes throughout All Common Areas & Tenant Spaces
Underground Parking with Direct Access to Each Building
Generously Landscaped Central Courtyard
Fully Operative Windows with Spectacular Views
Valuable Street Frontage & Access
Caters to Upscale Office & Retail Users
Limited Near-Term Capital Exposure
±$6 Million Invested (since 2009)
HVAC & Lighting Upgrades
Renovated Lobbies, Corridors & Restrooms
New Windows & Courtyard Improvements
Convenient Amenities
On-Site Restaurants & Shops
Upper-Level Balcony Space
Abundant Garage Parking
Walking Distance from Historic Plaza & Museums
Superior Accessibility
1/2 Mile from Paseo de Peralta (SH 475)
4 Miles to Interstate 25
20 Minutes to Santa Fe Regional Airport
1 Hour to Albuquerque International Airport
125 Lincoln | 150 Washington offers a highly visible location with frontage on Santa Fe’s
main avenue of hotels, restaurants, art galleries, and retail shops — adjacent to the historic
Plaza and renowned museums.
475
5EXECUTIVE SUMMARY
Santa Fe Community
Convention Center
La Boca Restaurant
La Fonda Hotel
First Judicial District Court
Hotel St. Francis
Hilton Santa Fe InnOld Santa Fe Inn
Supreme
Court Justice
Secretary
of State
Santa Fe Library
Hotel Chimayo de Santa Fe
Rosewood Inn of the Anasazi
Inn of the
Governors
State of New
Mexico Offices
MARCY ST
WASH
INGTO
N AV
E
LINCOLN AVE
Palace of the
Governors
New Mexico
Museum of Art
Santa Fe
County Clerk
Georgia O’Keeffe
Museum Annex
Georgia O’Keeffe Museum
El Dorado Hotel & Spa
Historic Santa Fe Plaza
150 WASHINGTON
125 L INCOLN
N
6 125 LINCOLN | 150 WASHINGTON
PREMIER DOWNTOWN SANTA FE LOCATION
SIGNIFICANT BARRIERS TO ENTRY
Inventory Inventory
Occupancy OccupancyRents Rents
Greater Santa Fe Downtown Santa Fe
3 , 2 5 8 , 0 9 3 S F 5 1 4 , 3 4 1 S F
9 3 . 9 % 8 7. 1 %$ 2 0 . 1 3 F S G $ 2 4 . 8 6 F S G
Five-Year Rent Growth
Five-Year Rent Growth1 5 % 3 1 %
7EXECUTIVE SUMMARY
SANTA FE, NEW MEXICO
Internationally Renowned Tourist Destination
1.5 Million Visitors Annually
Increasingly Diversified State Economy
Government/Military, Energy, Tourism, Film/TV Production,
Emerging Tech Sector
Very Low Unemployment
3.7% Seasonally Adjusted in June 2018
Strong Projected Job Growth
5.9% through 2026
Exceptional Quality of Life | Affluent Demographics
Superior Climate with World-Class Amenities
The state of New Mexico offers tremendous value to commercial real estate investors. A historically stable market, Santa Fe’s single-digit vacancy and
lack of competitive supply creates a favorable rent environment with significant runway for
investors entering the market.
Santa Fe RegionalAirport
Paseo De Peralta
125 L INCOLN 150 WASHINGTON
N
Santa Fe
JOHN ALVARADOSenior Vice [email protected]
MARGUERITE HAVERLYSenior [email protected]
EXCLUSIVE MARKETING ADVISORS
GARY CARRVice [email protected]
TOM JENKINS, SIOR, CCIMFirst Vice [email protected] DEBT & STRUCTURED F INANCE
PETER GINERISSenior Vice [email protected]
UNDERWRIT ING SUPPORT
MARY CLAIRE HOUSEMANSenior Financial [email protected]
© 2018 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners.
For additional information regarding this opportunity, please visit the property website at www.cbre-DowntownSantaFe.com.
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