GSA Net lease for sale


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single tenant net leased GSA property for sale

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GSA Net lease for sale

  2. 2. TABLE OF CONTENTSNET LEASED INVESTMENT OFFERINGTABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Financial Overview5) Maps6) Aerial7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entitywithout the written consent of The Boulder Group. This Marketing Brochure has been prepared to provide summary,unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has notmade any investigation, and makes no warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State andFederal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects ofany tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained inthis Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has notverified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a GSA property with the Social Security Administration. Theproperty was recently constructed in 2008 and is located in Kokomo, Indiana. This 9,684 square foot property is located justwest of US Route 31, which is the primary north-south thoroughfare connecting Kokomo to Indianapolis. The three topmanufacturers in the area include the DaimlerChrysler Corporation, employing close to 6,800 people, Delphi DelcoElectronics Systems, employing nearly 5,300 people, and Haynes International, comprised of a workforce reaching 750. In2010, The National Association of Home Builders has declared Kokomo as “the most affordable” smaller housing market inthe U.S. In Kokomo, families with incomes of $61,400 could afford 96 percent of the homes sold.The property is located on East Alto Road, which is a major thoroughfare connecting the residential neighborhoods of westKokomo with the main commercial district along Highway 31. The property is located next to a Lowe’s Home ImprovementCenter. Other major retailers in the area include a Marsh, Walgreens, Keybank, McDonalds and a Ford dealership.The property was a built-to-suit for the Social Security Administration with the United States Government guaranteeing theoriginal ten year lease. The lease commenced in May 2008 and expires in April 2018. The lease is modified gross withadjusting operating expenses by CPI as well as a base year for taxes. The United States Government is rated AAA by Standardand Poors.Investment Highlights United States of America government guarantees the lease Tenant is rated AAA by Standard & Poors Property is newly constructed in 2008 In 2010, The National Association of Home Builders has declared Kokomo as “the most affordable” smaller housing market in the U.S. GSA renewal probability was 89.5% in 2009
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $2,278,000Cap Rate: 8.35%Net Operating Income: $190,175Renewal Options: NoneLease Commencement Date: May 1, 2008Lease Expiration Date: April 30, 2018Tenant: GSA – Social Security AdministrationCredit Rating: AAAYear Built 2008Lease Type: Modified GrossRentable Square Feet: 9,684Land Acreage: 1.04:
  6. 6. FINANCIAL OVERVIEW NET LEASED INVESTMENT OFFERING FINANCIAL OVERVIEWGross Annual Income: $267,145Operating Expenses Cleaning Services: $13,079 Supplies: $1,360 Snow Removal $9,721 Maintenance: $1,309 Trash Removal: $976 Landscaping: $2,947 Water/Sewer: $2,648 Heating: $2,795 Electricity: $10,548 Pest Control / Association Fees $1,210 / Fire Life Safety: $46,593Total Operating Expense (1) $3,996 Management Fee: $2,226 Insurance: (2) $24,155 Taxes : $190,175Net Operating Income1. Operating Expenses are adjusted annually by CPI, and any such increase shall be paid for by the Government. The Government pays for all real estate taxes over a base year amount of2. $30,000.
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEThe General Services Administration (GSA) is an independent agency of the United States government,established in 1949 to help manage and support the basic functioning of federal agencies. The GSA suppliesproducts and communications for U.S. government offices, provides transportation and office space to federalemployees, and develops government-wide cost-minimizing policies, and other management tasks. GSA’smission is to use expertise to provide innovative solutions for our customers in support of their missions and byso doing foster an effective, sustainable, and transparent government for the American people. GSA overseesthe business of the U.S. federal government. GSA’s acquisition solutions supplies federal purchasers with cost-effective high-quality products and services from commercial vendors.GSA employs about 12,000 federal workers and has an annual operating budget of roughly $26.3 billion,approximately 1% of which is appropriated from taxpayer dollars. GSA oversees $66 billion of procurementannually. It contributes to the management of about $500 billion in U.S. The GSA owns and leases over 354million square feet of space in 8,600 buildings in more than 2,200 communities nationwide.The United States Social Security Administration (SSA) is an independent agency of the United States federalgovernment that administers Social Security, a social insurance program consisting of retirement, disability,and survivors benefits. To qualify for these benefits, most American workers pay Social Security taxes on theirearnings; future benefits are based on the employees contributions.SSA is headquartered in Woodlawn, Maryland, just to the west of Baltimore, at what is known as Central Office.The agency includes 10 regional offices, 8 processing centers, approximately 1,300 field offices, and 37Teleservice Centers. As of 2007, about 62,000 people were employed by the SSA. Social Security is currentlythe largest social welfare program in the U.S., constituting 37% of government expenditure and 7% of GDP.
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mile 3-mile 5-mileTotal Population 5,863 35,542 63,863Total Households 2,628 15,556 27,421IncomeMedian Household Income $51,889 $56,274 $54,470Average Household Income $62,149 $66,681 $64,574
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Kokomo, the county seat of Howard County, is located approximately 51 miles north of Indianapolis, and sits a mere 160 miles from both downtown Chicago, Illinois and Cincinnati, Ohio. The city is the 13th most populous in the State of Indiana. The Howard County/Kokomo regionis ideally positioned in the Midwest and the state for shopping, recreational activities, business endeavors andcultural events.Several prominent resources have recently recognized Kokomo’s strong business sector. In 2005 and 2006, theDaimlerChrysler Kokomo Transmission Plant was acknowledged as the number one company throughout thecontinent in transmission manufacturing productivity by Harbour Report. The three top manufacturers in the areainclude the DaimlerChrysler Corporation, employing close to 6,800 people, Delphi Delco Electronics Systems,employing nearly 5,300 people, and Haynes International, comprised of a workforce reaching 750. In addition,about 3,000 businesses reside in Howard County. Leading industries include automotive parts and accessories,specialized electronic components, injection molding, and medical instruments.Indiana University, Purdue University and Ivy Tech State College are located in Kokomo, offering two- and four-yeardegrees, as well as some graduate studies. In addition, several more top-rate colleges and universities are within aneasy driving distance from the community.A major roadway traversing through Kokomo, U.S. Route 31 has become one of the states most congestedroadways. In Howard County, there are currently 15 traffic signals on US 31. US 31 connects Indianapolis, Kokomo,and South Bend. In the next decade, Kokomo will see a new interstate-style roadway on the east side of city limits. Itwill have interchanges at SR 26, Boulevard, Markland Avenue, Touby Pike, as well as where the current US 31 meetsthe new US 31. There will be similar changes to areas near South Bend and Indianapolis. The construction in HowardCounty will cost roughly $340 million. Construction started on the County Road 200 South Bridge on November 1,2008 and construction will continue for the next 6 years.
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road | Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003