Property Summary

ESSENTIAL INFORMATION

Sentinel Net Lease, LLC (“Sentinel”) acquired the T-Mobile customer service center in Albuquerque, New Mexico. The property, comprised of a 62,777-square-foot building situated on 6.7 acres, is located in the desirable North I-25 Corridor along Interstate 25.

  • Status CLOSED
  • Area 62,777 Square Footage
  • Location Albuquerque, NM
  • Type Customer Service Center
  • Strategy Core Credit-Rated

Description

The property benefits from its proximity to Interstate 25, providing direct access to downtown Albuquerque, the Albuquerque International Airport and all quadrants of the City. This acquisition is consistent with Sentinel’s strategy to acquire attractive real estate secured by long-term net leases with financially stable tenants that generate above-average risk-adjusted returns.

T-Mobile has occupied the building since 2004 and recently extended the NNN lease (7.3 years remaining – 09/30/28 expiration date). The lease also features $0.15 psf annual rent escalations through the current term and two 5-year options to renew.

The Albuquerque Metro Area features a high quality of life, low cost of business, and an educated workforce. Albuquerque’s affordable cost of living, diverse population, and growing tech sector make it a desirable business location.

Our business plan is to generate strong monthly cash flow from the existing in-place lease and “blend and extend” the lease into a longer-term commitment from T-Mobile. Sentinel plans to offer a combination of financial concessions as an incentive for T-Mobile to extend the current lease for 10 years in lieu of the 5-year extension option currently in place. Assuming T-Mobile agrees to a new lease, Sentinel would seek to sell the property if market conditions are favorable.

Key Metrics

  • Purchase Price: $13,573,405
  • Net Rentable SF: 62,777
  • Projected Investment Period : 7.2 Years
  • Year 1 Cap Rate: 7.4%
  • Projected Yr 1 Cash-on-Cash Return: 10%
  • Projected Net Return on Equity: 2.0x
  • Projected Net IRR: 13.9%

Essential Information

  • Publicly-traded, credit-rated tenant with a market cap of $183 billion

  • Long-term lease and annual rent increases provide predictable income

  • High-quality building with $1MM+ of tenant paid improvements

  • Located in the most desirable sub-market in Albuquerque

  • Proximate to numerous commercial and recreational amenities

  • 441 parking spaces on-site – 7.025/1,000 parking ratio

Location

Address

1800 MetroCenter Blvd, Orlando, FL 32835