Rosemont Realty Partakes in Largest Office Acquisition in Albuquerque

By Camelia Bulea, Associate Editor

Rosemont Realty LLC has recently acquired Pinetree Corporate Center, consisting of five multistory buildings totaling 204,229 square feet of Class B office space in Albuquerque.

This marks the largest office real estate acquisition in the Duke City this year, in terms of square footage, reports the New Mexico Business Weekly. Built between 1975 and 1980, the office complex is currently 80 percent leased. Among its tenants are names such as New Mexico State University, The Manuel Lujan Agencies, National American University, Webster University and Brookline College, adds the local publication.

The Pinetree acquisition increases the company’s portfolio in the greater Albuquerque area to 42 properties totaling approximately 2.1 million square feet of commercial space.

It seems that the company’s shopping spree does not end within the city’s limits. Rosemont Realty has recently announced four other office deals in in Denver, Houston, San Antonio and Birmingham, Ala, adding 720,000 square feet of office space to its national portfolio.

According to the New Mexico Business Weekly, the four new deals include:

• One Federal Place – a 300,012-square-foot Class A office building in Birmingham, Ala.;
• Cole Center at Denver West – 167,205 square feet of Class A office space in three buildings in Denver;
• One Thousand Oaks – 140,946 square feet of Class B office space in San Antonio;
• Ashford East – a 112,368 square foot Class B office building in Houston.

Photo rendering of Pinetree Corporate Center, courtesy of Rosemont Realty LLC

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Historic Motel Converted to $5.7M Low-Cost Housing; Downtown Sears Building on the Market

By Camelia Bulea, Associate Editor

Renovation work on the historic Luna Lodge is almost complete, and residents will be able to move in after Thanksgiving.

Built in the 1950s, the Route 66 motel has been converted to low-cost housing, including 14 apartments and a new 16-unit wing added to the north part of the property, according to the New Mexico Business Weekly. Developer NewLife Homes also plans to convert the adjacent Mexican restaurant as part of the Luna project, adds the publication.

Financing for the $5.7 million project consists of:

• $1.2 million grant from the city of Albuquerque
• $1.3 million in construction loans from the Mortgage Finance Authority
• $3.2 million in federal tax credits purchased by RBC Capital Markets

The developer is currently working on another motel renovation in Albuquerque. Back in September 2012 the company announced the conversion of the Sundowner Motel into a low-income apartment complex, under a contract worth $5 million. According to the New Mexico Business Weekly, the motel located on Central Avenue will include 71 apartment units.

In other news, the historic Sears Building in downtown Albuquerque is on the market for $3.8 million. Built in 1936 as a Sears store, the building was converted into an office building years after Sears closed it.

In 1991 the U.S. military leased almost half the building’s 56,000 square feet for its New Mexico entrance processing station. Earlier this year the building’s anchor tenant announced it would move its entrance station to Copper Pointe, vacating the 25,000 square feet of space it has leased for the past 21 years.

Photo courtesy of Route 66 News

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Developers to Start $13.6M Affordable Project Near Albuquerque Downtown

By Camelia Bulea, Associate Editor

Greater Albuquerque Housing Partnership plans to break ground on a 68-unit affordable housing apartment development located at the gateway to Albuquerque’s Downtown in January 2013.

The $13.6 million project, dubbed Plaza Ciudana, is the first phase of a master-planned community planned to include between 250 and 300 units of affordable and market-rate housing, according to the New Mexico Business Weekly. The project, designed to revitalize the neighborhood, will include 15,000 square feet of commercial space along Broadway.

To finance the entire project, which is expected to cost circa $60 million, the developer will need financial support from the city, said Louis Kolker, executive director of the Greater Albuquerque Housing Partnership, as quoted by the New Mexico Business Weekly.

The project will be built to achieve a rating of LEED Gold or higher.  Its design is guided by new urbanism and traditional neighborhood design principles with all of the units facing the street, and all on-site parking for the development located in the rear of the buildings. Pavilion Construction will serve as builder for the Plaza Ciudana development, while The Hartman + Majewski Design Group will be the architect of the project.

