By Ron Davis, Albuquerque Business First reporter  |  April 29, 2019

Its name was already on the building, but the title is now in Will Ferguson & Associates’ name.

The Albuquerque law firm purchased a 47,000-square-foot office building at 1720 Louisiana Blvd NE, Will Ferguson, the president of the law firm, confirmed the purchase to Business First in a phone interview Monday.

The firm purchased the building from commercial real estate investment firm Gemini Rosemont. Ferguson said the firm spent in the “high $3 million-mark” to make the purchase. The deal closed at the end of March. Gemini Rosemont confirmed the sale.

Cole Flanagan and Jake Mechenbier of Investment Property Advisors, a division of NAI Maestas & Ward, were the brokers on the deal. Main Bank was the lender for the transaction and was “remarkably smooth” to work with, Ferguson said.

Will Ferguson & Associates had been in the building for 15 years and began pursuing outright ownership for over five years when it first made an offer. Ferguson said the deal came together in a matter of months before closing March 29.

His plans for the building include adding additional “cool” landscaping around the building and revamping the inside to look “a little less commercial” and “a little more nice.”

Will Ferguson & Associates’ building purchase comes a little more than two months after Allen Sigmon Real Estate Group announced principals Brad Allen, Lance Sigmon and Total Management Systems President Prakash Sundaram partnered up to purchase Uptown Tower — a seven-story office building at 2440 Louisiana Blvd. located across the street from Coronado Mall.

Uptown’s vacancy rate is 19.5 percent, according to a market report by CBRE.

Earlier this month, Business First reported Gemini Rosemont relocated its headquarters from Santa Fe to Los Angeles. In January, Business First reported Duke City Management LLC had purchased Gemini Rosemont’s Albuquerque property management operations for an undisclosed amount.

Will Ferguson & Associates ranked No. 14 on Business First’s list of New Mexico law firms.

Investment Property Advisors is a division of NAI Maestas & Ward.  The team has the backing of NAI Global, which extends their investment reach internationally.  For more on the IPA Team and their available investment properties visit www.iparealty.com

Investment Property Advisors is one of the most well-networked teams in the commercial real estate industry in the State of New Mexico.  Focusing on investment sales, the team understands the local and regional markets impeccably.  IPA’s knowledge and relationships in the investment real estate industry, coupled with their work ethic and dedication to their clients, puts them in position to best serve their clients and produce outstanding results. 

As leaders in Investment property sales, we sat down with Investment Property Advisors, Cole Flanagan, CPA, MBA, Partner and Jake Mechenbier, Senior Advisor, to discuss their thoughts on the 2018 year-end outcome and how the 2019 year has kicked off. 

What made 2018 stand out from previous years in terms of investment property sales?

2018 was a strong year for investment sales and the momentum has carried over into 2019.  Investment sales are complex but we make the process as simple as possible for our clients through our proactive approach, underwriting, detailed analysis, and our creative problem solving.  We have the expertise to create successful outcomes for our clients on challenging assets.  (CF)

Our team excels in navigating challenges and providing excellent outcomes for our customers; 2018 was a great example of this with multiple transactions with environmental challenges that required our expertise in navigating the lender and buyer requirements to execute a closing.  We also worked closely with sellers, lenders, and buyers in 2 instances to avoid a foreclosure, reposition the assets, and provide a winning outcome for all parties. (JM)

What were some of the challenges you faced with the economy or other variables?

We have successfully sold multiple assets with challenging components by connecting the “right” buyer with the “right” seller.  Some challenges we faced included environmental issues and properties with cannabis users.  Both of these challenges can create hurdles with financing but we were able to successfully overcome these challenges by being proactive in our approach.     

On a self-storage property we sold, a building encroached over a utility easement which posed a threat to the lender which the title company would not insure over.  We worked with the utility company and surveyor to get the easement vacated which satisfied both the lender and buyer.  We have the contacts and expertise to overcome challenging hurdles during the investment sale process. (JM)

In addition to environmental challenges, with capitalization rates having inched up, we were challenged to position properties to maximize their value in a changing interest rate and capitalization rate environment.  We stand out from the competition in our level of detailed analysis, anticipation of challenges, and our problem-solving for our clients. (CF)

How do New Mexico investment sales compare to national trends?

Investment properties in New Mexico with strong real estate fundamentals continue to see strong demand from investors both locally and across the country.  Investors investing in tertiary markets such as New Mexico continue to achieve yields not seen in the larger metros.  There has been a lack of supply given the strong demand for well positioned assets.  (CF)

While there is significant demand for investment real estate opportunities in New Mexico, the supply is relatively low in our market, which means the challenge is finding a quantity of quality opportunities.  We excel in the evaluation of opportunities for our clients and identifying those which stand out as exceptional in quality. (JM)

What do you anticipate for the 2019 year?

