Zia @ Nob-Hill

Subject: ABQ: 50 units in heart of Nob-Hill – proforma 8.15% cap rate

Good morning–

On behalf of the owners, NM Apartment Advisors and Deacon Property Services are excited to  present a rare opportunity to acquire a stabilized, core property in the Zia at Nob-Hill Apartments in Albuquerque, New Mexico.  This community is located facing Zia park and Zia Elementary school and within walking distance of the Nob Hills 80+ restaurants.  The property is also within biking distance of the University of NM and sits between two major transit corridors (Lomas Blvd and Central Ave/ Route 66). 

Zia at Nob-Hill’s current ownership is on a runway towards achieving a 8.15% cap rate with individual unit renovations and higher rents.

The owner has done all of the non-sexy capital items including upgrading landscaping (2019), improved the parking lot (2020), installed new gas-lines (2019), a new roof (2019) and a security gate for parking. As units turn-over, the owner has developed a unit upgrade plan allowing them to capture higher rents.  This combination makes the property a value add with the potential to renovate units and raise rents to a level closer to the neighboring property creating a potential cap rate of a 8.15%.

Property amenities included high speed internet and laundry care facilities.

This is a core asset with stabilized cash flows that could also be a value-add opportunity if an investment was made in upgraded finishes for the balance of the units.

CORE Asset

Measures of investment performance at the ask price of $5,807,969 and current average rents of $885 a month are a GRM of 10.94, a 5.92% cap rate, $116,159 per unit, $178/sf, and an after tax internal rate of return is 11.60%

And Value Add

The property is currently 20.4% below market rents and that does not take into account the double digit annual rent growth the market is enjoying.  If the rents are raised to the market of $1,100, the metrics of investment performance improve to a cap rate of 8.15% and a cash on cash of 8.25%.

The 24 page marketing flyer can be viewed at http://www.nmapartment.com/apt/NMAA-Monroe419NE.pdf

Virtual tour of the units can be viewed here: http://www.nmapartment.com/ziaeast

Qualified investors can register for additional confidential information on the property/portfolio at:

http://www.nmapartment.com/zia

This is an amazing opportunity to buy into a rental market that is experiencing 15% to 20% annual rent growth due to all of the new Amazon, Facebook, Intel, and Netflix jobs.

Thanks,

Todd Clarke CCIM CIPs

CEO

NM Apartment Advisors, Inc.

(505) 440-TODD

and

Kyle Deacon

Deacon Property Services

(505) 878-0100

KyleD@deaconnm.com

• Amazing location
• Near Nob Hill
• Near A.R.T.