Archives for September 2017

The state-backed Catalyst Fund has approved up to a $2 million investment in the ABQid business accelerator to provide funding for local startup companies.
ABQid must match Catalyst funding dollar-for-dollar to receive the full amount, but if all money raised by the accelerator is included, it could mean up to $5 million in fresh money could soon become available for new companies emerging from the accelerator, said ABQid Executive Director T.J. Cook.
To date, ABQid has invested about $1.3 million from private partners in 30 startups that have graduated from the program, which launched in 2014. With the new Catalyst money, the accelerator can now commit a lot more funding to its graduates.
“As a seed fund, this gives us more room for the next three years to invest in all startups in our programs,” Cook said. “We have a runway now to be more aggressive in our funding to give more bite to our efforts.”
Graduates that already received funding have used it to leverage another $2.7 million from other investors, meaning nearly a three-times multiplier effect from ABQid investments, Cook said.
“That’s good, but we want to grow that a lot more, to like a 10-times multiplier effect,” he said. “The Catalyst backing will help with that.”
The state Economic Development Department announced the new Catalyst investment Wednesday afternoon.
“The Catalyst Fund leverages private investment for our homegrown startups, which helps move our state forward as we continue to build a healthier economy,” said Economic Development Secretary Matt Geisel in a prepared statement. “By adding another partner in ABQid, we strengthen our commitment to the success of homegrown New Mexico companies and hardworking New Mexico entrepreneurs.”
The state launched the Catalyst Fund last year with $10 million from the State Investment Council and $5 million each from the U.S. Treasury Department and private investors. The fund, managed by Sun Mountain Capital in Santa Fe, will provide up to $20 million in contributions to eight to ten venture funds over the next couple of years, generating a total of at least $40 million for startups around the state after counting matching funds.
A total of $6.65 million in Catalyst funding has now been committed to four entities, including $2.8 million for Cottonwood Technology, $1.35 million for Tramway Venture Partners, $800,000 for New Mexico State University’s Arrowhead Innovation Fund, and the new $2 million for ABQid.
“ABQid greatly appreciates this investment, which shows the confidence Sun Mountain Capital has in our process to identify and develop startups that have the potential to become successful New Mexico companies,” Cook said. “We couldn’t be more pleased.”
By: Kevin Robinson-Avila (ABQ Journal;)
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A California developer has plans to build a senior living community on a vacant 14-acre site next to the Albuquerque Academy campus, amid “significant” opposition due to concerns about traffic and “loss of views and open space,” according to city planning department documents.

The Albuquerque Environmental Planning Commission has approved a zone change, a site development plan for a subdivision and a site development plan for a building permit for the project near Hoffmantown Church.

The 180-unit Harper Road Senior Living development will be spread over several buildings — with a maximum height of 40 feet —  and will have units for independent living, assisted living and memory care residents.

The applicant is SP Albuquerque LLC, a subsidiary of Senior Resource Group of Solana Beach, Calif. The firm said the proposed facility will incorporate design elements in keeping with the surrounding area, including Hoffmantown Church, the Albuquerque Academy campus and the Cherry Hills neighborhood.

The site slated for development is west of the church’s Mission Park and next to the academy campus, which contains popular walking trails. The facility is expected to have 68 employees on site over the course of three shifts and parking for 225 spaces.

The Cherry Hills Civic Association and property owners within 100 feet of the proposed facility were notified of the company’s application. A meeting on the zoning request last month drew “significant … opposition due to concerns related to loss of views and open space, traffic, spillover parking and building height among others,” reads the notice of decision.

“The development will impact the use of open space by a large Northeast Heights population,” residents Arden and Heather Anderson said in written testimony. “Crossing Harper to access the open space with additional traffic will pose a safety hazard to adults and children who regularly use that open space.”

Resident Ellen Dueweke wrote, “This is not just a vacant lot. People traverse around it and through it for exercise and enjoyment. It is Albuquerque’s ‘Central Park.’ If this large commercial institution is built, we will lose a special place and look back on it with regret.”

Calls to Senior Resource Group and Hoffmantown Church for comment were not immediately returned.

The EPC action means the parcel once zoned for a church now has the proper zoning for a senior living facility. The Harper Road Senior Living application will now be submitted to the city’s Development Review Board, which will ensure the developer follows EPC conditions. Those wishing to appeal must do so by Sept. 29. Appeals would go to the City Council via the land use hearing officer.

The planning staff report says the project will bring additional senior housing and services to the area — as well as employment — within walking and biking distance of existing neighborhoods.

“An appropriate transition has been incorporated in the site design between the Cherry Hills neighborhood and the proposed senior living facility that includes a large setback and landscaped berm,” according to findings from city planners.

Development on the vacant land was envisioned as far back as 2007, when the church entered into talks with a company that also wanted to build a high-end retirement center on the same acreage.  Neighbors also opposed that project, and negotiations eventually fell through because of a slumping economy, according to a 2010 Journal article.

Senior Resource Group has projects in Arizona, California, Florida, Georgia, Oregon and Washington state, according to its website.

By: Steve Sinovic (Albuquerque Journal)
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Smaller commercial properties in secondary markets are still attracting buyers at good prices, but demand for big-market mega-properties appears to be easing, NAR second-quarter data suggest. Large markets saw a 5 percent annual decline in sales, while smaller markets saw a sales boost of 4 percent.
“Shrinking cap rates and the higher interest rate environment are expected to lead to a plateau in price growth over the next year, especially for Class A assets in large markets,” NAR Chief Economist Lawrence Yun says. “As a result, investors will continue to look to small and tertiary markets for properties that have the best opportunity to provide stability and generate solid returns.”
On a national basis, vacancy rates are expected to retreat 1.1 percent to 11.9 percent for offices, 1.1 percent to 7.8 percent for industrial properties, 0.4 percent to 11.4 percent for retail, and 6.6 percent to 6.1 percent for apartments.
“A very healthy labor market and stronger confidence and spending from both consumers and businesses boosted economic expansion to a solid 3.0 percent last quarter,” says Yun.
“There’s momentum for more of the same growth to close out the year, which bodes well for sustained interest in all types of commercial space.” Yun added that the demand cycle for properties in larger markets is maturing, which means investor interest will likely focus on smaller markets.
Coverage in The Voice for Real Estate.
By: Robert Freedman (National Association of REALTORS®)
Click here to view source article.