Pavilions at San Mateo | Wal-Mart Anchored | NM
Retail | 6.50% CAP | 75,907 SqFt
Marketing description
Faris Lee Investments is pleased to offer the rare opportunity to acquire the fee-simple interest in The Pavilions at San Mateo, a dominant Walmart Grocery-anchored community center located in the central core of Albuquerque, New Mexico. Reinforcing the undeniable strength and long-term viability of this location, Walmart recently executed a major lease extension through 2036 based on their high-volume sales performance. Supermarket and grocery-anchored shopping centers have consistently remained the single most resilient, stable, and highly desired asset class for retail property investors, insulated from economic fluctuations and driven entirely by necessity-based consumer habits that ensure consistent daily foot traffic.
Complementing the powerhouse grocery anchor, the center boasts extraordinary leasing velocity, a protective low-cost basis at $150/SF, and a diverse merchandising mix of national retailers that maximizes crossover shopping. This includes Five Below signing a brand-new 10-year lease for 13,142 square feet, Dollar Tree extending for 10 years in its 10,000 square foot space, and a high-performing Shoe Dept. occupying 15,839 square feet. These major national retailers align directly alongside the flagship 36,926 square foot Walmart Neighborhood Market, anchoring the core footprint of the asset. In total, ownership has recently renewed over 7,000 square feet of inline shop space, giving a passive investor or 1031 exchange buyer a perfectly balanced, internet-resistant revenue stream that qualifies for significant tax advantages via cost segregation and accelerated depreciation.
The property is strategically positioned with unparalleled freeway accessibility, located directly near the on/off ramps of Interstate 40 (over 206,300 VPD) and fronting the high-traffic arterial intersection of San Mateo Blvd NE and Cutler Ave NE (over 48,000 VPD). Backed by excellent street frontage and multiple entry points, the center successfully draws over 2.2 million visitors annually (Placer.ai). It sits just over a mile from the state's leading regional retail drivers, including Winrock Town Center and the Coronado Center Regional Mall. This high-profile location is sustained by stellar local demographics, featuring over 116,000 residents, 54,000 households, and a massive daytime business population of 113,000 employees within a 3-mile radius, making it a highly secure, income-generating asset.
Investment highlights
- Strong performing Walmart Grocery brings daily traffic to the shopping center
- Based on their strong sales, Walmart recently executed an extension through 2036
- Rare opportunity to acquire supermarket anchored shopping center
- Five Below, based on the high quality of the trade area signed a new 10 year lease
- Dollar Tree also recently extended their lease for 10 years
- Shoe Dept recently extended their lease for 5 years
- Ownership recently extended over 7,000 sqft of shop space showing strong tenant demand for this high traffic community/neighborhood shopping center
- The center contains an excellent merchandising mix of daily needs from a variety of uses: grocery, apparel, shoes, value retailers, restaurants, personal services, and health services
- A mix of daily needs ensures a high consistent foot traffic at all times of the day including both weekdays and weekends
- These daily needs retailers typically perform well regardless of the economic cycle and are not as exposed to the e-commerce threat
- Provides the investor with a low-cost basis in the property that ensures the successful repositioning of the asset
- Allows for significant improvements to be made at the property in order to achieve favorable returns
- Existing improvements allows investor to offer below market rents to potential tenants
- The Pavilions at San Mateo is the dominant community/neighborhood center serving the central core of the Albuquerque trade area with over 2.2 million visitors the past 12 months (Placer.ai)
- The property enjoys unparalleled freeway accessibility and is located directly along Cutler Ave NE - major East/West arterial
- The property is strategically positioned near the on/off ramp to Interstate 40 with over 205,000 VPD that provides convenient access to the entire Albuquerque MSA
- Located at the intersection to San Mateo Blvd NE & Cutler Ave with over 48,000 VPD
- Property benefits from significant street frontage and multiple points of access
- Strong population with over 116,000 people within 3 miles
- Good consumer counts with over 54,000 households within 3 miles
- Large amount of daytime business with over 113,000 employees within 3 miles
- This offering serves as a well-positioned property within 4 miles of Downtown Albuquerque - leading MSA of New Mexico
- Approximately 1 mile from Coronado Center Regional Mall - anchored by Macys, JC Penney, Dicks Sporting Goods, H & M, Forever 21, The Cheesecake Factory, and Barnes & Noble
- Approximately 1.25 miles from Winrock Town Center - anchored by Dillards, Nordstrom Rack, Target, Regal Theater, and Dave & Busters
- Located nearby is the only high end Simon Lifestyle center w/ tenants including: Apple, Lululemon, Pottery Barn, Williams Sonoma & Michael Kors
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