Single Tenant AT&T
Clovis, NM
The Opportunity
Summary
- Price: $1,573,000
- Cap Rate: 8.00%
- NOI: $125,878
- Lease Type: Gross
- Building Size: 5,035 SF
- Parcel Size: 1.05 Acres
- Year Built / Renovated: 1999 / 2024
- Remaining Lease Term: 3 Years
- Options: None
- Rental Increases: N/A
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to AT&T, (the “Property”) in Clovis, New Mexico. AT&T has been at this location for nearly 17 years and recently exercised their option, extending their term and demonstrating their commitment to the location. AT&T currently sits as a pad to the North Plains Mall along State Road 209 (Prince Street), a main thoroughfare boasting over 24,200 VPD. The building has undergone recent major renovations including a brand new roof, HVAC units, new exterior stucco and updated exterior signage. The property benefits from plenty of visibility as Prince Street runs directly through the center of Clovis and is regarded as the primary retail corridor in the area. In addition to AT&T ranking in the top 69th percentile of AT&T stores in the country, many of the surrounding tenants rank as top performers within their respective chains (Placer.ai), further demonstrating the strength of the retail corridor. Albertsons and Walgreens both rank in the top 96th percentile of their respective chains nationwide while Wendy’s ranks in the 85th percentile and Lowe’s Home Improvement ranks in the 76th percentile nationwide.
State Road 209 (Prince Street) and the surrounding area continues to grow with retailers. In 2023, retail tenants including Texas Roadhouse, Popeyes, and Dickey’s Barbecue opened locations on or adjacent to State Road 209 (Prince Street). Under new ownership, the North Plains Mall has seen a dramatic uptick in leasing. In Q4 2023, Big R Stores, a dominant farm and ranch retail chain based out of Colorado, opened the doors of their 42,000 square foot store at the North Plains Mall adjacent to AT&T. Additionally, new storefronts are coming soon with national retailers including Marshalls and Ulta also moving into the mall with plans to open by Fall 2024.
The tenant on the lease, Prime Communications, is the largest, privately held AT&T authorized retailer in the United States. The authorized retailer has approximately 2,000 locations throughout the country. AT&T is one of the world's largest telecommunications companies and providers of mobile telephone services in the U.S. Ranked 32nd on the Fortune 500 list, AT&T holds an investment grade credit rating of BBB (S&P). As of the latest quarterly earnings report for the end of Q1 2024, AT&T reported consolidated revenues totaling $30.0 billion and mobility service revenues of $16.0 billion, up 3.3% year over year. Net income for Q1 2024 was reported to be $3.8 billion.
Investment Highlights:
Tenant
AT&T
Ownership: PUBLIC (NYSE: T)
Credit Rating: BBB (S&P)
Headquarters: DALLAS, TX
#of Locations: 5,300+
AT&T Inc. is a multinational conglomerate holding company that is a diversified leader in telecommunications, media and entertainment, and technology. The company is one of the world's largest telecommunications companies, and one of the largest providers of mobile telephone services in the U.S. and ranks 32nd of Fortune 500 companies.
AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across mobile and broadband. Plus, it serves high-speed, highly secure connectivity and smart solutions to nearly 2.5 million businesses. One of the largest subsidiaries of AT&T is WarnerMedia which owns premium content through their brands HBO, HBO Max, Warner Bros., TNT, and much more.
As of the latest quarterly earnings report for the end of Q1 2024, AT&T reported consolidated revenues totaling $30.0 billion and mobility service revenues of $16.0 billion, up 3.3% year over year. Net income for Q1 2024 was reported to be $3.8 billion.
Prime Communications
Ownership: LARGEST PRIVATELY HELD AT&T AUTHORIZED RETAILER IN THE U.S.
Credit Rating: N/R
Headquarters: SUGAR LAND, TX
#of Locations: ~2,000 ~2,000
Prime Communications is the largest, privately held AT&T authorized retailer in the United States, providing a variety of wireless communications products and services to their customers. They were founded in 1999, starting as a kiosk at a local mall in Texas. They have been in acquisition mode the last handful of years starting in 2016 when they acquired 32 Cell World locations, then in 2018 when they acquired 46 Car-Tel Communications and AA Wireless locations and finally in 2019 when they acquired Spring Mobile and their 1,350 locations. Prime Communications is headquartered in Sugar Land, Texas just down the road from AT&T’s headquarters
