UNM’s Lobo Crossing project, tax district draw attention to long-vacant South Campus parcels

Development momentum is sweeping across the University of New Mexico’s South Campus in a way that UNM Real Estate Director Tom Neale hasn’t seen in his nearly two decades working with the university.

“I’ve been at this quite a while here at UNM and we have ... senior leadership that are really supportive and driving the university in this direction,” said Neale, also the chief operating officer of UNM’s private development arm, Lobo Development Corp. “And it hasn’t happened in this fashion since I’ve been here.”

Two factors have spurred the buzz: the creation of the UNM’s South Campus Tax Increment Development District, or TIDD, and progress with the Lobo Crossing Shopping Center project, Neale said.

In June, UNM officials announced approval of an ownership transfer for 38 acres of land that developers will transform into a major retail destination, which Neale said is a long-awaited outcome of the TIDD that has now created momentum for other development-ready parcels.

Of the roughly 300 acres that the South Campus TIDD encompasses, nearly 80 acres are currently undeveloped, Neale said. With Phoenix-based developer SimonCRE slated to develop 38 acres with the Lobo Crossing project, that leaves 41 acres up for grabs.

The available sites have been on the market since 2016, except for three acres that UNM acquired in March.

The majority of the 41 acres sit in the northwest corner of the South Campus TIDD, near Interstate 25 and Avenida Cesar Chavez. They range from a two-acre parcel directly north of Raising Cane’s on Gibson and a 15-acre parcel directly off I-25 and north of Avenida Cesar Chavez.

“It became evident that in order to feasibly develop a large portion of the lands we have here at South Campus, we needed a tax increment development district,” Neale said of the lengthy listing period.

UNM’s South Campus TIDD designates up to 75% of incremental gross receipts and property taxes for public infrastructure projects. State law established the TIDD in 2023 to incentivize development, like Lobo Crossing, on UNM’s South Campus.

With the TIDD established, Neale said UNM is now “on a more predictable path for development” of its South Campus, pointing to movement on Lobo Crossing as an example.

Lobo Crossing is a proposed open-air development expected to become South Campus’ largest revenue generator with roughly 363,000 square feet of retail, restaurant and entertainment offerings.

SimonCRE plans to break ground on the project in 2026, pending a land transaction slated to close early next year.

Listing agents for the available 41 acres surrounding Lobo Crossing have updated marketing materials to reflect the inclusion of the shopping center, which Neale said has put more attention on the long-vacant sites.

“The volume of interest and activity is starting to increase,” Neale said. “We’re not negotiating any specific deal in any detail at this point in time, but just based on the level of interest, we think that pace is going to rapidly intensify.”

Neale said commercial real estate firm CBRE is targeting a mixture of quick- and full-service restaurants, a family-friendly sports grill and bar and entertainment tenants for the 41 acres.

“This is a food desert and there’s very little retail south of (Interstate) 40 to serve this community,” Neale said. “Bringing in those types of uses help our neighbors, help the university and present this part of the city in a much more favorable light.”

The vision is for these parcels to join the proposed Lobo Crossing center and the existing athletic facilities and Science & Technology Park in creating what a Commercial Association of Realtors New Mexico listing dubs the Lobo Sports & Tech District — a concept Neale said is over a decade in the making.

“What we’re trying to do is create this vibrant sports, entertainment and technology district at South Campus that’ll be active every day of the year, rather than a big influx of fans for the athletic events,” Neale said.

Involvement of “significant national anchors” in the Lobo Crossing project has helped give credibility to the district as a whole, Neale said. Documents from recent neighborhood meetings about Lobo Crossing show that a Target could be an anchor tenant for the project.

Neale said UNM and CBRE aim to make deals for the 41 acres “at the soonest possible time,” but the market will ultimately determine the pace of development.

“I think we’ve got all the right pieces to move development on this,” Neale said. “My hopes are very high.”