Contact Us

  • Cauwels & Stuve
  • Realty & Development Advisors, L.L.C.
  • 8814 Horizon Blvd. NE #400
  • Albuquerque, NM 87113


Paul S. Cauwels Talks Transformation and Revitalization of a Deteriorating Medical Office Park During the Great Recession.

Our company’s focus and vitality is best demonstrated in a deal-specific manner. Six years ago, we were asked to provide due diligence services to an out-of-state investor that had just placed a deteriorating mid-century medical office park under contract for purchase. The project consisted of six buildings totaling 53,000 square feet. Its park-like design featured buildings clustered around a central parking lot, creating maximum accessibility for patients. The project was well-located in an established, but dated, medical area central to the city’s three major regional hospitals.

During due diligence, we put our company’s various real estate service teams to work. Property Management began lease analysis and abstract work. Construction and Design inspected the property and developed a scope of work and capital improvement budget. Leasing and Investments devised a marketing plan to renew the users that the buyer wanted to retain and lease the vacant suites. Our teams worked together during and after the sale to maximize the asset enhancement. Our principals ultimately invested in the property as well.

The examples that follow showcase our company’s interdepartmental synergies and real estate knowledge.

The physical asset was very tired with considerable capital needs. Construction and Design documented the impact of years of neglect and developed a scope of deferred maintenance and a capital improvement scope and budget. Leasing and Investments then leveraged the need for substantial capital expenses to get a significant price reduction.

Not only did deferred maintenance contribute directly to lower costs through the price discount, but it contributed in a more subtle way. The seller had devised a sale/lease back approach using a “master lease” to overcome occupancy issues at the property. It was understood that most owner/tenants would vacate upon master lease expiration in two years. Property Management discovered a mechanism in the master lease allowing the buyer to recapture significant capital costs in the operating expense pass-through over the next two years. In essence, the seller—as tenant—reimbursed the buyer for the renovations and allowed them to avoid two planned capital calls. Ironically, the seller received an industry award related to their master lease strategy on the sale.

The transaction occurred in 2007, the start of the Great Recession. Unpredictable material and improvement costs plagued the Albuquerque market, fluctuating 20 to 30 percent over the two year renovation period. By working with a select group of contractors honed through 20 years of partnership, the Construction and Design team was able to value engineer and maintain specifications to their partners at reduced costs. These cost savings further contributed to the elimination of the two planned capital calls, even in a time of great economic difficulty.

As the property was brought up to modern standards with accessible restrooms, hardware, lighting, finishes, signage and other typical build-out that the desired tenant mix required, Leasing and Investments achieved a stabilized rent roll of over 90-percent occupancy at market or higher rates. Half of the tenants were renewed, and the balance were signed as new tenants. Sixty percent of the suite interiors were renovated, and five new leases with a major institutional user were executed. Additionally, a large private medical practice came full circle and returned to the property under a long term lease 20 years after its original occupancy ended.

What began as a due diligence exercise culminated in a two year renovation project and ongoing property management and ownership. By leveraging the various capabilities in our company’s real estate “menu,” we transformed a formerly deteriorated site and significantly improved the built environment, while reducing costs and achieving the owner’s investment goals. In the end, the property’s success led the way for the recovery of a depressed neighborhood as adjacent projects followed suit in subsequent years.

Reprinted from the Journal of Property Management (JPM®), Institute of Real Estate Management, March/April 2014 edition

C&S reps California investors who scoop up Skyline Towers apartments

Oct 23, 2013 - Albuquerque Business First
A group of California investors has purchased and plans to revitalize an apartment complex in Northeast Albuquerque.

The 63-unit Skyline Towers, located near Tramway Boulevard and Interstate 40, is being completely renovated.

Mark Ross of Orange County-based Granite Investment Group declined to disclose the purchase amount, but said the purchase and renovation is a multimillion-dollar venture. Ross said he and his partners are in the process of doing similar projects around the city and are aggressively looking for multifamily developments in prime locations that may be distressed or need to be repositioned.

Ross said Skyline Towers had performed well historically, but was falling into disrepair. There are about seven tenants in the apartments, which Ross said makes it easier to do a thorough renovation. The development is located at 13500 Skyline Road NE.

“The building just sat for close to two years, so we are going in and doing roofing, paving and gutting all the units with new flooring and new fixtures,” Ross said.

