Single Tenant Investment-Grade Office Building
S&P Investment-Grade "AA" Single Tenant Office Building
Approximate NOI - $1,647,000 after an estimated management fee
On 1/1/2024 the new rent will increase and estimated to increase by 11.05% (from $1,647,000 to $1,829,033).
Located in a Major Downtown Capital City of a Southern State near the State Capitol (the state shown is representative only - inquire).
The lease was extended lease in 2016 out through 6/30/2031 from 2027 and termination rights were removed.
An approx 8,300 SF addition was added in 2015 for training.
This is the Headquarters facility for the State Government single tenant.
Parking for 435 cars, no other parking facility exists in the CBD
Rent approximately $4.00+ PSF below market. current rent only $11.83 PSF.
No termination rights but lease has an appropriations clause which is typical in state leases in most states.
Gross lease but tenant directly pays Utilities, janitorial and security. Landlord responsible for Real Estate Taxes, Insurance and Repairs and Maintenance
Tenant upgraded its computer system three+ years ago at a cost of $5,000,000 and the cost to move the system has been reported to exceed $3,000,000. It has been confirmed with a department head that it would take 1 year to plan to move the system as it is the largest computer system for a state agency.
The building is located within the “capital complex circle” which allows departments to network with other state department computers and telephone systems.
The Federal Government provides approximately 90% of the funding for the State Agency Tenant.
Seller is looking for a FIRM and quick sale at the recently appraised value of $24,000,000. If not sold soon, the owner will refinance and hold.
Seller also interested in selling together with state leased building - nearby 66,500 SF, 3 building office park, 100% leased. Strong tenants. Asking $8,000,000
Buyer responsible for 1.00% commission.
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