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The subject property is a build-to-suit development for the United States of America’s General Services Administration located in Waco, Texas. The property is 100% occupied by the Social Security Administration for use as a regional office. The building was completed in 2009 and contains 15,943 rentable square feet on approx. 2.3 acres. The construction is steel and masonry block. The building was designed most cost efficiently with a high quality metal roof and sophisticated energy management system. The Seller develops, owns and operates various government facilities throughout the Midwest. His management team will handle all day to day management on behalf of the Investor a modest fee. By doing so, this makes for a very secure investment with AAA credit and little to no management.
Lease Type:
The lease type is Modified Gross Lease, which is the standard format used by the U.S. General Services Administration (GSA). The initial term is for 15 years (10 years non-cancelable), after which the tenant can give a 60 day notice. The Seller has estimated all expenses based on the buildings past performance as well as a history of operating similar properties. See page 3 for the estimated Operating Expenses. Any overage will be reconciled at the end of the year. The tenant will be responsible for any increases of Property taxes and for any overtime hours that the Property is operated. It is reported that GSA leases run their entire lease term more than 90% of the time. The GSA represents many federal agencies including the Social Security Administration, Bureau of Land Management, Drug Enforcement Agency, Dept. of Agriculture, I.R.S., F.B.I., & Department of Forestry.
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