Amazing downtown mixed use

Multi-Family for Sale
Sale Pending
Catylist Listing ID: 30716600
Property Subtypes: Low-Rise/Garden, Mixed Use
Status: Pending
Number of Units: 2 Units
Building Size (RSF): 3,480 SF
Gross Land Area: 0.15 Acres
Sale Price: $430,000
Unit Price: $215,000 Per Unit
Property Use Type: Investment, Vacant/Owner-User
Building Name: Dr. Hugh Bass Building
Usable Size (USF): 3,480 SF
Sale Terms: Cash to Seller
Cap Rate: 4.72%
Last Updated: 3/25/2021

Overview / Comments

On behalf of the owner, NM Apartment Advisors and Mark Boitano and Associates with ReMax Select are excited to bring to market this rare opportunity to convert a well-located mixed-use property into a higher and better use residential income asset. This 3,480 square foot building, is configured for a restaurant/brew pub/distillery down stairs, and the second floor is ready to rent to an office tenant OR, could be renovated into 5 apartment units.

Built in 1949 by Dr. Hugh Bass (who lived around the corner at 301 10th SW), this two story development is a short walk to the central business district and is located across the street from Robinson Park (home to the downtown farmers market). It has amazing skyline and Sandia views and is a rare opportunity to buy a downtown building with an abundance of parking and flexible zoning. The upstairs has a long newspaper history having hosted the El Hispano and the weekly Alibi newspapers as tenants.

The zoning is MX-FB-FX and allows a wide range of residential commercial and institutional uses subject to a form-based zoning control. More info on what is allowed in this MX-FB-FX (mixed use form-based district) zoning can be found at https://abc-zone.com/sites/abc-zone.com/files/document/pdf/AllowableUses-MX-FB_0.pdf

As-is Analysis/ CORE Asset
The property is a core asset with a readily leasable downstairs restaurant space and recently renovated office space upstairs.

Prior to the pandemic, the property had a pizzeria tenant on the ground floor and a newspaper on the top floor. Based on current market rents for each use and ask the ask price of $430,000 the measure of investment performance include a before reserves cap rate of 4.84% and a price per square foot of $123.56. Although both spaces are rent ready – the downstairs does not contain the Furniture, Fixtures and Equipment for a restaurant, but is plug play ready for a new one in floorplan layout, kitchen design, plumbing, electrical and metering.

Value add proposition
The property is also a value-add opportunity to convert the office space to 5 studio apartments. Based on NM Apartment Advisors estimates for renovations, which includes 27% for contingencies, interest carry and construction/management fee, the potential the upside for this property $101,092. At an acquisition cost of $430,000 + estimated renovations of $118,172, the renovation completed potential cap rate based on total costs is 7.01%.

If you decide to pursue renovating the top floor into apartment residence – there is some amazing financing available from the Ventana Fund (disclosure, listing broker volunteers on the board of directors) – possible 80% loan to value for the acquisition and 80% of the renovation costs at below market interest rates.

Flyer and tour info
You can download the 34 page flyer at http://www.nmapartment.com/apt/NMAA_Park900SW
And view the virtual tours at: www.nmapartment.com/park3d

Do not wait – this is a once in a generation opportunity to create an above market rate of return through hard work and diligence!

Thanks,
Todd Clarke CCIM CIPs
NM Apartment Advisors Inc.
(505) 440-TODD

And

Mark Boitano CRS
Remax Select
505-239-2336

Additional Details

Nearest MSA: Albuquerque
County: Bernalillo
Submarket/Township: Downtown
Taxing Authority: Bernalillo County
Tax ID/APN: 101305751244914007
Zoning: MX-FB-FX - Mixed-use: Form-based Flexible Development Sub-zone
Total Number of Buildings: 1
Property Condition: Excellent
Number of Stories: 2
Year Built: 1949
Roof Type: Flat

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 17,596 118,376 295,353
Median Age: 36.97 34.42 34.59
Households: 8,060 48,337 118,345

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