Gardenswartz Shopping Center 2860 Cerrillos Rd. Santa Fe, NM 87507

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1 Offering Memorandum Gardenswartz Shopping Center 2860 Cerrillos Rd. Santa Fe, NM Cole Flanagan, CPA cell Rich Diller, CCIM, SIOR cell Carlos Garcia cell

2 Confidential Disclaimer 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, PCB s 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 ADVISOR FOR MORE DETAILS. Offering Memorandum 2

3 Investment Highlights Investment Property Advisors is pleased to offer for sale the Gardenswartz Shopping Center located at 2860 Cerrillos Rd., in the prestigious market of Santa Fe, New Mexico. This shopping center is positioned with direct access on the major thoroughfare of Cerrillos Rd. The approximately 52,667 sq. ft. building is situated on about 4.63 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 CVS, Sonic, Hobby Lobby, Pep Boys, True Value, Smith s Food & Drug Store (Kroger), Jo-Ann Fabrics, and many others. This investment benefits from the strong tenancy, visibility from a major thoroughfare, and a large pylon signage, in addition to the intrinsic value of owning a shopping center in the highly sought after Santa Fe market. Substantial cash flow and relatively low rental rates, combined with the low interest rate environment, make this property an opportunity that an investor can capitalize on. Rare opportunity to own retail real estate in the coveted Santa Fe, NM market Strategically located on the major thoroughfare of Cerrillos Rd. with over 45,000 Cars Per Day Recent early extension by anchor tenant Big 5 Sporting Goods, with significant improvements invested by tenant Benefits from convenient access to both the surrounding neighborhoods and close proximity to Santa Fe Place Mall Prominent large pylon signage provides for excellent visibility directly on Cerrillos Rd. Offering Summary Purchase Price $6,145,000 Net Operating Income $491,700 Cap Rate 8.00% Lease Types NNN Offering Memorandum 3

4 Operating Summary 2015 Amount Gross Potential Rent $509,036 Expense Reimbursement $120,120 Total Adjusted Income $629,156 Reimbursable Operating Expenses Utilities $6,538 Cleaning Services $1,813 Landscaping $8,822 Security $6,215 Grounds and Parking $6,854 General Building $34,262 Management Fees $18,424 Administrative Expenses $1,710 Real Estate Taxes $40,637 Insurance $5,291 Real Estate Taxes $46,569 Insurance $19,629 Total Reimbursable Operating Expenses $130,566 Non-Reimbursable Expenses Utilities $3,645 General Building $3,246 Total Non-Reimbursable Operating Expenses $6,890 Total Operating Expenses $137,456 Net Operating Income $491,700 Offering Memorandum 4

5 Santa Fe Overview Santa Fe is the capital of the State of New Mexico. It is the fourth-largest city in the state and is the seat of Santa Fe County. Santa Fe is the oldest capital city in the United States and the oldest city in New Mexico. It is the principal city of a Metropolitan Statistical Area which encompasses all of Santa Fe County and is part of the larger Albuquerque-Santa Fe-Las Vegas Combined Statistical Area. The city s full name when founded was La Villa Real de la Santa Fe de San Francisco de Asís ( The Royal Town of the Holy Faith of St. Francis of Assisi ). The city is well known as a center for arts that reflect the multicultural character of the city; it has been designated as a UNESCO Creative City in Design, Crafts and Folk Art. Each Wednesday the alternative weekly newspaper, The Santa Fe Reporter, publishes information on the arts and culture of Santa Fe; and each Friday, the daily Santa Fe New Mexican publishes Pasatiempo, its long-running calendar and commentary on arts and events. In 2012, the city was listed among the 10 best places to retire in the U.S. by CBS Money Watch and U.S. News. Santa Fe has had an association with science and technology since 1943 when the town served as the gateway to Los Alamos National Laboratory (LANL), a 45-minute drive from the city. In 1984, the Santa Fe Institute (SFI) was founded to research complex systems in the physical, biological, economic, and political sciences. It hosts such Nobel laureates as Murray Gell-Mann (physics), Philip Warren Anderson (physics), and Kenneth Arrow (economics). The National Center for Genome Resources (NCGR) was founded in 1994 to focus on research at the intersection among bioscience, computing, and mathematics. In the 1990s and 2000s several technology companies formed to commercialize technologies from LANL, SFI, and NCGR. This community of companies has been dubbed the Info Mesa. 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 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. The Canyon Road arts area with its galleries is also a major attraction for locals and visitors alike. Offering Memorandum 5

6 Property Location 509 Cerrillos Rd. 25 SITE Rodeo Rd. St. Michaels Dr. Santa Fe St. Frances Dr. Siler Rd. Floor Mart Calle La Resolana Furry s Buick GMC Santa Fe Mazda Valvo Cerrillos Rd. SITE Camino Carlos Rey 47,271 53, Santa Fe University of Art and Design Siringo Rd. Offering Memorandum 6

7 Aerial Mariscos Costa Azul Siler Rd. Cerrillos Rd. SITE Wok Biotest Plasma Center 47,271 53,451 Los Nietos Cafe SF Christian Fellowship Church Clark Rd. Offering Memorandum 7

8 Santa Fe Demographics Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Trends: Annual Rate Population Households Families Owner HHs Median Household Income Households by Income <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Median Household Income Average Household Income Per Capita Income Population by Age Demographics 10,285 4,429 2, ,707 1, State 0.53% 0.59% 0.47% 0.62% 2.85% % % % % % % % % % 1 Mile 3 Mile 5 Mile 54,993 25,052 13, ,700 10, State 0.53% 0.59% 0.47% 0.62% 2.85% 4, % 3, % 2, % 3, % 4, % 2, % 2, % % % 90,279 40,518 21, ,315 15, State 0.53% 0.59% 0.47% 0.62% 2.85% 6, % 5, % 4, % 5, % 7, % 3, % 4, % 1, % 1, % $36,565 $50,151 $21, % % % % % 1, % 1, % 1, % 1, % 1, % % % $42,131 $58,372 $26,509 3, % 3, % 2, % 2, % 3, % 6, % 6, % 7, % 8, % 5, % 2, % 1, % $46,204 $65,871 $29,448 5, % 5, % 5, % 4, % 5, % 11, % 11, % 12, % 13, % 9, % 4, % 1, % Offering Memorandum 8