CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE...Albuquerque International Sunport, and The University of...

Offering Memorandum

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGEAlbuquerque, New Mexico

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This document/email has been prepared by NorthMarq for advertising and general information only. NorthMarq makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. NorthMarq excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of NorthMarq and/or its licensor(s). © 2019. All rights reserved.

VISIT US ONLINE:

Albuquerque Office 100 Sun Avenue NE, Suite 650Albuquerque, NM 87109505.219.0724

LISTED BY: NORTHMARQ

Cynthia Meister VICE PRESIDENT T 505.219.0724 C 505.803.6232 [email protected]

Trevor Koskovich PRESIDENT T 602.952.4040 C 480.227.7420 [email protected]

Bill Hahn EXECUTIVE VICE PRESIDENT T 602.952.4041 C 602.415.9578 [email protected]

Jesse Hudson VICE PRESIDENT T 602.952.4042 C 480.437.4953 [email protected]

Griffin Martin VICE PRESIDENT - DEBT T 602.508.2203 C 602.527.2354 [email protected]

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGEAlbuquerque, New Mexico

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CON

TEN

TS

06Executive Summary

16Candelaria Heights

40Candlewood Village

66Market Overview

EXECUTIVESUMMARY

THE OPPORTUNITYCandelaria Heights and Candlewood Village present the opportunity to acquire professionally owned and managed garden-style communities with substantial value-add upside, strategically located in a dynamic Albuquerque submarket. Albuquerque continues to experience unprecedented job growth, which is fueling robust demand for multifamily housing in the submarket. The asset is poised for significant revenue growth via organic market rent increases; currently asking rents are below market. Investors have a tremendous opportunity to additionally increase revenue by implementing a modernized exterior/interior renovation program and charge rent premiums.

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM6

ASSET HIGHLIGHTS

• Proximity to major economic drivers including the Sandia National Labs (currently hiring for 1,900 positions), National Nuclear Security (less than four miles away, under construction, and will house 1,200 employees) Kirtland AFB, Journal Center,Lovelace Health System, University of New Mexico, Downtown Albuquerque, Netflix Studios, and Los Lunas’s Facebook data center

• Strong rental submarket - currently experiencing over 5% rent rate increases from first quarter of 2019

• Diverse unit mix - floor plans include one, two, and three bedrooms

• Opportunity to install landlord-owned washer and dryer in units and re-purpose the laundry room at Candelaria Heights. Hook-ups already installed in Candlewood Village units.

• Painting exterior with modern color palette, re-branding, modernization of signage, addition of enclosed dog park, and remodeling common areas will further enhance the community experience for prospective residents

• Opportunity to implement reserved/covered parking premiums

• Cost savings can be realized by installing more water-efficient landscaping, low-flow water faucets & toilets, and CFL/LED lighting and fixtures - will decrease utility & contract service expenses

NORTHMARQ INVESTMENT SALES 7

PORTFOLIO SUMMARYCA

ND

ELA

RIA

HEI

GH

TS

CAN

DLE

WO

OD

VIL

LAG

E

PROPERTY ADDRESS YEAR BUILT

# OF UNITS

UNIT SIZE AVG. SF

ASKING RENT/ UNIT

ASKING RENT/SF

PHYSICAL OCCUPANCY

CANDELARIA HEIGHTS 3101 Lori Pl. NEAlbuquerque, NM 87111 1972 20 822 $755 $0.92 85%

CANDLEWOOD VILLAGE 12050 Candelaria Rd NEAlbuquerque, NM 87112 1985 59 797 $821 $1.03 100%

8 CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM

PORTFOLIO AVERAGES

$788Asking Rent/Unit

$0.97Asking Rent/SF

809Unit Size Average SF

94%Physical Occupancy

9NORTHMARQ INVESTMENT SALES


Central NM Community

College

Lovelace Women’s Hospital

Grand Canyon University College

of Nursing

Sandia Resort & Casino

Cottonwood Mall

National Nuclear Security

Administration

University of New Mexico

Presbyterian Hospital

University of New Mexico

Hospital

Kindred Hospital

PMN Services

Downtown

Albuquerque International Sunport

FacebookNetflix

Coronado Center ABQ Uptown

Windrock Center

Far North Shopping Center

Arroyo Del Oso Park

ABQ BioPark Aquarium

ABQ BioPark - Zoo

Kirtland AFB

Sandia National Laboratories

CANDLEWOODVILLAGE

CANDELARIAHEIGHTS


ALBUQUERQUE MSA

CANDLEWOODVILLAGE

CANDLEWOODVILLAGE

CANDELARIAHEIGHTS

AREADESCRIPTIONCandlewood Village is located at 12050 Candelaria Road NE, and Candelaria Heights is located at 3101 Lori Place NE in Albuquerque, New Mexico. The neighborhood schools located within two miles of the properties include Matheson Park Elementary, Mitchell Elementary/Hoover Middle School, and El Dorado High School. Residents are in proximity to numerous grocery store options including Smith’s, Sprouts Farmers Market, Albertsons, and Walmart. Nearby parks include El Oso Grande Park, Aztec Park, Hoffman Park, Snow Park, and Los Altos Park. Access to the I-25 Freeway is available via the Candelaria Road NE on ramp, located approximately three miles west of the property.

