Single-Tenant Industrial Investment Offering HD Supply ...A division of NAI Maestas & Ward Offering Memorandum | 4 Location 6707 Washington St NE Albuquerque, NM 87109 Tenant HD Supply

Single-Tenant Industrial InvestmentHD Supply Holdings, Inc. (HDS) | 8% CAP Rate

Cole Flanagan, CPA, MBA cell 505 235 7585 [email protected]

Offering Memorandum

6801 Jefferson St. NE, Suite 200 | Albuquerque NM 87109 office 1 505 878 0001 | www.IPArealty.com

6707 Washington St. NE | Albuquerque, NM 87109

A division of NAI Maestas & Ward

Jake Mechenbier cell 505 917 5514 [email protected]

Offering Memorandum | 2A division of NAI Maestas & Ward

ConfidentialDisclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving from NAI Maestas & Ward and should not be made available to any other person or entity without the written consent of NAI Maestas & Ward. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

NAI Maestas & Ward has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, NAI Maestas & Ward has not verified, and will not verify, any of the information contained herein, nor has NAI Maestas & Ward conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT A NAI MAESTAS & WARD ADVISOR FOR MORE DETAILS.

Confidential Disclaimer


InvestmentHighlights

Investment Property Advisors is pleased to offer for sale a single-tenant industrial building, leased to a publicly traded company, HD Supply Holdings, Inc. The asset is located at 6707 Washington St NE in Albuquerque, New Mexico. It is positioned in the coveted North I-25 corridor with convenient access to Interstate 25. The investment is priced at $1,534,000 which equates to an 8.0% CAP Rate. In addition to the high yield, the property is priced below replacement cost.

The approximately 16,016 sq. ft. building is situated on about 1.64 acres. The building has been leased by HD Supply since 2000 showing strong commitment to the site. HD Supply Holdings, Inc is one of the largest industrial distributors in North America located throughout 36 states and Canada. The company has in excess of 500,000 customers with an extensive product offering of about 800,000 SKUs.

This investment benefits from the long-tenured tenancy, strong credit tenant, and high yield based on current income. It is priced below replacement cost in one of the most desirable trade areas in the market. Substantial in-place cash flow, combined with the many advantageous property characteristics, make this property an opportunity on which an investor can capitalize.

HD Supply Holdings, Inc.

Offering Summary

Purchase Price $1,534,000

Price per Square Foot $95.78

Net Operating Income $122,755

CAP Rate 8.00%

� Single-tenant industrial investment leased to publicly traded company

� High-yielding investment - 8.0% Cap Rate

� Long-tenured tenant since November 1, 2000

� About 1 year of lease term remaining through June 30, 2019

� HD Supply Holdings, Inc: - Publicly traded company (HDS) - Located across 36 states and Canada - Over 500,000 customers - Extensive product offering (about 800,000 SKU’s)

� Building Size: ±16,016 sq. ft.

� Land Size: ±1.64 acres (excess yard space)

� ±20 ft. clear height

� Fenced yard space

� Priced below replacement cost ($96/sq. ft.)

� Strategically located in the coveted North I-25 corridor

� Convenient access to Interstate 25

� Limited landlord responsibilities in regards to repairs and maintenance

82,126+ Population within a 3-mile radius of site

$66,151+ Average Household Income

in a 3-mile radius


Location6707 Washington St NE Albuquerque, NM 87109

Tenant HD Supply Construction Supply, Ltd. (White Cap)

Parent Company HD Supply Holdings, Inc.Building Size 16,016 SFLand Size 1.64 Acres Commencement Date November 1, 2000Remaining Lease Term About 1 Year through June 30, 2019

Renewal Options (1) 3-year at Fair Market Rent

Net Operating Income $122,755

Lease Type Modified Gross

Lease Summary

Period Annual Rent

July 1, 2018 - June 30, 2019 $144,515

Rent Schedule

Lease Summary & Rent Schedule


Income Amount $/SF

Rental Income $144,515 $9.02

Operating Expenses

Insurance $3,300 $0.21

Property Taxes $15,960 $1.00

Repair & Maintenance $2,500 $0.16

Total Operating Expenses $21,760 $1.36

Net Operating Income $122,755 $7.66

Income Statement Income Statement


HD Supply is one of the largest industrial distributors in North America. HD Supply has about 260 locations located across 36 states and six Canadian provinces. The company was founded in 1974 as Maintenance Warehouse and is currently headquartered in Atlanta, GA.

