APARTMENT HOMES 7501 MONTGOMERY BLVD NE ALBUQUERQUE, NM A 210-UNIT MULTIFAMILY OPPORTUNITY

Transcription

1 APARTMENT HOMES 7501 MONTGOMERY BLVD NE ALBUQUERQUE, NM A 210-UNIT MULTIFAMILY OPPORTUNITY

2 THE OPPORTUNITY CBRE IS PLEASED TO PRESENT the opportunity to acquire Candlelight Square, a 210-unit, Class-B multifamily community completed in The community enjoys an infill location in the center of Albuquerque s most desired Northeast Heights residential submarket. Its strategic location on Montgomery Boulevard a major transportation corridor, places all of Albuquerque s major employment, retail and entertainment destinations within easy reach. Investments in Albuquerque apartments offer higher cap rates and immediate cash-on-cash returns than coastal or primary markets. Stable occupancy and rent levels through past economic cycles coupled with high immediate returns accounts for Albuquerque s attraction for risk-averse, wealth preservation investors with capital appreciation also expected. Candlelight Square enjoys attractive unit designs and ample common area amenities. With rents below the competitive set, Candlelight Square presents a clear opportunity to accelerate income growth through a unit interior upgrade program (appliances, lighting and cabinet resurfacing) and some modest common area enhancements (additional fitness equipment and pool area furnishings). The community is subject to a Land Use Regulatory Agreement (LURA) that requires not less than 107 units to be rented to Low Income tenants (65 units at 80% of AMI) and Very Low-Income tenants (42 units at 50% of AMI). The LURA is in effect until March 1, 2033 and a copy is in the CBRE online document center. The affordable feature has minimal impact on rent growth. INVESTMENT SUMMARY Price Market Price Address 7501 Montgomery Blvd. NE No. of Units 210 Year Completed 1982 Net Rentable SF ±149,875 Average Unit SF ±714 Net Acres/Density ±6.47 Acres Dwelling Units/Acre Parcel ID Terms Cash SANDIA PEAK OSUNA RD NE WYOMING BLVD. Candlelight Square is available free and clear. MONTGOMERY BLVD. PENNSYLVANIA BLVD.

3 INVESTMENT HIGHLIGHTS Highly Visible Northeast Heights Location Candlelight Square is located on Montgomery Boulevard in the heart of the Albuquerque s Northeast Heights, considered the most desirable residential submarket in the city. Montgomery Boulevard is one of Albuquerque s main east-west major arterials with an average weekday traffic count of 36,300 vehicles. Candlelight Square s central location enables quick, easy access to Albuquerque s major employment, retail, and entertainment destinations. The Uptown Area is five minutes south with ±2,300,000 square feet of premier retail destinations, including ABQ Uptown, Coronado Center and Winrock Town Center. Uptown is also home to more than 2,000,000 square feet of Class A, B and C office space. SUBMARKET OVERVIEW CANDLELIGHT SQUARE IS IDEALLY LOCATED in the center of Albuquerque s desirable Northeast Heights on Montgomery Boulevard, a major east/west arterial with an average weekday traffic count of 36,300 vehicles. The property is a maximum 15-minute drive to any destination in the city and is considered the premier residential submarket in Albuquerque. Montgomery is also one of only six thoroughfares crossing the Rio Grande River to Albuquerque s West Side employment and retail establishments. $ Exceptional, Immediate Cash-on-Cash Opportunity Candlelight Square s attractive unit mix, location, and broad tenant base combine with Albuquerque s attractive cap rates to offer a unique opportunity to ensure immediate high cash flow along with long-term capital appreciation. Stable occupancy and rents both at the property and historically in Albuquerque further reinforce the stable, high cash flow. This equates to immediate as well as longterm double-digit cash flows to the buyer. Strong, Stable Albuquerque Multifamily Fundamentals Albuquerque has historically been one of the country s most consistent rental markets through times of both economic prosperity and challenge. Well-located properties in Albuquerque provide stable cash flow and limited downside risk, which is especially attractive at the tail end of a strong economic cycle. Proximity to Major Employment Centers Candlelight Square s central location in the Northeast Heights provides tenants easy, quick access to Uptown, Downtown, and the entire Interstate 25 corridor within minutes. Supply-Constrained Market with Significant Barriers to Entry Albuquerque overall has very few zoned land parcels suitable for multifamily development, with the Northeast Heights being the most supply-constrained submarket in the city. Compounding the lack of zoned parcels are high construction and land costs in relation to rents. Any new construction will be Class A product that will compete at a significantly higher price point than Candlelight Square. Delivered Free and Clear Candlelight Square will be delivered free of debt and able to take advantage of current attractive financing opportunities. A major attraction for tenants is the community s proximity to the vibrant Uptown Area. Uptown, with 2,300,000 square feet of stores and restaurants is only 2-1/2 miles south of Candlelight Square. Major Uptown destination retail centers include: ABQ Uptown (±1,000,000 SF), an outdoor luxury shopping mall; Coronado Center (±1,154,000 SF), a superregional enclosed shopping mall, and; Winrock Town Center (±500,000 SF), currently re-tenanting with an attractive mix of retail stores and restaurants. Uptown is also home to about 2,000,000 SF of Class A, B and C office space with more than 10,400 employees. Of more immediate attraction to tenants are many popular restaurants and retail establishments within ½ mile of the property. The Louisiana Plaza shopping center is a short walk west and home to Smith s Grocery, a gas station and numerous retail establishments. Popular restaurants in proximity are The Range Café, Buffalo Wild Wings, Weck s and Target. Albuquerque s Northeast Heights is considered the premier residential submarket in the city and typically attracts a moderate to high-income tenant. Candlelight Square s central location within the Northeast Heights positions it to attract tenants from throughout the city.

4 UNIT MIX & RENTAL RATES UNIT DESCRIPTION % MIX UNIT COUNT AVG SF. NET RENT/ UNIT NET RENT/ SF Studio 11% $580 $ Bed / 1 Bath 51% $655 $ Bed / 1 Bath 17% $687 $ Bed / 2 Bath 20% $805 $0.86 Totals/Averages 100% $682 $0.95 *All square footages are approximate. 2 bed/2 bath 20% Studio 11% 2 bed/1 bath 17% 1 bed/1 bath 52%

5 UPTOWN AREA UNIVERSITY OF NEW MEXICO CAMPUS DOWNTOWN ALBUQUERQUE AERIAL OVERVIEW CORONADO SHOPPING CENTER WINROCK TOWN CENTER ABQ UPTOWN SHOPPING CENTER INTERSTATE DEL NORTE HIGH SCHOOL SAN MATEO BLVD. CLEVELAND MIDDLE SCHOOL SMITH S SAN MATEO BLVD. LOUISIANA BLVD LOUISIANA BLVD STARDUST SKIES PARK LOUISIANA PLAZA SHOPPING CENTER PENNSYLVANIA ST PENNSYLVANIA ST NUSENDA CREDIT UNION MONTGOMERY BLVD. TEMA FURNITURE

6 7501 MONTGOMERY BLVD NE ALBUQUERQUE, NM CBRE, INC 6100 UPTOWN BLVD NE, SUITE 300 ALBUQUERQUE, NM DAVID EAGLE SENIOR VICE PRESIDENT BILLY EAGLE VICE PRESIDENT ERIK OLSON VICE PRESIDENT RYAN MILLS CLIENT SERVICES SPECIALIST CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_October2017