100% Occupied Big R Shopping Center E. Main St. Farmington, NM Offering Memorandum

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1 Offering Memorandum 100% Occupied Big R Shopping Center E. Main St. Farmington, NM Cole Flanagan, CPA cell cole@iparealty.com Rich Diller, CCIM, SIOR cell richd@iparealty.com Clayton King Owner/Broker cell clayton@gotspaceusa.com

2 Confidential Disclaimer 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 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 of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal 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 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. Offering Memorandum 2

3 Investment Highlights Investment Property Advisors is pleased to offer for sale the Big R Shopping Center located on East Main St., in the bustling market of Farmington, New Mexico. This shopping center is positioned with direct access on the major thoroughfare of Main Street with over 26,000 cars per day. Farmington serves as a hub for regional shopping for nearby areas such as Durango, Colorado. The approximately 74,523 sq. ft. building is situated on about 12 acres, with abundant parking. The property is in an ideal location with quick access from just about anywhere in the city, allowing the property to serve a large population. Neighboring tenants include Wendy s, Burger King, McDonald s, Taco Bell, Buffalo Wild Wings, Bank of America, and many others. This investment benefits from the strong tenancy, visibility from a major thoroughfare, and large pylon signage. The center also boasts below market lease rates and a low price per square foot, which provides for stability and upside for an investor. Substantial cash flow and relatively low rental rates, combined with the low interest rate environment, make this property an opportunity on which an investor can capitalize. Rare opportunity to own retail real estate with good credit tenants at a low price per square foot Strategically located on the major thoroughfare of Main St. with over 26,000 Cars Per Day Long tenured tenants and recent capital improvements Strong performing Big R location surrounding neighborhoods, businesses and Prominent large pylon signage provides for excellent visibility directly on Main St. Offering Summary Purchase Price $4,390,000 Price Per Square Foot $58.91 Net Operating Income $350,960 CAP Rate 8.0% Lease Types NNN Durango Joe s Drive Thru Offering Memorandum 3

4 Tenant Highlights Big R Stores is a large retail farm and ranch store chain in the United States with over 41 locations. Big R Stores are primarily located in rural areas. The typical Big R store has ±24,000 - ±34,000 SF of inside selling space used to display agricultural fencing, livestock equipment and horse stalls. Stores supply the unique products to support their customers rural lifestyle, from welding equipment, generators, animal care products, and adult clothing. Each store team also includes a welder, a farmer, and a horse owner who collectively provide an exceptional depth of knowledge and resources. Big 5 Sportings Goods Corporation has outgrown its name. The company, which started out with five army surplus shops in 1955, is now a leading sporting goods retailer, with nearly 353 stores in California, Washington, Arizona, New Mexico and six other Western states. The company sells brandname equipment and clothing for indoor and outdoor activities including camping, hunting, fishing, tennis, golf, snowboarding and more. Big 5 has remained with a neighborhood store format rather than opening large superstores. The company plans to add about 15 stores per year. Big R Offering Memorandum 4

5 Tenant Highlights Farmington HUB Brewery & Grill Durango Joe s Coffee was established in 2004 by Joe Lloyd and his wife LeAnna with a dream of opening a chain of coffee shops. The local founders of Durango Joe s Coffee have a legendary family history in Durango, Colorado, as rich and memorable as the coffee they serve. Joe, besides serving great coffee, is a community leader and local charity advocate and shares the family spirit of exceptional service and prides himself as being the most caring, independent coffee presence in the area. The Farmington Hub Brewery & Grill is where people meet to share great food, great beer and the stories that we all have and are being made daily. It is where good friends and family can relax in a comfortable and casual environment; it s more than just another place to eat. It s where we are inspired by those that surround us, by the fresh and tasty foods that are offered and the hand crafted beer that is produced on-site throughout every week of the year. We re living our adventure by providing the residents and visitors of the Four Corners a unique dining experience in Farmington, New Mexico. Join us! Big R Offering Memorandum 5

6 Operating Summary Amount Current Projected Rent $375,264 Expense Reimbursements $73,246 Gross Scheduled Rent $448,510 Vacancy (5%) $(22,426) Adjusted Gross Income $426,085 Estimated Reimbursable Operating Expenses Utilities - Electric $6,497 Utilities - Gas $1,798 Utilities - Water $574 Utilities - Sewer $128 Cleaning & Maintenance $10,435 Sanitation $343 Security $654 Reserve for Repairs $10,000 Management Fees $15,000 Real Estate Taxes $18,609 Insurance $11,087 Total Reimbursable Operating Expenses $75,125 Net Operating Income $350,960 Farmington Hub Brewery Offering Memorandum 6

