Flex building sale reflects market strains

The last of SunCal’s improved property holdings, a 23,189-square-foot flex building at 3911 Singer NE, recently sold in a deal that sheds some light on the state of commercial real estate in the Albuquerque metro area.

The Singer property, which has a tenant, was priced at $1,875,000, a 30 percent discount on the asking price of $2,666,000 when it was first marketed in October 2007.

The buyer, a pair of local investors, paid an even lesser $1.6 million, said Bill Robertson of Grubb & Ellis New Mexico.

The roughly $1 million drop in price from 2007, in the waning days of the real-estate boom, to 2013 is a sign of the times in the market, said Tim With of Grubb & Ellis New Mexico, who with associate John Ransom marketed the property for SunCal affiliate Westland DevCo.

“This wasn’t a distressed sale by any means,” he noted.

Irvine, Calif.-based SunCal made a splash in 2006 when it acquired 55,000 acres of what had once been the Atrisco Land Grant from Westland Corp. SunCal’s intention was to develop a giant master-planned community along the lines of Forest City Covington’s Mesa del Sol project south of the airport.

The plan crashed with the recession and bursting of the housing bubble.

The 55,000 acres were sold in foreclosure to SunCal creditors in 2010 and now sit dormant.

SunCal’s deal with Westland included the acquisition of a grab bag of properties – three former drug stores, a couple offices, a restaurant and some empty lots – that included 3911 Singer NE.

In mid-2008, the Singer building was taken off the market, With said. The building has had the same tenant, Optomec Inc., since at least 2000 and thus was providing stable cash flow.

In mid-2012, Westland DevCo decided to market the building at the discounted price so that it would sell within 60-75 days. One factor in the decision to sell was likely the looming expiration of Optomec’s lease at the end of this month, said Robertson, who with associate Tim MacEachen represented the buyer.

The buyer pursued the purchase, despite the lease expiration, because the building is of high-quality construction and well located, Robertson said. Negotiations are under way on a new lease with Optomec.
— This article appeared on page B01 of the Albuquerque Journal