Downtown Albuquerque Office Building Being Purchased by MMA Academy

Downtown Albuquerque Office Building Being Purchased by MMA Academy

The Colliers International | Ransom-With Team has the listing assignment for the former DEA and FBI facility located at 301 Dr Martin Luther King Jr Ave in Downtown Albuquerque.

The property is currently under contract for sale to world-renowned MMA trainer, Mike Winkeljohn (www.CoachWink.com), who is planning to open a state-of-the-art MMA Academy. The building will undergo a very extensive remodeling effort that will completely change the landscape of the northeast corner of Broadway Blvd and Dr. Martin Luther King Jr. Ave. The concrete building currently has an old industrial design and the new renderings reveal a very modern, attractive plan.

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SIOR New Mexico Chapter Presents at NAIOP & N-I25 Business Association Meetings

The SIOR New Mexico Chapter recently hosted its Industrial and Office Market Update at the November 25th NAIOP luncheon held at the Uptown Marriott hotel. Tim With, Jim Smith and Tom Jenkins were the presenters at this year's event. Click Here to download a copy of their powerpoint presentation.


Key Presentation Points

  1. Industrial vacancies Albuquerque-wide now are about 9%, with large variations in 
    submarkets
  2. Unemployment rates are dropping but vacancy rates are staying the same or 
    increasing
  3. Class A office space is starting to recover because lessees are trading up, while the 
    price and vacancy delta between Class A and Class B spaces is widening.
  4. There appears to be an undersupply of high quality space and newer industrial 
    space.
  5. Albuquerque's Central Business District (downtown) has the highest vacancy rate 
    in the country, although with smaller square footages than many cities.
  6. When Gap leaves downtown in late 2014, the CBD will have a 65% occupancy 
    rate unless some other tenant moves downtown.
  7. Of the top 10 real estate projects recorded in 2013, only one was new 
    construction.
  8. The negative trend of tenants moving out seems to have hit bottom.
  9. For industrial space, tenants are looking for 24-foot and higher ceiling heights, 
    high pressure (ESFR) fire suppression systems, and a trailer parking to dock 
    door ratios of 2 or 3 to 1. Most older spaces do not meet these requirements.
  10. Unknown if the move to building ownership from leasing will continue as the 
    economy strengthens.
  11. Possible that lease rates for desirable properties could be as much as 20% 
    higher.
  12. Predicting a 3 to 4% growth in rental rates annually.
  13. Infrastructure/utility limitations in some areas, particularly South I-25, could push 
    down land prices and growth in the industrial sector.
  14. The pattern of office use has changed -- no more atrium lobbies, marble entries, 
    and large executive offices.
  • Trend for office space now is high density - 500 people in a 100,000 square foot building 
    that previously housed 300.
  • Increased density has impacts for restroom facilities, HVAC capacity.
  • Of the 14.1 million square feet of office space in Albuquerque, the higher quality 
    office space is found:
    • 34% North I-25 area
    • 21% Uptown
    • 1% Downtown
  1. Why consider new development of high quality space?
    • he market currently has a limited amount of the higher quality space 
      many tenants require
    • Because other high quality spaces have been absorbed, there are fewer high quality spaces available
    • Companies looking to relocate here will require multiple space options with large floor plates.
  2. Predictions for the office sector:     
    • Office users will continue to migrate to high quality space
    • Rental gaps will increase between Class A, B, and C spaces
    • We will see redevelopment and repurposing of existing spaces
    • At least two new, substantial office buildings will be developed in the near future.

Historic Downtown Albuquerque Flying Star Café Building Sold!!

Historic Downtown Albuquerque Flying Star Café Building Sold!!

The Ransom-With team facilitated the sale of a historic 15,900+/- square foot retail/office investment property located at 723 Silver Ave SW. The building is one of Albuqueruqe's best examples of the successful redevelopment and transformation of an urban asset. Known formerly as the the Southern Union Gas Company building, it had been vacant for...

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Alvarado Square - 250,000+/- Square Foot Office Building Listed for Sale

Our Team is excited about being awarded the listing assignment for Alvarado Square, located at 415 Silver Ave SW! Since the early 1980's, the 250,000+/- rentable square foot, 8-story Downtown Albuquerque office building has been master-leased by the Public Service Company of New Mexico (PNM) for its management and administrative operations. Alvarado Square is a landmark asset, with a unique architectural design and floors that span over the historic Silver Ave. The asset is one of Albuquerque's largest, and most recognizable office properties in its Downtown CBD submarket.

The building is ideally suited for private, government and/or institutional users that require large, contiguous floor plates and access to mass transit. It is strategically located at the south end of the "D-RIDE" shuttle service, which circulates through the core of downtown, running every seven minutes from 6:30 a.m. to 6:00 p.m. Monday through Friday. Immediately east of the property is the Downtown Albuquerque Rail Runner station located in the heart of the city’s transportation network – the Alvarado Transportation Center. In addition, Albuquerque's revolutionary Rapid Ride bus service can take commuters to the University of New MexicoPresbyterian HospitalOld Town, and many other places directly from the Rail Runner station, including the outlying communities of Santa Fe and Belen. 

In addition to PNM, other recent occupants of the building include the FBI and PNM's former gas company division, which was divested a few years ago. It is anticipated that PNM will physically vacate the building by the end of 2012, however, their lease will be in effect for a few more years, unless an investor or owner occupant presents itself and an early lease buyout is negotiated.

The owner of the asset, Hunter, Keith Industries Inc., originally won the bid to fund the construction of Alvarado Square and in return obtained a long-term lease-back from PNM for a 30-year term. The building is currently listed by the team of John Ransom, Tim With, and Keith Bandoni for $11,100,000. Please contact us at 505-880-7092 for more information on this unique opportunity.

Investment Opportunity | Historic Southern Union Gas Company Building

Positioned at the "West End" of Downtown Albuquerque with a physical address of 723 Silver Ave SW, the 15,960+/- square foot Southern Union Gas Company Building was designed by famous Santa Fe architect, John Gaw Meem, and originally constructed in 1950-1. Designed initially for use by the gas company as an appliance showroom on the 1st level and hospitality rooms on the 2nd level, the entire property was completely remodeled in 2004 by award-winning urbanist developer, Infill Solutions. It was added to the New Mexico State Register of Cultural Properties in 2003 and the National Register of Historic Places in 2004.

The upper levels of the building are fully-leased to Flying Star Cafe, a locally-owned family of restaurants which opened its first establishment in 1987 and since has expanded to include nine restaurants and nine boutique coffee shops known as Satellite Coffee. Flying Star is extremely successful at this location and they will continue to thrive due to the dense daytime and household populations in the immediate area.

The subterranean “basement” area of the building was previously used for mechanical services and storage with no exterior openings. As part of the renovation all existing concrete floors, walls, columns and ceilings were stripped raw and left exposed. New industrial lighting fixtures and exposed metal ducts were incorporated to add character to the 6,000+/- square foot office and studio space.

This offering represents a truly rare opportunity for an investor to acquire an asset with strong built-in cash flow and historic value. There is a long-term lease in place with Flying Star Cafe and the current Net Operating Income is $145,200 per year The list price for the property is $1,900,000 ($119/sf)

Contact the Ransom-With team for more details and to receive a confidential offering memorandum.