ALBUQUERQUE, NM-Columbus Pacific Properties Inc. has made its second acquisition in New Mexico, buying Cottonwood Commons, an 84,545-square-foot power center for an undisclosed amount. The seller was Dallas-based developer Worth Williams Properties.
Local experts say the Santa Monica, CA-based buyer paid $9 million for the property, which is anchored by Bed, Bath & Beyond, Cost Plus World Market and Petco. That sale price would represent the biggest retail deal in the city in 2010, according to a recent report from Real Capital Analytics.
Located at 3601 Old Airport Rd. in northwest Albuquerque, Cottonwood Commons is within the city’s growth path and adjacent to Cottonwood Mall and Lowe’s Home Improvement. It was 86% occupied at closing.
“We expected Cottonwood Commons to get a lot of interest,” says Chris Gerard, an associate in CBRE’s Dallas office. He and Patti Peixotto, first vice president in CBRE’s Albuquerque office, marketed the property on behalf of Worth Williams Properties.
Gerard tells GlobeSt.com Cottonwood Commons received 13 offers, primarily from private investors. “Albuquerque is not as dynamic market as one of the major markets like Dallas, but it still has a lot of strong growth metrics that a lot of investors liked,” he notes, pointing to the city’s stable housing and job market.
In addition to Cottonwood Commons, Columbus Pacific Properties also purchased a former Wal-Mart that sits adjacent to the shopping center in a separate deal. The firm plans to redevelop the dark box and combine it with Cottonwood Commons.
“Columbus Pacific was pretty creative in buying both pieces because it creates even more upside than just leasing up the vacant space in Cottonwood Commons – the Wal-Mart space allows them to add two to three tenants to Cottonwood Common’s lineup,” Gerard says.
In New Mexico, Columbus Pacific also owns Brazito Commons, an Albertson’s-anchored shopping center in Las Cruces.
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