HD Supply provides a broad range of products to approximately 500,000 customers. Customers are in the sectors of repair, maintenance, operations, and residential and commercial construction sectors. HD Supply has an extensive product offering of about 800,000 SKUs.

HD Supply went public in 2013 and is part of the Nasdaq stock exchange; it is traded under the ticker symbol HDS. The company is divided into three categories which include HD Supply Facilities Maintenance, White Cap, and Brafasco (Canada). HD Supply had revenues exceeding $7.4 billion in 2017.

TenantHighlights

Tenant ProfileTenant HD Supply Construction Supply, Ltd.

(White Cap)Parent Company HD Supply Holdings, Inc.Revenue (2017) $7.4 billionTicker Symbol HDS (Nasdaq)Year Founded 1974Headquarters Atlanta, GAWebsite www.hdsupply.com

Locations 260 locations in 36 states

Customers 500,000 +


Paseo del Norte

Ellison St.

Osuna Rd.

San Mateo Blvd.

Hawkins St.

Lang Ave.

San Antonio Dr.

Jeff

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.

Masthead St.San Francisco Rd.

Rutledge Rd.

25

San

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.

University Volkswagen Mazda

Pacific Mutual Door & Window

NM Cancer Center

Vista Del Norte(Approx. 1,000 Single Family Homes)

Albuquerque Meadows(Senior Manufactured Home Living Community)

Broadstone Santa Monica

(280 Units)

Lincoln Heights Apts.(420 Lots)

Vista Del Norte Center

Holman’s

Major Home Improvement Call Center

Manpower

Adelante Development

CenterUS Post Office

UTC AerospaceSystems

AmericanTransportation

Systems

The Rehabilitation Center of Albuquerque LLC.

Medical Park

State Bar ofNew Mexico

Abq. ForestService Center

AmericanRed Cross

MCTIndustries

Hall Environmental

Analysis

Journal Center

American GypsumDrywall Plant

S I T E

CPD 29,141CP

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700

Retail Trade Corridor


Osuna Rd.

Was

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S I T E

IDN-ACME

Grainger Industrial Supply

US Glove Inc.

SiteAerial


AlbuquerqueMETRO AREATrade Area Analysis

Albuquerque | Why Here? Why Now?Located near the geographic center of New Mexico at the intersection of I-25 and I-40 and resting at the foot of the Sandia Mountains, Albuquerque is the state’s most populous city and one of the most livable in the U.S. The city serves as a major transportation and shipping hub for the Southwest, with BNSF Railway, air cargo from Albuquerque International Sunport airport, and a commuter train running from Belen to Santa Fe. Albuquerque is home to the International Balloon Fiesta, the world’s largest gathering of hot-air balloons. A talented workforce, a business-friendly environment, a community rooted in history and a high quality of life make Albuquerque hard to beat.

ALBUQUERQUE HEALTHCARE. Is the center of health care excellence in NM. University of NM is a nationally recognized Class 1 research institution. There are 1,943 licenced hospital beds in metro area

Top 8 Reasons to choose Albuqueque

Invest in Albuquerque � Low-Risk Location

� Skilled Workforce

� Business Incentives

� The Metro Area Communities

� Quality of Life

� Cost of Living

� Innovation Central

� On the cutting edge of Technology

UTAH

TEXAS

OKLAHOMA

COLORADO

ARIZONA40

25

Santa FeAlbuquerque

Las Cruces Albuquerque

Bernalillo

Albuquerque Metro

Rio Rancho

Los Lunas

Belen

40

40

25

Albuquerque City

Albuquerque

25

New Mexico

Albuquerque City by the numbers (ESRI 2017 Demographics)

