ALBUQUERQUE-A father-and-son partnership from the Midwest has claimed a three-property office portfolio and a warehouse, totaling 96,975 sf. Area experts say the seller, a local builder, has received slightly less than the $21-million ask for the 100%-occupied portfolio.
Patti Peixotto, first vice president with CB Richard Ellis' Albuquerque office, says the seller and developer, Knight Seavey, “was in a partnership that was dissolving, the market was right, the stars are aligned, so it was a good time for him to sell.” In addition, she says the developer is more interested in designing and building LEED office projects than managing properties.
According to Peixotto, the seller had requested a limited marketing, resulting in seven offers for buildings developed between 2000 and 2003. The buyer is a joint venture made up of Warren Blumenthal of Milwaukee and Steve Blumenthal of Chicago. She credits the buyer's reputation and certainty of close with winning the deal. Peixotto partnered with CBRE vice presidents Hunter Greene and Jack Dailey and associate Joel White to sell the properties.
“This is more of a stabilized play, but the upside is that as market rents increase in that I-25 corridor, rents on the assets will too,” Peixotto adds. “The area is a premier office market in Albuquerque.”
The assets, situated in the far north submarket, are located two miles apart. The 48,258-sf Conejos Office Plaza, situated on 4.3 acres at 6700 Jefferson St. NE, has Sprint Communications Co. LP and University of Phoenix Inc. as tenants. The 13,896-sf Pabellon Office, on 1.5 acres at 5120 Masthead St. NE, is solely leased to PR Newswire Association LLC. The 29,185-sf Otono Office Plaza, positioned on 0.8 acres at 4900 Alameda Blvd. NE, is fully occupied by the State of New Mexico Gaming Control Board.
Sold along with the office portfolio was a 5,000-sf warehouse at 9210 San Mateo Blvd. NE, also leased to the state's gaming control board. The warehouse is about 1.5 miles northeast of the tenant's office.
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