UNM approves land transfer to developer for creation of Lobo Crossing retail center

The University of New Mexico’s vision for its South Campus to become a hub for retail, entertainment and innovation is inching closer to reality after a key approval from the Board of Regents.

At a special meeting Monday, regents approved a transfer of ownership for a little over 38 acres of university-owned land to the east of Interstate 25 in Southeast Albuquerque to SimonCRE, a commercial real estate developer based out of Phoenix.

The developer is now under contract to purchase the property for $11.75 million, Tom Neale, UNM’s director of real estate and the COO of Lobo Development Corp., told the Journal on Wednesday.

The developer will be tasked with creating UNM’s proposed Lobo Crossing Shopping Center — a project central to the university’s vision for transforming its South Campus and serving as the anchor for the area’s Tax Increment Development District, or TIDD.

The approval from regents is “absolutely critical” to moving forward from decades of concepts and discussions to “an actual project coming out on the ground,” Neale said.

“Now it’s time to get to work,” said SimonCRE Founder and CEO Josh Simon.

The 363,000-square-foot Lobo Crossing Shopping Center will be an open-air development, anchored by a national food and general merchandise retailer, roughly 11 junior anchor tenants and 45,000 square feet of space for small retail and restaurant operators, the Tuesday news release said. UNM officials said Lobo Crossing is expected to be “the single largest revenue generator” within the South Campus TIDD.

UNM’s South Campus TIDD, which will also welcome an In-N-Out Burger, sets aside up to 75% of incremental gross receipts and property taxes from the state, city and county for such projects, including the Lobo Crossing project — located west of University Boulevard, south of Sunshine Terrace Avenue and north of Gibson.

Neale said he and his team have been working with SimonCRE on the project for about two years, after a potential tenant for the retail center highlighted the company as one of its preferred developers.

Neale noted that while the board approved the conveyance, or transfer of ownership, the transaction isn’t expected to close until early next year. Part of the university’s contract with SimonCRE includes the developer securing a national, large-scale food and general merchandise retailer as a tenant.

Simon said the group has already reached a deal that it is currently negotiating with the national big box tenant, and has already established leases or received letters of intent for close to 90% of the Lobo Crossing space. Simon said the next steps will focus on filling the rest of the space with local and regional businesses.

Neale and Simon declined to share any potential tenants at this time, though the Journal has previously reported that developers and university officials had considered bringing a Target to the area.

Simon said the group is also moving “full speed” ahead with drawing up plans for the site, submitting materials to the city and is hopeful for a 2026 groundbreaking.

“We’re just excited. There hasn’t been anything of this scale built in Albuquerque in years,” said Simon, who said his company is also working on redevelopment plans for Cottonwood Corners, a West Side shopping center it purchased late last year.

Simon and Neale said the project aims to enhance connectivity between Lobo Crossing and the UNM Lobo Sports Complex — a collection of UNM athletic facilities including the Pit and University Stadium — and improve walkability for the area’s students, employees of the nearby Science & Technology Park, community members and gamegoers.

“There are very few retail projects south of I-40 serving this part of the community. So it’s been a retail and food desert,” Neale said. “This project is going to have significant benefits to the southern portion of Albuquerque.”