The Gathering

730 Coors Blvd NW  Albuquerque, NM 87105

Min. Invest
$50,000
Target Hold
84 mo
Annualized Returns
12.00%
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Project Summary

The goal of the 730 Coors Redevelopment Project is to convert the 2.52-ac parcel from a used car lot, grossing about $9,000 per month in rents to a retail center with 17,000sf of leasable shell space at $33/sf NNN or $46,000 per month. The retail center tenants will either build out their interior improvements at their own cost or negotiate with us to do so at a premium to the shell rent. We expect the retail center’s stabilized value to be $7-8M after a construction cost of $4.4M. We will either sell the property after construction and stabilization or hold as a cash flow asset for 5-7 years, depending on economic conditions.

The original vision, Phase 1 of this redevelopment project, was to sell the northern portion of the car lot to a high-profile anchor tenant, and we were successful. The very popular breakfast/lunch concept, Weck’s restaurant, is completed and just opened Dec 2019. We then sought to attract another high-profile tenant for the former gas station just south of the car lot, Phase 2 of our redevelopment plan, and now we’re in contract with Dutch Bros drive-through coffee concept, thereby bracketing the remaining parcel with two popular anchors that are traffic drivers, which increases the value of our land. The final Phase 3 of the redevelopment vision calls for building 17,000sf of shell space to house eight to eleven tenants on our 2.52-ac parcel.

Our strategy is to sell the property immediately after stabilization or refinance and hold for 5-7 years. NOI is projected to be $429,000 NNN with a conservative 6% cap rate, yielding a value of $7.1M in one year and $8.1M in 7 years. Investor IRR is projected to be 13.12%.

 

Investment Type:

Term:

Raise Amount:

IRR %

Equity

84 months

$950,000

13.12%

Investment Type Equity
Term 84 Months
Raise Amount $950,000
IRR 13.12%

Why Invest?

The sponsor is paying a 6% preferred interest for the duration of the holding period. Interest will accrue until the project begins cash-flowing then will be paid quarterly. Investors will also share 20% of the net profit upon resale for an IRR of 13.12%. The sponsor has three powerful benefits to secure profit for investors: (1) the Poston Collective Framework (see the video below) that is used to start, manage, and disposition all projects (commercial and residential), safeguarding investor capital in the process; (2) almost 30 years of experience with over $30M in projects; (3) and a fully transparent track record on the website.

The 730 Coors redevelopment project has particularly strong upside. We already own the land (it is currently being used as a used car lot). We’ve increased its value significantly by attracting two high-profile anchor tenants (Phase 1, Weck’s, a popular breakfast/lunch restaurant [opened Dec 2019], and Phase 2, Dutch Bros drive-through coffee concept [in contract]). Phase 3 is the construction of this retail center. We’ve folded the cost of the land into the construction cost and fees for a total of $4.67M or 65% of the $7.1M stabilized value. So we have plenty of margin to assure a profitable outcome for investors.

The corridor along Coors Blvd has been a strong draw for redevelopment over the past few years. Every restaurant and drive-thru along this corridor has undergone a complete renovation or tear-down and rebuild. Our retail center is half a mile south of I-40 and half a mile north of Central Avenue, opening up the entire Westside of Albuquerque and Southwest Mesa to our tenants. We have a high school with 1,800 students less than a quarter mile away and as you’ll see under the marketing tab that the area demographics and income are strong.

As with all of the sponsor’s development projects, the two main goals of this project are (1) provide a satisfactory ROI for investors, and (2) fund the nonprofit Fifthwall Sanctuary Holistic Wellness and Healing Center. Investors’ share of net profit is projected to be $705K and when combined with the annual 6% APR, yields a 2.2x multiple on the initial investment capital or 13.12% IRR.

Who is Jeffrey Poston?

Why Invest with Jeffrey Poston?

What is the Poston Collective Framework?

