100795 . The View ABQ Albuquerque, NM

08-26-2021
09-01-2021

100795 . The View ABQ Albuquerque, NM, Albuquerque, NM 87106

  • For more information visit www.SFRhub.com and search for portfolio 100795
  • A mix of 2-, 4- and 5-bedroom units with WiFi throughout the community
  • On-site amenities include clubhouse, 24 hr fitness center, yoga studio, sauna, dog park, resort-style pool, sand volleyball court, and much more
  • Near the intersection of I-25 and I-40 offering easy freeway access
  • Adjacent to the airport and close proximity to Downtown and the University of New Mexico
  • Close proximity to the expanding Netflix campus and Orion Center’s 4 million square foot manufacturing facility
  • Professionally managed by on-site personnel
  • Value Add Reposition Opportunity
  • Under rented per bed by 15%-20%
  • Potential Gross Rents at Stabilized Year 1 of $5,282,33
  • Average projected monthly rents $2,612
  • Projected Op-Ex of 37.24%
  • Little to No Capital Expenditures are required for repositioning
  • Minimum Turn Costs Needed
  • Reduced Operating Expenses from current operations
  • All SVN® Offices Independently Owned & Operated
  • Local Broker License Information: www.SFRhub.com/realstatelicensing  

Property Description

For more information visit www.SFRhub.com and search for portfolio 100795 The View ABQ is a unique opportunity for an investor to reposition an expansive 21-acre student housing project into a one-of-a-kind Co-Living environment for local residents, students, and families alike. Investors have a rich opportunity to acquire 162 fully furnished units with 786 beds and value engineer and reposition. This student housing community, with minimal capital expenditures required, will achieve greater cash flow while offering the public a luxurious housing environment with affordable pricing. The View was built in 2014, can be purchased well below replacement costs, and is so heavily ‘amenities, local residents in this community will have access to resort-style living they will not find anywhere else in the City. Given the premium design, layout, unit mix, and amenity package, an investor will require less than $300K of CapEx to transition and re-purpose this community from student housing to a successful co-living environment. There are only two semesters of student housing leases left this coming fall of 2021 and spring of 2022, offering in place income as an investor begins unwinding the student leases and converts to per bed resident leases next spring and the following summer. Given the vintage and quality of the asset, minimal turn costs are anticipated while optimizing for co-living will be a minimal cost to an investor, with most of the focus being on utility reductions and smart thermostat installations for all the units.  The View offers institutional investors an opportunity to leverage a burgeoning market segment growing around the country. The single-family rental market is capturing the eyes and ears of Wall St. and affordable housing is a major component of this investment segment. Co-Living is an answer to many of the affordability issues facing middle- and lower-income workers, students, and individuals looking for a sense of community. Though the View wasn’t purpose-built for co-living, it is perfectly set up for this transition offering an investor expansive living area with the premium design and quality that is unmatched by any neighboring apartment complex. The larger 4- and 5-bedroom units are ideal for families seeking luxury living at affordable rents. Co-living, originally popularized in gateway cities, has become more popular in secondary and tertiary markets across the country. These opportunities have been catalyzed by residents seeking greater flexibility in our current housing supply crunch and affordability crisis.  Repositioning the View has many financial advantages for an investor. The City of Albuquerque, which is nearing full COVID-19 recovery, is offering new companies’ remote workers a one-time $10,000 incentive paid to each employee working remotely within the city. The City recently announced significant corporate expansions with Intel, Group Orion, and Netflix spending billions of dollars. Intel is investing $3.5 billion in its advanced semiconductor technology and skilled manufacturing capabilities, which is anticipated to add 2000 more jobs. Orion Group will make a bigger impact on the City’s economy than when Intel first arrived in Albuquerque, providing a four million square foot satellite development center costing nearly $10 billion. Orion signed a 30-year lease for the building that is already under construction. This will create an initial 1000 jobs at the plant and hundreds of construction jobs in the near term. Orion Group anticipates a local workforce of 2,500 when the build-out is complete. Lastly, Netflix is acquiring 300 acres to expand its Mesa Del Sol studios south of Albuquerque and will be touted as one of the largest high-tech and sustainable film production facilities in North America. This endeavor with Netflix will add another 1400+ construction jobs and over 1000 production jobs in the next few years. All of this is on top of a strong local job base with the University of Mexico, Kirtland Air Force Base, Sandia National Laboratories, and Trinity Southwest University. Albuquerque has experienced year-over-year job growth of 3.3% and is projected to grow 34.5% over the next 10 years according to Bestplaces.net.    Given all the aforementioned, an investor is poised to take advantage of rents that are currently undervalued by 15%-20% which is believed to be a conservative estimate transitioning from student housing to renting by the bed in a co-living environment. Renters looking for standard apartment dwellings will face steep rents compared to this co-living opportunity, with average studios renting at $887 per month, $1,028 for a one-bedroom, and up to $1,360 on average for a 3 bedroom. Significant reductions in operating expenses will be attained through professionally managed co-living operators, reducing the need for heavy payroll burdens, shuttle services, high utility expenses, marketing costs, and additional operating efficiencies within a less management-intensive community. The increase in rents and year-over-year annual income will create a significantly stabilized cap rate. Local Broker License Information: http://www.sfrhub.com/realstatelicensing All SVN® Offices Independently Owned & Operated

Key Property Information

Listing Status
Available
Listing Type
Call for offers
Multi-family type
Single Family Rental Portfolio
No. of Units
162
Building Size
289,964 Sq ft
Opportunity Zone
Off
Buy Side Fee
50%
Price per unit
$ 0
View broker details

Additional Contacts

Jeff Cline | (602) 441-5354
Michael Finch | (480) 797-9825
Walt Arnold, CCIM, SIOR | (505) 256-1255
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35.051169, -106.636412

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