U.S. Department of Veterans Affairs
100,000 SQ FT
Long-Term, Stable Income
Aaa Credit Tenancy
The Veterans Affairs Outpatient Clinic is a new, 100,000 square foot, institutional-quality medical office facility that was recently completed as a finish-to-suit development project.
The Clinic is 100% leased to the U.S. Department of Veterans Affairs via a new 20-year firm lease term, which is the maximum allowable length of lease for the Federal Government. The lease is guaranteed by the United States of America, with no termination options, providing a highly secure, long-term income stream. Furthermore, this lease includes base rent increases occurring every five years, providing Net Operating Income growth that is seldom seen in a government real estate investment, as most leases are structured with flat base rent. The combination of a 20-year firm lease term with base rent increases makes the VA Clinic lease one of the rarest and most desirable structures that exists in the Federal Government portfolio.
This facility is based in a high-demand region, and is projected to serve 37,000 patients annually. The VA has invested heavily in this facility, with over $8 million of Tenant Improvements paid for by the tenant at the beginning of the lease term. The project was designed and constructed to meet LEED Silver for Healthcare Certification requirements.