The immediate neighborhood surrounding Candlewood Village & Candelaria Heights comprises a mixture of single-family homes, multifamily projects, and commercial/industrial developments. Nearby shopping malls include the Macy’s anchored Coronado Center, and the Dillard’s anchored Winrock Shopping Center, both approximately four miles southwest of the properties. Additionally, Lovelace Women’s Hospital is four miles west, at the intersection of San Mateo Boulevard NE and Montgomery Boulevard NE. Nearby Universities include The University of New Mexico, located at Central Avenue NE and University Boulevard SE. Major

employment generators in the area include Kirtland AFB, The University Of New Mexico, Albuquerque International Sunport, and Sandia Resort & Casino.

The University of New Mexico, the largest postsecondary institution in the state and one of the state’s largest employers, is a short drive away from the subject property. Nearby Junior Colleges include Carrington College, located at Broadbent Boulevard NE and Menaul Boulevard NW, as well as Central New Mexico Community College located at Coal Avenue SE and University Boulevard SE. Candelaria Heights is minutes away from Kirtland Air Force Base and Sandia National Laboratories. Major employment generators such as Women’s Lovelace Hospital, Presbyterian Hospital, Journal Center, The Balloon Field Industrial Park, Kirtland AFB, Albuquerque International Sunport, and The University of New Mexico provide a considerable amount of business and housing demand to the immediate area. Recently, the Department of Energy’s National Nuclear Security Administration (DOE/NNSA) broke ground on 3-story 33,000-square-foot structure that will house 1,200 federal and contractor employees, located less than four miles from the properties.


