Marketing and sale of triple net leased property utilizing specialized local knowledge and national reach.

Posted by Tim House on

Challenge: 

A longtime client made the decision to sell a property leased to Circle K Corporation. The lease was a (NNN) triple net lease with only eight years remaining. With the limited time until expiration, financing was an issue and required a buyer who had all cash or one who had substantial equity. This significantly reduced the buyer pool.

Action: 

Our team created a targeted marketing plan focusing on private local and national investors.
We used our extensive investor and broker database and the Sperry Van Ness national marketing platform, along with exposing the property on all major web portals. In addition, we implemented an old-fashioned targeted cold-calling campaign.

Results: 

We generated interest from over 100 potential investors and spent considerable time weeding out those investors who were unwilling to meet the seller’s expectations. We eventually located a qualified local buyer who was confident they could replace the tenant, if necessary. As a result, we were able to meet the Seller’s expectations, and the Buyer obtained an
acceptable return and a well-located property.

Albuquerque Benefits From Tech, Film Industries

Posted by Tim House on with 15 Comments

Albuquerque has historically been sheltered from economic storms that dramatically affect our neighbors in the Southwest. The real estate cycles here have consistently seen fewer highs and lows than markets such as Denver or Phoenix, making Albuquerque a relatively steady bet.

Although slow to feel the impacts of this recession, the city has still struggled with the same issues found nationwide. In September 2010, SunCal Cos.’ 57,000-acre development on Albuquerque’s west side went into foreclosure. The property was originally purchased in 2007 for $250 million from the Atrisco Land Grant heirs and sold at auction in September 2010 for $148 million.

By November 2010, unemployment rates were 8.8%, which is still better than the national unemployment rate of 9.6%. Government employment, which accounts for over 20% of the workforce in the greater metro area, has acted as a stabilizing force. However, even government jobs, the greater equalizer in this market, have been reduced as the city and state deal with lower revenues.

But there are many bright spots as well, including, Intel and Hewlett-Packard, both located in neighboring Rio Rancho, which employ upwards of 7,000 employees and contractors.

Newer to Albuquerque is the movie industry, which has been a steady presence here for the past decade. The growth of the industry has provided infrastructure, which generates opportunities for investment such as the newly constructed, massive state-of-the-art Albuquerque Studios. Local entrepreneurs and service companies support the industry.

Major commercial product types have all felt the effect of the recession, with apartments and retail faring better than other property sectors. Apartment occupancies have bounced back from the lows of 2008 with 95% occupancy and growing rents at the start of 2011.[/vc_column_text][/vc_column][/vc_row]