Absolute NNN Single-Tenant Sale-Leaseback Offering...Investment Property Advisors is pleased to...

Cole Flanagan, CPA, MBAcell 505 235 7585 [email protected]

Absolute NNN Single-Tenant Sale-Leaseback8% Cap Rate | 10-Year Term | Affluent Demographic Area

Randall Parishoffice 505 338 4110

[email protected]

6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109 office 1 505 878 0001 | www.IPArealty.com

A division of NAI Maestas & Ward

OfferingMemorandum

7301 San Antonio Dr. NE | Albuquerque, NM 87109

Offering Memorandum | 2A division of NAI Maestas & Ward

ConfidentialDisclaimer

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, PCBs 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.


InvestmentHighlights

Investment Property Advisors is pleased to offer for sale a single-tenant Absolute NNN sale-leaseback in Albuquerque, New Mexico. The asset is located at 7301 San Antonio Dr NE which is in the heart of the Far Northeast Heights Submarket of Albuquerque. The site sits on infill real estate with access and visibility from San Antonio Dr., which leads to an on/off ramp for Interstate 25. This thoroughfare is used by commuters going to and from work every day with over 20,000 vehicles per day.

The approximately 2,400 sq. ft. building is situated on about 0.29 acres. This building was completely remodeled when the current operator purchased the property in 2017. The Verdes Foundation will be operating under a new Absolute NNN 10-year lease with 10% increases every five years, upon close of escrow. The Verdes Foundation is one of the leading medical cannabis producers and suppliers in the State of New Mexico, with a focus on high quality product and service. The company was founded in 2010 by Eric Speegle and his father, Doug Speegle, and has expanded to become one of New Mexico’s largest and most highly regarded dispensaries.

This investment benefits from the strong operational performance of the tenant, the long-term lease, and its exceptional location. The newly remodeled building combined with no landlord responsibilities creates a passive investment. Strong real estate fundamentals and a dependable tenant, make this property an opportunity on which an investor can capitalize into the future.

The Verdes Foundation

Offering Summary

Purchase Price $900,000

Net Operating Income $72,000

Cap Rate 8.00%

Lease Type Absolute NNN

� Single-Tenant Absolute NNN Sale-Leaseback

� Recent remodel by Tenant

� Long-term lease - 10 years of initial term with five (5) 5-year options - 10% rental increases every 5 years

� Building size: ±2,400 SF

� Land size: ±0.29 acres

� Absolute NNN lease - passive investment - No landlord responsibilities

� Premier location - Visibility and access from San Antonio Dr. - Irreplaceable real estate; site is located in the heart of the Far Northeast Heights submarket - Services the wealthiest demographic area of Albuquerque - San Antonio Dr. serves as a thoroughfare to Interstate 25 with an on/off ramp

� Significant traffic counts - San Antonio Dr.: Over 20,000 vehicles per day - Wyoming Blvd.: Over 26,000 vehicles per day

55,600+ Population within a 2-mile radius of site

$87,000+ Average Household Income

in a 2-mile radius


Location7301 San Antonio Dr NEAlbuquerque, NM 87109

Tenant The Verdes Foundation

Building Size ±2,400 Sq. Ft.

Land Size ±0.29 Acres

Rent Commencement Date Close of Escrow

Base Lease Term 10 years

Rental Increases 10% Every 5 years

Renewal Options Five (5), 5-year Options

Net Operating Income $72,000

Lease Type Absolute NNN

Personal Guarantee Yes

The Verdes Foundation

Period Annual RentYears 1-5 $72,000

Years 6-10 $79,200

Years 11-15 (Option 1) $87,120

Years 16-20 (Option 2) $95,832

Years 21-25 (Option 3) $105,415

Years 26-30 (Option 4) $115,957

Years 31-35 (Option 5) $127,552

Rent Schedule

Lease Summary & Rent Schedule


The Verdes Foundation is a nonprofit organization and is one of the longest operating dispensaries in New Mexico. Started in 2010 by Eric Speegle and his father Doug Speegle, the dispensary and grow operation quickly expanded to become one of New Mexico’s largest and most highly regarded dispensaries. Their goal is to provide the highest quality medicine for the best possible outcome.

