A Former Federal Building Becomes a New Front Door for Disability Services in New Mexico

Posted on by Real Leaders

How a 67,744-square-foot Albuquerque office lease helped UNM’s Center for Development and Disability create a more accessible, modern home for families, staff, and statewide care.

The Building Left Behind

At the corner of San Mateo and Montgomery in Albuquerque’s Northeast Heights, a former IRS building was facing a familiar question in commercial real estate: what happens when a large federal tenant moves out and leaves behind tens of thousands of square feet?

For UIRC, the Chicago-based ownership group, the assignment was clear. The 67,744-square-foot office building at 5338 Montgomery NE needed to be repositioned for a new future. SVN/Walt Arnold Commercial Brokerage, Inc., a full-service commercial real estate brokerage serving Albuquerque and the surrounding area, was engaged to release the space and attract private-sector occupancy.

At first, the answer came in pieces. SVN completed smaller, shorter-term leases. But the larger opportunity arrived when the University of New Mexico, represented by CBRE, presented a letter of intent for the entire building.

The prospective user was not just another office tenant. It was the UNM Center for Development and Disability, New Mexico’s University Center for Excellence in Developmental Disabilities Education, Research and Service, established in 1990.

“This was not just about filling a building. It was about creating a long-term home for essential services.”

A Long-Term Home for Essential Services

UNM CDD serves children and adults with developmental, intellectual, and physical disabilities throughout New Mexico, while also supporting families, professionals, and communities.

The relocation offered a rare chance to consolidate and modernize. Nearly 300 UNM CDD faculty and staff are expected to move into the building in June 2026. The new space will support autism programs, maternal child and early development services, medically fragile RN case management, NM LEND interdisciplinary training, diagnostic evaluation and intervention clinics, family engagement programs, clinical services, and one of the state’s largest disability-oriented libraries.

In a city shaped by movement, connection, and service—from Route 66’s long urban stretch through Albuquerque to the daily flow of families across the metro—the location matters. Albuquerque’s Route 66 corridor is being celebrated for the stories, traditions, and people that shaped the city, and this project reflects a similar local value: access should be practical, visible, and rooted in community.

The Long Road to Yes

The transaction took nearly two years.

The University of New Mexico initially explored leasing the building, then shifted into acquisition discussions, before ultimately signing a 12-year lease with options to renew and an option to purchase before completion of tenant improvements.

That process required patience from both sides. UNM needed institutional approvals, including regent approval. The landlord, which owned dozens of properties across the country, needed confidence in the structure, economics, and timing.

The most difficult issue was the tenant improvement cost. A building formerly occupied by a federal government tenant needed significant investment to become a modern, accessible, specialized home for UNM CDD. The landlord committed substantial capital, and UNM also had to approve and contribute a significant amount.

“The hardest part was keeping two large entities aligned over a long period of time.”

Mission Over Transaction

The deal moved forward because the parties stayed transparent, creative, and mission-focused.

CBRE’s Debbie Dupes and Cheryl Hart represented UNM CDD and worked closely with Walt Arnold and SVN to negotiate terms and finalize the agreement. Their knowledge of Albuquerque’s real estate landscape, institutional clients, and UNM CDD’s operational needs helped identify the building as the right long-term solution.

This was not a one-sided win. The landlord avoided a major vacancy. UNM CDD gained a modernized platform for growth. Families and caregivers gained the promise of a more accessible destination for services. And the building gained a new civic purpose.

“Everyone involved was focused on achieving a successful outcome.”

What the Building Becomes Now

When UNM CDD moves in, the property will become more than an office building. It will become a hub for care, training, research, and family support.

The Center offers expert care for children with speech, movement, and cognitive disabilities, and its broader mission includes education, advocacy, clinical services, and outreach to New Mexicans across the state.

Macia Mariotta, Executive Director of UNM CDD and Professor in the UNM Department of Pediatrics, described the move as an important advancement for the work of the Center. She noted that the new, modernized space will provide a platform for continued growth and help cultivate a truly accessible and welcoming environment for the people served and the staff who serve them.

“The property now thrives as a hub for essential community services.”

The Best Deals Solve Bigger Problems

For Walt Arnold, Managing Director and Office Leasing Broker at SVN/Walt Arnold Commercial Brokerage, the leadership lesson was clear: real estate can solve problems that are bigger than occupancy.

The best transactions require more than market knowledge. They require timing, trust, patience, and a willingness to hold a deal together when the process becomes long and complicated.

In this case, the result was a transformed building, a strengthened public-service platform, and a more accessible future for families across New Mexico.

Real leadership in real estate is measured not only by what gets leased, sold, or built—but by what becomes possible for people because a transaction happened.

This deal shows how an underused building can be repositioned into a long-term community asset.

