Redevelopment Opportunity Former Kmart with Income › pdfs ›...
Transcript of Redevelopment Opportunity Former Kmart with Income › pdfs ›...
SALE PRICE: $1,195,000($29.64/SF)
Building Size: +/- 40,327 SF
Property Size: 4.15 Acres
Features:
- Ideal for Investor or Owner/User
- Absolute NNN Leased Through 5/21/2021
- Potential Tenant Buyout Opportunity
- Significantly Below Replacement Cost
- Excellent Access & Visibility
- Fully Improved Property
- Successful retail location
- $300k+ in remaining Income
Alfredo Barrenechea505-401-0135
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Store Closing 04-08-2018
Lease Type: Absolute NNN
Lease Term: 4 Years
Cap Rate: 10.50%
NOI: $125,500
Investment Overview
Absolute Investment Realty has been selected as the exclusive representativeof the owner of this reposition opportunity in Raton, New Mexico. The
property is currently leased and occupied by Kmart. Though the property hasbeen continuously operated by Kmart since it opened it’s doors in 1979, andthe tenant has recently renewed its lease through 05/31/2021, SearsHoldings, Kmart’s parent corporation has announced it will be closing thislocation on April 8, 2018.
The vacation of Kmart will leave a huge market gap, resulting in a potentialfantastic opportunity for the future owner and user of this property. Thetenant remains responsible for it’s lease obligations including rent and
property maintenance through 05/31/2021, presenting the buyer of thisproperty with an opportunity to potentially negotiate a buyout of the leaseand reposition and re-let the property for a higher rent rate. At $29.63/SF,this property also is priced well below replacement value helping to reducethe buyer’s risk and allow for a multitude of future tenant’s and uses.
Alfredo Barrenechea505-401-0135
Property Summary
The information contained in this marketing package is believed to be reliable. While wedo not doubt the accuracy, we have not verified it and make no guarantee, warranty orrepresentation about it. It is your responsibility to independently confirm its accuracy andcompleteness. Additionally, this package and the information contained herein is intendedonly for parties with a bonified interest in the lease or purchase of this property and shouldnot be distributed otherwise.
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Property Address: 1235 2nd Street, Raton, NM 87740
Property Description: Net Leased Big Box Retail
Improvement Size: 40,327
Property Size: 4.15 Acres
Purchase Price: $1,195,000 ($29.63/SF)
Access: Excellent
Visiblity: Excellent
Signage: Excellent
Highest and Best Use: Grocery, Retail
Trade Area Description: Small-Town, Regional
Tenant: Big Kmart
Store Closing Date: 4/8/2018
Lease Expiration: 5/31/2021
NOI: $125,500 ($3.11/SF)
Cap Rate: 10.50%
Trade Area Map
Alfredo Barrenechea505-401-0135
Trade Area Demographics
Radius 1 Mile 3 Mile 5 Mile
Population (2017 Estimate) 2,002 6,869 7,025
Avg HH Income (2017) $43,008 $46,844 $47,496
SITE
Colfax County
District Court
Miners Colfax
Medical Center
Yaksich Long
Funeral Home
Judicial Court
House
Miners Colfax
Medical Center
Raton High
School
Raton Convention
Center
Raton City
Hall
Raton Aquatic
Center
N
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Site Close Up & Location Description
LOCATION DESCRIPTIONThe property is located along South 2nd Street just off I-25 in the northern New Mexico town of Raton. South 2nd Street is a primary retail corridor in Raton and is easily accessible
from all locations of the town as well as Interstate 25. Raton, bordering Colorado, is the northern most town on I25 in New Mexico, is a major interstate traffic stop, and serves a
large rural community in state as well as in Colorado. This property is the only big box retailer in this trade area of New Mexico and has been a shopping destination for goods and
supplies for the people living in the surrounding communities for nearly 40 years. Although the tenant has a long history of operating at this property, the asset’s pricing, location,
signage, parking, and access make it an ideal candidate for repositioning to lease or sell to a number of other national, local and regional tenants.
Alfredo Barrenechea505-401-0135
SITES
. 2
nd
Str
ee
t
Byron Ave.
Em
ers
on
St.
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Lease Summary
Alfredo Barrenechea505-401-0135
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Lease Summary
Tenant: K-Mart Corporation
Trade Name: Big - Kmart
Parent Company: Sears Holding Company
Lease Execution Date: 9/23/1977
Original Lease Term: 25 Years (5/31/1979 - 5/31/2004)
Lease Type: Absolute NNN Build to Suit
Current Term: 4th Option
Current Term Commencement: 6/1/2017
Current Term Expiration: 5/31/2021
Current Annual Rent: $125,000
Store Closing Date: April 8, 2018
Rent Escalations: None
Though the tenant will be closing its doors in April, 2018, Kmart Corporation
still remains responsible for rent, maintenance and other lease obligations
through the expiration of the lease on 05/31/2021.
The buyer of this property may have an excellent opportunity to negotiate
an early buy out of the existing lease.