Verdes is focused on wellness. Their dispensary is operated by registered nurses and both our dispensary and grow facility are family owned and operated. They employ over 40 New Mexicans and serve over 3,000 medical cannabis patients in New Mexico. All Verdes Customer Service Providers are extremely knowledgeable and have been trained by the RN’s on staff to ensure patients are given safe and accurate information. Verdes employees have completed multiple industry certifications and travel at least once a year to National conferences, where they are educated on current medical cannabis standards.

Verdes is constantly innovating and adapting their growing techniques to provide their patients the best medical cannabis possible. The team at Verdes is very involved in creating responsible public policy for medical cannabis. They are actively involved with The American Cannabis Nurses Association, National Cannabis Industry Association, Students for Sensible Drug Policy, New Mexico Medical Cannabis Patient’s Alliance, and Women Grow.

The Verdes Foundation works closely with the New Mexico Department of Health, meeting all quality and regulatory requirements.

TenantHighlights

Tenant ProfileTenant The Verdes FoundationHeadquarters Albuquerque, NMLocations 2Type PrivateYear Founded 2010Website www.verdesfoundation.org

Louisi

ana Blvd.

San Antonio Dr.W

yoming Blvd.

Albuquerque Academy±1,150 Students

S I T E

Harper Rd.

Coronado Villa Retirement Resort

Vista del NorteShopping Center

BodyLanguageStudio

Groomingdale’s Pet Spa

BestWayCleaners

French Funerals

Loma del Norte Park

Covenant School

Del Norte

DEL NORTE CENTER

Desert Hills Animal ClinicBleu Cafe

Southwest Eye Care

Cherry Hills Office Center

JJ’s Premier Tire Service

NM Diesel Power

Telegraph HillsApartments

Holy Cross Lutheran Church

Ultimate ChangesHair Salon CPD

26,500

CPD 32,100

CPD 20,700

TradeArea


San Antonio Dr.

San Antonio Dr.

S I TE

BodyLanguageStudio Groomingdale’s

Pet SpaUltimate Changes

Hair Salon

BestWayCleaners

JJ’s Premier Tire Service

NM Diesel Power

CPD 20,700

PropertyAerial


S I T E

25

Albuquerque

40

1 Mile 2 Mile 3 Mile

Demographic and Income Profile7301 San Antonio Dr NE, Albuquerque, New Mexico, 87109 Prepared by EsriRing: 3 mile radius Latitude: 35.15970

Longitude: -106.56329

Summary Census 2010 2019 2024Population 99,730 102,647 104,779Households 44,037 44,941 45,728Families 26,030 25,616 25,634Average Household Size 2.24 2.26 2.27Owner Occupied Housing Units 27,048 27,342 27,982Renter Occupied Housing Units 16,989 17,599 17,746Median Age 40.2 41.6 42.4

Trends: 2019 - 2024 Annual Rate Area State NationalPopulation 0.41% 0.65% 0.77%Households 0.35% 0.61% 0.75%Families 0.01% 0.38% 0.68%Owner HHs 0.46% 0.80% 0.92%Median Household Income 1.31% 1.55% 2.70%

2019 2024 Households by Income Number Percent Number Percent

<$15,000 4,406 9.8% 3,982 8.7%$15,000 - $24,999 3,933 8.8% 3,580 7.8%$25,000 - $34,999 4,324 9.6% 4,169 9.1%$35,000 - $49,999 5,863 13.0% 5,731 12.5%$50,000 - $74,999 7,701 17.1% 8,087 17.7%$75,000 - $99,999 5,618 12.5% 5,650 12.4%$100,000 - $149,999 7,036 15.7% 7,849 17.2%$150,000 - $199,999 3,309 7.4% 3,578 7.8%$200,000+ 2,752 6.1% 3,102 6.8%

Median Household Income $60,480 $64,534Average Household Income $85,200 $92,896Per Capita Income $37,340 $40,578

Census 2010 2019 2024 Population by Age Number Percent Number Percent Number Percent

0 - 4 5,476 5.5% 5,160 5.0% 5,296 5.1%5 - 9 5,835 5.9% 5,394 5.3% 5,409 5.2%10 - 14 5,859 5.9% 5,729 5.6% 5,576 5.3%15 - 19 6,333 6.4% 5,645 5.5% 5,526 5.3%20 - 24 7,184 7.2% 5,978 5.8% 5,847 5.6%25 - 34 13,047 13.1% 14,913 14.5% 14,262 13.6%35 - 44 11,934 12.0% 12,468 12.1% 14,004 13.4%45 - 54 15,073 15.1% 12,501 12.2% 12,114 11.6%55 - 64 12,969 13.0% 14,488 14.1% 13,582 13.0%65 - 74 7,898 7.9% 11,222 10.9% 12,595 12.0%75 - 84 5,402 5.4% 6,059 5.9% 7,366 7.0%