T R A F F I C C O U N T P E R D AY CANDELARIA R O A D N E

22,257SOURCE: COSTAR

AVERAGE AGE WITHIN 1 MILE S O U R C E : C O S T A R

4 1

S U B M A R K E T O C C U P A N C YS O U R C E :C O S T A R

94%2 0 1 9 - 2 0 2 4P O P U L A T I O N G R O W T HS O U R C E : C O S T A R

6.3%

$65,258M E D I A N HOUSEHOLDI N C O M E W I T H I N 3 M I L E S

S O U R C E : C O S T A R

$278,600S F H O M EM E D I A N L I S T P R I C ESOURCE: ZILLOW/87111

WO R K F O R C E WITHIN 5 MILESS O U R C E : C O S T A R

137,050W ITHIN 5 M I L E SS O U R C E : C O S T A R

14,016BUSINESSES

1 MILE

3 MILES

5 MILES

±6,302JOBS

±51,548JOBS

±137,050 JOBS

±6,302 JOBS WITHIN A ONE-MILE RADIUS

±51,548 JOBS WITHIN A THREE-MILE RADIUS

±137,050 JOBS WITHIN A FIVE-MILE RADIUS

NUMBER OF JOBS IN THE AREA

CANDELARIA HEIGHTS &CANDLEWOOD VILLAGE

NORTHMARQ INVESTMENT SALES 13NORTHMARQ INVESTMENT SALES

CANDELARIAHEIGHTS3101 Lori Pl. NE, Albuquerque, NM 87111

Apartment Community Candelaria Heights

Location3101 Lori Pl. NE Albuquerque, NM 87111

Total Units 20

Year Built 1972

Net Rentable Square Feet 16,433

Number of Buildings 1

Number of Stories 2

Sub-market Northeast Heights

Land Size 0.79

Density 22.32 Units Per Acre

Parking20 Covered Spaces 10 Uncovered Spaces

Laundry On-Site Laundry Facility

SITE DESCRIPTION

Price Market Price

Terms Cash - Fee Simple

OFFERING

PROPERTY INFORMATION


Style Garden Style

Foundation Concrete

Framing Wood

Exterior Painted Stucco & Brick

Roof Built-Up with Metal Mansards

Parking Surface Asphalt

CONSTRUCTION

Number of Parcels 1

Tax Parcel Number 1-021-060-305021-4-13-01

2018 Property Tax $8,873

PROPERTY TAXES

Heating / Cooling Individual Roof Mounted Units

Hot Water Commercial Boiler

Electricity Paid by Tenant

Water / Sewer Paid by Owner

Gas Paid by Tenant

MECHANICAL


UN

IT M

IX B

REA

KDO

WN

UNIT TYPE # OF UNITS

% OF COMPLEX

SQUARE FEET VACANT MARKET RENT MARKET

RENT / SFAVERAGE

IN-PLACE RENTAVERAGE RENT / SF

TOTAL MARKET RENT

TOTAL IN-PLACE RENT

2BD/1BA 19 95% 807 3 $750 $0.93 $643 $0.80 $14,250 $12,217

3BD/1BA 1 5% 1,100 - $850 $0.77 $900 $0.82 $850 $900

TOTAL / AVERAGE 20 100% 822 3 $755 $0.92 $656 $0.80 $15,100 $13,117

DATA AS OF: 10/30/2019


95%

05%3BD/1BA

2BD/1BA


% OF COMPLEX


RENT / SFAVERAGE


TOTAL MARKET RENT

TOTAL IN-PLACE RENT

2BD/1BA 19 95% 807 3 $750 $0.93 $643 $0.80 $14,250 $12,217

3BD/1BA 1 5% 1,100 - $850 $0.77 $900 $0.82 $850 $900

TOTAL / AVERAGE 20 100% 822 3 $755 $0.92 $656 $0.80 $15,100 $13,117


COMMUNITY & INTERIOR FEATURES

Covered parking

Gasrange

On-site laundry

Wood-inspired flooring*

Communitycourtyard

Deck or patio

Barbecue grill

Double-panewindows

*In select units


NORTHMARQ INVESTMENT SALESNORTHMARQ INVESTMENT SALES 21

23NORTHMARQ INVESTMENT SALES 23

PROPERTY YEAR BUILT UNITS UNIT SIZE

AVG. SFPHYSICAL

OCCUPANCYASKING

RENT/UNITASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

MANAGED BY

Candelaria Heights 1972 20 822 85% $755 $0.92 $755 $0.92 JL Gray

La Casa Tranquilla 1970 20 895 98% $670 $0.75 $670 $0.75 Owner

Uptown Gardens 1966 27 1159 99% $900 $0.78 $900 $0.78 Owner

Sierra Meadows 1962 120 830 97% $801 $0.97 $776 $0.93 FPI

Sungate 1985 95 715 98% $865 $1.21 $865 $1.21 Shelton-Cook

RENT COMPARABLES

CANDLERIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM26

01

03 04

02



$0.90Asking Rent/SF


0102030405

26

03

04

02

`

RENT AVERAGES



$0.90Asking Rent/SF


01

2727NORTHMARQ INVESTMENT SALESNORTHMARQ INVESTMENT SALES

ASTER GARDENS

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APARTMENT FEATURES UNIT MIX

CANDELARIA HEIGHTS3101 Lori Pl. NEAlbuquerque, NM 87111

Owner: Ridgeview West LLC

RUBS: Included

GAS: Master

ELECTRIC: Individual

WATER: Master

W/D IN UNIT:

GATED ACCESS:

DOG PARK:

CLUBHOUSE:

GYM:

SPORT COURT:

COVERED PARKING: Yes

KIDS PLAYGROUND:

UNIT TYPE UNITS SF ASKING RENT/UNIT

ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

2BD/1BA 19 807 $750 $0.93 $750 $0.93

3BD/1BA 1 1100 $850 $0.77 $850 $0.77

TOTAL/AVG. 20 822 $755 $0.92 $755 $0.92


` V

RUBS: Included

GAS: Master


WATER: Master

W/D IN UNIT:

GATED ACCESS:

DOG PARK:

CLUBHOUSE:

GYM:

SPORT COURT:

COVERED PARKING:

KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

2BD/1BA 18 900 $650 $0.72 $650 $0.72

3BD/1.5BA 2 850 $850 $1.00 $850 $1.00

TOTAL/AVG. 20 895 $670 $0.75 $670 $0.75

01


LA CASA TRANQUILLA3101 Pennsylvania St. NEAlbuquerque, NM 87110

Owner: Henry Chan



ASTER GARDENS

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UPTOWN GARDENS1300-1313 Dallas St. NEAlbuquerque, NM 87110

Owner: Byrden Enterprises LLC

RUBS: Included

GAS: Master


WATER: Master

W/D IN UNIT:

GATED ACCESS: Yes

DOG PARK:

CLUBHOUSE:

GYM:

SPORT COURT:


KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

2BD/1.5BA 19 1100 $860 $0.78 $860 $0.78

3BD/2BA 8 1300 $995 $0.77 $995 $0.77

TOTAL/AVG. 27 1159 $900 $0.78 $900 $0.78

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02

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM


` V

RUBS: $30/$35/$40

GAS: Master


WATER: Master

W/D IN UNIT:

GATED ACCESS:

DOG PARK: Yes

CLUBHOUSE: Yes

GYM:

SPORT COURT:

COVERED PARKING:

KIDS PLAYGROUND: Yes


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 40 650 $700 $1.08 $675 $1.04

2BD/1BA 44 850 $775 $0.91 $750 $0.88

2BD/1.5BA 20 950 $865 $0.91 $840 $0.88

3BD/2BA 16 1075 $1,045 $0.97 $1,020 $0.95

TOTAL/AVG. 120 830 $801 $0.97 $776 $0.93

03


SIERRA MEADOWS4236 Eubank Blvd. NEAlbuquerque, NM 87111

Owner: CEG Multifamily



ASTER GARDENS

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SUNGATE10800 Comanche Rd. NEAlbuquerque, NM 87111

Owner: Clear Sky Capital

RUBS: Allocation

GAS: Master

ELECTRIC: Individual/Master

WATER: Master

W/D IN UNIT: Select

GATED ACCESS: Yes

DOG PARK:

CLUBHOUSE: Yes

GYM: Yes

SPORT COURT: Yes


KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 30 578 $795 $1.38 $795 $1.38

1BD/1BA 16 595 $795 $1.34 $795 $1.34

1BD/1BA 18 651 $875 $1.34 $875 $1.34

2BD/1BA 14 912 $920 $1.01 $920 $1.01

2BD/2BA 16 960 $975 $1.02 $975 $1.02

3BD/2BA 1 1240 $1,375 $1.11 $1,375 $1.11

TOTAL/AVG. 95 715 $865 $1.21 $865 $1.21

32

04



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TG

1

2

3

4

5

6

7

8

$650

$700

$750

$800

$850

$900

$950

$1,000

$0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05

RENT/UNIT

RENT/SF


# PROPERTY UNIT TYPE UNITS SF RENT/UNIT RENT/SF

1 Candelaria Heights 2BD/1BA 19 807 $750 $0.93

2 La Casa Tranquilla 2BD/1BA 18 900 $650 $0.72

3 Uptown Gardens 2BD/1.5BA 19 1100 $860 $0.78

4 Sierra Meadows 2BD/1BA 44 850 $750 $0.88

5 Sierra Meadows 2BD/1.5BA 20 950 $840 $0.88

6 Sungate 2BD/1BA 14 912 $920 $1.01

7 Sungate 2BD/2BA 16 960 $975 $1.02

8 TOTAL/AVG. 150 913 $804 $0.88

TWO BEDROOM RENTS

34

RENT ANALYSIS

TG

1 2

346

$850

$900

$950

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

$1,300

$1,350

$0.75 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 $1.10 $1.15

RENT/UNIT

RENT/SF



1 Candelaria Heights 3BD/1BA 1 1100 $850 $0.77

2 La Casa Tranquilla 3BD/1.5BA 2 850 $850 $1.00

3 Uptown Gardens 3BD/2BA 8 1300 $995 $0.77

4 Sierra Meadows 3BD/2BA 16 1075 $1,020 $0.95

5 Sungate 3BD/2BA 1 1240 $1,375 $1.11

6 TOTAL/AVG. 28 1130 $1,007 $0.89

THREE BEDROOM RENTS

35

OPERATING INCOME

Monthly Scheduled Gross Rent $15,100

Annual Scheduled Gross Rent $181,200

Physical Vacancy 15.00% -$2,265

Concessions 0.48% -$864

Economic Vacancy 3.39% -$6,135

Net Rental Income $171,936

Laundry Income $1,418

Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $5,890

Gross Operating Income $179,244

OPERATING EXPENSES PER UNIT

Property Taxes $444 $8,873

Insurance $322 $6,432

Maintenance & Repairs $367 $7,344

Contract Services $21 $420

Electricity $35 $701

Gas $132 $2,634

Sewer and Water $280 $5,595

Trash $84 $1,671

Payroll $1,278 $25,562

Management Fee 3.44%OF GOI $308 $6,159

Marketing $124 $2,479

Administrative Expenses $414 $8,278

TOTAL OPERATING EXPENSES $76,148

Operating Cost Per Unit $3,807

Operating Cost Per Sq Ft $4.63

NET OPERATING INCOME $103,096

Capital Reserve $300 $6,000

ADJUSTED NET OPERATING INCOME $97,096

GROSS INCOME


MONTHLY RENT

2BD/1BA 19 807 $750 $14,250

3BD/1BA 1 1100 $850 $850

TOTAL/AVG. 20 822 $755 $15,100

T-1 INCOME ANNUALIZED / T-12 EXPENSES | CANDELARIA HEIGHTS

TRAILING FINANCIALS AS OF OCTOBER 2019

RENTSCurrent asking rents.

