for sale net leased kmart with redevelopment potential · lease summary alfredo barrenechea...

SALE PRICE: $1,195,000($29.64/SF)

Cap Rate: 10.50%

NOI: $125,500

Lease Type: Absolute NNN

Lease Term: 4 Years

Building Size: +/- 40,327 SF

Property Size: 4.15 Acres

Features:

- Zero Landlord Responsibilities

- Future Reposition Opportunity

- Significantly Below Replacement Cost

- Fee-Simple Ownership

- Excellent Access & Visibility

- Primary Regional Retailer

- Nearly 40 years at this location

- Corporate Guaranty

Alfredo Barrenechea505-401-0135

[email protected]

For Sale – Net Leased Kmart with Redevelopment Potential1235 2nd Street, Raton, NM 87740

Absolute Investment Realty | 105 Jefferson NE Albuquerque, NM 87108 | 505-346-6006 | [email protected]

mailto:[email protected]

mailto:[email protected]?subject=Property Inquiry

Investment Overview

Absolute Investment Realty has been selected as the exclusive representative for the

sale of the owner of this Absolute NNN leased Big Kmart store located in Raton, New

Mexico. The lease was signed in 1977 and is corporately guaranteed by Kmart

Corporation, a subsidiary of Sears Holdings Corporation (NASDAQ: SHLD). The tenant

has operated out of this location since 1979 and has recently renewed it’s lease for

an additional 4 year term, which expires 5/31/2021. This Big Kmart is a destination

retailer serving residents in both northern New Mexico and southern Colorado.

Perfect for creative investors or a future owner/user who wants to enjoy passive

income until it is ready to use the building. The property appears to be well

maintained by the tenant, is priced well below replacement value and is presently

rented at a lease rate that is far below what new or competing properties could be

leased for. All this combines to provide a fantastic win/win opportunity for the buyer

who can get an excellent return on investment through the lease term and the

potential to re-position the property in the future.


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Property & Investment Summary

For Sale - Freestanding Kmart1235 S 2nd Street, Raton, NM 87740

Tenant: Big Kmart

Property Address: 1235 2nd Street, Raton, NM 87740

Property Description: Net Leased Big Box Retail

Improvement Size: 40,327

Property Size: 4.15 Acres

Purchase Price: $1,195,000 ($29.63/SF)

Cap Rate: 10.50%

NOI: $125,500

Rent/SF: $3.11

Access: Excellent

Visiblity: Excellent

Signage: Excellent

Highest and Best Use: Retail - Big Box

Trade Area Description: Small-Town, Regional

The information contained in this marketing package is believed to be reliable. While wedo not doubt the accuracy, we have not verified it and make no guarantee, warranty orrepresentation about it. It is your responsibility to independently confirm its accuracyand completeness. Additionally, this package and the information contained herein isintended only for parties with a bonified interest in the lease or purchase of thisproperty and should not be distributed otherwise.




Trade Area Map


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Trade Area Demographics

Radius 1 Mile 3 Mile 5 Mile

Population (2017 Estimate) 2,002 6,869 7,025

Avg HH Income (2017) $43,008 $46,844 $47,496

SITE

Colfax County

District Court

Miners Colfax

Medical Center

Yaksich Long

Funeral Home

Judicial Court

House

Miners Colfax

Medical Center

Raton High

School

Raton Convention

Center

Raton City

Hall

Raton Aquatic

Center

N




Site Close Up & Location Description

LOCATION DESCRIPTIONThe property is located along South 2nd Street just off I-25 in the northern New Mexico town of Raton. South 2nd Street is a primary retail corridor in Raton and is easily accessible

from all locations of the town as well as Interstate 25. Raton, bordering Colorado, is the northern most town on I25 in New Mexico, is a major interstate traffic stop, and serves a

large rural community in state as well as in Colorado. This Big K-Mart is the only big box retailer in this trade area of New Mexico and is a shopping destination for goods and

supplies for the people living in the surrounding communities. Although the tenant has had a 40 year history of operating at this property, the asset’s pricing, location, signage,

parking, and access make it an ideal candidate for repositioning to lease or sell to a number of other national, local and regional tenants.


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SITES

. 2

nd

Str

ee

t

Byron Ave.

Em

ers

on

St.




Lease Summary


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Tenant: KMart Corporation

Trade Name: Big - Kmart

Parent Company: Sears Holding Company

Lease Execution Date: 9/23/1977

Original Lease Term: 25 Years (5/31/1979 - 5/31/2004)

Lease Type: Absolute NNN Build to Suit

Current Term: 4th Option*

Current Term Commencement: 6/1/2017

Current Term Expiration: 5/31/2021

Current Annual Rent: $125,000

Rent Escalations: None

Next Option expiration: 5/31/2022

Total Number of Options: 10

Remaining Option Terms: 7 (including sub otpion 4.2)

• Tenant exercised option early.

