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Government

VA Outpatient Clinic

813 East Lakeshore Drive, Manistique, MI 49854

Listing Price: $1,096,000

Cap Rate
7.02%
Tenant Name
US Department of Veterans Affairs
Years Remaining On Lease
7.2
Guarantor
United States Government
Rentable SF
4,100
Lease Type
Gross Lease
Rent Per Square Feet
$35.56

Investment Overview

The Veterans Affairs Outpatient Medical Clinic in Manistique, Michigan is ideally situated on a 1.88 acre parcel. This 4,100 square foot was constructed in 1997 and renovated in 2019. These renovations included over $130,000 worth of building improvements performed in conjunction with the 10-year lease renewal. Specifically tele-data, IT infrastructure, electrical and HVAC upgrades were completed. The Veterans Health Administration has a network of clinics in the large expanse of the Upper Peninsula of Michigan to serve those in need of medical treatment. The long term stability of the locations and the medical assistance is imperative to the Veterans that served their country in the military. The clinic offers primary care and specialty health services, including cardiology, dermatology, emergency services, mental health care, orthopedics, a full pharmacy and more. The Manistique VA Clinic located on Lake Michigan in the beautiful Upper Peninsula surrounded by state and national forest land for great recreational opportunities. The 10-year gross lease commenced in August, 2019 with an expiration in July, 2029. As is customary with U.S. Government leases there is a firm term of five years and the right to terminate before the second five years of the lease. This is standard lease language for the VA and the Government has a very high renewal rate as they must have a facility in this area providing these services for the Veteran patients. Having been there since the occupancy began in 2009, the space suits their needs. Also, the 3,196 square foot suite can utilize some additional room for them to expand into that is not currently being used, so the ownership is protected on any potential growth. A small .85% rental increase would occur for the second five years of the lease term. The Landlord shall maintain the property and exterior premises as part of the ownership obligation, with third party management available.

Investment Highlights

  • 10-Year (5-Years Firm) Lease with Renewal August 1, 2019
  • Lease Guarantor: United States Government
  • United States Government Standard & Poor's Rated: AA+ Stable
  • 4,100-Square Foot Building (3,196 Square Feet Leased to VA Clinic) on 1.88 +/- Acres
  • Additional Built Out Space Is Available For Expansion If Needed

Exclusively Listed By

Financing By

Government

VA Outpatient Clinic

Listing Price: $1,096,000

Cap Rate
7.02%
Tenant Name
US Department of Veterans Affairs
Years Remaining On Lease
7.2
Guarantor
United States Government
Rentable SF
4,100
Lease Type
Gross Lease
Rent Per Square Feet
$35.56

Investment Highlights

  • 10-Year (5-Years Firm) Lease with Renewal August 1, 2019
  • Lease Guarantor: United States Government
  • United States Government Standard & Poor's Rated: AA+ Stable
  • 4,100-Square Foot Building (3,196 Square Feet Leased to VA Clinic) on 1.88 +/- Acres
  • Additional Built Out Space Is Available For Expansion If Needed

Investment Overview

The Veterans Affairs Outpatient Medical Clinic in Manistique, Michigan is ideally situated on a 1.88 acre parcel. This 4,100 square foot was constructed in 1997 and renovated in 2019. These renovations included over $130,000 worth of building improvements performed in conjunction with the 10-year lease renewal. Specifically tele-data, IT infrastructure, electrical and HVAC upgrades were completed. The Veterans Health Administration has a network of clinics in the large expanse of the Upper Peninsula of Michigan to serve those in need of medical treatment. The long term stability of the locations and the medical assistance is imperative to the Veterans that served their country in the military. The clinic offers primary care and specialty health services, including cardiology, dermatology, emergency services, mental health care, orthopedics, a full pharmacy and more. The Manistique VA Clinic located on Lake Michigan in the beautiful Upper Peninsula surrounded by state and national forest land for great recreational opportunities. The 10-year gross lease commenced in August, 2019 with an expiration in July, 2029. As is customary with U.S. Government leases there is a firm term of five years and the right to terminate before the second five years of the lease. This is standard lease language for the VA and the Government has a very high renewal rate as they must have a facility in this area providing these services for the Veteran patients. Having been there since the occupancy began in 2009, the space suits their needs. Also, the 3,196 square foot suite can utilize some additional room for them to expand into that is not currently being used, so the ownership is protected on any potential growth. A small .85% rental increase would occur for the second five years of the lease term. The Landlord shall maintain the property and exterior premises as part of the ownership obligation, with third party management available.

Exclusively Listed By

Financing By

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