653,761 City Population

$67,029 Average Household Income

261,158 Households

$40,404 Median Disposable Income

27,083 Total Businesses

368,764 Total Employees

922,914 Albuquerque

Meto Population

The Largest

City in the State

ALBUQUERQUE EDUCATION | SKILLED WORKFORCE Ranks top in nation for cities witht he most college graduates, 69,000 college students reside in metro area, has one of the largest # of PhDs per capita in the nation

COMPETITIVE BUSINESS CLIMATE Low energy costs, low property taxes, affordable real estate and cost of living, a qualified/productive workforce, aggressive incentives, efficient market access

Ranked 6th in America’s favorite cities list - Travel + Leisure

Ranks among America’s best cities for global trade - Global Trade Magazine

The 5th most cost-friendly city to do business in the U.S. - KPMGIn the news

25

4040


Albuquerque

S I TE

Corrales

Rio Rancho

Demographic and Income Profile6707 Washington St NE, Albuquerque, New Mexico, 87109 2 Prepared by Esri6707 Washington St NE, Albuquerque, New Mexico, 87109 Latitude: 35.15664Ring: 1 mile radius Longitude: -106.59842

Summary Census 2010 2018 2023Population 4,898 4,867 4,888Households 2,169 2,144 2,144Families 1,282 1,226 1,211Average Household Size 2.23 2.24 2.25Owner Occupied Housing Units 1,608 1,607 1,619Renter Occupied Housing Units 561 537 525Median Age 36.4 39.7 41.6

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.09% 0.43% 0.83%Households 0.00% 0.37% 0.79%Families -0.25% 0.20% 0.71%Owner HHs 0.15% 0.46% 1.16%Median Household Income 1.44% 2.07% 2.50%

2018 2023 Households by Income Number Percent Number Percent

<$15,000 251 11.7% 200 9.3%$15,000 - $24,999 225 10.5% 208 9.7%$25,000 - $34,999 180 8.4% 175 8.2%$35,000 - $49,999 213 9.9% 207 9.7%$50,000 - $74,999 397 18.5% 414 19.3%$75,000 - $99,999 337 15.7% 376 17.5%$100,000 - $149,999 304 14.2% 319 14.9%$150,000 - $199,999 134 6.2% 131 6.1%$200,000+ 103 4.8% 115 5.4%

Median Household Income $60,371 $64,847Average Household Income $78,314 $86,436Per Capita Income $34,055 $37,425

Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent

0 - 4 375 7.7% 309 6.3% 298 6.1%5 - 9 333 6.8% 334 6.9% 313 6.4%10 - 14 254 5.2% 319 6.6% 325 6.6%15 - 19 227 4.6% 243 5.0% 280 5.7%20 - 24 288 5.9% 238 4.9% 250 5.1%25 - 34 855 17.5% 621 12.8% 540 11.0%35 - 44 728 14.9% 766 15.7% 711 14.5%45 - 54 677 13.8% 623 12.8% 684 14.0%55 - 64 548 11.2% 617 12.7% 576 11.8%65 - 74 310 6.3% 449 9.2% 516 10.6%75 - 84 213 4.3% 233 4.8% 280 5.7%

85+ 91 1.9% 116 2.4% 116 2.4%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 3,659 74.7% 3,533 72.6% 3,479 71.2%Black Alone 100 2.0% 98 2.0% 98 2.0%American Indian Alone 215 4.4% 232 4.8% 250 5.1%Asian Alone 230 4.7% 251 5.2% 267 5.5%Pacific Islander Alone 2 0.0% 2 0.0% 2 0.0%Some Other Race Alone 507 10.4% 551 11.3% 582 11.9%Two or More Races 185 3.8% 199 4.1% 209 4.3%

Hispanic Origin (Any Race) 2,079 42.4% 2,236 45.9% 2,379 48.7%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

July 24, 2018

©2018 Esri Page 1 of 6


Summary Census 2010 2018 2023Population 4,898 4,867 4,888Households 2,169 2,144 2,144Families 1,282 1,226 1,211Average Household Size 2.23 2.24 2.25Owner Occupied Housing Units 1,608 1,607 1,619Renter Occupied Housing Units 561 537 525Median Age 36.4 39.7 41.6