85+ 2,721 2.7% 3,089 3.0% 3,203 3.1%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 76,752 77.0% 76,552 74.6% 76,733 73.2%Black Alone 2,560 2.6% 2,574 2.5% 2,626 2.5%American Indian Alone 4,358 4.4% 4,978 4.8% 5,411 5.2%Asian Alone 3,954 4.0% 4,770 4.6% 5,304 5.1%Pacific Islander Alone 110 0.1% 105 0.1% 104 0.1%Some Other Race Alone 8,060 8.1% 9,146 8.9% 9,743 9.3%Two or More Races 3,936 3.9% 4,522 4.4% 4,859 4.6%

Hispanic Origin (Any Race) 29,668 29.7% 33,622 32.8% 36,366 34.7%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2019 and 2024.

August 12, 2019

©2019 Esri Page 5 of 6






<$15,000 591 8.7% 572 8.1%$15,000 - $24,999 572 8.5% 554 7.9%$25,000 - $34,999 698 10.3% 692 9.8%$35,000 - $49,999 918 13.6% 905 12.9%$50,000 - $74,999 1,281 18.9% 1,371 19.5%$75,000 - $99,999 1,057 15.6% 1,062 15.1%$100,000 - $149,999 1,055 15.6% 1,211 17.2%$150,000 - $199,999 351 5.2% 394 5.6%$200,000+ 239 3.5% 268 3.8%



0 - 4 660 4.7% 646 4.3% 669 4.3%5 - 9 675 4.9% 702 4.7% 717 4.6%10 - 14 713 5.1% 748 5.0% 767 4.9%15 - 19 739 5.3% 704 4.7% 740 4.7%20 - 24 742 5.3% 651 4.3% 628 4.0%25 - 34 1,588 11.4% 1,768 11.7% 1,644 10.5%35 - 44 1,544 11.1% 1,767 11.7% 2,007 12.8%45 - 54 2,057 14.8% 1,735 11.5% 1,773 11.3%55 - 64 2,264 16.3% 2,272 15.1% 2,096 13.4%65 - 74 1,548 11.1% 2,248 14.9% 2,350 15.0%75 - 84 959 6.9% 1,255 8.3% 1,610 10.3%

85+ 409 2.9% 568 3.8% 646 4.1%Census 2010 2019 2024

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 11,341 81.6% 11,899 79.0% 12,147 77.6%Black Alone 260 1.9% 275 1.8% 285 1.8%American Indian Alone 419 3.0% 537 3.6% 610 3.9%Asian Alone 379 2.7% 476 3.2% 536 3.4%Pacific Islander Alone 13 0.1% 15 0.1% 16 0.1%Some Other Race Alone 1,021 7.3% 1,283 8.5% 1,418 9.1%Two or More Races 464 3.3% 577 3.8% 638 4.1%



August 12, 2019







<$15,000 2,128 8.7% 1,961 7.9%$15,000 - $24,999 2,013 8.3% 1,852 7.4%$25,000 - $34,999 2,400 9.8% 2,328 9.3%$35,000 - $49,999 3,095 12.7% 3,036 12.2%$50,000 - $74,999 4,223 17.3% 4,445 17.8%$75,000 - $99,999 3,182 13.1% 3,191 12.8%$100,000 - $149,999 3,903 16.0% 4,333 17.4%$150,000 - $199,999 1,871 7.7% 2,031 8.1%$200,000+ 1,560 6.4% 1,765 7.1%



0 - 4 2,832 5.3% 2,695 4.8% 2,784 4.9%5 - 9 2,976 5.6% 2,888 5.2% 2,872 5.0%10 - 14 3,150 5.9% 3,062 5.5% 3,014 5.3%15 - 19 3,407 6.4% 2,919 5.2% 2,967 5.2%20 - 24 3,720 7.0% 3,025 5.4% 2,884 5.1%25 - 34 6,699 12.5% 8,000 14.4% 7,533 13.2%35 - 44 6,328 11.8% 6,741 12.1% 7,723 13.5%45 - 54 8,229 15.4% 6,755 12.1% 6,589 11.5%55 - 64 7,448 13.9% 8,044 14.5% 7,545 13.2%65 - 74 4,584 8.6% 6,572 11.8% 7,222 12.7%75 - 84 2,898 5.4% 3,457 6.2% 4,319 7.6%