PHYSICAL VACANCYRent roll dated October 2019.

ECONOMIC VACANCYIncludes historical physical vacancy

INCOMEAnnualized trailing one month P&L statement from October 2019

PROPERTY TAXES2018 Annual property taxes quoted from the Bernalillo County Treasurer.

OPERATIONAL EXPENSESTrailing 12 month P&L statement from November 2018 to October 2019


GROSS INCOME


MONTHLY RENT

2BD/1BA 19 807 $850 $16,150

3BD/1BA 1 1100 $950 $950

TOTAL/AVG. 20 822 $855 $17,100

PRO FORMA OPERATING INCOME




Loss to Lease 2.00% -$4,104



RUBS $4,608

Laundry Income $1,461

Other Income $6,067


PRO FORMA OPERATING EXPENSES PER UNIT




Turnover $200 $4,000

Contract Services $100 $2,000

Electricity $36 $722

Gas $136 $2,713


Trash $86 $1,721

Payroll $1,200 $24,000








PRO FORMA NET OPERATING INCOME $113,635

T-1 INCOME ANNUALIZED / T-12 EXPENSES | CANDELARIA HEIGHTS PRO FORMA INCOME & EXPENSES | CANDELARIA HEIGHTS

RENTSIncreased asking rents $100.

PHYSICAL VACANCYConsistent with submarket performance.

RUBSEstimated $20/month/occupied unit.Based on $20 flat fee per unitIncludes; Water & Sewer, Gas, and Trash

LAUNDRY & OTHER INCOMEIncreased 3% from T-12 income operations.


UTILITIESIncreased 3% from adjusted T-12 operations.

OPERATIONAL EXPENSESBased on industry standards of similar properties.



