Both assets, which were listed at $6 million, are in the Foothills Shopping Center, a suburban retail center on East Lohman Avenue near Interstate 25. The center also has a Target and a Home Depot, neither of which were part of the transaction.
Keith Fisher, vice president with Stream Realty Partners LP's Dallas office says both properties had been on the market since early 2008. He adds that the Office Max, the only one in Las Cruces, had been under contract to another group before falling out of escrow. "Financing did play a big role in the delay in getting these sold," acknowledges Fisher, who represented the seller.
Fisher tells GlobeSt.com the Houston-based Fidelis Realty Partners bought the Office Max as a value-add play, as the tenant has three years remaining on its lease. Because it's the city's sole Office Max, the tenant will likely not vacate the premises when the lease comes up for renewal, he notes.
As for the Albertson's, "there are four locations in Las Cruces, and this is their best one," Fisher comments. He adds that Albertson's has a long-term ground lease on the property, with an August 2021 expiration and a 40-year renewal option. Additionally, the Boise-ID buyer is in partnership with Albertson's so the buy made sense. "The buyer liked the location, there was a ground lease involved, so it made sense for them to have the building," Fisher says.
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