Kmart
Kmart
Kmart
Excellent Frontage and Signage
Busy, well stocked and managed location
Ample Parking
Alfredo Barrenechea505-401-0135
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Demographics
Consumer Spending Totals – 1 Mile
Households by Income – 1 Mile
Daytime Employees – 1 Mile
Alfredo Barrenechea505-401-0135
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Raton New Mexico
Alfredo Barrenechea505-401-0135
Miners Colfax
Medical Center
SITE
New Mexico
Raton, NM
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
SITE
Raton, NM MSARaton, New Mexico, meaning little mouse in Spanish, is located in northernpart of the state just 6 miles from Colorado state border. Raton offers manyamenities for a comfortable rural lifestyle. Raton has a variety of outdoorrecreation activities with it’s crisp mountain air and breathtaking views.Raton offers Amtrak service, a municipal airport, a state-of-art medicalcenter. Raton is also near the Capulin Volcano National Monument andRaton Pass, which is located just north of the city is a historical landmarkfor the Santa Fe Trail and the gateway to Colorado. The pass is at a 7,881summit which cuts through the Sangre de Cristo mountains and isaccessible today by Interstate 25.
New Mexico, the land of enchantment, is located in the southwesternUnited States bordering Colorado, Arizona, Texas and Utah. Santa Fe is thestate capital and is world famous tourist destination. New Mexico isfamous for its beautiful scenery and wide variety of terrain, which offers avariety of outdoor activities including world class skiing and mountainbiking. The world famous Albuquerque International balloon fiesta ishosted every year in Albuquerque and is the largest event of its kind in theworld attracting each year and attracts millions of people from around theworld.
State of New Mexico Demographics
Population (2016 Estimate) 2,081,015
Households (2015 Estimate) 763,603
Avg. Household Income (2015 Estimate) $45,382
Alfredo Barrenechea505-401-0135
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Absolute Investment Realty
Alfredo Barrenechea505-401-0135
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Alfredo Barrenechea
Qualifying Broker
Alfredo specializes in the acquisition and disposition ofinvestment real estate and has experience in closing largeindustrial, office, and hospitality transactions. With over 12years of experience in the commercial real estate industry asa developer, landlord and broker Alfredo has worked withnation’s top tenants, investors and real estate investmentcompanies. Alfredo has a passion for helping his clients meettheir real estate investing goals and excels at closingcomplicated transactions. Alfredo has a an MS in ElectricalEngineering and a BS in Computer Engineering from theUniversity of New Mexico and is a member of CARNM andICSC.
Some of Alfredo’s Recent Transactions
Alfredo consistently achieves the Coveted Costar Power Broker award, which is only given to the top 5 brokers in the state.
Who We AreAbsolute Investment Realty is an investment oriented commercialreal estate brokerage firm focused on helping our clients meettheir commercial real estate investment goals. Our clients rangefrom private local investors to multi-national REITs. We haveclosed transactions throughout the United States and have clientsfrom around the world. No job is too small or too large for ourdedicated team of professionals. We are experts on currentmarket conditions and can advise our clients on the best pricingand buying or selling strategies. We have industry wideconnections and make it a policy to work hand in hand with ourpeers, principals and institutions to get the deal done. We aresecond to none in our ability to identify, sell or lease investmentquality real estate.
Our MissionAbsolute Investment Realty’s mission is to help our clientsachieve their commercial real estate goals.
Our firm excels because we execute with attention to detail,exceptional financial analysis capabilities, second to none marketknowledge, and the highest level of customer service.
We start by understanding your needs and work closely with youdevelop a customized acquisition, disposition or developmentplan designed to help you reach your goals as expeditiously aspossible.
Awarded to the top 5 brokerage firms in NM, AbsoluteInvestment Realty has achieved the coveted Costar Power BrokerAward every year we’ve been in business.
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740
Disclaimer & Confidentiality
Alfredo Barrenechea505-401-0135
This is a confidential marketing package indented solely for the reader’suse in determining its desire to express further interest in the lease orpurchase of this property. Additionally, this package and the informationcontained herein is not for public distribution and is intended only forparties with a bonified interest in the lease or purchase of this propertyand should not be distributed otherwise.
The information contained in this marketing package is believed to bereliable. While the broker does not doubt the accuracy, it has notverified it and the broker and property owner make no guarantee,warranty or representation about it. It is the reader’s responsibility toindependently confirm its accuracy and completeness. All financialinformation contained herein is provided as a general reference andshould not be treated as fact, but should be independently verified bythe reader of this material.
By receipt of this marketing package, the reader agrees to keep thispackage and all material contained herein strictly confidential andagrees to destroy or return this package to Absolute Investment Realtyupon the readers determination it has no interest in leasing orpurchasing the property. Additionally, the information contained hereinis not be utilized to the detriment of the property owner, AbsoluteInvestment Realty or its associated brokers, any tenant(s) of theproperty, or any other party affiliated with the property.
The reader will not contact or approach the tenant(s) or operator(s) ofthe property, if any, without the express written permission of theproperty owner.
The property owner has absolutely no obligation to sell or lease theproperty to any person or entity regardless of proposed pricing orterms. Additionally, the property owner reserves the right, in it sole andabsolute discretion, to reject any or all offers or expressions of interestto purchase or lease the property..
Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]
Redevelopment Opportunity – Former Kmart with Income 1235 2nd Street, Raton, NM 87740