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Government

Single Tenant Veterans Affair Office Chesapeake VA

3132 Lynnhurst Blvd, Chesapeake, VA 23321

Listing Price: $1,654,950

Cap Rate
6.00%
Tenant Name
U.S DEPARTMENT OF VETERANS AFFAIRS
Years Remaining On Lease
7.3
Guarantor
United States Government
Rentable SF
5,000
Lease Type
Modified Gross
Rent Per Square Feet
$19.86

Investment Overview

Marcus & Millichap is pleased to present for sale this single tenant net leased U.S. Department of Veterans Affairs building in Chesapeake, Virginia. The subject property consists of a 5,000 square foot freestanding building on a 2.5-acre parcel of land. Strategically located in the heart of Chesapeake, Virginia, the property benefits from quick access to Interstate 664 with traffic counts in excess of 85,000 vehicles per day just off of the Pughsville Road exit with traffic counts of over 23,000 vehicles per day. The area offers attractive demographics with 3.5 percent population growth, a population of 64,267, and an average household income of $97,486 within a three mile radius. The twenty-year (20) gross lease is guaranteed by the U.S. Government, Department of Veteran Affairs, part of the GSA, with a AAA credit rating. The lease has ten years of firm term, with approximately 7.4 years remaining and two additional five-year soft term options. The GSA invested over $600,000 into constructing the buildout and tenant improvements, completed in September of 2019. A new HVAC system was also recently installed. The landlord benefits from a rent increase of 5 percent in the soft term. The parcel is large enough to support the additional development of up to 7,000 square feet of gross leasable area. All operating expenses associated with landlord responsibilities are subcontracted to third-party vendors and scheduled on autopay. Chesapeake, Virginia, is part of the Norfolk MSA, boasting solid demographics and a strong job market. The government sector is still the most dominant sector locally, as the largest naval base globally, Naval Station Norfolk is located here. Those jobs tend to be among the most resilient during economic downturns as most contractors are considered mission essential. In recent years the area has also experienced tremendous growth within the private sector. Leading the charge within that space has been Amazon. The Seattlebased e-commerce giant announced in March 2020 would be bringing two new state-of the-art facilities to the area, with one in Chesapeake and the other in Suffolk. Those two facilities, which are only about six miles from one another and are slated to complete in the coming months, will collectively amount to nearly 4.5 million square feet and bring about 1,500 jobs to the metro.

Investment Highlights

  • 20-Year Lease with the Department of Veterans Affairs Signed in April, 2019
  • 10 Years Firm Term, with Additional Two 5-Year Soft Terms
  • Site is Large Enough to Support an Additional Building Up to 7,000 SF
  • New HVAC Recently Installed

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s) VA: 0225247494

    Virginia

Government

Single Tenant Veterans Affair Office Chesapeake VA

Listing Price: $1,654,950

Cap Rate
6.00%
Tenant Name
U.S DEPARTMENT OF VETERANS AFFAIRS
Years Remaining On Lease
7.3
Guarantor
United States Government
Rentable SF
5,000
Lease Type
Modified Gross
Rent Per Square Feet
$19.86

Investment Highlights

  • 20-Year Lease with the Department of Veterans Affairs Signed in April, 2019
  • 10 Years Firm Term, with Additional Two 5-Year Soft Terms
  • Site is Large Enough to Support an Additional Building Up to 7,000 SF
  • New HVAC Recently Installed

Investment Overview

Marcus & Millichap is pleased to present for sale this single tenant net leased U.S. Department of Veterans Affairs building in Chesapeake, Virginia. The subject property consists of a 5,000 square foot freestanding building on a 2.5-acre parcel of land. Strategically located in the heart of Chesapeake, Virginia, the property benefits from quick access to Interstate 664 with traffic counts in excess of 85,000 vehicles per day just off of the Pughsville Road exit with traffic counts of over 23,000 vehicles per day. The area offers attractive demographics with 3.5 percent population growth, a population of 64,267, and an average household income of $97,486 within a three mile radius. The twenty-year (20) gross lease is guaranteed by the U.S. Government, Department of Veteran Affairs, part of the GSA, with a AAA credit rating. The lease has ten years of firm term, with approximately 7.4 years remaining and two additional five-year soft term options. The GSA invested over $600,000 into constructing the buildout and tenant improvements, completed in September of 2019. A new HVAC system was also recently installed. The landlord benefits from a rent increase of 5 percent in the soft term. The parcel is large enough to support the additional development of up to 7,000 square feet of gross leasable area. All operating expenses associated with landlord responsibilities are subcontracted to third-party vendors and scheduled on autopay. Chesapeake, Virginia, is part of the Norfolk MSA, boasting solid demographics and a strong job market. The government sector is still the most dominant sector locally, as the largest naval base globally, Naval Station Norfolk is located here. Those jobs tend to be among the most resilient during economic downturns as most contractors are considered mission essential. In recent years the area has also experienced tremendous growth within the private sector. Leading the charge within that space has been Amazon. The Seattlebased e-commerce giant announced in March 2020 would be bringing two new state-of the-art facilities to the area, with one in Chesapeake and the other in Suffolk. Those two facilities, which are only about six miles from one another and are slated to complete in the coming months, will collectively amount to nearly 4.5 million square feet and bring about 1,500 jobs to the metro.

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s): VA: 0225247494

    Virginia

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