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Government

State of Indiana | New 5YR Lease Extension

9801 Georgia St, Crown Point, IN 46307

Listing Price: $7,365,000

Cap Rate
7.35%
Tenant Name
FSSA
Years Remaining On Lease
4.9
Gross SF
34,704
Guarantor
United States Government
Rentable SF
34,704
Price/Gross SF
$212.22
Lease Type
Modified Gross
Rent Per Square Feet
$18.00

Investment Overview

Marcus & Millichap is proud to offer the opportunity to purchase the fee simple interest in a Class A, single-tenant building, located in Crown Point, Indiana, 100% leased to the State of Indiana (S&P Credit Rating AAA). The State of Indiana leases this building on behalf of the Indiana Family and Social Services Administration (FSSA) and just signed a brand new five year lease. This building has been used for its current purpose since it was constructed in 2007; however, the State of Indiana only agreed to guaranty this lease upon signing the most recent lease extension in January of 2023. The previous tenant, a subcontractor for the Indiana FSSA, had exercised multiple renewal options since taking occupancy in 2007. The State of Indiana’s willingness to extend for another five-year term, at a higher rent, while adding their imprimatur and AAA credit to a new lease, reinforces the strength of the State’s commitment to the location. The State of Indiana is one of only 13 states to achieve a AAA credit rating from the three major credit rating agencies. The property is located in Crown Point, Indiana, in an institutional grade office and industrial park, with neighboring tenants including Amazon, Domino’s Pizza (Supply Chain Center), Pinnacle Hospital, and a new construction, 260,000+ square-foot build-to-suit industrial building leased to Big Lots. With visibility from I-65 (59,000+ Vehicles Per Day) and solid demographics (growing population, 33,000+ people live within three miles), it’s the daytime employment numbers that are of particular note: over 5,500 businesses are located within five miles of the property, all with an average of at least nine employees per business. So while the addition of the State of Indiana credit to the lease is compelling, the underlying real estate and history of the tenant’s commitment to the location further strengthen the fundamentals of this opportunity. The lease is not structured as a traditional gross lease, which differentiates it from most government leases. The tenant is responsible for reimbursing real estate taxes and for almost all interior maintenance items. This limits the landlord’s exposure to operating expense volatility and makes the annual net operating income more predictable

Investment Highlights

  • The State of Indiana (AAA Credit Rated) just signed a new five-year lease, replacing the previous lessee, a State of Indiana subcontractor, dramatically improving the credit strength of the guarantor
  • Neighboring tenants include a new construction Amazon facility, a Domino's Pizza Supply Chain Center and a 260,000+ square-foot build-to-suit project for Big Lots
  • Tenant is responsible for both real estate taxes as well as interior CAM costs
  • The property is located less than three miles from the Interstate 65 exit ramp
  • Exceptional daytime demographics — over 5,500 businesses located within five miles, with an average of nine employees per business

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Financing By

Government

State of Indiana | New 5YR Lease Extension

Listing Price: $7,365,000

Cap Rate
7.35%
Tenant Name
FSSA
Years Remaining On Lease
4.9
Gross SF
34,704
Guarantor
United States Government
Rentable SF
34,704
Price/Gross SF
$212.22
Lease Type
Modified Gross
Rent Per Square Feet
$18.00

Investment Highlights

  • The State of Indiana (AAA Credit Rated) just signed a new five-year lease, replacing the previous lessee, a State of Indiana subcontractor, dramatically improving the credit strength of the guarantor
  • Neighboring tenants include a new construction Amazon facility, a Domino's Pizza Supply Chain Center and a 260,000+ square-foot build-to-suit project for Big Lots
  • Tenant is responsible for both real estate taxes as well as interior CAM costs
  • The property is located less than three miles from the Interstate 65 exit ramp
  • Exceptional daytime demographics — over 5,500 businesses located within five miles, with an average of nine employees per business

Investment Overview

Marcus & Millichap is proud to offer the opportunity to purchase the fee simple interest in a Class A, single-tenant building, located in Crown Point, Indiana, 100% leased to the State of Indiana (S&P Credit Rating AAA). The State of Indiana leases this building on behalf of the Indiana Family and Social Services Administration (FSSA) and just signed a brand new five year lease. This building has been used for its current purpose since it was constructed in 2007; however, the State of Indiana only agreed to guaranty this lease upon signing the most recent lease extension in January of 2023. The previous tenant, a subcontractor for the Indiana FSSA, had exercised multiple renewal options since taking occupancy in 2007. The State of Indiana’s willingness to extend for another five-year term, at a higher rent, while adding their imprimatur and AAA credit to a new lease, reinforces the strength of the State’s commitment to the location. The State of Indiana is one of only 13 states to achieve a AAA credit rating from the three major credit rating agencies. The property is located in Crown Point, Indiana, in an institutional grade office and industrial park, with neighboring tenants including Amazon, Domino’s Pizza (Supply Chain Center), Pinnacle Hospital, and a new construction, 260,000+ square-foot build-to-suit industrial building leased to Big Lots. With visibility from I-65 (59,000+ Vehicles Per Day) and solid demographics (growing population, 33,000+ people live within three miles), it’s the daytime employment numbers that are of particular note: over 5,500 businesses are located within five miles of the property, all with an average of at least nine employees per business. So while the addition of the State of Indiana credit to the lease is compelling, the underlying real estate and history of the tenant’s commitment to the location further strengthen the fundamentals of this opportunity. The lease is not structured as a traditional gross lease, which differentiates it from most government leases. The tenant is responsible for reimbursing real estate taxes and for almost all interior maintenance items. This limits the landlord’s exposure to operating expense volatility and makes the annual net operating income more predictable

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

Financing By

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