Sawmill area industrial property hits the market for $4.8 million as commercial availability expands

An industrial site in the Sawmill District is up for sale, offering potential investors the opportunity to acquire a brewery anchored space within a federally designated opportunity zone.

The property, built in 1945, spans roughly 45,000 square feet, located just minutes east of Sawmill Market and south of Interstate 40 at 1501 12th NW. Commercial brokers Andrea Hankins and Alexis Pinter brought the facility to market for $4.8 million last week.

A local brewer occupies 60% of the property, which a local entity under the name of 12th Street Partners LLC has owned since 2020. Hankins declined to name the brewer but said it has operated at the space for five years.

The remaining 40% of the site has been vacant for roughly a year after a cannabis grower ceased operations there.

Despite strong leasing activity in Albuquerque’s industrial market through the third quarter, the metropolitan area saw its highest industrial vacancy rate recorded in the last five years at 4.5%, according to CBRE’s most recent industrial market report.

The increase is a result of large-scale departures and is consistent with an overall trend of industrial space availability gradually rising from historical lows in mid-2023, the report said. The gradual increase in spaces available suggests that the market is “steadily rebalancing and new direct available space is entering the market more consistently,” the report added.

The owner of 1501 12th NW hopes to fill the property’s available space by offering flexible acquisition options.

A potential buyer can purchase the property to utilize it, to hold it as an investment property or to lease the space back to the owner, a Commercial Association of Realtors New Mexico listing says. Hankins said the owner is even willing to reduce the space used by the current tenant if a buyer needs more space.

“They’re just looking to optimize the space… (and) looking at new opportunities and creative ways to get that occupied,” Hankins said.

One of the major draws of the property, Hankins said, is that it resides within a federally designated opportunity zone, which allows investors to tap into potential tax benefits.

Opportunity zones are an economic tool used to spur economic activity and job creation through long-term investments in low-income areas. Albuquerque had 14 opportunity zones as of May.

The site’s proximity to I-40, national retailers, hotels, commercial services and buzzing areas such as Sawmill Market, Old Town and the Indian Pueblo Cultural Center are also a benefit, Hankins said.

The property has garnered significant local interest, primarily attracting manufacturing entities, but a potential buyer has also posed the idea of using the space as a sports training facility, Hankins said. The property’s power capacity for energy intensive operations makes manufacturing a good fit for the property, she added, but the property’s zoning as a nonresidential business park allows for several uses.

“There’s a lot of flexibility in this property, which is why I think it’s unique,” Hankins said. “We would love to see someone in there who will thoughtfully utilize the property to create something that the public is excited about.”

Activity at spaces like 1501 12th NW plays a major role in the overall health of a city, uplifting areas through the buzz and excitement that come with bringing life to large spaces, Hankins said.

“I would say (industrial activity) directly contributes to the success of the city, not only job creation, but just quality of life,” Hankins said.

Kylie Garcia covers retail and real estate for the Journal. You can reach her at kgarcia@abqjournal.com.