Skip to main content

Single-Tenant Office

U.S. Social Security Administration

1911 Broadway Dr, Hattiesburg, MS 39402

Listing Price: $3,050,000

Cap Rate
8.30%
Gross SF
12,209
Rentable SF
12,209
Price/Gross SF
$249.82
Lot Size
2.00 acres
Year Built
2008

Investment Overview

Marcus & Millichap is pleased to offer for sale this single-tenant government office building occupied by the Social Security Administration located at 1911 Broadway Drive in Hattiesburg, Mississippi. The property consists of a 12,209-square foot office building which was constructed in 2008 as a build-to-suit for the Department of Social Security Administration. The property underwent a significant amount of renovations that amounted to well over $330,000 in tenant improvements in 2020, including HVAC, Electrical, Lighting, Plumbing, Doors & Windows and upgraded finishes. The United States Social Security Administration (SSA) is an independent agency of the U.S. federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivor benefits. The Social Security Administration was created in 1935 as the “Social Security Board,” then assumed its present name in 1946. SSA is headquartered in Woodlawn, Maryland, northwest of Baltimore, at what is known as the Central Office. The agency includes 10 regional offices, 8 processing centers, approximately 1300 field offices, and 37 Teleservice Centers. The Social Security Administration is a vital part of the retirement income planning strategy of many Americans, particularly as savings rates remain low. However, the breadth of services the SSA provides spans many vital areas of the U.S. social safety net. In January 2020, about 64 million Americans, including retired workers, disabled workers, and survivors, received over one trillion dollars in Social Security benefits, according to the SSA. This offering is ideal for an investor who is seeking a single credit tenant building occupied by the United States Government with low management and a high goingin capitalization rate of 8.30%. The capitalization rate does drop after the firm-term of the lease and brings the blended capitalization rate of approximately 7.13%. The cash-on-cash return on Year 1-3 is 16.52% based on new debt with 75% loan-to-value at 3.75% interest amortized over 30 years.

Investment Highlights

  • Single Credit Tenant - U.S. Government Lease -Social Security Administration AAA (Moody's) Credit Rating
  • Build-to-Suit Facility for the Social Security Administration in 2008 and Renovated in 2020
  • Brand New 2nd Generation 10-year Lease with 5 Years Firm Term Effective 2020
  • Attractive Going-in CAP Rate of 8.30% with a Blended CAP Rate of 7.13%

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s) MS: 15586

    Mississippi

Single-Tenant Office

U.S. Social Security Administration

Listing Price: $3,050,000

Cap Rate
8.30%
Gross SF
12,209
Rentable SF
12,209
Price/Gross SF
$249.82
Lot Size
2.00 acres
Year Built
2008

Investment Highlights

  • Single Credit Tenant - U.S. Government Lease -Social Security Administration AAA (Moody's) Credit Rating
  • Build-to-Suit Facility for the Social Security Administration in 2008 and Renovated in 2020
  • Brand New 2nd Generation 10-year Lease with 5 Years Firm Term Effective 2020
  • Attractive Going-in CAP Rate of 8.30% with a Blended CAP Rate of 7.13%

Investment Overview

Marcus & Millichap is pleased to offer for sale this single-tenant government office building occupied by the Social Security Administration located at 1911 Broadway Drive in Hattiesburg, Mississippi. The property consists of a 12,209-square foot office building which was constructed in 2008 as a build-to-suit for the Department of Social Security Administration. The property underwent a significant amount of renovations that amounted to well over $330,000 in tenant improvements in 2020, including HVAC, Electrical, Lighting, Plumbing, Doors & Windows and upgraded finishes. The United States Social Security Administration (SSA) is an independent agency of the U.S. federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivor benefits. The Social Security Administration was created in 1935 as the “Social Security Board,” then assumed its present name in 1946. SSA is headquartered in Woodlawn, Maryland, northwest of Baltimore, at what is known as the Central Office. The agency includes 10 regional offices, 8 processing centers, approximately 1300 field offices, and 37 Teleservice Centers. The Social Security Administration is a vital part of the retirement income planning strategy of many Americans, particularly as savings rates remain low. However, the breadth of services the SSA provides spans many vital areas of the U.S. social safety net. In January 2020, about 64 million Americans, including retired workers, disabled workers, and survivors, received over one trillion dollars in Social Security benefits, according to the SSA. This offering is ideal for an investor who is seeking a single credit tenant building occupied by the United States Government with low management and a high goingin capitalization rate of 8.30%. The capitalization rate does drop after the firm-term of the lease and brings the blended capitalization rate of approximately 7.13%. The cash-on-cash return on Year 1-3 is 16.52% based on new debt with 75% loan-to-value at 3.75% interest amortized over 30 years.

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s): MS: 15586

    Mississippi

MM Texture Background
MM Textured Background Lower