AERIAL & PARCEL

CANDELARIA

1-021-060-305021-4-13-01

CANDLEWOODVILLAGE12050 Candelaria Rd. NE., Albuquerque, NM 87112

Apartment Community Candlewood Village

Location12050 Candelaria Rd NE Albuquerque, NM 87112

Total Units 59

Year Built 1985

Net Rentable Square Feet 47,050

Number of Buildings 10

Number of Stories 2

Sub-market Northeast Heights

Land Size 2.07 Acres

Density 28.50 Units Per Acre

Parking 87 Uncovered Spaces

Laundry W/D Hook-Ups

SITE DESCRIPTION

Price Market Price

Terms Cash - Fee Simple

OFFERING

PROPERTY INFORMATION


Style Garden Style

Foundation Concrete

Framing Wood

Exterior Painted Stucco

Roof Pitched Tile with Built-Up Breezeways

Parking Surface Asphalt

CONSTRUCTION

Number of Parcels 1

Tax Parcel Number 1-022-059-327529-1-25-44

2018 Property Tax $27,764

PROPERTY TAXES

Heating / Cooling Individual Roof Mounted Units

Hot Water Commercial Boiler

Electricity Paid by Tenant

Water / Sewer Paid by Owner

MECHANICAL


UN

IT M

IX B

REA

KDO

WN


% OF COMPLEX


RENT / SF"AVERAGE


TOTAL MARKET RENT

TOTAL AVERAGE RENT

1BD/1BA 20 33.90% 650 - $699 $1.08 $782 $1.20 $13,980 $15,633

2BD/1BA 30 50.85% 850 - $879 $1.03 $873 $1.03 $26,370 $26,199

2BD/2BA 9 15.25% 950 - $899 $0.95 $917 $0.97 $8,091 $8,251

TOTAL / AVERAGE 59 100% 797 - $821 $1.03 $849 $1.06 $48,441 $50,083

DATA AS OF: 10/30/2019


51%

34%1BD/1BA

15%2BD/2BA

2BD/1BA


% OF COMPLEX


RENT / SF"AVERAGE


TOTAL MARKET RENT

TOTAL AVERAGE RENT

1BD/1BA 20 33.90% 650 - $699 $1.08 $782 $1.20 $13,980 $15,633

2BD/1BA 30 50.85% 850 - $879 $1.03 $873 $1.03 $26,370 $26,199

2BD/2BA 9 15.25% 950 - $899 $0.95 $917 $0.97 $8,091 $8,251

TOTAL / AVERAGE 59 100% 797 - $821 $1.03 $849 $1.06 $48,441 $50,083


COMMUNITY & INTERIOR FEATURES

Balcony or patio

Indoorfireplace

Swimmingpool

Businesscenter

In-unit hook ups

Wallsafe

Communityclubhouse

Double-panewindows


1BD+1BA±650 SF

FLOORPLANS


2BD+1BA±850 SF

2BD+2BA±950 SF

FLOORPLANS


PROPERTY YEAR BUILT UNITS UNIT SIZE

AVG. SFPHYSICAL

OCCUPANCYASKING

RENT/UNITASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

MANAGED BY

Candlewood Village 1985 59 797 100% $821 $1.03 $821 $1.03 JL Gray

Sungate 1985 95 715 98% $865 $1.21 $865 $1.21 Shelton Residential

Spain Townhomes 1980 68 800 99% $789 $0.99 $789 $0.99 Owner

Cibola Village 1977 128 730 100% $793 $1.09 $793 $1.09 FPI Management

Villa Serena 1985 104 663 94% $715 $1.08 $698 $1.05 Owner

RENT COMPARABLES

54

01

03 04

02



$1.09Asking Rent/SF


01020304


03

04

02

`

RENT AVERAGES



$1.09Asking Rent/SF


01

55NORTHMARQ INVESTMENT SALES 55NORTHMARQ INVESTMENT SALES

ASTER GARDENS

` V`


CANDLEWOOD VILLAGE12050 Candelaria Rd. NEAlbuquerque, NM 87112

Owner: Ridgeview West LLC

RUBS: Included

GAS: Master


WATER: Master

W/D IN UNIT: Hook-ups

GATED ACCESS:

DOG PARK:

CLUBHOUSE: Yes

GYM:

SPORT COURT:

COVERED PARKING:

KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 20 650 $699 $1.08 $699 $1.08

2BD/1BA 30 850 $879 $1.03 $879 $1.03

2BD/2BA 9 950 $899 $0.95 $899 $0.95

TOTAL/AVG. 59 797 $821 $1.03 $821 $1.03

56 CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM56 CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM

` V`

RUBS: Allocated

GAS: Individual/Master


WATER: Master

W/D IN UNIT: Select

GATED ACCESS: Yes

DOG PARK:

CLUBHOUSE: Yes

GYM: Yes

SPORT COURT: Yes


KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 30 578 $795 $1.38 $795 $1.38

1BD/1BA 16 595 $795 $1.34 $795 $1.34

1BD/1BA 18 651 $875 $1.34 $875 $1.34

2BD/1BA 14 912 $920 $1.01 $920 $1.01

2BD/2BA 16 960 $975 $1.02 $975 $1.02

3BD/2BA 1 1240 $1,375 $1.11 $1,375 $1.11

TOTAL/AVG. 95 715 $865 $1.21 $865 $1.21

01


SUNGATE10800 Comanche Rd. NEAlbuquerque, NM 87111

Owner: Clear Sky Capital


ASTER GARDENS

` V`


SPAIN TOWNHOMES5009 El Corte Miramar NEAlbuquerque, NM 87111

Owner: Mont Evans

RUBS: Included

GAS: Individual


WATER: Master

W/D IN UNIT: Hook-ups

GATED ACCESS:

DOG PARK:

CLUBHOUSE:

GYM:

SPORT COURT:

COVERED PARKING:

KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

2BD/1BA - TH 68 800 $789 $0.99 $789 $0.99

TOTAL/AVG. 68 800 $789 $0.99 $789 $0.99

58

02

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM58 CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE | OFFERING MEMORANDUM

` V`

RUBS: Allocated

GAS: Master


WATER: Master

W/D IN UNIT:

GATED ACCESS:

DOG PARK:

CLUBHOUSE: Yes

GYM:

SPORT COURT:


KIDS PLAYGROUND: Yes


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 40 629 $700 $1.11 $700 $1.11

2BD/1BA 44 724 $825 $1.14 $825 $1.14

2BD/1.5BA 44 829 $845 $1.02 $845 $1.02

TOTAL/AVG. 128 730 $793 $1.09 $793 $1.09

03


CIBOLA VILLAGE12400 Montgomery Blvd NEAlbuquerque, NM 87111

Owner: Donald T. Meagher Jr.



