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Industry Insight - Retail Investment

By Daniel Kearney Associate Broker – Allen Sigmon Real Estate Group

It has been said by Andrew Carnegie that 90% of American millionaires become so through owning Real Estate. Although times have changed since Carnegie uttered those words, it still rains true today.

In our ever-changing economy, it can be easy to be pressured to invest in higher-risk stocks, securities, currencies, options, etc. as the potential reward can outweigh the perceived risk of these investments. Speculation is indeed the backbone of the NYSE and it is healthy and imperative that investors continue to make calculated speculative investments; however, it’s important that these same investors have secure assets to fall back to if and when speculation leads to failure.

Commercial Real Estate Investments and specifically NNN Multi-Tenant Investments can provide a healthy annual cash flow while mitigating default risk through having multiple diverse businesses occupying the building. The benefits of an NNN investment include, but are not limited to:

  • Low Maintenance while having a direct line of communication with your tenants/manager to anticipate the health of your investment.

  • Asset appreciation and principal reduction on loan while simultaneously receiving positive cash flow.

  • Tenants pay their pro-rated share of property taxes, maintenance, common area expenses, property insurance, property management.

  • Tenants pay all operating expenses (Gas, Electric, water) directly to the provider.

  • Ability to improve investment (Increase rents, improve common elements, etc.)

  • Ability to have a tangible asset that represents your investment.

CottonWood NNN Retail Investment

The High Assets Way Neighborhood Center located at 9101 High Assets Way is a Real Estate asset that includes all the benefits listed above and more. This Cottonwood Retail property located near the corner of Paseo Del Norte and Eagle Ranch Rd. was completed in 2011. The property consists of 8 units and 9,871 SF. Leases range from 5-6 years and the building is filled with successful local businesses. The property has visibility from Eastbound Paseo Del Norte and Southbound Eagle Ranch. The property has been well maintained and managed and is an important neighborhood strip center for the Cottonwood market.

Tenants include;

  • 102 & 102: Westside Oral Surgery

  • 103: Hair Addict

  • 104: Oakmont Financial

  • 105 & 106: Crossfit Petroglyph

  • 107: Owner Master Lease (1 year)

  • 108: Love Laser Medical Spa

  • NOI: $169,512.00

  • Sales Price: $2,145,721.00

  • CAP: 7.9%


About the Author

Daniel joined Allen Sigmon Real Estate Group in the summer of 2014 because of his passion for local Development. He has worked with a multitude of local retail and office clients to aid in site selection and development; including WisePies, Peerless Tyre Co, Caremore Chiropractic, Liquid Hub, Runway Apparel, Allstate, and Duke City Auto Body, among other clients.

In addition to working with clients, Daniel spearheads leasing efforts for local and national retail investors. While brokering deals full-time at Allen Sigmon and attempting to expand his inventory and client base, he considers this stage of his career as the building block of a successful future in retail and office development and ownership. As Daniel pushes forward in his professional life, he is currently finishing his degree in business administration at the University of New Mexico. He hopes to peruse a law degree and be a serious player in the future economic development of Albuquerque.

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