The Gathering

 

Total Capital & Debt Req’d

$4,667,000

Debt Raised to Date

$3,500,000 or 75%

Investor Capital Req’d

$950,000 or 20%

Poston Collective contribution

$217,000 5%

Yr-7 Sales Price

$8.1M at 6% cap rate, 23% expense ratio

Gross Rent

$46,750 per month

Investor Returns

Investors receive 6% preferred interest paid quarterly (accrued until stabilization). Investors will also share in 20% of net profit at resale, yielding a total estimated 2.2x multiple or 13.12% IRR

Financial Sources

Sponsor $217,000
Private Investors $950,000
Commercial Lender $3,500,000

Financial Uses

Refi/Acquisition $1,350,000
Construction Costs $2,100,000
Holding Costs, Overhead, Design Fees $1,217,000

Documentation


Property Summary


The 730 Coors property consists of 2.52 acres. We plan to build three buildings on the site - two on the west side of the central artery and one building on the east side. One of the west buildings will be able to accommodate a drive-thru concept. The central artery provides access to Weck’s from Fortuna. We will also provide an access artery to and from the Dutch Bros coffee shop along the western edge of our property with an additional loop back to Fortuna. All tenants on the property, including Weck’s and Dutch Bros, will have access to and from both Coors and Fortuna.

The tenant mix in our development will include restaurants, office, and retail businesses that do not compete directly with Weck’s or Dutch Bros. A good mix of businesses is essential for diversity and revenue security. Our plan is to have 5-7 year leases with extension options for stability.

Address

Property Type

Units

Buildings

Avg. Unit Size

730 Coors Blvd NW

Albuquerque, NM 87105

Commercial Retail

8-11

3

1505sf

 

Of the three building shells to be built, the northwest building of about 2960sf will be reserved for a drive-through concept and will be priced at a premium due to its proximity to the Coors entrance. The southwest building can hold up to four tenants, while the east building can hold up to six tenants. The layout indicated by Concept A gives us maximum flexibility to accommodate the different size requirements of tenants. We’ll build the southwest and east buildings first, then follow with the northwest because a potential drive-through or restaurant will no doubt have specific site pad requirements. We anticipate a six-month construction period after permits are obtained.

 

Address Property Type Units Buildings Avg. Unit Size
730 Coors Blvd NW
Albuquerque, NM 87105
Multi Family 11 3 1505

Red Hot Westside Development with a Shortage of Retail Space

The Southwest Mesa is the hottest development area of Albuquerque because it is the most underserved trade area in town. Retail sf/shopper is a key data point and shows the least retail saturation and the most potential for development. The Southwest Mesa has 9sf of retail per shopper and is half that of Rio Rancho, a quarter of that of the Northeast Heights, and one-seventieth of Uptown. Consider the following demographic points:

  • The intersection of Fortuna and Coors (our site) sees 48,700 cars per day, the second highest in Albuquerque
  • It is a signalized intersection, the holy grail for retail
  • Great visibility for northbound and southbound traffic
  • Close proximity to West Mesa High School with 1,654 students
  • 101,872 population within a 3-mile radius
  • $58,166 average household income within a 3-mile radius

See the attached 730 Coors Marketing Brochure.

Also, our construction project will bring about 100 local skilled trade jobs over the six-month construction period.

Contact Sponsor

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CERTAIN INFORMATION REGARDING THIS OFFERING

THESE UNITS ARE BEING OFFERED WITHOUT REGISTRATION UNDER ANY FEDERAL OR STATE SECURITIES LAWS, BUT ARE BEING OFFERED UNDER AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER COMPARABLE EXEMPTIONS UNDER VARIOUS STATE SECURITIES LAWS. HOWEVER, THE SECURITIES AND EXCHANGE COMMISSION (“COMMISSION”) HAS NOT DETERMINED THAT THESE UNITS ARE EXEMPT FROM REGISTRATION. THESE UNITS HAVE NOT BEEN REVIEWED, APPROVED OR DISAPPROVED BY THE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY, ADEQUACY, COMPLETENESS OR MERITS OF THIS MEMORANDUM, AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL TO, OR A SOLICITATION OF AN OFFER TO BUY FROM, NOR SHALL ANY OF THE UNITS BE OFFERED OR SOLD TO, ANY PERSON IN ANY JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION, PURCHASE, OR SALE IS UNLAWFUL OR UNAUTHORIZED UNDER THE SECURITIES LAWS OF SUCH JURISDICTION.