ASTER GARDENS

` V


VILLA SERENA12700 Indian School Rd NEAlbuquerque, NM 87112

Owner: Villa Serena Partners LLC

RUBS: $35/$40/$45

GAS: None


WATER: Master

W/D IN UNIT:

GATED ACCESS:

DOG PARK:

CLUBHOUSE:

GYM: Yes

SPORT COURT: Yes

COVERED PARKING:

KIDS PLAYGROUND:


ASKING RENT/SF

NET RENT/UNIT

NET RENT/SF

1BD/1BA 55 600 $680 $1.13 $659 $1.10

2BD/1BA 33 700 $740 $1.06 $719 $1.03

2BD/2BA 16 800 $785 $0.98 $785 $0.98

TOTAL/AVG. 104 663 $715 $1.08 $698 $1.05

60

04



` V



TG

1

23

4

56

7

$590

$640

$690

$740

$790

$840

$890

$0.85 $0.95 $1.05 $1.15 $1.25 $1.35 $1.45

RENT/UNIT

RENT/SF



1 Candlewood Village 1BD/1BA 20 650 $699 $1.08

2 Sungate 1BD/1BA 30 578 $795 $1.38

3 Sungate 1BD/1BA 16 595 $795 $1.34

4 Sungate 1BD/1BA 18 651 $875 $1.34

5 Cibola Village 1BD/1BA 40 629 $700 $1.11

6 Villa Serena 1BD/1BA 55 600 $680 $1.13

7 TOTAL/AVG. 179 613 $736 $1.20

ONE BEDROOM RENTS

62

RENT ANALYSIS


TG

12

3

4

5

67

8

9

10

$700

$750

$800

$850

$900

$950

$1,000

$0.90 $0.95 $1.00 $1.05 $1.10 $1.15 $1.20

RENT/UNIT

RENT/SF

NORTHMARQ INVESTMENT SALES




3 Sungate 2BD/1BA 14 912 $920 $1.01

4 Sungate 2BD/2BA 16 960 $975 $1.02

5 Spain TH 2BD/1BA - TH 68 800 $789 $0.99

6 Cibola Village 2BD/1BA 44 724 $825 $1.14

7 Cibola Village 2BD/1.5BA 44 829 $845 $1.02



10 TOTAL/AVG. 274 822 $845 $1.03

TWO BEDROOM RENTS

63

OPERATING INCOME



Physical Vacancy 0.00% $0.00

Concessions 0.95% -$5,532



Other Income (Late Fees, Pet Fees, Application Fees, Etc.) $28,201


OPERATING EXPENSES PER UNIT





Electricity $139 $8,223

Gas $14 $845


Trash $117 $6,885

Payroll $980 $57,840







NET OPERATING INCOME $351,242


ADJUSTED NET OPERATING INCOME $333,542

GROSS INCOME


MONTHLY RENT

1BD/1BA 20 650 $699 $13,980

2BD/1BA 30 850 $879 $26,370

2BD/2BA 9 950 $899 $8,091

TOTAL/AVG. 59 797 $821 $48,441

T-1 INCOME ANNUALIZED / T-12 EXPENSES | CANDLEWOOD VILLAGE

TRAILING FINANCIALS AS OF OCTOBER 2019

RENTSCurrent asking rents.

PHYSICAL VACANCYRent Roll dated October 30, 2019

ECONOMIC VACANCYIncludes historical physical vacancy

PROPERTY TAXES2018 annual property taxes quoted from the Bernalillo County Treasurer.

EXPENSESTrailing 12 month P&L statement from November 2018 to October 2019


GROSS INCOME


MONTHLY RENT

1BD/1BA 20 650 $799 $15,980

2BD/1BA 30 850 $979 $29,370

2BD/2BA 9 950 $999 $8,991

TOTAL/AVG. 59 797 $921 $54,341

PRO FORMA OPERATING INCOME




Loss to Lease 2.00% -$13,042



RUBS $13,594

Other Income $29,047


PRO FORMA OPERATING EXPENSES PER UNIT




Turnover $200 $11,800


Electricity $144 $8,470

Gas $15 $870


Trash $120 $7,092

Payroll $1,100 $64,900








PRO FORMA NET OPERATING INCOME $386,030

T-1 INCOME ANNUALIZED / T-12 EXPENSES | CANDLEWOOD VILLAGE PRO FORMA INCOME & EXPENSES | CANDLEWOOD VILLAGE

RENTSIncreased asking rents $100

PHYSICAL VACANCYConsistent with submarket performance.

RUBSEstimated $20/month/occupied unitBased on $20 flat fee per unitIncludes; Sewer and Water, Gas, and Trash

OTHER INCOMEIncreased 3% from T-12 income operations.


UTILITIESIncreased 3% from adjusted T-12 operations.

OPERATIONAL EXPENSESBased on industry standards of similar properties.



AERIAL & PARCEL

CANDLEWOOD

1-022-059-327529-1-25-44

``

The Albuquerque metro area is the largest city in New Mexico. The local population is more than 900,000 residents, including nearly 550,000 residents in the city of Albuquerque. The city is historic, having been officially founded more than 300 years ago in 1706.

