5401 Watson Drive is leased to an affiliate of Fidelity Investments.

ALBUQUERQUE, NM—Consolidated-Tomoka Land Co. has acquired a 210,000-square-foot net leased office building here for $44 million or approximately $209-a-square-foot.

The property at 5401 Watson Drive is located in the Mesa del Sol community about eight miles outside of Albuquerque and is 100% leased to an affiliate of Fidelity Investments, the second largest mutual fund company in the United States, under a triple-net lease that was recently extended through 2028.

The property was built in 2009 as a build-to-suit for Fidelity which is currently using the complex for call center and back-office functions. The initial investment yield is above the high end of the company's 2018 guidance. The transaction is expected to be part of a 1031 like-kind exchange, Consolidated Tomoka states.

Daytona Beach, FL-based Consolidated Tomoka has initiated efforts to explore the disposition of certain of its multi-tenant income properties whereby the proceeds from any sale transaction would be redeployed in a 1031 like-kind exchange structure to invest in one or more single-tenant net-lease income properties, the company states. This monetization of certain multi-tenant properties and reinvestment into single-tenant properties is part of the company's effort to simplify its investment strategy into single-tenant net-lease product.

Consolidated-Tomoka Land Co. owns approximately 2.3 million square feet of income properties in diversified markets in the United States, as well as nearly 5,500 acres of land in the Daytona Beach area.

In addition to its office building purchase, the company also provided an update on its pending land contracts as of Oct. 4. Consolidated Tomoka has 16 executed purchase and sale agreements with 14 different buyers, which in the aggregate represent the potential sale of approximately 3,500 acres, or approximately 64% of its remaining land holdings, with anticipated sales proceeds of more than $154 million, or approximately $44,000 per acre.

Instant Insights /

Consolidated-Tomoka Pays $44M for Fidelity Investments Net Leased Office Building

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