Marcus & Millichap presents the Social Security Administration (SSA) building located at 2620 Krafft Road in Port Huron, Michigan. The 12,500-square-foot building was constructed in 2006 and is situated on 1.99 acres of land. This SSA building presents the opportunity for an investor to acquire a building tailored for this government agency. This facility provides a very attractive risk-adjusted yield with a highly rated credit tenant with S&P AA- designation. General Services Administration leases offer long-term stability to an investor, as these federal agencies occupy the facilities for more than 30 years on average, with a first-generation renewal rate of approximately 96 percent.
The SSA is an independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivor’s benefits. To qualify for most of these benefits, most workers pay Social Security taxes on their earnings; the claimants’ benefits are based on the wage earners’ contributions. SSA is headquartered in Woodlawn, Maryland, just to the west of Baltimore, at what is known as Central Office. The agency includes 10 regional offices, eight processing centers, approximately 1300 field offices, and 37 Teleservice Centers. As of 2007, about 62,000 people were employed by SSA. Social Security is the largest social welfare program in the United States. The Social Security Administration has been named the sixth best place to work in the federal government.
Port Huron is a city in the U.S. state of Michigan and the county seat of St. Clair County, about 62 miles northeast of Detroit. In 2017, the city had an estimated population of 29,051, according to the United States Census Bureau. Located along the St. Clair River, it is connected to Point Edward, Ontario in Canada via the Blue Water Bridge. The city is home to an international port that supports many local businesses in the region. Port Huron is also home to two paper mills and many businesses related to tourism and the automotive industry. The city features a historic downtown area, boardwalk, marina, museum, lighthouse, and the McMorran Place arena and entertainment complex.
- 12,500-square-foot building in Port Huron, MI
- Leased to the Social Security Administration through December of 2020
- United States government guarantee (AA+ credit rating, S&P)
- First-generation lease
- Port Huron is about 62 miles northeast of Detroit and home to an international port