He said one unique feature of the once bright orange apartment building is 34 underground parking spaces.

“There’s also a very large atrium in the main building that’s kind of an amazing space. We’re reconfiguring it and are going to create an indoor-outdoor space for residents,” Ross said.

The name will change as well, from Skyline Towers to Cloudview Terrace. Ross said his group will do all the renovations and hire subcontractors.

“We saw an opportunity to take an interesting property and turn it around and still focus on the market it’s designed for, which is well-priced, smaller units,” he said.

Ross is the owner of the Agave Condominiums in Albuquerque’s Country Club corridor near the Vinaigrette restaurant. He relisted that development earlier this year and said there are a few units left after brisk rental interest in the condos.

Joe R. Romero, senior vice president in multifamily and investments for Cauwels & Stuve Realty and Development Advisors, represented both Granite and an East Coast bank that held the note on the property in the transaction.

Lovelace celebrates opening latest primary care clinic at 8401 Constitution Ave: October 4, 2013

Lovelace on Rebound With New Group

Source: Albuquerque Business First Print Edition
Dennis Domrzalski [2], Reporter- Albuquerque Business First

In 2007, Lovelace Health System spun off its physicians group into ABQ Health Partners in what was described as a messy divorce.

In November 2012, the split became final when the two firms failed to renew a contract for ABQ Health Partners to care for Lovelace Health Plan patients.

Now, Lovelace is in the process of rebuilding its physician group, Lovelace Medical Group.

The practice now has 75 providers, including doctors, nurses and physician assistants, and is growing as needed. In the past eight months the practice has recruited 20 to 25 doctors and mid-level practitioners, most of them from outside the Albuquerque market and state, said Dr. John Cruickshank [3], chief medical officer for Lovelace Health System.

“We are not only rebuilding, but we are recruiting talent to the community. We have added them because of the need to improve access with the (New Mexico Health Insurance) exchange coming in January and all the new insured people coming into the system. There is no way we would have been able to take care of them without bringing in new practitioners,” Cruickshank said.

“In my opinion we [in New Mexico] are still behind [in having enough practitioners] and we need to keep our focus on this for the next couple of years. We need to provide more access. Lovelace Medical Group is alive and well.”

The rebuilding process began in late 2012 when Lovelace bought Southwest Medical Associates, a physicians’ practice in Albuquerque. The purchase came shortly after Lovelace and ABQ Health Partners had their highly public split-up.

Lovelace is owned by the Nashville, Tenn.-based Ardent Health Services. During a recent visit to Albuquerque to celebrate the opening of a new Lovelace clinic, Ardent President and CEO David Vandewater [4] confirmed that the company is in the process of rebuilding its medical group.

“You are absolutely correct,” Vandewater said when asked if the medical group was rebuilding, adding that the company is trying to provide more access to its customers.

“Access is important. The closer you can get to the consumer, the better the care will be,” Vandewater said.

Not only is Lovelace rebuilding its medical group, it is also on somewhat of a facility binge. It has several projects in the works for the coming year, Cruickshank said.

On Sept. 20, Crucikshank, Vandewater and other Lovelace officials celebrated the opening of its latest primary care clinic in Albuquerque’s Northeast Heights. The 5,000-square-foot Lovelace Health Care Center at 8401 Constitution Ave. NE has 15 examination rooms and will be staffed by three practitioners, Cruickshank said.

In mid-October, Lovelace will open an 8,000-square-foot OBGYN women’s service center on the campus of the Lovelace Women’s Hospital in Northeast Albuquerque. On Oct. 1, the firm opened an urgent care location on Paseo del Norte and Golf Course Road on the city’s west side. In January 2014, the firm plans to open another primary care clinic on Paseo del Norte on the city’s east side. That facility will also house a Lovelace Pharmacy, Cruickshank added.

“We’re trying to put in some one-stop shopping so patients can see their provider and get their prescriptions filled,” Cruickshank said.

Lovelace will continue hiring more doctors and building facilities as the need arises.

“The goal is going to be met by demand. We will grow wisely,” Cruickshank said.

A recent study by Deloitte Consulting LLP said that more and more hospitals and hospital groups will be buying doctors’ groups or expanding their own in the future in order to comply with the Affordable Care Act. The ACA has focused on reducing unnecessary hospital readmissions, making patients healthier and providing coordinated care.

