Nwc Sara & Meadowlark Lane is amulti-family property for lease in Rio Rancho, NM.
This Class A multi-family apartment site is unparalleled given its strategic location, unique property design, lack of available & well positioned product, high barriers of entry in the immediate area and overall property features and amenity package. With the continuing strong market conditions (ie 94.5% market occupancy as of May 2015) and the rapid lease-up of two recently built products in the general area, this development is poised to be a hugely successful and lucrative investment opportunity. We have completed an extensive property design with preliminary drawings, elevations, cross and unit sections that has been informally reviewed by some planning officials and was well received. In addition, we have obtained prelim unit pricing for the project and have have gathered extensive input/data gathered from numerous sources including residential management companies, apartment brokers as well as tracking current developments. In summary, a strong development team has been set up with a seasoned architect, engineers, construction management firm, residential management company and a seasoned real estate attorney to make this a successful development. Furthermore, we have available to us a non-recourse construction and permanent loan with 10% hard equity required (30 year amortization @ fixed rate for 10 years), which comes out to approx. $2.36 MM based upon the total estimated project cost of $23.6 MM.
As a result, we are seeking EITHER of the following:
1. An equity investor (or investors) who is willing to contribute up to $2.36 MM for controlling (ie 65 to 70%) ownership interest in the project, which conservatively has a pre-tax IRR of 17% with the potential to increase to the low 20s - detailed proformas can be provided subject to execution of a CA. As owner of the property, we would contribute land equity in the amount of $850K for a minority share and move forward with developing the property.
2. A developer who is willing to acquire the entitled multi-family land with plans for $1.3 MM to develop the property for their own account.
This site and its strong potential as a Class A, high density, multi-family development, presents a unique opportunity for an investor and/or developer, alike.