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Office Medical

Parsons VA Clinic

1907 Harding Dr, Parsons, KS 67357

Listing Price: $1,263,000

Cap Rate
8.00%
Gross SF
6,839
Rentable SF
6,839
Price/Gross SF
$184.68
Occupancy
100.0%
Year Built
2008
Lot Size
4.75 acres

Investment Overview

Marcus and Millichap is pleased to bring to market the Veterans Affairs Outpatient Clinic Portfolio, a pair of single-tenant government office buildings fully occupied by the Department of Veterans Affairs. Located in Hutchinson, Kansas, and Parsons, Kansas, the two properties were built-to-suit for VA in 2007 and 2008, according to their specific Outpatient Clinic requirements. VA has also invested around $400k in both buildings over the past several years. The projects involved installing high-speed internet wiring, as well as extensive security upgrades. The projects were also directly funded by the VA, with no lump sum payment required by the owner. Together, the two limestone façade properties offer 16,675 rentable square feet on 5.64 acres of land. They feature tile and shingle roofs and are Energy Star rated. Individually, the Hutchinson Clinic offers 7,443 rentable square feet, and Parsons offers 6,839 rentable square feet. The properties may be acquired together or separately. Both properties are encumbered by newly executed 10-year lease renewals (5 years firm) backed by the full faith and credit of the United States of America. The leases contain annual 4% bumps to base rent, starting in year 6 and continuing through year 10. In addition, the leases include CPI-tied operating cost reimbursements. These favorable lease renewals provide investors with an opportunity for above-market returns from a long term, AA+ credit tenant. The Department of Veterans Affairs is an agency of the United States federal government that is tasked with providing lifelong healthcare services to military veterans.

Investment Highlights

  • New 10-Year Lease Renewal
  • Built-to-Suit for the VA in 2008 According to Their Specific Needs
  • VA Recently Invested $400k in Building Upgrades (No Amortized Lump Sum Required)
  • AA+ Credit Tenant (Moody's, S&P)

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s) KS: 00241410

    Kansas

Financing By

Office Medical

Parsons VA Clinic

Listing Price: $1,263,000

Cap Rate
8.00%
Gross SF
6,839
Rentable SF
6,839
Price/Gross SF
$184.68
Occupancy
100.0%
Year Built
2008
Lot Size
4.75 acres

Investment Highlights

  • New 10-Year Lease Renewal
  • Built-to-Suit for the VA in 2008 According to Their Specific Needs
  • VA Recently Invested $400k in Building Upgrades (No Amortized Lump Sum Required)
  • AA+ Credit Tenant (Moody's, S&P)

Investment Overview

Marcus and Millichap is pleased to bring to market the Veterans Affairs Outpatient Clinic Portfolio, a pair of single-tenant government office buildings fully occupied by the Department of Veterans Affairs. Located in Hutchinson, Kansas, and Parsons, Kansas, the two properties were built-to-suit for VA in 2007 and 2008, according to their specific Outpatient Clinic requirements. VA has also invested around $400k in both buildings over the past several years. The projects involved installing high-speed internet wiring, as well as extensive security upgrades. The projects were also directly funded by the VA, with no lump sum payment required by the owner. Together, the two limestone façade properties offer 16,675 rentable square feet on 5.64 acres of land. They feature tile and shingle roofs and are Energy Star rated. Individually, the Hutchinson Clinic offers 7,443 rentable square feet, and Parsons offers 6,839 rentable square feet. The properties may be acquired together or separately. Both properties are encumbered by newly executed 10-year lease renewals (5 years firm) backed by the full faith and credit of the United States of America. The leases contain annual 4% bumps to base rent, starting in year 6 and continuing through year 10. In addition, the leases include CPI-tied operating cost reimbursements. These favorable lease renewals provide investors with an opportunity for above-market returns from a long term, AA+ credit tenant. The Department of Veterans Affairs is an agency of the United States federal government that is tasked with providing lifelong healthcare services to military veterans.

Exclusively Listed By

Broker of Record

  • Colby Haugness

    First Vice President Investments

    (816) 410-1010

    License(s): KS: 00241410

    Kansas

Financing By

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