Lovelace owns six hospitals in New Mexico.

Lovelace projects

Some recent and upcoming Lovelace Health System projects:

Lovelace Health Care Center, 8401 Constitution Ave. NE. Opened September, 2013.

OBGYN women’s service center at Lovelace Women’s Hospital. Will open mid-October.

Primary care clinic to open in Jan. 2014 at 9501 Paseo del Norte NE.

Oct 1. NextCare/Lovelace urgent care centers opened at 8201 Golf Course Road NW.

Second NextCare/Lovelace urgent care clinic to open in December at 9551 Paseo del Norte NE.

The 5,000-square-foot Lovelace Health Care Center at 8401 Constitution Ave. NE has 15 examination rooms and will be staffed by three practitioners.

© Lovelace Health System Albuquerque, NM All Rights Reserved
Source URL:

New Lovelace Clinic to Open at C&S Property: April 19, 2013

Lovelace builds new clinics in push for coordinated care.

Lovelace Health System has been moving rapidly to replace the doctors, clinics and services its Lovelace Health Plan members lost in late 2012 after Lovelace ended its contract with ABQ Health Partners.

The health plan has partnered with Atrinea Health to open two new clinics for members since the contract with ABQ Health Partners ended in November.

Atrinea opened its first clinic for the health plan’s members in October. Those clinics are owned by Atrinea and staffed with its employees.

Now, Lovelace is building two new clinics of its own in Albuquerque and is set to open another full-service clinic in Roswell May 1.

A 5,200-square-foot primary care clinic at 8401 Constitution Ave. NE in Albuquerque might be Lovelace’s most ambitious project, not because of its size, but because of what it represents for the health plan.

The clinic will offer patients coordinated care, or a patient-centered medical home, and will be owned by Lovelace and staffed by its own doctors, said Lovelace Health Plan Chief Medical Officer Dr. John Cruickshank.

Rather than buying an existing medical practice and training its doctors to follow the coordinated care model, Cruickshank said it was easier to build it from the ground up, including the building and doctors.

The clinic, which is owned by Lovelace, is set to open August 1 and will employ five providers, Cruickshank added.

In addition, Lovelace Health Plan is building a 9,000-square-foot clinic near its Lovelace Westside Hospital that will offer a wide variety of services, including women’s health services, Cruickshank said. That clinic is expected to open in the fourth quarter, he added.

The Roswell clinic will offer wellness exams and screenings, long-term care, chronic illness management, and children’s and geriatric services, Cruickshank said. The Roswell clinic is also owned by Lovelace and will be staffed by its own doctors and providers.

Cruickshank said the coordinated care model of delivery that will be offered at the Constitution clinic would not be possible without technology and electronic medical records.

Coordinated care uses a primary care physician to coordinate all of a patient’s care, from nutritional to mental health or other specialty care.

To do that, the primary care doctor has to be able to view a patient’s complete medical history, including the outcomes of visits to specialists.

Before EMRs, doctors had to fax, mail or otherwise deliver patients’ records to each other, a situation that resulted in a less-than-complete medical record, Cruickshank said.

Atrinea is a privately heal company that operates 13 primary care/urgent care clinics in New Mexico and Arizona.

by Dennis Domrzalski Reporter- Albuquerque Business First

C&S Medical Building Wins NAIOP Eagle Award.

At the Albuquerque Marriott on Friday December 7, 2012, Developer Cauwels & Stuve won the top NAIOP award - an Eagle Award- in the medical category for its recently renovated 65,000-square-foot Medical Resort at Fiesta Park, as reported in the ABQ Journal Business Outlook. The Awards in Excellence luncheon highlighted 11 construction projects, and 4 of the winners, including the Medical Resort, involved renovations of existing buildings. The winners were selected from 72 projects completed in the first 3 quarters of 2012. Presenters noted how C&S overcame compelling challenges to transform the 1950s healthcare building into a high-end medical resort that created 110 new jobs. Accepting the Eagle Award were principals Paul Cauwels and Jeff Stuve. “It’s an end-of-the-year celebration of our industry, showcasing the best of new and remodeled projects from around the state in nine different categories,” said NAIOP President Lynne Andersen.