Posted 23 Apr 19 By: No comments yet

Investment Property Advisors 2018 Recap & 2019 Kickstart

Investment Property Advisors is one of the most well-networked teams in the commercial real estate industry in the State of New Mexico.  Focusing on investment sales, the team understands the local and regional markets impeccably.  IPA’s knowledge and relationships in the investment real estate industry, coupled with their work ethic and dedication to their clients, puts them in position to best serve their clients and produce outstanding results. 

As leaders in Investment property sales, we sat down with Investment Property Advisors, Cole Flanagan, CPA, MBA, Partner and Jake Mechenbier, Senior Advisor, to discuss their thoughts on the 2018 year-end outcome and how the 2019 year has kicked off. 

What made 2018 stand out from previous years in terms of investment property sales?

2018 was a strong year for investment sales and the momentum has carried over into 2019.  Investment sales are complex but we make the process as simple as possible for our clients through our proactive approach, underwriting, detailed analysis, and our creative problem solving.  We have the expertise to create successful outcomes for our clients on challenging assets.  (CF)

Our team excels in navigating challenges and providing excellent outcomes for our customers; 2018 was a great example of this with multiple transactions with environmental challenges that required our expertise in navigating the lender and buyer requirements to execute a closing.  We also worked closely with sellers, lenders, and buyers in 2 instances to avoid a foreclosure, reposition the assets, and provide a winning outcome for all parties. (JM)

What were some of the challenges you faced with the economy or other variables?

We have successfully sold multiple assets with challenging components by connecting the "right" buyer with the "right" seller.  Some challenges we faced included environmental issues and properties with cannabis users.  Both of these challenges can create hurdles with financing but we were able to successfully overcome these challenges by being proactive in our approach.     

On a self-storage property we sold, a building encroached over a utility easement which posed a threat to the lender which the title company would not insure over.  We worked with the utility company and surveyor to get the easement vacated which satisfied both the lender and buyer.  We have the contacts and expertise to overcome challenging hurdles during the investment sale process. (JM)

In addition to environmental challenges, with capitalization rates having inched up, we were challenged to position properties to maximize their value in a changing interest rate and capitalization rate environment.  We stand out from the competition in our level of detailed analysis, anticipation of challenges, and our problem-solving for our clients. (CF)

How do New Mexico investment sales compare to national trends?

Investment properties in New Mexico with strong real estate fundamentals continue to see strong demand from investors both locally and across the country.  Investors investing in tertiary markets such as New Mexico continue to achieve yields not seen in the larger metros.  There has been a lack of supply given the strong demand for well positioned assets.  (CF)

While there is significant demand for investment real estate opportunities in New Mexico, the supply is relatively low in our market, which means the challenge is finding a quantity of quality opportunities.  We excel in the evaluation of opportunities for our clients and identifying those which stand out as exceptional in quality. (JM)

What do you anticipate for the 2019 year?

2019 is off to a strong start.  We have created a competitive bidding environment for our seller's on multiple occasions leading to the best price and terms for our clients. We have already nearly eclipsed the 2018 volume in just the first quarter of 2019.  (JM)

2019 is off to our best Q1 yet.  The market continues to be robust with demand and we are uncovering tremendous opportunities for our clients.  Our commitment to excellence in advisory services continues to provide our clients with the stand-out service they testify to and love about our team. (CF)

2018 IPA Team Statistics:

Total Transactions (2018): 18

Total Square Footage (2018): 271,376

Total Value:  $35,735,594

Notable Deals: Trophy Historic Santa Fe Plaza Coyote Café - $4,000,000; College Plaza Shopping Center, Santa Fe, NM - $8,000,000

Meet Cole and Jake:

Cole Flanagan is a Commercial Real Estate Investment Specialist. His financial and business background enhances his ability to assist his clients in making sound decisions based on fundamental analyses. Cole’s dedication to excellence in both his work and client relationships has resulted in more than $375 Million in closed investment transactions over the past seven years. More importantly, it has earned him the praise, respect, and trust of his clients and peers.

Jake Mechenbier joined NAI Maestas and Ward with a focus on investment properties. His experience and knowledge base gained while working on research projects with the company provided Jake with a comprehensive understanding of the New Mexico market, which translates to comprehension of the market on a national level.  Jake’s ability to think outside of the box provides unique solutions and outcomes. His strong work ethic and attentive eye for detail gives his clients the best possible outcome.

Investment Property Advisors is a division of NAI Maestas & Ward.  The team has the backing of NAI Global, which extends their investment reach internationally.  For more on the IPA Team and their available investment properties visit www.iparealty.com

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