2019 is off to a strong start.  We have created a competitive bidding environment for our seller’s on multiple occasions leading to the best price and terms for our clients. We have already nearly eclipsed the 2018 volume in just the first quarter of 2019.  (JM)

2019 is off to our best Q1 yet.  The market continues to be robust with demand and we are uncovering tremendous opportunities for our clients.  Our commitment to excellence in advisory services continues to provide our clients with the stand-out service they testify to and love about our team. (CF)

2018 IPA Team Statistics:

Total Transactions (2018): 18

Total Square Footage (2018): 271,376

Total Value:  $35,735,594

Notable Deals: Trophy Historic Santa Fe Plaza Coyote Café – $4,000,000; College Plaza Shopping Center, Santa Fe, NM – $8,000,000

Meet Cole and Jake:

Cole Flanagan is a Commercial Real Estate Investment Specialist. His financial and business background enhances his ability to assist his clients in making sound decisions based on fundamental analyses. Cole’s dedication to excellence in both his work and client relationships has resulted in more than $375 Million in closed investment transactions over the past seven years. More importantly, it has earned him the praise, respect, and trust of his clients and peers.

Jake Mechenbier joined NAI Maestas and Ward with a focus on investment properties. His experience and knowledge base gained while working on research projects with the company provided Jake with a comprehensive understanding of the New Mexico market, which translates to comprehension of the market on a national level.  Jake’s ability to think outside of the box provides unique solutions and outcomes. His strong work ethic and attentive eye for detail gives his clients the best possible outcome.

Investment Property Advisors is a division of NAI Maestas & Ward.  The team has the backing of NAI Global, which extends their investment reach internationally.  For more on the IPA Team and their available investment properties visit www.iparealty.com

The Burque Bakehouse is heating things up with the expansion of their growing business at their new location of 640 Broadway SE in Albuquerque, New Mexico.   

The Burque Bakehouse began as a stand at Albuquerque’s downtown farmers’ markets (Downtown Growers’ Market & The Rail Yards Market), where they have sold pastries since 2015. The Bakehouse is a from scratch, small-batch bakery that draws on baking traditions and inspiration from around the world to create a selection of handcrafted pastries, breads, and small sweets.  

This locally-owned niche bakery has been in a temporary kitchen location to produce their baked goods for markets and special order.   Bakery owners, Chris McQuary and Sarah Ciccotello, live in the immediate area of their new location and have dreamt of operating their bake shop at the 640 Broadway location for some time.  Thanks to NAI Maestas & Ward Advisor, Shelly Branscom, that dream is now a reality. 

Burque Bakehouse will now have the opportunity to expand their business to include bread and coffee.  Their new location features a 1,000 SF building on a quarter acre of land, beautiful interior finishes, an open layout, great access to I-25, a hard-corner presence and ample parking.  In addition, the Burque Bakehouse will be carrying on a rich history of food service within the South Broadway community, as this same location was a Dairy Queen for over 30 years. 

We want to wish Chris and Sarah all our best in their new location.  Shelly Branscom would like to thank Nicole Rhodes of Base 5 Retail, for keeping the sellers at ease throughout the lengthy closing process. 

Is your business ready to expand?  Give us a call, we look forward to supporting you on your next commercial real estate transaction. 

 

NAI Maestas & Ward is a full-service commercial real estate company serving New Mexico since 1996. The company is a dynamic commercial real estate firm offering best-in-class real estate services in brokerage, property management, asset management, business brokerage and development services.  Representing institutional, private investors and businesses throughout New Mexico and the Southwest region, the company is comprised of more than 50 employees, including 23 advisors (seven have earned the elite commercial investment industry CCIM designee status, and two have achieved the prestigious professional SIOR designation.)

The Albuquerque Business First Book of Lists recognized NAI Maestas & Ward as one largest commercial real estate company in New Mexico. NAI Maestas & Ward has also been recognized numerous times as one of the “Best Places To Work” by the New Mexico Business Weekly. The company is a customer-centric organization that delivers third-party services to our valued relationships.  

 3601 Eubank Blvd. NE, Albuquerque NM 87111

Nothing pleases us more than happy customers and today we celebrate advisors Dave Hill, CCIM and DJ Brigman for a job well done.  Our office experts represented both the buyer and seller on the transaction of a 3,500 sq ft building on the corner of Eubank/Comanche. 

This highly visible location served as a vet clinic for 20+ years and Dr. Hume decided to retire and close the business. She said that after the GOT SPACE – FOR SALE sign went up she had patients coming in begging, sometimes in tears, to please stay. Congratulations Mary, that’s what we call a great practice.  

