single tenant net lease big r

COLLIERS INTERNATIONAL l 1+ 505 883 7676 P. 1725 St. Michaels Dr. Santa Fe, NM | OFFERING MEMORANDUM

725 St. Michaels Dr.Santa Fe, NM 87505 Offering MemorandumFor Sale | Investment Opportunity

PRESENTED BY:Bob FeinbergSenior Vice President | Principal DIRECT +1 505 880 7060 EMAIL [email protected]

Tom Jones, CCIM

Senior Vice President | Principal DIRECT +1 505 880 7063 EMAIL [email protected]

Single Tenant Net Lease

Big R


INVESTMENT SUMMARY

Investment SummaryPricing

Investment Highlights

Lease & Property Summary

The Feinberg Jones Team at Colliers International is proud to present this excellent investment opportunity located at 725 St. Michaels Drive in Santa Fe, New Mexico. This property is a freestanding Big R that opened in late 2014. Big R has signed a 7 year lease with a conditional automatic extension* for 3 additional years plus (2) two (5) five year options. The base rent is scheduled to be $7.25 per square foot for years 1-5 and increases to $7.50 per square foot for years 6-7/8-10. This lease is guaranteed by Big R Stores, Inc. This is a NN lease with landlord responsible for structure, roof and HVAC repairs in excess of $1,500 per unit per year.

This asset is well positioned in the heart of Santa Fe, centrally located geographically providing easy access to the site from the northern and southern parts of the city. The property is situated on a major east/west arterial, St Michael’s Dr., and directly between Santa Fe’s two major north/south arterials, Cerrillos Rd. and St. Francis Dr. The subject property boasts excellent visibility, two full movement access points and high traffic with counts on St. Michael’s in excess of 25,470 vehicles per day and 42,000 vehicles per day from nearby St. Francis Dr. The site is located within a major retail node in the overall trade area and benefits from a variety of national retail cotenancy in close proximity.

* Conditional extension for three (3) additional lease years commencing on the first day of the eighth (8th) lease year shall be automatic and irrevocable if tenant’s sales consummated at the Premises exceed $7 million in the third lease year of the lease. At such time of the automatic extension or any optional extensions/renewals, as set forth in the lease, a commission in the amount of 6% plus New Mexico Gross Receipts tax will be due to Colliers International | New Mexico.

Sale Price $5,900,000NOI $441,648Cap Rate 7.5%

Tenant Trade Name Big RLease Commencement September 24th, 2014Lease Term 7 Years +conditional 3 year extensionTerm Remaining on Lease 6 YearsOption Periods (2) Five Year Roof and Structure Landlord ResponsibleBuilding Size 60,917 SFLot Size 4.393 AcresLease Type NN

> Strong 24 store operator with locations in Colorado, New Mexico and Texas> Successful growing brand> Brand new 7 year lease> Scheduled rent increases> Great location in the heart of Santa Fe> Convenient ingress and egress> Excellent street visibility and traffic counts> Building fully refurbished in 2014


INVESTMENT SUMMARY

Area Tenants

Tenant InformationBig R, founded in 1962 in the towns of Lamar and La Junta Colorado, began as a small family owned and operated business. From the inception, Big R has been the dominant farm, ranch and home retail chain in the Arkansas Valley of Colorado. Expansion started in 1990 through southern Colorado and eventually into Texas and New Mexico. This Big R operator now has 24 stores and over 600 employees in the three states.

Big R is known for its extensive product mix including pet supplies, hardware, automotive, sporting goods, lawn & garden, fencing, livestock equipment, tack and agriculture supplies, and all purpose clothing and boots.


INVESTMENT SUMMARY

Market InformationSanta Fe is located in northern New Mexico approximately 60 miles from Albuquerque. Santa Fe is the state capital and the 4th largest city in New Mexico with an estimated total population of 147,501 and serves as the regional hub for many northern New Mexico communities. The city is located on Interstate 25 where the Highway to Taos (84) begins.

Santa Fe was founded as a city in 1610 making it the oldest capital city in the nation and is known internationally for its arts and culture. Santa Fe has a great amount of diversity in its population, from any of the 19 surrounding tribes of Pueblo Indians, Spanish families that have called the area home for centuries, numerous artists of every genre and even a few of the Hollywood elite. Known as “The City Different”, Santa Fe has charmed visitors for centuries with its distinctive architecture, world renowned art markets and distinctive gourmet cuisine. The largest employer in the region is the state and local government, but art is a large part of the economy from the Native American jewelers found on the Plaza and the Spanish colonial furniture and tin workers found at the annual Spanish Market to the modern take on opera from the Sante Fe Opera House.

Demographics & Area Info 1 Mile 5 Mile 10 MileTotal Population 9,226 51,713 80,153Median Age 43 48 45Total Households 4,471 25,599 37,347# of Persons Per HH 1.9 1.9 2.1Average HH Income $52,662 $67,952 $73,026Average Home Value $303,685 $329,331 $359,948

NEW MEXICO

Albuquerque

Santa Fe


INVESTMENT SUMMARY

Market Aerial


INVESTMENT SUMMARY

Property Aerial

Big R725 St. Michaels Dr

Santa Fe, NM 87505Offering Memorandum

For Sale | Investment Opportunity

CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of the 725 St. Michaels Dr., Santa Fe, NM 87505. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 725 St. Michaels Dr., Santa Fe, NM 87505 in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

PRESENTED BY:Bob FeinbergSenior Vice President | Principal DIRECT +1 505 880 7060 EMAIL [email protected]

Tom Jones, CCIM

Senior Vice President | Principal DIRECT +1 505 880 7063 EMAIL [email protected]

COLLIERS INTERNATIONAL+1 505 883 7676 Main2424 Louisiana Blvd NE, Suite 300Albuquerque, NM 87110www.colliers.com

single tenant net lease big r

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