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Representative Photo

(GROUND LEASE)

ALBUQUERQUE, NM


PRICING & FINANCIAL ANALYSIS

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS

Bank of the West (Ground Lease) 3733 Isleta Boulevard SW Albuquerque, NM 87105

Offering Summary Price

$625,000

Cap Rate

7.47%

Net Operating Income

$46,673

PROPERTY DESCRIPTION

Year Built

2005*

Gross Leasable Area

3,556 SF

Lot Size

Subject Property

1.48 Acres

Annualized Operating Data

Lease Summary Lease Term

24 Years

Year(s)

Lease Commencement

6/1/1996

Lease Expiration

5/31/2020

Remaining Term

3+ Years

Commencement

Annual

Increase

1-15

6/1/1996

$28,448

-

Option 1: Yrs. 16-18

6/1/2011

$41,899

47.28%

Option 2: Yr. 19

6/1/2014

$45,004

7.41%

Lease Type

Ground

Yr. 20

6/1/2015

$45,599

1.32%

Roof & Structure

Tenant

Yr. 21

6/1/2016

$45,826

0.50%

Options Options to Purchase *Site was completely renovated in 2005

Annually

Option 3: Yrs. 22-24

6/1/2017

$46,673

1.85%

3 x 5 Year

Option 4: Yrs. 25-27

6/1/2020

$49,530

CPI

None

Option 5: Yrs. 28-30

6/1/2023

$52,562

CPI

Net Operating Income

MARKET OVERVIEW

Increases

$45,826

NOTE: Remaining option periods are subject to annual CPI increases per the Lease; for purposes of this analysis, the rental rate for all future periods of the lease reflect an estimated 2.0% annual increase. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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TENANT INFORMATION

BANK OF THE WEST (GROUND LEASE)

Company Summary

Ownership Revenue Number of Locations Years In Business Headquarters Website

Company Ownership

Bank of the West Subsidiary of BNP Paribas $2.62 Billion 700+ 141 Years San Francisco, CA www.bankofthewest.com

BNP Paribas Public

Rating Agency Ticker Symbol Exchange Market Cap Years In Business Headquarters Website

A+ Standard & Poor’s

MARKET OVERVIEW

BNP Paribas is a French multinational bank and financial services company with global headquarters in Paris. BNP Paribas is one of the largest banks in the world. Based on 2012 information, BNP Paribas was ranked as the third-largest bank in the world, as measured by total assets, by Bloomberg and Forbes. In 2010, It was the world’s 18th largest corporation, according to the Fortune Global 500 list, the rankings are based on revenues, accounted for as the sum of gross interest income and gross non. It was formed through the merger of Banque Nationale de Paris (BNP) and Paribas in 2000. The company is a component of the Euro Stoxx 50 stock market index

Company

PROPERTY DESCRIPTION

Tenant Summary

FINANCIAL ANALYSIS

Since 1980, Bank of West has been affiliated with BNP Paribas, a global leader in financial services and one of the world’s six highest rated banks. In 2001, their holding company BancWest Corporation became a wholly-owned subsidiary of BNP Paribas. Bank of the West has continued to grow in recent years, thanks to a combination of organic growth and strategic acquisitions, including United California Bank, the largest Los Angeles-based bank, in 2002, Union Safe Deposit Bank in California’s Central Valley and Community First Bank in Fargo, ND, both in 2004, and Commercial Federal Bank, of Omaha, in 2005. Today, Bank of the West has customers in all 50 states and operates more than 700 branch banking and commercial office locations in 19 Western and Midwestern states.

BNP Euronext $57 Billion 167 Years Boulevard des Italiens, Paris, France www.bnpparibas.com

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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INVESTMENT HIGHLIGHTS

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS

• Absolute Net Ground Lease - Zero Landlord Responsibilities • Strong Corporate Guarantee - A+ Credit Tenant with $57 Billion Market Cap • Strong Deposits Year After Year • Under Market Rent - $12.83 PSF

PROPERTY DESCRIPTION

• Long-Term Loyal Tenant • Oversize Lot - 1.48 Acre Track

Representative Photo

• Strategically Located in Between a Grocery Anchored Center, a Charter School and in Front of Adobe Acres Elementary School • Population Within a 5-Mile Radius Is Over 145,000 People a 36% Increase Since 2000

MARKET OVERVIEW

• Traffic Counts Along Isleta Boulevard Exceed 41,000 Vehicles Per Day • Surrounding Retailers Include O’Reilly Auto Parts, Albertsons, Walgreens, Bank of America, McDonald’s, Walmart and Many Others Representative Photo This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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AERIAL MAP

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS

Navajo Elementary School

Barcelona Elementary School

PROPERTY DESCRIPTION

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

MARKET OVERVIEW

Adobe Acres Elementary School

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LOCAL MAP

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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REGIONAL MAP

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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MARKET SUMMARY

BANK OF THE WEST (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

ALBUQUERQUE, NM

Albuquerque is home to the University of New Mexico (UNM), Kirtland Air Force Base, Sandia National Laboratories, Lovelace Respiratory Research Institute, Central New Mexico