 “The service was excellent. Both Dave & DJ were so helpful in guiding me thru the process. Made me retire sooner as the building sold so fast – a very good thing.” – Mary H. Melia, Hume Veterinary Hospital

This February, we welcomed local business, Heart and Sole Sports to their new home.    Heart and Sole Sports is ranked as one of the Top 50 Running Stores in America.  For more information on their products and services visit heartandsolesports.net.   

  

ALBUQUERQUE, Oct. 16 – The Association of Metropolitan Water Agencies has bestowed upon the Water Authority its highest honor, the 2018 Platinum Award for Utility Excellence.  The AMWA announced the prize at a ceremony in San Francisco on October 15.

“This award is for the entire utility,” said Water Authority Board Chair Trudy E. Jones “It is the result of the labor and talents of our employees and board members, the leadership of our executive director, and the support of the community we serve.”

In naming the Water Authority a Platinum Award Winner, AMWA President Mac Underwood cited the utility’s adoption of Effective Utility Management (EUM) principles in tackling the challenges associated with delivering safe, clean drinking water in an arid community.

“AMWA’s 2018 award winners are industry-leading water systems with innovative managers and dedicated workforces who create sustainable utilities marked by high quality, affordable water, responsive customer service and attention to resource management and environmental protection,” Underwood said.

Mark Sanchez, the Water Authority’s Executive Director, added that the Platinum award also recognizes the Water Authority’s infrastructure investment plan, which the utility has undertaken while striving to keep rates affordable for utility customers.

“Receipt of the Platinum award reflects that fact that, even as we ask our customers for additional resources to reinvest in our water and sewer system, we are committed to keeping our operating costs low as possible via increasing energy efficiency, reducing injury hours, and the use of technology,” he said.

 

Water Authority Earns AAA Bond Rating from S&P – “Strong financial management policies” cited in decision

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ALBUQUERQUE, Oct. 17 – S&P has upgraded the Water Authority’s bond rating to AAA, the rating agency’s top score, allowing the utility to borrow money for infrastructure projects at the most favorable interest rates.

The upgraded rating will translate into some cost savings for the utility as it pays less to borrow money for its basic rehabilitation program and the ongoing, 10-year rehab of the utility’s Southside Water Reclamation Plant. The plant, where the community’s sewage is treated before being returned to the Rio Grande or recycled for use on landscapes and green spaces in Southeast Albuquerque, is about halfway through a $250 million overhaul.

“The AAA rating from S&P reflects the Water Authority’s excellent record for responsible financial management,” said Water Authority Chairperson Trudy E. Jones, who also serves on the Albuquerque City Council. “The utility is doing a great job of keeping water and sewer rates affordable while addressing the need for system rehabilitation.”

S&P cited the Water Authority’s “strong financial management policies and practices…robust planning efforts…[and] strong levels of pay-as-you-go funding” in its rating decision.

Dave Hill, CCIM, NAI Maestas & Ward Senior Director and Vice Chair of the Water Authority Technical Customer Advisory Committee: “The City of Albuquerque not only has one of the best tasting waters in the USA but now has AAA bonding from the S&P.”

By Chris Clepper, Nusenda Credit Union | Dec. 7, 2018

What are some commercial real estate trends that you’ve seen recently and how are they impacting lending?

Cole Flanagan, NAI Maestas & Ward Partner and Investment Specialist: “With the combination of the local economy showing strong improvement, continued development of fundamentals, and readily available financing, the commercial real estate investment market remains strong”

Jake Mechenbier, NAI Maestas & Ward Director Senior Advisor and Investment Specialist: “New Mexico continues to attract capital as many investors seek higher yields not found in primary and secondary markets.”

 

ALBUQUERQUE, N.M., Nov. 14, 2018 – By Collin Krabbe, Albuquerque Business First

Two years have passed since Facebook broke ground for its Los Lunas data center, a project many are hoping will bring prosperity to the area.

Though some have criticized the ability of data centers to sustain a large amount of high-paying jobs, the California-based social media giant is adamant this one will become an economic driver in Valencia County.

“The data center will provide good competitive jobs and we expect will support hundreds of jobs through the community, ranging from support services to building and operating wind and solar farms in New Mexico,” said spokeswoman Amy Hunter.

In 2016, Albuquerque’s Affordable Solar was chosen to build three solar farmsthat will supply energy to the data center. Two similar projects were approved by the Public Regulation Commission in September, according to our reporting.

Hunter could not give an estimate for the total number of workers the Los Lunas facility will have, but did say a typical two-building center supports over 100 full-time positions. Once completed, the $1 billion site will have six buildings.

