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Office

Winchester VA Government/Medical Office

629 Cedar Creek Grade, Winchester, VA 22601

Listing Price: $4,148,000

Cap Rate
8.23%
Gross SF
34,112
Rentable SF
27,033
Price/Gross SF
$121.60
Lot Size
2.40 acres
Year Built
1998

Investment Overview

Marcus & Millichap is pleased to present the fee-simple ownership interest in 629 Cedar Creek Grade Winchester, Virginia. This 27,033-rentable square-foot Government anchored office property boasts a competitive tenant mix with an average weighted lease term of 3.3 years. The Commonwealth of VA Division of Child Support anchors the facility with lease term through 2023 and two, five-year options. The Winchester F.B.I. Resident Agency occupies 17.5 percent of the property with firm lease term through 2028 and five additional years of soft term. The tenant mix features Government and Medical tenants, operating under a mixed bag of Net and Gross lease structures. The General Service Administration (GSA) is backed 100 percent by the U.S. Government, which maintains an investment-grade S&P AA+ credit rating. GSA tenants possess one of the highest renewal probabilities in the industry. The site is strategically positioned off major thoroughfare Interstate 11 and Cedar Creek Grade seeing over 18,000 vehicles per day. The subject property is located within the Winchester- VA Office Market. Despite above-average deliveries over the past couple of years, vacancies in Winchester are about as tight as any of the 390 markets tracked by CoStar. This isn't shocking, of course, given Winchester also has one of the smallest office inventories in that set and most recent deliveries have been large build-to-suit projects that have further compressed vacancies. Although speculative development remains a small share of the pipeline, small-scale spec builds aren't out of the question. A series of large announcements in the area a few years back, including the Navy Federal Credit Union Building 3 and the Amazon distribution warehouse, turned the spotlight on Winchester. The increased attention has manifested itself in the form of augmented sales volumes and pricing power for landlords. Its affordability relative to other areas near Washington, D.C., and location along the I-81 corridor have helped drive interest. This property offers an investor the opportunity to acquire a rare, Government anchored medical office facility that boasts a strong weighted average lease term of four years and healthy renewal options. The subject site is 58.2 percent occupied by investment-grade AA+ Government tenants. The property is currently 100 percent stabilized, allowing an investor to reach a 13.05 percent Cash-on-Cash return. *Competitive financing offered by Marcus & Millichap Capital Corporation (MMCC).

Investment Highlights

  • Government / Medical Anchored Rental Roll
  • Four Years Weighted Average Lease Term (WALT)
  • 58.2 percent of RBA Boasting S&P Investment-Grade AA+ Credit Rating
  • Strong Office Market with Historically Low Vacancies
  • Excellent Frontage / Ease of Access seeing over 18,000 VPD
  • 13.05 percent Cash-On-Cash Return

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s) VA: 0225247494

    Virginia

Financing By

Office

Winchester VA Government/Medical Office

Listing Price: $4,148,000

Cap Rate
8.23%
Gross SF
34,112
Rentable SF
27,033
Price/Gross SF
$121.60
Lot Size
2.40 acres
Year Built
1998

Investment Highlights

  • Government / Medical Anchored Rental Roll
  • Four Years Weighted Average Lease Term (WALT)
  • 58.2 percent of RBA Boasting S&P Investment-Grade AA+ Credit Rating
  • Strong Office Market with Historically Low Vacancies
  • Excellent Frontage / Ease of Access seeing over 18,000 VPD
  • 13.05 percent Cash-On-Cash Return

Investment Overview

Marcus & Millichap is pleased to present the fee-simple ownership interest in 629 Cedar Creek Grade Winchester, Virginia. This 27,033-rentable square-foot Government anchored office property boasts a competitive tenant mix with an average weighted lease term of 3.3 years. The Commonwealth of VA Division of Child Support anchors the facility with lease term through 2023 and two, five-year options. The Winchester F.B.I. Resident Agency occupies 17.5 percent of the property with firm lease term through 2028 and five additional years of soft term. The tenant mix features Government and Medical tenants, operating under a mixed bag of Net and Gross lease structures. The General Service Administration (GSA) is backed 100 percent by the U.S. Government, which maintains an investment-grade S&P AA+ credit rating. GSA tenants possess one of the highest renewal probabilities in the industry. The site is strategically positioned off major thoroughfare Interstate 11 and Cedar Creek Grade seeing over 18,000 vehicles per day. The subject property is located within the Winchester- VA Office Market. Despite above-average deliveries over the past couple of years, vacancies in Winchester are about as tight as any of the 390 markets tracked by CoStar. This isn't shocking, of course, given Winchester also has one of the smallest office inventories in that set and most recent deliveries have been large build-to-suit projects that have further compressed vacancies. Although speculative development remains a small share of the pipeline, small-scale spec builds aren't out of the question. A series of large announcements in the area a few years back, including the Navy Federal Credit Union Building 3 and the Amazon distribution warehouse, turned the spotlight on Winchester. The increased attention has manifested itself in the form of augmented sales volumes and pricing power for landlords. Its affordability relative to other areas near Washington, D.C., and location along the I-81 corridor have helped drive interest. This property offers an investor the opportunity to acquire a rare, Government anchored medical office facility that boasts a strong weighted average lease term of four years and healthy renewal options. The subject site is 58.2 percent occupied by investment-grade AA+ Government tenants. The property is currently 100 percent stabilized, allowing an investor to reach a 13.05 percent Cash-on-Cash return. *Competitive financing offered by Marcus & Millichap Capital Corporation (MMCC).

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s): VA: 0225247494

    Virginia

Financing By

MM Texture Background
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