Listed by Real Estate Advisors LLC
$51,000,000
5401 Watson Drive SE
Details
Property Type Office
Sub Type Traditional Office
Square Footage 212,409
Net Rentable (SqFt) 212,409
Cap Rate 8.00%
NOI $4,078,651
Occupancy 100%
Tenancy Multi
Brand/Tenant Fidelity Investments, State of New Mexico Environmental Department
Lease Term 10
Lease Expiration 08/31/2036
Remaining Term 10.1
Rent Bumps Yes
Price per SqFt $240
Class A
Year Built 2009
Year Renovated 2026
Buildings 2
Stories 2
Acreage 24.800
Parking Spaces 6 per 1,000 sq ft
Investment Type Stabilized
Tenant Credit Credit Rated
Lease Commencement 09/01/2026
Ceiling Height 10 feet
Office | 8.00% CAP | 212,409 SqFt
Marketing description
5401 Watson presents a rare opportunity to acquire a 212,409 SF LEED Gold-certified Class A government-anchored campus at a significant discount to an estimated $80M replacement cost — fully leased to two investment-grade tenants on economically comparable gross bases in one of the Southwest's most rapidly emerging innovation submarkets.
Investment highlights
- Newly executed 10-year full service base year lease with the State of New Mexico (NMED) commencing September 2026 — long-duration sovereign-backed income at $20.48/SF Net. [Expires Aug 2036]
- The State of New Mexico is separately investing more than $4M of its own capital in tenant improvements and FF&E — a meaningful self-funded commitment that reinforces long-term occupancy intent beyond the lease's contractual term.
- New Mexico operates sustained budget surpluses as the nation's #2 oil and gas producer, backed by one of the largest state permanent funds in the U.S. — among the most fiscally secure government tenants available.
- 5% rent escalation after Year 5; two 5-year renewal options provide long-term income durability and extension optionality through 2046.
- Fidelity Investments (FMR LLC, S&P: A) — NNN lease at $18.07/SF plus all operating expenses, placing both leases on a comparable gross economic basis. [Expires Nov 2028]
- Despite contractual flexibility to reduce its footprint, Fidelity elected to retain approximately half the campus — an affirmative signal of continued operational commitment to the Mesa del Sol location.
- The State of New Mexico is also a significant institutional client of Fidelity, adding a second layer of relationship alignment between the campus's two anchor tenants.
- Two-tenant campus at 100% occupancy — dual institutional credit, zero income fragmentation, simplified asset management.
Listing Contacts
Listed by Real Estate Advisors LLC
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$4,078,651.00
$339,887.58/mo
Valuation Metrics
0
DSCR
8%
Cap Rate
8%
ROI
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