UNM lease could bring in $2 M per year
Gary Gerew
Assistant Editor-
Albuquerque Business First
The lease between the University of New Mexico and the Ohio-based company selected to develop the south campus area could earn the university up to $2 million annually.
Regents Monday approved a ground lease form, the second in a series of steps to bring restaurants and retail to the land around the Pit, which UNM has selected Fairmount Properties to do, according to the Albuquerque Journal. The lease is for 74 years.
Fairmount and UNM haven’t worked out the price of the lease, but university officials Monday said they expect to profit about $1.5 million to $2 million annually based on a preliminary estimate. The actual price that Fairmount and UNM will eventually agree on will be based on market value of the land and other factors, according to the Journal.
The lease is for three parcels of land off Avenida César Chávez and University Boulevard SE. The largest plot of land, south of the Pit and bordered by University and Interstate 25 on the east and west and by Gibson Boulevard on the south, will likely be developed first. That parcel is 39 acres.
According to the agreement, Fairmount will have exclusivity rights over the two other parcels, which are off Avenida César Chávez between the Pit and Lobo Village and west of Lobo Village. That means that although Fairmount does not have to develop the land yet, it holds rights over it. It will pay $1,000 a month on each of those plots, the Journal reported.
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