U.S. Department of Health

Tenant

Health Resources & Services Administration

Location

Baton Rouge, LA

Price

Unstated

CAP Rate

Unstated

Lease Term

20 Years

Occupancy

90.06%

Building Size

27,569 SQ FT

Property Type

Office

Year Built

2020

Lot Size

1.51 Acres

Status

Sold

Property Contacts:

Travis Trautvetter

Vice Chairman

858 367 5105 | Email

Jake Trautvetter

Capital Markets

858 558 5624 | Email

Kari Fiske

Brokerage Coordinator

858 334 4032 | Email

FEDERAL GOVERNMENT CREDIT
Lease guaranteed by U.S. Federal Government, featuring an Aaa credit rating and unrivaled income security

20-YEAR LEASE TERM
First-generation lease for new 20-year term (15 years firm) providing the maximum primary lease term as permitted by federal procurement regulations

NEW CONSTRUCTION
Complete redevelopment and reconstruction of existing shell building with completion in 2020, built according to strict federal guidelines and tenant-specific requirements to suit operational needs

ESSENTIAL FACILITY – NATIONAL HD CLINICAL CENTER
The HRSA National Hansen’s Disease Clinical Center is the only facility in the United States devoted to diagnosis, treatment, and research of this disease, providing essential services including consultations for physicians, pathology, shipping of medication, educational materials, and surgical care and rehabilitation

SIGNIFICANT TENANT INVESTMENT
$3.667 million paid by the federal government in tenant improvements, demonstrating significant investment in this facility

THE HEALTH RESOURCES & SERVICES ADMINISTRATION (HRSA)
National Hansen’s Disease Clinical Center in Baton Rouge, Louisiana is a single tenant medical building which is the only facility in the United States devoted to diagnosis, treatment, and research concerning Hansen’s Disease (HD).

The HRSA National HD Clinical Center is a first-generation facility for the U.S. Federal Government and is leased via the U.S. General Services Administration (GSA) for a new 20-year lease term, with 15 years firm. The lease is guaranteed by the full faith and credit of the United States of America, featuring an Aaa credit rating from Moody’s Investors Service and offering unrivaled income security. The GSA has a long-standing reputation as a tenant with one of the highest possible renewal probabilities in the commercial real estate industry. Historical data published by the GSA regarding their portfolio of over 8,000 leases nationwide reflects a retention rate which typically exceeds 95%.

Consisting of 27,569 square feet, the existing shell building was substantially redeveloped and reconstructed to suit the specific needs of the tenant agency, with completion and lease commencement in July of 2020. HRSA invested significant funds into this clinic, with tenant improvement costs totaling $3.667 million.

Services at the National HD Clinical Center include consultations for physicians treating complicated cases of HD, pathological review of biopsies, shipping of antibiotics, educational materials, and surgical care and rehabilitation. The clinic is located in immediate proximity to Interstate 12 with freeway visibility, nearby Baton Rouge Country Club, and is surrounded in the area by major tenants including Costco, Walmart, Albertson’s, McDonald’s, CVS, Walgreens, FedEx, UPS, Cracker Barrel, national hospitality chains, and more.