Recently, we were awarded the assignment to sell a 20,000 square foot office building located at 5901 Indian School Rd NE by an Arizona-based lending institution, SCF Arizona. The building was constructed in 2000 by a local developer for a national defense contractor, ITT-Advanced Engineering & Sciences. In 2010, the developer/owner of the building defaulted on the underlying loan and the lender subsequently foreclosed on the asset. In December of 2011, ITT's lease had expired and they moved out of the entire building.
The building was purchased last week by one of New Mexico’s premier leaders in bioscience and pharmaceuticals, Dr. Stuart Rose, who will transform the property into The BioScience Center – the first incubator in our state where entrepreneurs and start-up companies in biotechnology and related fields will find office and wet laboratory space suitable for the development of their businesses. The 20,000 square foot building was ideal as it was already outfitted by the prior user with laboratory space and many executive suite-style offices.
As a result of our experience with marketing distressed assets, we were able to price the property at a level that would attract investors while assuring the seller that it was maximizing the asset value with an aggressive disposition timeline. In addition, Grubb & Ellis|New Mexico's management team did an exceptional job of maintaining the physical plant of the property while it was occupied and after it was vacated helping to assure the buyer that there was no deferred maintenance. Our Team believes that this re-purposing of an existing asset is a large win for our community, especially in light of the current challenges faced by the Albuquerque office market.