Robert Stevenson: Okay. But that includes whatever adjustment we need to get to a pro forma for any leases that started paying rent in December and things like that. I think, that’s included in that $4.5 billion?
Matthew Partridge: That’s right.
Robert Stevenson: Okay. Perfect. And then any material known move-outs in 2024 or early 2025 at this point?
Matthew Partridge: Just Regal is the only known move out, and that will be late March, early April.
Robert Stevenson: Okay. And then how are you guys thinking about the Fidelity asset in New Mexico? I mean, given where that’s yielding in 100% occupied versus the market for office assets and being able to replace that NOI at some point?
John Albright: Yes. So I would think about it — well, Rob, what would be more your concern, so I can kind of address it appropriately.
Robert Stevenson: Well, first of all, it’s not a great market for office assets, but that’s a single-tenant asset, which has been a little bit better in the marketplace with an A quality credit tenants. But also, is it — what are you looking at if you’re having to — if you decide to sell that at some point here in 2024, what are you looking at as a likely sort of cap rate spread? Are you going to — is that going to wind up being 150, 200 basis points wide of where you can redeploy the proceeds, et cetera. So both — what do you see as the market for that as well as how are you thinking about replacing that NOI going forward?
John Albright: Yes. Okay. So I was actually out there this last week. And the market in just getting real granular here for you. So since our last office asset. I hope you don’t mind. But — so as you know, it’s in the Mesa del Sol master-planned community right by the Sandia National Labs, it’s by the Kirkland Air Force Base. So as the government is spending a lot of money on both of those big infrastructure, you’re getting a lot of contractor interest in the Albuquerque area, and they want to be as close as possible and Mesa del Sol is the place to be. Netflix is still spending $1 billion. They’re under construction for additional movie studios. It’s basically a seven iron from the Fidelity campus. And as we talk about the Fidelity building, is two-story building with two separate buildings that could be separated and so it’s the only office building in that whole complex.
There’s 1,000 lots under construction for homes. There’s multifamily under construction for homes. There’s a planned hotel in the Mesa del Sol that’s going to maybe two homes. There are two hotels for especially for the Netflix business. You have a solar manufacturer that’s going to build a complex, a facility right across the street from Fidelity and you have an Australian helium energy company that is basically coming into Mesa del Sol. So with that aspect, the market is getting better and better for the Fidelity building. Having said that, we’re in discussions with Fidelity about doing maybe an extension with the lease, where it can be a lot more marketable and a lot more valuable to us on a sale basis. And then based on that sort of monetization, we feel like it will be easy to replace, call it, income neutral to where we could sell that building.
If we had to sell it now and just like come [indiscernible] water to sell it, it would be a little bit not as accretive or basically a loss of income as you replace the capital, but it wouldn’t be anything crazy because — the building is a Class A building built by Forest City, and it’s in a growing area and no one’s going to build an office building, as you know, and there’s a lot of people coming into Albuquerque for the big government kind of contractors and new energy, kind of the clean energy sort of tenants. So sorry if that was a little bit too long for you.
Robert Stevenson: No, no, that was helpful. And then I guess my last question regarding tenants. If you were to dispose of Fidelity, AMC becomes your top tenant, how does that — those assets look today? Is it with whatever data you’re getting and seeing food traffic on Friday, Saturday nights, et cetera, are those theaters back to doing pretty well? Are they still weak? Is it more or less dependent on the how quickly more blockbusters get released? How are you guys thinking about those theater assets?
John Albright: Yes. So I guess I was taking a little bit of a tour around our portfolio last week. I was also in Atlanta and we talked with the manager of the AMC and Madison Yards. And Madison Yards is basically fourth or fifth in the whole Atlanta region for AMC. It’s doing very well, and that’s out of 15 to 17 theaters. And so they’ve had some really strong performances as far as films out there. And so they’re feeling really good about that theater. And if you look at that theater that’s like probably one of the last ones that was built in the AMC system. So it’s very new and appropriately sized. The AMC that we have at collection is probably second prime location within the collection property right along the highway, so it has visibility — and there — that market is basically on fire.
And so it would be very easy and very economically advantage to us, if they want to leave because there’d be a lot of backfill interest with much better credit and possibly higher rent. So we’re — we feel very good about our exposure on the theater space right now. Anyway, that’s kind of a little bit of that backdrop.
Robert Stevenson: All right. That’s helpful. I appreciate the time, and have a great weekend.
John Albright: All right. Thank you, Rob.
Operator: Our next question will come from the line of Matthew Erdner with Jones Trading.
