Marcus & Millichap presents the Social Security Administration (SSA) building located at 15250 East 12 Mile Road in Roseville, Michigan. The 12,000-square-foot building was constructed in 2012 and is situated on 1.75 acres of land. This Social Security Administration 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.
Located in Michigan’s Lower Peninsula, Roseville is a city in Macomb County that comprises a part of the Detroit metropolitan area. The city had a population of 47,501 in 2017, according to the United States Census Bureau, while the metropolitan area had a population of 4.3 million. The larger region has a prominent manufacturing presence, including a defense corridor. Located about 16 miles northeast of Detroit, the city is served by Interstates 696 and 94 and has historically operated as a major crossroads for the region. The city is currently undergoing revitalization efforts that include building a walkable downtown anchored by mixed-use developments, small businesses, bike lanes, and attractive landscaping.
- 12,000-square-foot building constructed in 2012
- Leased to the Social Security Administration through March 2020
- United States government guarantee (AA+ credit rating, S&P)
- First-generation lease
- Located in Roseville, MI about 16 miles northeast of Detroit