CRE Report 04.23.12

Albuquerque’s apartment market continues to thrive.

Bob -Walt, what is going on with Albuquerque’s commercial real estate this week?

Walt – Good morning, Bob.  The apartment market continues to shine as the choice for real estate investors, developers and sellers. All this good news has opened the door for development in multi-family properties.

Development is starting; a local real estate group is developing 201 units at Eagle Vista on the Westside, with more units

Photo credit: http://www.hgpauction.com/index.php/sector-experience/heavy-equipment-auctions

planned.  Rob Dickson (Albuquerque High developer) is planning to convert the De Anza Motor Lodge into 50 apartments in a 4.5 million dollar project.  Titan Development and Phoenix Alliance Residential are planning projects in the northeast heights.

Some other projects are American Real Corp’s 568 units south of the Westside Costco along with a 166-unit expansion at the Aspens, Bay Hill Development is building 240 apartments at Coors and Montano and Real Capital Solutions is adding several hundreds units as expansion to Westside projects. So projects are in the works and working their way to construction!

Bob—-With all these planned projects coming on the market, what will happen with the vacancy? Is this going to create an overbuilt situation?

Walt – Even with all these apartments, it will have little impact on the vacancy rate, as these units will be absorbed quickly.

With the increased requirements to get into a home loan, more people will remain in the rental market. And this scenario could continue to play out for some time with the low interest rates available on multi-family, decreasing land prices (which helps the developers make their projections to build) and the increased demand for rental housing, the multi-family market for investors, developers and sellers will remain a strong play in this market.

Bob – On to another topic! You have an auction coming up with the Auction set for May 23.  What are the details on the Auction?

Walt – Yes, 401 San Pedro NE, located just south of Lomas, the building is a 4,952 square foot multi-tenant building.  This property is a little gem across from the Fairgrounds. It is an attractive property set for Auction on Wednesday, May 23^rd.  This property works well as a small multi-tenant investment property or another possibility is for an owner user with some tenants to help pay any debt obligations.

It’s an online auction from 11:00 AM to 3:00 PM on May 23^rd.  The auction website is www.auctionsvn.com/sanpedro.   Again, that’s www.auctionsvn.com/sanpedro.  This property will be sold on May 23^rd; the opening bid is $199,000.

Bob – Walt, how can people reach you today?

Walt – Thanks Bob, my direct line is 505-256-1255. Did I mention the auction website?  www.auctionsvn.com/sanpedro. This is an opportunity to acquire a nice, well maintained property in northeast Albuquerque. The online auction process makes it easy to participate and we have all the documents up on the website to review.  Also check out my new and improved website waltarnold.com or follow me on Twitter @waltarnold or become a fan of SVN on Facebook for daily CRE news updates.

Thanks Bob for the time today, have a great week.