Community College (CNM), Presbyterian Health Services, and Petroglyph National Monument. The Sandia Mountains run along the eastern side of Albuquerque, and the Rio Grande flows through the city, north to south. Albuquerque is also the home of the International Balloon Fiesta, a large gathering of balloons from around the world. The event takes place during the first week of October. Albuquerque lies at the center of the New Mexico Technology Corridor, a concentration of high-tech private companies and government institutions along the Rio Grande. Larger institutions whose employees contribute to the population are numerous and include Sandia National Laboratories, Kirtland Air Force Base, and the attendant contracting companies which bring highly educated workers to a somewhat isolated region. Intel operates a large semiconductor factory or “fab” in suburban Rio Rancho, in neighboring Sandoval County, with its attendant large capital investment. Northrop Grumman is located along I-25 in northeast Albuquerque, and TempurPedic is located on the West Mesa next to I-40.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

MARKET OVERVIEW

Albuquerque is the most populous city in the state of New Mexico. The high-altitude city serves as the county seat of Bernalillo County, and it is situated in the central part of the state, straddling the Rio Grande. The city population is 557,169 as of the July 1, 2014, population estimate from the United States Census Bureau, and ranks as the 32nd-largest city in the U.S. The Albuquerque Metropolitan Statistical Area (or MSA) has a population of 902,797 according to the United States Census Bureau’s most recently available estimate for July 1, 2013. Albuquerque is the 59th-largest United States metropolitan area. The Albuquerque MSA population includes the city of Rio Rancho, Bernalillo, Placitas, Corrales, Los Lunas, Belen, Bosque Farms, and forms part of the larger Albuquerque – Santa Fe – Las Vegas combined statistical area, with a total population of 1,163,964 as of the July 1, 2013 Census Bureau estimates.

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DEMOGRAPHIC SUMMARY

BANK OF THE WEST (GROUND LEASE)

Geography: # Miles

FINANCIAL ANALYSIS

Population In the identified area, the current year population is 145,570. The rate of change since 2000 was 36.6%. The five-year projection for the population in the area is 148,260 representing a change of 1.9% from 2015 to 2020. Currently, the population is 49.7% male and 50.3% female. The median age in this area is 31.4, compared to U.S. median age of 37.9.

Households There are currently 49,113 households in your selected geography. The number of households has changed by 36.2% since 2000. It is estimated that the number of households in your area will be 50,117 five years from now, which represents a change of 2.0% from the current year. The average household size in your area is 2.93 persons.

Income PROPERTY DESCRIPTION

In 2015, the median household income for your selected geography is $35,257, compare this to the Entire US average which is currently $53,217. It is estimated that the median household income in your area will be $39,423 five years from now, which represents a change of 11.8% from the current year. The current year per capita income in your area is $15,710, compare this to the Entire US average, which is $28,597. The current year average household income in your area is $46,572, compare this to the Entire US average which is $74,699.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 56.6% White, 2.7% Black, 3.5% Native American and 1.0% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 79.0% of the current year population in your selected area. Compare this to the Entire US average of 17.6%.

MARKET OVERVIEW

Housing In 2015, there were 32,821 owner occupied housing units in your area and there were 16,291 renter occupied housing units in your area. Median home value in the area is $147,628, compared to a median home value of $200,006 for the U.S.

Employment In 2015, there are 58,734 employees in your selected area, this is also known as the daytime population. Currently 48.8% of employees are employed in white-collar occupations in this geography, and 24.4% are employed in blue-collar occupations. In 2015, unemployment in this area is 11.4%. Demographic data Š 2015 esri

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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DEMOGRAPHIC STATISTICS

BANK OF THE WEST (GROUND LEASE)

1-Mile

3-Miles

5-Miles

Income

1-Mile

3-Miles

5-Miles

2000 Population

5,069

39,814

106,593

$ 0 - $14,999

12.7%

18.4%

19.8%

2010 Population

5,323

48,065

143,072

$ 15,000 - $24,999

17.4%

17.3%

16.1%

2015 Population

5,355

48,468

145,570

$ 25,000 - $34,999

12.2%

12.5%

13.7%

2020 Population

5,413

49,090

148,260

$ 35,000 - $49,999

18.3%

16.4%

16.2%

$ 50,000 - $74,999

16.3%

17.6%

17.5%

$ 75,000 - $99,999

9.7%

8.5%

8.1%

$100,000 - $149,999

10.3%

6.5%

5.8%

Households

3-Miles

5-Miles

$150,000 - $199,999

2.4%

2.0%

1.9%

2000 Households

1,671

12,654

36,068

$200,000+

0.6%

0.7%

1.0%

2010 Households

1,781

15,233

47,985

2015 Median Household Income

$40,003

$36,158

$35,257

2015 Households

1,808

15,443

49,113

2015 Per Capita Income

$17,615

$15,038

$15,710

2020 Households

1,832

15,651

50,117

2015 Average Household Income

$52,543

$47,224

$46,572

2015 Daytime Population

2,296

18,897

58,734

2015 Average Household Size

2.94

3.11

2.93

2010 Owner Occupied Housing Units

1,416

11,435

32,265

2010 Renter Occupied Housing Units

365

3,798

15,720

2010 Vacant

98

930

3,557

2015 Owner Occupied Housing Units

1,426

11,511

32,821

2015 Renter Occupied Housing Units

381

3,932

16,291

2015 Vacant

91

941

3,558

2020 Owner Occupied Housing Units

1,442

11,638

33,440

2020 Renter Occupied Housing Units

390

4,014

16,677

2020 Vacant

100

1,050

3,886

PROPERTY DESCRIPTION

1-Mile

FINANCIAL ANALYSIS

Population

Traffic Counts

25,400

MARKET OVERVIEW

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Vitorino Group 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 local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.


Net Lease Disclaimer Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.


Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.


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Bank of the West - Albuquerque, NM  
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