Property details

South Dakota Student Housing Investment-Grade Net Lease, Mountain - Prairie Region

Property Description

South Dakota Student Housing Net Lease

Number of Beds: Approximately 265

Current NOI: +/-$1,140,000

Selling NOI: $1,260,000, Seller will guarantee a sale based on a cap rate and expects the lease to renew at this rate (net).

Final sale price to be predicated on selling cap rate.

NOI to be reconciled between both parties.

Selling Cap: 6.00%, $21M, conditioned upon lease renewal at $1.26M.

The owner is "firm" at $21M.

Lease Guarantor: A subsidiary of the State of South Dakota.

Tenant S&P Investment-Grade Credit Rating: Aa3

Construction: EIFS Clad units (low mtce) and no structural beams throughout, meaning buildings could be re-purposed as classroom buildings / laboratories / etc, at any point in the next 50+ years.

Year Built - Two high-rise buildings built in 2012 and 2013.

Location: These student housing units are the closest units to the University Campus, located in the heart of the Campus Master Plan.

The University: A small, very successful and well-known university with strong, targeted academic excellence.

Lease Term: 5 Years Remaining, negotiable. The tenant would like a 30-year lease! Adjacent, similar property, is held by a REIT on a 30-year lease. The tenant is on master lease and subleases the units to students. The tenant also subleases to a Einstein Bagels which has $550K of build out in the ground floor of one of the building.

Lease Type: NN - LL responsible for roof and structure.

Reason For Sale: Owner/Developer has 1,000 acres under control within City limits and has numerous projects in the pipeline and is looking to raise capital for new projects.

There is an attractive and assumable $12.5M in debt with an interest rate in the mid 3's

The loan will reset but in no circumstance can it be greater than 5% per the loan covenants.



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Highlights

Status:
Available
Price:
$21,000,000
Cap Rate:
6.00%
Rent Increases:
Inquire
 

Property Information

Property Type:
Net Lease
Industry Type:
Student Housing
Units/Spaces:
1
Purchase Tenure:
Fee Simple
 

Lease information

Tenant:
Subsidiary of the State of South Dakota
Lease Type:
NN
Lease Commencement:
11/24/2018
Lease Expiration:
11/24/2018
Lease Remaining:
5.0 years
Landlord Responsibilities:
NN - LL responsible for roof and structure
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.