The project also brings around 1,200 construction laborers daily, with around 80 percent of them coming from within New Mexico.

Hunter cited increased demand for construction workers as the main reason for delays and said construction is slated well into 2023. The data center is expected to come online in early 2019, she said. Business First previously reported that the project was set to open this year.

According to a report from RTI International, Facebook data centers have contributed around $6 billion in GDP since 2010 and created thousands of jobs nationwide. Every data center job supports five positions elsewhere in the economy, the report states.

Though the project is still in the works, its financial effects can already be felt. The Village of Los Lunas saw a $2 million boost in cumulative gross receipts tax revenue after construction commenced, Business First reported.

The Los Lunas data center is the state’s largest industrial revenue bond project. The Los Lunas Village Council approved an industrial revenue bond for Facebook. With that bond, Facebook will buy up to $30 billion in industrial revenue bonds over a 30-year period, according to the village. In an industrial revenue bond agreement, a company invests money to create or expand its business through construction or additional manufacturing equipment. In exchange, the local government body can agree to help the company pay for that investment, often by reducing its property and gross receipts taxes. The total dollar amount of an IRB refers to what a company expects to invest, not what it would be given in tax breaks.

Hunter said that once operational, the center will not take advantage of any additional economic development funding or incentive programs, such as the Jobs Training Incentive Program.

 

 

ALBUQUERQUE, N.M., Nov. 1, 2018 – By Ron Davis, Albuquerque Business First

Both commercial real estate experts and local leaders believe Netflix’s $1 billion investment over the next 10 years will go beyond the money invested in New Mexico

While the ink is still drying, some Albuquerque developers are smitten by the possibilities Netflix could bring to the Duke City.

Mayor Tim Keller signed a bill Wednesday, approving incentives and officially bringing Netflix to Albuquerque. At the announcement party last month, Keller compared the streaming giant’s impending arrival to Intel coming to Rio Rancho in the 1980s.

Both commercial real estate experts and local leaders say Netflix’s $1 billion investment over the next 10 years will go beyond the money invested.

Marcus Moufarrige, COO of Australia-based Servcorp, a company that sells office space and IT services across 53 cities in 22 countries, and a member of the Forbes Real Estate Council, said the billion dollars Netflix plans to invest will move the needle, but added that the “why” might be just as big of a factor.

“A billion dollars goes a very long way,” he said. “It’s not about the one-off, it’s the ongoing commitment to get that $1 billion return.”

The state committed up to $10 million in Local Economic Development Act funding, and the Albuquerque City Council approved $4.5 million in a separate LEDA package. LEDA is a financial incentive used by the state and local governments as a closing fund to recruit new businesses and grow existing businesses in New Mexico.

While Netflix finalizes its purchase of Albuquerque Studios and begins to spend that money and produce shows, Moufarriage anticipates ancillary benefits, such as coffee houses, restaurants and more co-working spaces in and around Mesa del Sol, where ABQ Studios is located, that local developers could capitalize on.

Brad Allen, principal at Allen Sigmon Real Estate Group in Albuquerque, said he could see more development around that area.

“When [you’ve] got a bunch of people working out there, they probably would like to just live there so they won’t have to drive as far,” Allen said. “I think there will be a demand. Whatever the average pay is, they’ll build a product around it, whether that’s for rent or for sale.”

Drew Dolan, president of Titan Development, which manages I-25 Studios, said it’s too soon to see any immediate effect to his company, but added that Netflix brings stability and a consistent presence to filmmaking, which can be a volatile industry. With at least 1,000 jobs being filled each year at ABQ Studios, film production should have a buffer against downturns for the foreseeable future.

“There’s just no way Mesa del Sol won’t benefit long-term from [Netflix] being out there,” he said.

Each said Netflix’s presence indicates that New Mexico is business friendly, which could open doors for other companies who weren’t previously considering the Land of Enchantment.

“We’re relatively affordable for the movie folks,” Allen said. “When make an investment like that, you’re not just buying [ABQ Studios.] You’re buying the whole community, you’re buying the whole state because it’s a relatively good place to do business at an affordable price.”

Steve Kraemer, NAI Maestas & Ward Director, on the transaction–
“It’s hard to express just how big of a deal this is for the Albuquerque market.  New high paying jobs are obviously a tangible benefit, but an equally important intangible benefit is that Albuquerque is viewed as a good place to do business by leaders in their industries.  We have now have Facebook and Netflix in our backyard.  This makes other top businesses sit up and take notice that New Mexico is a fantastic place to open up shop.  I can’t wait to see the next big company to discover how great our state is.”

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