VA OUTPATIENT CLINIC

Tenant

Department of Veterans Affairs

Location

Decatur, GA

Price

Unstated

CAP Rate

Unstated

Lease Term

20 Years

Occupancy

100%

Building Size

103,038 SQ FT

Property Type

Office

Year Built

2015

Lot Size

21 Acres

Status

Sold

SOLD WITH ASSUMPTION OF EXISTING FINANCING
Self-amortizing debt

NEW, STATE-OF-THE-ART VA OUTPATIENT CLINIC

20-YEAR FIRM LEASE TERM

Aaa CREDIT TENANCY
U.S. Federal Government

CONSTRUCTED TO MEET LEED SILVER CERTIFICATION REQUIREMENTS

HIGH DEMAND LOCATION
Serving 37,000 patients annually

The Atlanta/Decatur Veterans Affairs Outpatient Clinic (Atlanta/Decatur VA Clinic, the “Property”) is a 103,038 square foot, institutional-quality medical office facility that was completed as a finish-to-suit development project, with VA acceptance and lease commencement occurring in February of 2015.

The Atlanta/Decatur VA 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 Atlanta/Decatur 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. Georgia contains a significant Veteran population of over 773,000 people, with 216,000 residing in Metro Atlanta. 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.

The Atlanta/Decatur VA Clinic benefits from a central location within the Atlanta MSA in Decatur, just 7 miles from downtown Atlanta. The site has immediate access to Highway 278 and the Avondale Station on the MARTA (Metro Atlanta Rapid Transit Authority) rail system and is also in close proximity to Interstate 285.