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.09% 0.43% 0.83%Households 0.00% 0.37% 0.79%Families -0.25% 0.20% 0.71%Owner HHs 0.15% 0.46% 1.16%Median Household Income 1.44% 2.07% 2.50%


<$15,000 251 11.7% 200 9.3%$15,000 - $24,999 225 10.5% 208 9.7%$25,000 - $34,999 180 8.4% 175 8.2%$35,000 - $49,999 213 9.9% 207 9.7%$50,000 - $74,999 397 18.5% 414 19.3%$75,000 - $99,999 337 15.7% 376 17.5%$100,000 - $149,999 304 14.2% 319 14.9%$150,000 - $199,999 134 6.2% 131 6.1%$200,000+ 103 4.8% 115 5.4%



0 - 4 375 7.7% 309 6.3% 298 6.1%5 - 9 333 6.8% 334 6.9% 313 6.4%10 - 14 254 5.2% 319 6.6% 325 6.6%15 - 19 227 4.6% 243 5.0% 280 5.7%20 - 24 288 5.9% 238 4.9% 250 5.1%25 - 34 855 17.5% 621 12.8% 540 11.0%35 - 44 728 14.9% 766 15.7% 711 14.5%45 - 54 677 13.8% 623 12.8% 684 14.0%55 - 64 548 11.2% 617 12.7% 576 11.8%65 - 74 310 6.3% 449 9.2% 516 10.6%75 - 84 213 4.3% 233 4.8% 280 5.7%

85+ 91 1.9% 116 2.4% 116 2.4%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 3,659 74.7% 3,533 72.6% 3,479 71.2%Black Alone 100 2.0% 98 2.0% 98 2.0%American Indian Alone 215 4.4% 232 4.8% 250 5.1%Asian Alone 230 4.7% 251 5.2% 267 5.5%Pacific Islander Alone 2 0.0% 2 0.0% 2 0.0%Some Other Race Alone 507 10.4% 551 11.3% 582 11.9%Two or More Races 185 3.8% 199 4.1% 209 4.3%



July 24, 2018



Summary Census 2010 2018 2023Population 81,226 82,126 84,005Households 35,750 35,828 36,510Families 20,379 19,706 19,823Average Household Size 2.25 2.27 2.28Owner Occupied Housing Units 21,010 21,232 21,501Renter Occupied Housing Units 14,740 14,597 15,009Median Age 37.8 39.0 39.8

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.45% 0.43% 0.83%Households 0.38% 0.37% 0.79%Families 0.12% 0.20% 0.71%Owner HHs 0.25% 0.46% 1.16%Median Household Income 2.02% 2.07% 2.50%


<$15,000 4,710 13.1% 3,864 10.6%$15,000 - $24,999 4,606 12.9% 4,183 11.5%$25,000 - $34,999 4,109 11.5% 3,934 10.8%$35,000 - $49,999 4,923 13.7% 5,039 13.8%$50,000 - $74,999 6,024 16.8% 6,556 18.0%$75,000 - $99,999 4,447 12.4% 5,189 14.2%$100,000 - $149,999 4,399 12.3% 4,855 13.3%$150,000 - $199,999 1,419 4.0% 1,489 4.1%$200,000+ 1,190 3.3% 1,402 3.8%



0 - 4 5,134 6.3% 4,761 5.8% 4,899 5.8%5 - 9 4,964 6.1% 4,735 5.8% 4,764 5.7%10 - 14 4,572 5.6% 4,650 5.7% 4,705 5.6%15 - 19 4,983 6.1% 4,466 5.4% 4,586 5.5%20 - 24 6,338 7.8% 5,278 6.4% 5,040 6.0%25 - 34 11,913 14.7% 12,789 15.6% 12,326 14.7%35 - 44 9,811 12.1% 10,242 12.5% 11,323 13.5%45 - 54 11,486 14.1% 9,695 11.8% 9,453 11.3%55 - 64 9,971 12.3% 10,747 13.1% 10,234 12.2%65 - 74 6,186 7.6% 8,247 10.0% 9,247 11.0%75 - 84 4,071 5.0% 4,458 5.4% 5,306 6.3%