Given the area’s industrial nature, the multifamily project has many opponents who fear that the project will not only create an unsafe environment for renters, but it will also lower property values. According to the Albuquerque Journal, dozens of entrepreneurs have formed a coalition that opposes city proposals to “down-zone” commercial and industrial activities in the area.

In other interesting news, Chamisa Village Phase II, a 127,000-square-foot residential complex on the campus of New Mexico State University, was certified Leadership in Energy and Environmental Design (LEED) Gold according to Steinberg Architects.

Photo courtesy of Greater Albuquerque Housing Partnership

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Dick’s Sporting Goods Opens 45,000-Sq.-Ft. Las Cruces Store

By Camelia Bulea, Associate Editor

Dick’s Sporting Goods has opened its first Las Cruces store. Located at 200 North Telshor Blvd., the 45,000-square-foot store is located in a remodeled former Sportsman’s Warehouse, reports the New Mexico Business Weekly.

This is the second store under Dick’s name in New Mexico. The company’s first store in the state was launched on Albuquerque’s Westside last year. The Pittsburgh-based retailer signed a 10-year deal for nearly 51,000 square feet in a former Walmart, adjacent to Cottonwood Commons, in the summer of 2011.

Two additional locations are possible in the state, but no other information has yet been disclosed, Bob Feinberg of Grubb & Ellis | New Mexico, which represents Dick’s in the state, told the New Mexico Business Weekly.

According to a company news release, the grand opening featured two great appearances: former Dallas Cowboy Everson Walls on Saturday and two-time NBA All-Star Reggie Theus on Sunday.

DICK’S Sporting Goods, Inc., an authentic full-line sporting goods retailer, operates 501 DICK’S Sporting Goods stores in 44 states and 81 Golf Galaxy stores in 30 states.

The Albuquerque retail market has been slowly showing signs of recovery in the first half of this year, compared to the same period over the last three years, according to a CBRE retail market report. As illustrated in the chart below, net absorption in the second quarter was 112,700 square feet, which is the highest quarterly absorption rate since the third quarter of 2010. Moreover, the vacancy rate continued to decline and was at 12.1 percent in the second quarter. CBRE reports that the largest activity this quarter was Savers relocating to a 45,000-square-foot space in the NE Heights submarket.

Photo courtesy of www.skyscrapercity.com

Chart courtesy of CBRE’s MarketView Retail Albuquerque

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Construction Begins on $12M Regal Cinema at Winrock Town Center Redevelopment

By Camelia Bulea, Associate Editor

Construction on the Regal IMAX Cinema at Winrock Town Center has begun after nearly 18 month of delay. The 71,156-square-foot, 16-screen cinema is expected to open in the fall of 2013.

According to the New Mexico Business Weekly, the $12 million cinema is the first phase of the major Winrock Town Center’s redevelopment, which broke ground in May with the demolition of the Winrock Inn motel. This first phase also includes three new restaurants: BJ’s Restaurant and Brewhouse, Genghis Grill and Dave & Buster’s. The four businesses are expected to generate about 700 jobs.

Subsequent phases will build out the remainder of the site with numerous retail, entertainment, restaurant, office, residential, hospitality and community uses, according to an official presentation. The contractor of the Regal project is VCC, a major builder of cinemas and shopping centers.

On paper for over five years, the mixed-use development is projected to cost about $600 million, up from the original forecast of $400 million, according to Gary Goodman, developer of the new Winrock, as quoted by the Business Weekly. Goodman is self-financing the first phase of Winrock’s redevelopment, but seeking financing for future phases.

Built under a public/private partnership, the City and Winrock Partners officially entered into a Master Development Agreement in December 2008, which spelled out the specifications for developing the approved public infrastructure and the terms for financing the infrastructure through TIDD bonds. According to the Goodman Realty Group website, the city, county and state have allocated $137 million in TIDD bond financing for the development of public infrastructure within Winrock Town Center.

Photo rendering of Winrock Theatre and Plaza, courtesy of Goodman Realty Group

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Pulte Homes buys 86 developed lots in Stormcloud

By Camelia Bulea, Associate Editor

Pulte Homes is planning to expand its presence on the Westside of Albuquerque with the purchase of 86 developed lots in Stormcloud. The developer has begun marketing these communities.