Albuquerque is located in north central New Mexico in Bernalillo County. The city is located approximately an hour southwest of Santa Fe, along the Interstate 25. The city is located approximately 450 miles south of Denver, 420 miles north and east of Phoenix and 290 miles west of Amarillo.

The Albuquerque metro area has total workforce that topped 400,000 jobs in 2018. The market has been expanding since 2012, but the most recent year proved to be the period with the strongest growth. Employers added more than 10,000 net new jobs in 2018, a growth rate of 2.6 percent. The jobs added in 2018 nearly matched the combined total from the preceding three years.

The government sector accounts for the largest employment segment in the local economy, which generally provides steadiness in the local labor market, but causes some issues when state and local budgets are under stress. The health of the local economy was fairly strong in 2018, supporting growth of nearly 3 percent in the government sector, with payrolls expanding by 2,400 positions.

In the private sector, white-collar jobs were in expansion mode in 2018. The professional and business services sector grew by more than 6 percent in 2018, with nearly 4,000 new professional jobs. Other industries that have expanded in the past year include leisure and hospitality, and mining/construction.

ALBUQUEQUEECONOMY


``

# OF COMPANY EMPLOYEES DESCRIPTION

Albuquerque Public Schools 14,810 Public School District Kirtland Air Force Base* 10,125 Air Force Materiel Command Sandia National Labs 9,852 Technology Presbyterian Hospital 7,310 Hospital/Medical Services UNM Hospital 6,021 Hospital/Medical Services City of Albuquerque 5,500 Government State of New Mexico 4,950 Government University of New Mexico 4,210 Educational Institution Lovelace Health Systems 4,000 Hospital/Medical ServicesBernalillo County 2,425 Government Rio Rancho Public Schools 2,000 Educational Institution Sandia Resort & Casino 2,000 Resort & Casino PNM Electric Services 1,935 Utilities Provider Central New Mexico CC 1,840 Educational Institution T-Mobile 1,700 Customer Service CenterIntel Corporation 1,200 Technology

Source: Albuquerque MSA Business Location Overview 5-2017

*Kirtland’s employment number includes active duty military, guard reserve, civil service and contract employees. Sandia National Laboratories employees are located at Kirtland Air Force Base, but employment number is shown separately.

LARGEST EMPLOYERS ALBUQUERQUE MSA

ALBUQUEQUEECONOMY


The Albuquerque metro area offers forward-thinking business leaders, entrepreneurs and companies a supportive business environment that encourages idea generation, growth and innovation. It’s no wonder that Foreign Direct Investment Magazine ranks the metro area in the top 10 American Cities of the Future. Here you’ll find a community that applauds diversity, celebrates collaboration and promotes success.

Innovate ABQ is a non-profit private-public partnership created to develop a 7-acre innovation center in downtown Albuquerque to foster economic development and job creation in New Mexico. With its first buildings opened in fall 2017, Innovate ABQ aims

A CITY OFTHE FUTURE


to develop more than 600,000 square feet of dense, walkable space devoted to bringing together New Mexico’s innovators to foster the creation of long-term, job-creating ventures. The urban living and learning environment is the result of a partnership between the University of New Mexico, Innovate ABQ, the City of Albuquerque, Nusenda Credit Union and Bernalillo County.

Los Lunas is another rapidly expanding submarket worth noting located thirty minutes south of Albuquerque. Facebook recently opened its 7th data center in the world in Los Lunas. The $1 billion project broke ground in 2017 and has opened its second of six buildings and employs 150 people so far. The construction alone is expected to last through 2023, with about 1,100 construction workers until it’s complete. The employment has surged rental demand in the immediate area as there are very few market rate apartment complexes.

Here you’ll find a community that applauds diversity, celebrates collaboration and promotes success.

73

A CITY OFTHE FUTURE


Albuquerque Office 100 SUN AVENUE NE, SUITE 650

ALBUQUERQUE, NM 87109 505.219.0724

Cynthia Meister VICE PRESIDENT T 505.219.0724 C 505.803.6232

[email protected]

Trevor Koskovich PRESIDENT

T 602.952.4040 C 480.227.7420

[email protected]

Bill Hahn EXECUTIVE VICE PRESIDENT

T 602.952.4041 C 602.415.9578

[email protected]

Jesse Hudson VICE PRESIDENT

T 602.952.4042 C 480.437.4953

[email protected]

CANDELARIA HEIGHTS & CANDLEWOOD VILLAGE...Albuquerque International Sunport, and The University of...

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