7 Farmington Convention Center & Visitors Bureau Farmington, NM Overview Farmington is a city in San Juan County in the US state of New Mexico. As of the 2013 population estimate from the United States Census Bureau the city had a total population of 79,362 people. Farmington (and the surrounding San Juan County) makes up one of the four Metropolitan Statistical Areas (MSA s) in New Mexico. Farmington is located at the junction of the San Juan River, the Animas River, and the La Plata River, and is located on the Colorado Plateau. Farmington is the largest City of San Juan County, one of the geographically largest counties in the United States covering 5,538 square miles. Farmington serves as the commercial hub for most of northwestern New Mexico and the Four Corners region of four states (Arizona, Colorado, New Mexico and Utah). Farmington lies at or near the junction of three important highways U.S. Highway 550, U.S. Highway 64, and New Mexico Highway 371. It is on the Trails of the Ancients Byway, one of the designated New Mexico Scenic Byways. Located at the confluence of the San Juan, Animas and La Plata rivers, Farmington is the largest city in the Four Corners, with a population of over 79,000. It is the trade center for a rural region covering large portions of four states, and home to the oil, gas and coal industries that dramatically expanded the population and the economy of the county starting in the 1950 s. The primary industries of San Juan County are in the mining of petroleum, natural gas, and coal. Major coal mines are the Navajo and San Juan mines, operated by BHP Billiton 15 to 19 miles southwest of Farmington. This is a major reason why New Mexico is a national player in oil and natural gas production. According to the Energy Information Association, New Mexico is currently the 4th largest producer of natural gas in the United States and has the 3rd largest amount of proven natural gas reserves. New Mexico is ranked 6th in oil production and 4th in oil reserves. Finally, New Mexico leads the nation in the production and reserves of coal bed methane. New businesses continue to locate here to serve these industries. Farmington is known across New Mexico and throughout the southwest for its baseball tournaments, and the Ricketts Ball Park is the home of the Connie Mack World Series. Farmington has been the home of the Connie Mack World Series baseball tournament, played in August every year at Ricketts Park (capacity 5,072), for 43 years. The Connie Mack World Series consists of 10 teams from various regions around the United States, including a team from Puerto Rico. San Juan Plaza in Farmington is also home to an annual strongman competition which takes place the last Saturday of July. Farmington holds a riverfest once a year. Area rivers are celebrated with a festival of music, fine arts, food, entertainment, a 10K and 5K run & walk, riverside trail walks and river raft rides. Pinon Hills Golf Course, designed by Ken Dye, in Farmington is one of the United States Top Municipal Golf Courses. Owned and operated by the City of Farmington, Pinon Hills has been ranked in the Top Municipal Golf Courses by Golfweek Magazine for several years. Offering Memorandum 7

8 20th St. Property Location Main nst St. Offering Memorandum 8 Main St. Sullivan Ave. San Juan Blvd. 30th St. Butler Ave. Fairview Ave. 7,210 Orchard Plaza Plaza Farmington San Juan North Plaza San Juan South Plaza M 26,017 SITE

9 Property Aerial Athletic Fields Big R Sales Yard SITE Fairgrounds Rd. Navajo St. 26,017 Farmington Hub Brewery Main St. Industrial Ave. Paradise Village Scott Ave. Hi-Country Buick GMC Dealership Offering Memorandum 9

10 County Aerial Cities Farmington Services: Farmington, NM Population: 79,362 Average HH Income: $66,045 Durango, CO Population: 17,654 Average HH Income: $64,119 Cortez Mancos Hesperus Durango Bayfield Pagosa Springs Shiprock, NM Population: 8,207 Average HH Income: $41,388 Cortez, CO Population: 8,556 Average HH Income: $51,400 Aztec Ignacio Dulce Navajo Tribe, NM Population: 7,670 Average HH Income: $56,212 Bayfield, CO Population: 2,615 Average HH Income: $78,756 Shiprock Navajo Tribe Farmington Bloomfield Bloomfield, NM Population: 7,916 Average HH Income: $54,281 Pagosa Springs, CO Population: 1,810 Average HH Income: $93,745 Aztec, NM Population: 6,727 Average HH Income: $56,765 Ignacio, CO Population: 715 Average HH Income: $52,050 Offering Memorandum 10

11 Demographics San Juan County Offering Memorandum 11