THE STATEMENTS MADE HEREIN ARE MADE AS OF THE DATE ON THE COVER OF THIS OFFERING MEMORANDUM. THIS OFFERING MEMORANDUM CONSTITUTES AN INVITATION TO THE PROSPECTIVE INVESTOR TO SUBMIT AN OFFER TO SUBSCRIBE. NO PERSON MAY PURCHASE THE UNITS OFFERED HEREBY EXCEPT PURSUANT TO AN EXECUTED SUBSCRIPTION AGREEMENT IN THE FORM PRESCRIBED BY THE FUND, AND THEN ONLY FROM A PERSON TO WHOM THE FUND OR ITS DESIGNATED AGENT HAS DELIVERED A COPY OF THIS OFFERING MEMORANDUM.

THESE UNITS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED BY THE FUND. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THERE IS CURRENTLY NO PUBLIC MARKET FOR THESE UNITS.

IN MAKING A DECISION TO PURCHASE UNITS HEREUNDER, PROSPECTIVE INVESTORS MUST CONDUCT THEIR OWN INDEPENDENT INVESTIGATION OF THE FUND AND THE TERMS OF THIS OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED, AND ARE ENCOURAGED TO CONSULT WITH THEIR ADVISORS AS THEY WILL BE REQUIRED TO REPRESENT THAT THEY ARE ABLE TO BEAR THE ECONOMIC RISK OF THEIR INVESTMENT AND THAT THEY ARE FAMILLIAR WITH AND UNDERSTAND THE FUNDAMENTAL RISKS AND TERMS OF THIS OFFERING.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATION WITH RESPECT TO THE OFFERING OF THE UNITS WHICH IS NOT CONTAINED OR REFERENCED HEREIN, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. POTENTIAL INVESTORS MAY, IF THEY SO DESIRE, MAKE INQUIRIES OF THE FUND WITH RESPECT TO THE FUND’S BUSINESS OR ANY OTHER MATTERS SET FORTH HEREIN, AND MAY OBTAIN ANY ADDITIONAL INFORMATION WHICH SUCH PERSON DEEMS TO BE NECESSARY IN ORDER TO VERIFY THE ACCURACY OF THE INFORMATION CONTAINED IN THIS MEMORANDUM (TO THE EXTENT THAT THE FUND POSSESSES SUCH INFORMATION OR CAN ACQUIRE IT WITHOUT UNREASONABLE EFFORT OR EXPENSE).

May 28 2020

Confidential Offering Memorandum: Poston Investment Collective LLC

PROSPECTIVE INVESTORS ARE CAUTIONED NOT TO CONSTRUE ANY CONTENTS OF THIS OFFERING MEMORANDUM OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS, AS CONSTITUTING INVESTMENT, LEGAL OR TAX ADVICE; RATHER THEY SHOULD CONSULT THEIR OWN ADVISORS OR COUNSEL WITH THE CAPACITY TO ADVISE AND PROTECT THEIR INTEREST IN CONNECTION WITH ALL MATTERS CONCERNING THIS OFFERING MEMORANDUM.

THIS OFFERING MEMORANDUM DOES NOT KNOWINGLY CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT A MATERIAL FACT, AND ANY SUCH MISSTATEMENT OR OMISSION IS DONE WITHOUT THE KNOWLEDGE OF THE PREPARERS OF THIS DOCUMENT OR THE FUND. AS SUCH THE FUND BELIEVES THAT THIS OFFERING MEMORANDUM CONTAINS A FAIR SUMMARY OF THE MATERIAL TERMS OF ALL MATTERS, DOCUMENTS AND CIRCUMSTANCES MATERIAL TO THIS OFFERING. WHILE THE DATA AND STATEMENTS CONTAINED HEREIN ARE BASED UPON INFORMATION BELIEVED TO BE RELIABLE, NO WARRANTY CAN BE MADE AS TO THE ACCURACY OF SUCH INFORMATION OR THAT CIRCUMSTANCES HAVE NOT CHANGED SINCE THE DATE SUCH INFORMATION WAS SUPPLIED. THIS MEMORANDUM CONTAINS SUMMARIES OF CERTAIN PROVISIONS OF DOCUMENTS RELATING TO THE BUSINESS OF THE FUND AND THE UNITS OFFERED HEREBY, AS WELL AS SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND REGULATIONS. SUCH SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE ORIGINAL DOCUMENTS, STATUTES AND REGULATIONS.