Lasting Impact

  • 67,744-square-foot former IRS building repositioned for long-term community use
  • 12-year lease with UNM, with renewal options and an option to purchase
  • Nearly 300 UNM CDD faculty and staff expected to relocate in June 2026
  • Expanded platform for autism programs, developmental services, clinical support, training, and family engagement
  • Improved access near San Mateo and Montgomery, a high-traffic Albuquerque location
  • Former government building transformed into a hub for essential statewide services

The Real Leaders of Real Estate Behind the Deal

Walt Arnold of SVN/Walt Arnold Commercial Brokerage, Inc. served as Managing Director and Office Leasing Broker on the transaction. SVN/Walt Arnold Commercial Brokerage, Inc. is a New Mexico commercial real estate team serving clients throughout Albuquerque and the surrounding region.

Stories like this are exactly why the Real Leaders of Real Estate awards were created.

Have you worked on a commercial real estate deal in the last 36 months that created meaningful public benefit? Apply to be recognized as a leader in 2026 in your region and nationally. Submit your deal today.

When the Market Served the Mission: A 23-Unit Decision That Redefined “Value”

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A Portland nonprofit faced an impossible choice: sell for top dollar or protect affordability. By opening the market instead of narrowing it, they found a third path—one that’s now influencing housing solutions far beyond a single deal.

A Building at a Crossroads

In a city where housing debates are as common as rain, a quiet brick building in Portland, Oregon stood at a crossroads.

Built in the early 1900s, the 23-unit property had good bones—but aging systems told another story. Seismic upgrades loomed. Plumbing was failing. Half the building sat vacant. The nonprofit that owned it had reached a difficult conclusion: holding on would only deepen the problem.

They didn’t just need a buyer.
They needed a solution.

Opening the Market Instead of Narrowing It

Like many affordable housing providers across the country, the organization carried a mix of stable assets and silent liabilities. This building had become the latter—requiring millions in capital with no clear preservation funding available.

“The easy path,” recalls Bjorn Beer of SVN Imbrie, “would have been a quiet off-market deal. Fast. Clean. Profitable.”

But that path came with a cost.

“If we didn’t open this up, we’d never know what was possible—not just financially, but for the people who lived there and the ones who could.”

Instead, the team made a different choice: expose the property to the full market. Every buyer. Every broker. Every idea.

The Highest Offer Came With a Cost

The transaction took nearly two years.

The response was immediate—12 offers in just two weeks.

Some were financially compelling. One, in particular, rose to the top with a premium price. But it came with a condition: the building would be delivered vacant.

Tenants out. Higher-end repositioning in.

Apartments would remain—but no longer accessible to the residents who had called it home.

For a moment, the nonprofit faced a familiar dilemma:
maximize proceeds or protect purpose.

“There was real pressure,” Beer says. “You’re talking about meaningful capital for a mission-driven organization. But you’re also talking about displacement.”

The Buyer Who Offered a Different Future

Because the property had been openly marketed, another kind of buyer emerged.

A for-profit group—but with a different thesis.

Their plan wasn’t to erase the building’s affordability. It was to evolve it.

They proposed converting the units into affordable condominiums at 80% AMI, creating a rare bridge between rental housing and homeownership. The pricing would land nearly $300,000 below Portland’s average home price, opening doors that had long been closed.

They weren’t the highest bidder.
But they were the clearest path forward.

“The market didn’t just give us offers,” Beer reflects. “It gave us options—and one of those options aligned with the mission.”

From Renters to First-Time Homeowners

Today, the building is being transformed—not into luxury units, but into opportunity.

  • All units are being positioned at 80% AMI affordability levels
  • Residents were given first right of refusal to purchase
  • Buyers are being sourced and prepared through Portland Housing Center
  • A CDFI-backed silent second mortgage program is helping bridge down payment gaps
  • Residents who chose not to purchase received relocation support beyond local requirements

While many original tenants had already vacated, the project is now creating a new kind of resident: first-time homeowners who otherwise would have been priced out of the market.

“We’re not just preserving housing,” Beer says. “We’re creating ownership.”

A Model Bigger Than One Building

What started as a single transaction has since expanded.

The buyer has replicated the model in multiple markets—including Tacoma and Virginia—using private capital to deliver affordability at scale. Along the way, Beer and his collaborators also contributed to the broader conversation around housing policy, lending their voices to Oregon’s successful Oregon Condo Defect Liability Reform 2025.

A deal that could have quietly displaced tenants instead helped influence how housing gets built—and owned.

A Different Kind of Return on Equity

For Beer, the transaction reshaped how he thinks about value.

“In market-rate real estate, we talk about return on equity. But in affordable housing, that’s not enough.”

From this deal, he coined a new framework: “Impact on Equity.”

It asks a different question:
Not just what does this asset return?
But what can this equity do for the community if redeployed?

“You can leave $2 million sitting in a 20-unit building,” he says, “or use it to help create 120 units somewhere else. That’s a different kind of math—where Impact on Equity can be 6x higher by redeploying capital.”

The role of the broker, in this view, isn’t to dictate outcomes—but to expand the field of possibility so mission-driven owners can choose wisely.

