Investment Overview

Marcus and Millichap is pleased to offer the opportunity to acquire a +/- 75,728 SF single story value-add office/flex building (“Asset” or “Property”) that is 68% occupied by AT&T Services, Inc. (“Tenant”), a wholly owned subsidiary of AT&T. As of January 2025, AT&T will lease 68% of the Asset, which was built to suit and occupied by AT&T since 2007. The remaining 32% provides a value-add lease up opportunity for future ownership in an office market with less than a 6% vacancy. AT&T (NYSE: T) has a $130 billion market cap is the 2nd largest telecommunications company in the United States and 3rd largest global telecommunications company. AT&T Services Inc., the entity on the lease, is a wholly owned subsidiary of AT&T Inc., who carries a strong investment grade credit rating of BBB from S&P and Baa2 from Moody’s*. In 2023, the company earned $122 billion in revenue with $15.6 billion in net income and had $407 billion in assets. AT&T serves clients across the US and provides services in over 220 countries. AT&T has over 100 million consumers in the U.S. and 2.5 million businesses from the largest global companies and government agencies to small businesses. The Asset is a single story +/- 75,728 SF building that has been institutionally owned and maintained since AT&T originally signed a 15-year lease on the asset in 2007. While originally 100% utilized by AT&T, they are downsizing on January 1, 2025, into +/- 51,420 SF (68%). The vacant space will contain +/- 24,308 SF of high-quality back-office space, 32% of the total SF, and presents the perfect opportunity for a value-add investor to lease up or for an owner user to occupy. In addition to possibilities provided with the existing office structure, there is future repurpose upside in the event AT&T does not utilize their renewal options, given the high-quality existing improvements, the oversized +/- 9.24 acres parcel, and favorable “C-2 PD” Central Business District zoning. The Property is currently utilized as an AT&T contact center. The AT&T contact center is designed to assist AT&T customers with a variety of questions relating to voice and data services. The Asset is complete with web-based training rooms, conference rooms, offices, and two large open work areas with individual employee cubicles with significant natural light throughout.