According to the developer’s website, Pulte recently opened The Boulders and Mesa del Sol communities in Albuquerque, in addition to featuring new homes at Volterra.

At The Stormcloud six home designs are available, ranging in size from 1,776 to 3,123 square feet, and priced from the high-$180,000s. The one and two-level single-family homes also feature three and four bedrooms. This new project marks the second time Pulte has sold homes in Stormcloud. So far, it has sold 129 units more than two years ago, according to an official statement.

“We are pleased to be back at Stormcloud, offering new floor plans and lower prices,” said Wade Messenger, the company’s vice president of sales, in a news release. “Stormcloud is attractive to value-oriented families and empty nesters alike who prefer convenience to the highway for easy commuting and who love living near outstanding recreational facilities.”

The New Mexico Business Weekly, quoting DataTraq, reports that Pulte Homes was nominated the second-largest production homebuilder in the Duke City, behind D.R. Horton.

Meanwhile, Albuquerque Mayor Richard J. Berry announced the groundbreaking of a $19 million recycling facility on Sept. 6. The 87,000 square foot facility is part of a public-private partnership between the city and Friedman Recycling, according to a news release. It is estimated that 120,000 tons of recyclable material will be sorted at the new facility each year, helping to reduce the amount of trash that is sent to the landfill.

The facility is also expected to generate 35 jobs initially and eventually 75, according to officials.

Photo rendering of Jade at Stormcloud, courtesy of Pulte Homes

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Branch Design Breaks Ground on 176-Unit Market-Rate Apartments in Sante Fe

By Camelia Bulea, Associate Editor

Branch Design and Development announced it would break ground on the 176-unit San Isidro Apartments in Santa Fe this week. The New Mexican reported that the developer stated this is Santa Fe’s first large market-rate apartment community in 15 years.

The financing for the project is provided by Key Bank Real Estate Capital, while the construction and permanent loan is guaranteed by the U.S. Department of Housing and Urban Development, the New Mexico Business Weekly reported.

The first of several buildings should be available for occupancy in June of next year, according to an official statement from the company. Conceived in 2004 as a master plan community, San Isidro Village will soon be able to offer its 1,700 residents a community where people could work, play, live, eat and shop without ever needing their car, said Jeffrey Branch, the project developer. Apart from the apartments, the complex will include a swimming pool, community center, fitness center, barbecue area and hot tub. Branch Design also plans to build a 3-acre neighborhood park that will include a “mini soccer field, basketball court and play structure, according to The New Mexican.

In other multifamily news, Aragon Holdings acquired Broadstone Towne Center, a 240-unit multifamily property located near the Albuquerque International Sunport. The seller of the property is Alliance Residential LLC, a buyer and developer in Albuquerque.

New Mexico Business Weekly reports that the Class A property, which was completed in 2009, is currently 95 percent occupied. The deal represents one of the largest apartment complex acquisitions this year in the Duke City, although financial terms were not disclosed.

Photo rendering of Broadstone Towne Center, courtesy of ForRent.com

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Architect Chosen to Design $8.6M Eddy County Sherrif’s Offices

By Camelia Bulea, Associate Editor

Albuquerque-based Van H. Gilbert Architect PC (VHGA) has won the bid to design the new Eddy County Sheriff’s Department offices.

The $8.6 million project already has most of the financing necessary for construction. New Mexico Business Weekly quoted County Manager Allen Sartin saying that $2 million for the law enforcement complex had been set aside, and another $5 million would be allocated the next year. Allen Sartin said the outstanding $1.6 million would probably come from a budget surplus.

The architecture firm was selected to design the project in a 3-2 vote, raising a large number of protests, as the company isn’t located in Carlsbad. According to Carlsbad Current-Argus, the initial estimate to build the new sheriff’s complex is about $8 million, but Sartin pointed out to the commission that the price tag wouldn’t be firm until the project was put out for bid, and the bids were returned to the county.

