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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