U.S. Department of Veterans Affairs
Dakota Dunes, South Dakota
Unstated
Unstated
Unstated
14.5 Years Remaining (4.5 Firm)
100%
24,104 SQ FT
Office
2018
5.51 Acres
Sold
U.S. FEDERAL GOVERNMENT CREDIT
Lease guaranteed by U.S. Federal Government, featuring an Aaa credit rating and unrivaled income security
NEW LONG-TERM LEASE
First-generation lease for new 20-year term commencing in November 2018, occupied by U.S. Department of Veterans Affairs
2018 CONSTRUCTION, SIGNIFICANT TENANT INVESTMENT
Build-to-suit VA Community-Based Outpatient Clinic completed in 2018, constructed to meet specific requirements of the tenant; over $4.1 million ($170 per foot) in tenant improvements funded at occupancy by VA, demonstrating significant tenant investment in the facility
VA CLINIC RELOCATION WITH 300% SPACE INCREASE
Expansion and relocation of existing VA services within the Sioux City market area, providing a 300% increase to facility size versus prior clinic; new facility serves over 4,700 veterans and offers a wide range of services including Primary Care, Whole Health, Mental Health Care and Behavioral Health, Women’s Health, Optometry, Radiology, Audiology and Speech, and Patient Advocates
BELOW REPLACEMENT COST
Replacement cost of the subject property is approximately 200% of the current market value of the asset, providing the rare opportunity to achieve a low basis with long-term upside in future lease rates
INCOME TAX-FREE STATE
South Dakota offers a top-rated business climate with no personal state income tax, corporate income tax, personal property tax, inheritance tax, or sales tax
The U.S. Department of Veterans Affairs Sioux City Outpatient Clinic is a 24,104 square foot, first-generation healthcare facility leased for a new 20-year term to the U.S. Department of Veterans Affairs (VA), built-to-suit for the tenant in 2018. The lease is guaranteed by the full faith and credit of the United States of America, featuring a Moody’s Aaa credit rating and unrivaled income security.
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. This new VA facility serves over 4,700 veterans, and offers a wide range of services including Primary Care, Whole Health, Mental Health Care and Behavioral Health, Women’s Health, Optometry, Radiology, Audiology and Speech, and Patient Advocates.
The VA invested significant capital into this new outpatient facility, with tenant improvements funded by VA at occupancy in excess of $4.1 million ($170 per foot). 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 in close proximity to Interstate 129, US-77, US-20 and US-75. The property is sited in Dakota Dunes, a 2,000-acre master planned community consisting of a medical and professional campus; office, light industrial and retail developments; as well as residential components and a country club golf course designed by Arnold Palmer. Additionally, the state of South Dakota offers a top-rated business climate with no personal state income tax, corporate income tax, personal property tax, inheritance tax, or sales tax.