85+ 1,797 2.2% 2,058 2.5% 2,119 2.5%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 57,202 70.4% 56,020 68.2% 56,090 66.8%Black Alone 2,025 2.5% 2,026 2.5% 2,071 2.5%American Indian Alone 4,615 5.7% 5,018 6.1% 5,432 6.5%Asian Alone 2,200 2.7% 2,471 3.0% 2,732 3.3%Pacific Islander Alone 93 0.1% 88 0.1% 86 0.1%Some Other Race Alone 11,471 14.1% 12,555 15.3% 13,383 15.9%Two or More Races 3,621 4.5% 3,948 4.8% 4,210 5.0%



July 24, 2018



Summary Census 2010 2018 2023Population 213,119 217,619 222,517Households 94,430 95,670 97,483Families 53,524 52,466 52,830Average Household Size 2.23 2.24 2.25Owner Occupied Housing Units 56,323 57,308 58,248Renter Occupied Housing Units 38,107 38,362 39,235Median Age 39.9 41.1 41.7

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.45% 0.43% 0.83%Households 0.38% 0.37% 0.79%Families 0.14% 0.20% 0.71%Owner HHs 0.33% 0.46% 1.16%Median Household Income 1.61% 2.07% 2.50%


<$15,000 11,174 11.7% 9,171 9.4%$15,000 - $24,999 10,817 11.3% 9,785 10.0%$25,000 - $34,999 9,956 10.4% 9,446 9.7%$35,000 - $49,999 12,291 12.8% 12,432 12.8%$50,000 - $74,999 17,211 18.0% 18,694 19.2%$75,000 - $99,999 11,494 12.0% 13,343 13.7%$100,000 - $149,999 12,559 13.1% 13,707 14.1%$150,000 - $199,999 4,971 5.2% 5,051 5.2%$200,000+ 5,197 5.4% 5,854 6.0%



0 - 4 11,769 5.5% 11,097 5.1% 11,471 5.2%5 - 9 11,993 5.6% 11,309 5.2% 11,349 5.1%10 - 14 12,025 5.6% 11,649 5.4% 11,559 5.2%15 - 19 13,486 6.3% 12,104 5.6% 11,978 5.4%20 - 24 16,395 7.7% 14,210 6.5% 13,406 6.0%25 - 34 28,565 13.4% 32,035 14.7% 31,620 14.2%35 - 44 25,462 11.9% 26,004 11.9% 29,032 13.0%45 - 54 31,821 14.9% 26,848 12.3% 25,554 11.5%55 - 64 28,224 13.2% 30,782 14.1% 29,286 13.2%65 - 74 16,582 7.8% 23,217 10.7% 26,360 11.8%75 - 84 11,181 5.2% 12,095 5.6% 14,633 6.6%

85+ 5,615 2.6% 6,270 2.9% 6,269 2.8%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 160,282 75.2% 159,167 73.1% 159,640 71.7%Black Alone 5,081 2.4% 5,180 2.4% 5,329 2.4%American Indian Alone 9,573 4.5% 10,610 4.9% 11,562 5.2%Asian Alone 6,312 3.0% 7,250 3.3% 8,050 3.6%Pacific Islander Alone 209 0.1% 201 0.1% 199 0.1%Some Other Race Alone 22,841 10.7% 25,388 11.7% 27,180 12.2%Two or More Races 8,821 4.1% 9,822 4.5% 10,557 4.7%



July 24, 2018


1 Mile 3 Miles 5 Miles

Los Ranchos de Albuquerque

Demographics1, 3 & 5 Miles


ExteriorPhotosBuilding Photos


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Documents

Single-Tenant Industrial Investment Offering HD Supply ...A division of NAI Maestas & Ward Offering Memorandum | 4 Location 6707 Washington St NE Albuquerque, NM 87109 Tenant HD Supply