Property details

Single Tenant Investment-Grade Office Building, Southeast Region

Property Description

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 increast 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 (he state shown is representive 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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Highlights

Status:
Available
Price:
$24,000,000
PSF:
$137
Cap Rate:
6.86%
Rent Increases:
Inquire
 

Property Information

Building Size:
175,333 sq.ft.
Property Type:
Net Lease
Industry Type:
Government
Units/Spaces:
1
Purchase Tenure:
Fee Simple
 

Lease information

Tenant:
Single Tenant Investment-Grade Office Building
Lease Type:
NN
Lease Expiration:
06/30/2031
Lease Remaining:
13.4 years
Landlord Responsibilities:
Gross Lease
Options:
Inquire
 

Existing financing information

N/A

The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.