5401 Watson Dr SE – 212,409 SF Office

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.

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.

Tom Jenkins and REA Real Estate Advisors represent this offering. Please contact us for additional information or to arrange a tour.