Lasting Impact

  • 23-unit legacy building repositioned without displacement-driven conversion
  • 100% of units targeted at 80% AMI affordability
  • Homeownership opportunities priced ~$300K below local averages
  • First-time buyers supported through education + down payment assistance
  • Model replicated in multiple U.S. markets
  • Contributed to broader housing policy momentum in Oregon

Every transaction carries a choice: extract value or create it.

The difference often lies not in the market—but in how it’s used.

The Real Leaders of Real Estate Behind the Deal

Bjorn Beer is a broker with SVN Imbrie who specializes in advising public housing authorities and nonprofit housing providers across the country. His work focuses on recapitalization and disposition strategies that balance financial performance with long-term community impact.

Stories like this are exactly why the Real Leaders of Real Estate awards were created.

Have you worked on a commercial real estate deal in the last 36 months that created meaningful public benefit? Apply to be recognized as a leader in 2026 in your region and nationally. Submit your deal today.

Oxford Terrace: Preserving 132 Affordable Homes in South County San Diego

Posted on by Real Leaders

A historic textile mill in West Greenville is being transformed into a comprehensive domestic violence recovery campus—expanding shelter capacity, adding affordable housing, and creating a long-term support system for women and children rebuilding their lives.

A Market Under Pressure

In South County San Diego—one of the most expensive housing markets in the United States—affordable housing rarely has a guarantee of permanence.

So when Oxford Terrace, a 132-unit LIHTC community in Chula Vista, came to market, it represented more than a transaction. It represented continuity for families who depend on stable rents in a rapidly evolving region shaped by military presence, logistics growth, and large-scale redevelopment.

Built in 1972 and serving a mix of one, two, and three-bedroom households, the gated community sits within walking distance of schools, retail, and essential services—making it a critical housing resource for working families and military households across South County.

After a 13-month process, the property sold for $19.2 million, but the real story wasn’t the sale—it was what was preserved.

A Shared Mission

The seller, Alpha Project, a nonprofit organization, had a clear mission: ensure Oxford Terrace would remain within the affordable housing ecosystem.

On the other side, the buyer—a subsidiary of Foster Hamilton—shared that vision.

Graeme Henderson of Marcus & Millichap’s San Diego Del Mar office helped bring both parties together in a process that prioritized long-term community stability over short-term repositioning.

“This deal showed that collaboration between brokers and affordable housing entities can directly protect housing stock in one of the country’s most expensive regions, while serving a large military community.”

The Long Road to Preservation

While both buyer and seller were aligned in mission, the complexity came from process—not conflict between parties.

The transaction required extended coordination around HUD approvals and loan and bond assumptions, which stretched the timeline to more than a year.

Through it all, both sides remained committed to the same outcome: ensuring the property would continue serving its residents without disruption.

Where Alignment Changed Everything

Eventually, alignment across stakeholders—including HUD and financing partners—allowed the transaction to move forward.

The breakthrough wasn’t a single dramatic moment, but sustained coordination and shared intent between nonprofit and institutional partners.

That alignment ensured the property would not only remain affordable, but would also be positioned for long-term stewardship under new ownership..

What Was Protected

For the 132 households at Oxford Terrace—many of whom are military families and essential workers—the impact is stability.

Beyond stability, the new ownership has committed to capital improvements that will enhance both interior units and common areas, improving day-to-day living conditions while maintaining affordability protections.

Planned upgrades will elevate interior livability, shared community spaces, and long-term property quality.

In a region where redevelopment pressures continue to reshape neighborhoods, Oxford Terrace stands as a rare example of preservation paired with reinvestment.

Why Deals Like This Matter

For Graeme Henderson, the transaction reinforced a broader truth about affordable housing preservation:

In high-cost markets like San Diego, where military communities and working families are increasingly priced out, collaboration is not optional—it is essential.

Deals like Oxford Terrace demonstrate that when brokers, nonprofit sellers, and mission-aligned buyers work together, affordable housing does not have to be temporary—it can be sustained and improved over time.

Lasting Impact

  • 132-unit LIHTC community preserved in South County San Diego
  • Long-term affordability extended under new ownership structure
  • HUD-regulated housing stability maintained for military & working families
  • Capital improvements planned for interiors and shared community spaces
  • Preservation of affordable housing stock in a high-cost metro region
  • Example of nonprofit + investor + brokerage collaboration in housing preservation

The Real Leaders of Real Estate Behind the Deal

Marcus & Millichap (NYSE: MMI) represented the transaction, a national commercial real estate brokerage specializing in investment sales, financing, research, and advisory services.

Oxford Terrace is located at 555 Oxford Street in Chula Vista, California, and is one of the most significant affordable multifamily assets to trade in San Diego County in recent years.

Stories like this are exactly why the Real Leaders of Real Estate awards were created.

Have you worked on a commercial real estate deal in the last 36 months that created meaningful public benefit? Apply to be recognized as a leader in 2026 in your region and nationally. Submit your deal today.