VHGA has been in business for 36 years. According to their website, their portfolio includes a variety of commercial projects such as the Mack Energy Corporate Office, Mountain States Mutual Corporate Headquarters and 911 Emergency Operations Center.

Meanwhile, Albuquerque will be home to a new 20,000-square-foot biotech incubator, The BioScience Center, reports the New Mexico Business Weekly. Stuart Rose bought the building and plans to convert it into a center after implementing upgrades, including a new roof and painting. The 10-year old building, which will be leased solely by startup biotech companies, will be converted with the purpose of creating a prosperous environment for technology businesses and attracting more companies of this kind to New Mexico.

Although the purchase price was not disclosed, the Albuquerque publication reports that the property, which had been vacant for the last year, had been listed for sale by Grubb & Ellis | New Mexico at $1.65 million.

Photo rendering of 911 Emergency Operations Center, courtesy of Van H. Gilbert Architect PC

Charts courtesy of CBRE

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Sanbusco Market Center Sold at Auction to GE Capital Affiliate

By Camelia Bulea, Associate Editor

Santa Fe’s Sanbusco Market Center was sold at auction to its lender.

An affiliate of General Electric Capital Corp. bought it for $8.8 million, the value of the loan, thus ending 28 years of ownership by Joseph Schepps, according to the New Mexico Business Weekly.

The new owner foreclosed on the shopping center at the end of May 2012, according to The New Mexican. The main factor that the former owner cited for the financial problems was the loss of the large Borders bookstore early last year. “We have unfortunately not been able to recover from the Borders bankruptcy and subsequent loss of our anchor tenant and the prolonged economic downturn,” said Schepps as quoted by the New Mexican.

A complaint for foreclosure was filed in May, according to which Sanbusco Corp. had been paying $91,785 a month on the loan, but has been in default since last August, and owed nearly $9 million in principal, interest, late charges and fees as of May 1.

Joseph Schepps developed the shopping complex at 500 Montezuma Ave. in 1984 after purchasing the century-old Santa Fe Builders Supply Co. property next to the Santa Fe Railyard. Anchored by shops like Bodhi Bazaar, Cost Plus World Market and Dell Fox Jewelry, Sanbusco has more than 20 stores, creating an interesting mix of local artisans and restaurants.

In other news, officials have broken ground on a new medical center to serve the Pecos area. Albuquerque Journal reports that the new 15,000-square facility will serve the 8,200 residents of the northern New Mexico community. The $3 million project is being funded by the Agriculture Department’s Rural Development’s Community Facilities program through an American Recovery and Reinvestment Act loan.

Photo rendering of Sanbusco Market Center, courtesy of sanbusco.com

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Albuquerque Plans $20M Facelift for Convention Center

By Camelia Bulea, Associate Editor

Albuquerque Mayor Richard Berry recently unveiled a $20 million plan to redesign the exterior of the Albuquerque Convention Center.

Twenty-one years have passed since the Convention Center, built in 1972, received a fresh look, according to Cvent Blog. The redesign will focus on the center’s west end and will turn it into a space that represents Albuquerque and New Mexico, much like the Albuquerque International Sunport, reported New Mexico Business Weekly.

The current design relies mainly on concrete with a small amount of windows. The changes are intended to bring a new look that better represents the architectural elements of the region. The redesign plans, which include a new exterior facade, a new entertainment deck in the ballroom, massive windows with panoramic views and complete remodeling of the ballroom, were developed by local architecture firm Dekker/Perich/Sabatini. Additionally, Cvent Blog reports that the west building lower level atrium will include a fireplace and a lower-level food court.

Redesign works are planned to begin by mid-2013 with completion set for the end of 2014.

In other news, PNM Resources’ Alvarado Square was listed for sale for $11.1 million. The 250,000-square-foot office campus is being marketed by Grubb & Ellis | New Mexico, according to the New Mexico Business Weekly. The seller is Albuquerque Plaza Associates LP, an affiliate of Minneapolis’ Hunter Keith Industries.

Built in 1981, the building is priced at $45 a square foot, which is considered to be a bargain price. The eight-story office building is considered to be unique in Albuquerque as it might be the only building Downtown that has an airspace agreement with the city.

Photo credits: LoopNet