85+ 1,235 2.3% 1,505 2.7% 1,636 2.9%Census 2010 2019 2024




August 12, 2019







<$15,000 4,406 9.8% 3,982 8.7%$15,000 - $24,999 3,933 8.8% 3,580 7.8%$25,000 - $34,999 4,324 9.6% 4,169 9.1%$35,000 - $49,999 5,863 13.0% 5,731 12.5%$50,000 - $74,999 7,701 17.1% 8,087 17.7%$75,000 - $99,999 5,618 12.5% 5,650 12.4%$100,000 - $149,999 7,036 15.7% 7,849 17.2%$150,000 - $199,999 3,309 7.4% 3,578 7.8%$200,000+ 2,752 6.1% 3,102 6.8%



0 - 4 5,476 5.5% 5,160 5.0% 5,296 5.1%5 - 9 5,835 5.9% 5,394 5.3% 5,409 5.2%10 - 14 5,859 5.9% 5,729 5.6% 5,576 5.3%15 - 19 6,333 6.4% 5,645 5.5% 5,526 5.3%20 - 24 7,184 7.2% 5,978 5.8% 5,847 5.6%25 - 34 13,047 13.1% 14,913 14.5% 14,262 13.6%35 - 44 11,934 12.0% 12,468 12.1% 14,004 13.4%45 - 54 15,073 15.1% 12,501 12.2% 12,114 11.6%55 - 64 12,969 13.0% 14,488 14.1% 13,582 13.0%65 - 74 7,898 7.9% 11,222 10.9% 12,595 12.0%75 - 84 5,402 5.4% 6,059 5.9% 7,366 7.0%

85+ 2,721 2.7% 3,089 3.0% 3,203 3.1%Census 2010 2019 2024




August 12, 2019


Demographics1, 2 & 3 Miles



AlbuquerqueMETRO AREATrade Area Analysis

Albuquerque | Why Here? Why Now?Located near the geographic center of New Mexico at the intersection of I-25 and I-40 and resting at the foot of the Sandia Mountains, Albuquerque is the state’s most populous city and one of the most livable in the U.S. The city serves as a major transportation and shipping hub for the Southwest, with BNSF Railway, air cargo from Albuquerque International Sunport airport, and a commuter train running from Belen to Santa Fe. Albuquerque is home to the International Balloon Fiesta, the world’s largest gathering of hot-air balloons. A talented workforce, a business-friendly environment, a community rooted in history and a high quality of life make Albuquerque hard to beat.

ALBUQUERQUE HEALTHCARE. Is the center of health care excellence in NM. University of NM is a nationally recognized Class 1 research institution. There are 1,943 licenced hospital beds in metro area

Top 8 Reasons to choose Albuqueque

Invest in Albuquerque � Low-Risk Location

� Skilled Workforce

� Business Incentives

� The Metro Area Communities

� Quality of Life

� Cost of Living

� Innovation Central

� On the cutting edge of Technology

UTAH

TEXAS

OKLAHOMA

COLORADO

ARIZONA40

25

Santa FeAlbuquerque

Las Cruces Albuquerque

Bernalillo

Albuquerque Metro

Rio Rancho

Los Lunas

Belen

40

40

25

Albuquerque City

Albuquerque

25

New Mexico

Albuquerque City by the numbers (ESRI 2017 Demographics)

653,761 City Population

$67,029 Average Household Income

261,158 Households

$40,404 Median Disposable Income

27,083 Total Businesses

368,764 Total Employees

922,914 Albuquerque

Meto Population

The Largest

City in the State

ALBUQUERQUE EDUCATION | SKILLED WORKFORCE Ranks top in nation for cities witht he most college graduates, 69,000 college students reside in metro area, has one of the largest # of PhDs per capita in the nation

COMPETITIVE BUSINESS CLIMATE Low energy costs, low property taxes, affordable real estate and cost of living, a qualified/productive workforce, aggressive incentives, efficient market access

Ranked 6th in America’s favorite cities list - Travel + Leisure

Ranks among America’s best cities for global trade - Global Trade Magazine

The 5th most cost-friendly city to do business in the U.S. - KPMGIn the news

Absolute NNN Single-Tenant Sale-Leaseback Offering...Investment Property Advisors is pleased to...

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