Date
Categories

GOVT News

Closed Transaction: VA Outpatient Clinic

04.09.2024

GOVT Real Estate Group Closes U.S. Department of Veterans Affairs Outpatient Clinic in Dakota Dunes, South Dakota

San Diego, California | April 9, 2024 – The GOVT Real Estate Group announced today the recent sale of an essential, 24,104 square-foot facility in Dakota Dunes, South Dakota that is leased on a long-term basis to the U.S. Department of Veterans Affairs.

The subject property is an expansion and relocation of existing VA services within the Sioux City market area, providing a 300% increase to facility size versus the prior clinic location. Tenant improvements paid for by the VA at occupancy exceeded $4.1 million ($170 per foot). The total replacement cost of the subject property, including shell and tenant improvements, is approximately 200% of the current market value of the asset, providing a rare opportunity to achieve a low basis with long-term upside in future lease rates.

The Sioux City VA Outpatient Clinic benefits from a central location within six miles of downtown Sioux City and offers immediate access to Interstate 29, and is positioned near Interstate 129, US-77, US-20 and US-75.

The property was acquired by an institutional fund which focuses on government property acquisitions and was sold on behalf of a development firm based in North Carolina.

 

Government Real Estate Group

GOVT Real Estate Group is the national market leader in government property sales and investor services, with transaction volume exceeding $7 billion and closings in 45 states. Founded in 2005, GOVT Real Estate Group provides highly skilled client representation via unmatched expertise and experience, and a network of influential relationships with institutional and private capital sources that is global in reach. Through the power of specialization, GOVT Real Estate Group maximizes value and optimizes results on every assignment.

GOVT Real Estate Group’s transaction experience includes facilities occupied by all active government departments and agencies, including FBI, DEA, IRS, FEMA, FDA, ATF, OSHA, Veterans Affairs, Secret Service, Homeland Security, Immigration and Customs Enforcement, Citizenship and Immigration Services, Social Security, U.S. Attorneys, U.S. Courts, Customs and Border Protection, Air Force, Department of Defense, Army Corps of Engineers, Defense Health Agency, Health Resources and Services, Department of Interior, Forest Service, Bureau of Land Management, Fish & Wildlife, Geological Survey, Environmental Protection Agency, Department of Energy, Military Entrance Processing Command, Department of Agriculture, and National Parks Service.