VA OUTPATIENT CLINIC

Tenant

Department of Veterans Affairs

Location

Las Vegas / Henderson, NV

Price

Unstated

CAP Rate

Unstated

Lease Term

18 Years Remaining

Occupancy

100%

Building Size

70,814 SQ FT

Property Type

Office

Year Built

2011

Lot Size

14.86 Acres

Status

Sold

PORTFOLIO OF TWO VETERANS AFFAIRS OUTPATIENT CLINICS

SOLD TO HIGH NET WORTH PRIVATE INVESTOR

BUYER ASSUMED EXISTING SELF-AMORTIZING CTL

DEBT WITH ABOVE-MARKET RATE

2011 BUILD-TO-SUIT CONSTRUCTION

LONG-TERM LEASES WITH FEDERAL GOVERNMENT

WESTERN UNITED STATES LOCATION

The Las Vegas VA Clinic Portfolio consists of two newly developed single-tenant build-to-suit facilities for the U.S. Department of Veterans Affairs. Both properties are located in the Las Vegas Valley, in the cities of Las Vegas and Henderson. These two VA outpatient clinics are identical buildings from the standpoint of size and design, consisting of 35,407 rentable square feet each, for a total of 70,814 square feet. Construction of the facilities was completed in 2011. Each asset was built to meet the strict standards and the exact specifications of the VA and to serve the mission and objectives of this federal agency. The two sites for each of these new VA locations were identified and secured via option contract by the VA prior to the government’s Solicitation for Offer process, which was competitively bid by prospective developers throughout the United States. The successful bid was determined based upon critical aspects including rental rate, design, and qualifications of the developer. The land value at which the VA secured the sites was significant, with a total cost of over $18 million for the two parcels of land. The Las Vegas location is situated on 8.57 acres of land, and the Henderson location is positioned on 6.29 acres. The lease term for each facility is 20 years, firm for the entire duration of the lease, with no termination options. This is the maximum possible lease term within the federal government lease program and thus the most desirable length of lease for any federal real estate investment. The lease is guaranteed by the United States of America, which has an Aaa rating by Moody’s.