The Ficke Group of Marcus & Millichap has been retained as the exclusive broker in the sale of The National GSA Portfolio (“the Portfolio”), consisting of 15 Federal Government-leased assets concentrated in three states: Michigan (10), Ohio (3), and Florida (2).
The Portfolio provides a diverse mix of mission-critical Federal Government agencies including Social Security Administration (7), Immigration & Customs Enforcement (2), Customs & Border Protection (2), Internal Revenue Service (1), U.S. Bankruptcy Court (1), Federal Bureau of Investigation (1), and Office of Hearing Operations (1). The offered Portfolio provides investors with a diverse income stream backed by the full faith and credit of the United States Federal Government (AA+ credit rating, S&P), with more than 226,088 total square feet of leased office space with the General Services Administration (GSA).
All 15 properties included in the Portfolio have been “built to suit” to meet the unique specifications of the tenant agencies; all properties currently operate under first-generation leases with the GSA, providing significant long-term income opportunities. (The GSA renews more than 95 percent of all first-generation leases.) The GSA also averages more than 30 years’ occupancy in any single location, providing significant long-term cash flow potential.
Furthermore, the Portfolio provides additional upside via tax incentives available through the Tax Cuts and Jobs Act of 2017 and the establishment of Opportunity Zones, with seven of the 15 portfolio properties located within Congress-approved Opportunity Zones (Bankruptcy Court – Flint, MI; SSA – Flint, MI; OHO – Flint, MI; SSA & IRS – Ann Arbor, MI; FBI – Flint, MI; SSA – West Branch, MI; CBP – Port Huron, MI). Opportunity Zones are a new community development program established by Congress to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to re-invest their unrealized capital gains into Opportunity Funds that are dedicated to investing into Opportunity Zones designated by the chief executives of every U.S. state and territory.
The Portfolio represents a unique opportunity for investors to acquire a risk-adverse portfolio of government-leased properties at scale, generating a combined NOI of more than $5,812,736 while
providing significant tax incentives and a high probability of long-term lease renewals across the Portfolio.
- Backed by the full faith-and-credit of the United States Federal Government (AA+ credit rating, S&P)
- Over 226,000 sq. ft. of office space generating over $8,466,495 of gross revenue
- Average Remaining Lease Term of 4.19 years
- 15 Properties total with 16 operating leases with the GSA in 3 states: Michigan (10), Ohio (3) and Florida (2)
- 7 Social Security Administration
- 2 Immigration & Customs Enforcement
- 2 Customs & Border Protection
- 1 Federal Bureau of Investigations
- 1 Internal Revenue Service
- 1 U.S. Bankruptcy Court
- 1 Office of Hearings Operations