Option 4 was split into 2 sub options in Amendment 3

Option 4.1 expires 5/31/2021. Option 4.2 expires 5/31/2022

Option 4.2 must be exercised by 11/30/2020




Kmart

Kmart

Kmart

Excellent Frontage and Signage

Busy, well stocked and managed location

Ample Parking


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Demographics

Consumer Spending Totals – 1 Mile

Households by Income – 1 Mile

Daytime Employees – 1 Mile


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Raton New Mexico


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Miners Colfax

Medical Center

SITE

SITE

New Mexico

Raton, NM




Raton, NM MSARaton, New Mexico, meaning little mouse in Spanish, is located in northernpart of the state just 6 miles from Colorado state border. Raton offersmany amenities for a comfortable rural lifestyle. Raton has a variety ofoutdoor recreation activities with it’s crisp mountain air and breathtakingviews.Raton offers Amtrak service, a municipal airport, a state-of-art medicalcenter. Raton is also near the Capulin Volcano National Monument andRaton Pass, which is located just north of the city is a historical landmarkfor the Santa Fe Trail and the gateway to Colorado. The pass is at a 7,881summit which cuts through the Sangre de Cristo mountains and isaccessible today by Interstate 25.

New Mexico, the land of enchantment, is located in the southwesternUnited States bordering Colorado, Arizona, Texas and Utah. Santa Fe is thestate capital and is world famous tourist destination. New Mexico isfamous for its beautiful scenery and wide variety of terrain, which offers avariety of outdoor activities including world class skiing and mountainbiking. The world famous Albuquerque International balloon fiesta ishosted every year in Albuquerque and is the largest event of its kind in theworld attracting each year and attracts millions of people from around theworld.

State of New Mexico Demographics

Population (2016 Estimate) 2,081,015

Households (2015 Estimate) 763,603

Avg. Household Income (2015 Estimate) $45,382


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Absolute Investment Realty


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Alfredo Barrenechea

Qualifying Broker

Alfredo specializes in the acquisition and disposition ofinvestment real estate and has experience in closing largeindustrial, office, and hospitality transactions. With over 12years of experience in the commercial real estate industry asa developer, landlord and broker Alfredo has worked withnation’s top tenants, investors and real estate investmentcompanies. Alfredo has a passion for helping his clients meettheir real estate investing goals and excels at closingcomplicated transactions. Alfredo has a an MS in ElectricalEngineering and a BS in Computer Engineering from theUniversity of New Mexico and is a member of CARNM andICSC.

Some of Alfredo’s Recent Transactions

Alfredo consistently achieves the Coveted Costar Power Broker award, which is only given to the top 5 brokers in the state.

Who We AreAbsolute Investment Realty is an investment oriented commercialreal estate brokerage firm focused on helping our clients meettheir commercial real estate investment goals. Our clients rangefrom private local investors to multi-national REITs. We haveclosed transactions throughout the United States and have clientsfrom around the world. No job is too small or too large for ourdedicated team of professionals. We are experts on currentmarket conditions and can advise our clients on the best pricingand buying or selling strategies. We have industry wideconnections and make it a policy to work hand in hand with ourpeers, principals and institutions to get the deal done. We aresecond to none in our ability to identify, sell or lease investmentquality real estate.

Our MissionAbsolute Investment Realty’s mission is to help our clientsachieve their commercial real estate goals.

Our firm excels because we execute with attention to detail,exceptional financial analysis capabilities, second to none marketknowledge, and the highest level of customer service.

We start by understanding your needs and work closely with youdevelop a customized acquisition, disposition or developmentplan designed to help you reach your goals as expeditiously aspossible.

Awarded to the top 5 brokerage firms in NM, AbsoluteInvestment Realty has achieved the coveted Costar Power BrokerAward every year we’ve been in business.



http://www.go-absolute.net/

Disclaimer & Confidentiality


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This is a confidential marketing package indented solely for the reader’suse in determining its desire to express further interest in the lease orpurchase of this property. Additionally, this package and the informationcontained herein is not for public distribution and is intended only forparties with a bonified interest in the lease or purchase of this propertyand should not be distributed otherwise.

The information contained in this marketing package is believed to bereliable. While the broker does not doubt the accuracy, it has notverified it and the broker and property owner make no guarantee,warranty or representation about it. It is the reader’s responsibility toindependently confirm its accuracy and completeness. All financialinformation contained herein is provided as a general reference andshould not be treated as fact, but should be independently verified bythe reader of this material.

By receipt of this marketing package, the reader agrees to keep thispackage and all material contained herein strictly confidential andagrees to destroy or return this package to Absolute Investment Realtyupon the readers determination it has no interest in leasing orpurchasing the property. Additionally, the information contained hereinis not be utilized to the detriment of the property owner, AbsoluteInvestment Realty or its associated brokers, any tenant(s) of theproperty, or any other party affiliated with the property.

The reader will not contact or approach the tenant(s) or operator(s) ofthe property, if any, without the express written permission of theproperty owner.

The property owner has absolutely no obligation to sell or lease theproperty to any person or entity regardless of proposed pricing orterms. Additionally, the property owner reserves the right, in it sole andabsolute discretion, to reject any or all offers or expressions of interestto purchase or lease the property..




for sale net leased kmart with redevelopment potential · lease summary alfredo barrenechea...

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