Skip to main content

Government

State of Indiana Government Office Portfolio - Albion

774 Trail Ridge Rd, Albion, IN 46701

Listing Price: $1,122,000

Cap Rate
8.00%
Tenant Name
Department of Child Services, Family Resources
Years Remaining On Lease
8.3
Gross SF
9,454
Guarantor
State Agency
Rentable SF
9,454
Price/Gross SF
$118.68
Lease Type
Gross Lease
Rent Per Square Feet
$16.22

Investment Overview

Marcus & Millichap is pleased to offer the opportunity to purchase the fee simple interest in a portfolio of 11 government buildings leased to the State of Indiana. The Department of Child Services and the Department of Family Resources are the primary users in the properties. Both state departments have a long history of occupancy at each location, with the State of Indiana having executed multiple lease renewals at each property in the portfolio.

The total portfolio is well priced at a 8.13 percent CAP Rate on a current net operating income of just under $704,000. On a price per square foot basis, the assets are priced at an average price per square foot of $112, nearly half of current replacement value. Each individual property in the portfolio is individually priced based on the lease term that the State of Indiana has remaining, as well as based on the vintage of construction and relative strength of the specific location. As such, the properties can all be purchased separately, or as a portfolio.

The State of Indiana maintains a sterling credit rating of ‘AAA’ from S&P, ‘Aaa’ from Moody’s, and ‘AAA’ from Fitch, making Indiana one of only 13 states in the country with Triple-A credit from all three credit-rating agencies. Indiana’s credit rating is actually superior to that of the United States, which has been downgraded in the last year by both S&P and Fitch.

While government leases almost always feature termination for convenience clauses, investors are historically drawn to this asset class because state and federal governments generally – and the State of Indiana specifically – rarely exercise termination rights and rarely relocate. This portfolio’s historical
occupancy by these state tenants certainly reinforces the thesis that these are mission critical locations, positioned throughout Indiana.

This is an opportunity to purchase a diverse portfolio of government leased assets, with the backing of one of the highest credit guarantors available. Each of these buildings have been owned by the original developer since they were built, which further demonstrates the historical stability of the individual properties that comprise the overall portfolio.

Investment Highlights

  • 11-Building Government Office Portfolio, Almost Exclusively Leased to the State of Indiana. The Properties are also Available Individually, or in Smaller Portfolio Groupings
  • State of Indiana Credit is Rated the Highest Possible Investment Grade, Rated "AAA" by "S&P"
  • Indiana Maintains a Superior Credit Rating to the United States of America, with a Triple-A Rating from all Three Credit Rating Agencies
  • The Primary Departments Operating at the Various Locations are the Department of Family Resources and the Department of Child Services
  • The State of Indiana has a Long History of Signing Lease Extensions at Each of These Properties, Demonstrating the Mission Critical Nature of Each Building on Offer
  • The Total Portfolio is Priced at an 8.13 Percent CAP Rate, Likely Allowing for Positive Leverage if the Purchase is Financed
  • The Average Price Per Square Foot is $112, Roughly 50 Percent of Current Replacement Value
  • Opportunity to Acquire a Well-Priced and Location Diversified Portfolio of High Credit Backed Assets in a Midwestern State with a Dynamic and Growing Population

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s) IN: RB14034355

    Indiana

Government

State of Indiana Government Office Portfolio - Albion

Listing Price: $1,122,000

Cap Rate
8.00%
Tenant Name
Department of Child Services, Family Resources
Years Remaining On Lease
8.3
Gross SF
9,454
Guarantor
State Agency
Rentable SF
9,454
Price/Gross SF
$118.68
Lease Type
Gross Lease
Rent Per Square Feet
$16.22

Investment Highlights

  • 11-Building Government Office Portfolio, Almost Exclusively Leased to the State of Indiana. The Properties are also Available Individually, or in Smaller Portfolio Groupings
  • State of Indiana Credit is Rated the Highest Possible Investment Grade, Rated "AAA" by "S&P"
  • Indiana Maintains a Superior Credit Rating to the United States of America, with a Triple-A Rating from all Three Credit Rating Agencies
  • The Primary Departments Operating at the Various Locations are the Department of Family Resources and the Department of Child Services
  • The State of Indiana has a Long History of Signing Lease Extensions at Each of These Properties, Demonstrating the Mission Critical Nature of Each Building on Offer
  • The Total Portfolio is Priced at an 8.13 Percent CAP Rate, Likely Allowing for Positive Leverage if the Purchase is Financed
  • The Average Price Per Square Foot is $112, Roughly 50 Percent of Current Replacement Value
  • Opportunity to Acquire a Well-Priced and Location Diversified Portfolio of High Credit Backed Assets in a Midwestern State with a Dynamic and Growing Population

Investment Overview

Marcus & Millichap is pleased to offer the opportunity to purchase the fee simple interest in a portfolio of 11 government buildings leased to the State of Indiana. The Department of Child Services and the Department of Family Resources are the primary users in the properties. Both state departments have a long history of occupancy at each location, with the State of Indiana having executed multiple lease renewals at each property in the portfolio. The total portfolio is well priced at a 8.13 percent CAP Rate on a current net operating income of just under $704,000. On a price per square foot basis, the assets are priced at an average price per square foot of $112, nearly half of current replacement value. Each individual property in the portfolio is individually priced based on the lease term that the State of Indiana has remaining, as well as based on the vintage of construction and relative strength of the specific location. As such, the properties can all be purchased separately, or as a portfolio. The State of Indiana maintains a sterling credit rating of ‘AAA’ from S&P, ‘Aaa’ from Moody’s, and ‘AAA’ from Fitch, making Indiana one of only 13 states in the country with Triple-A credit from all three credit-rating agencies. Indiana’s credit rating is actually superior to that of the United States, which has been downgraded in the last year by both S&P and Fitch. While government leases almost always feature termination for convenience clauses, investors are historically drawn to this asset class because state and federal governments generally – and the State of Indiana specifically – rarely exercise termination rights and rarely relocate. This portfolio’s historical occupancy by these state tenants certainly reinforces the thesis that these are mission critical locations, positioned throughout Indiana. This is an opportunity to purchase a diverse portfolio of government leased assets, with the backing of one of the highest credit guarantors available. Each of these buildings have been owned by the original developer since they were built, which further demonstrates the historical stability of the individual properties that comprise the overall portfolio.

Exclusively Listed By

Broker of Record

  • Josh Caruana

    First Vice President/District Manager

    (317) 218-5300

    License(s): IN: RB14034355

    Indiana

MM Texture Background
MM Textured Background Lower