VA Outpatient Clinic

Tenant

U.S. Department of Veterans Affairs

Location

Dakota Dunes, South Dakota

Price

Unstated

CAP Rate

Unstated

NOI

Unstated

Lease Term

16.25 Years Remaining

Occupancy

100%

Building Size

24,104 SQ FT

Property Type

Office

Year Built

2018

Lot Size

5.51 Acres

Status

Available

Property Contacts:

Travis Trautvetter

Executive Vice Chairman - Capital Markets

858 367 5105 | Email

Jake Trautvetter

Senior Director – Capital Markets

858 367 5102 | Email

Kari Fiske

Senior Brokerage Specialist

858 367 5450 | Email

Isabel Musgrove

Senior Marketing Coordinator

858 367 0929 | Email

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

NEW 20-YEAR LEASE TERM
First-generation lease for new 20-year term commencing in 2018, occupied by U.S. Department of Veterans Affairs

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

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 in tenant improvements paid at occupancy by VA, demonstrating significant tenant investment in the facility Existing non-recourse financing can be assumed ($4.25 million balance, 3.70% fixed rate, matures 9/2/2031, interest-only through 11/2023, 30-year amortization thereafter) with a regional bank

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 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 funds into this new outpatient facility, with tenant improvements paid by VA at occupancy in excess of $4.1 million ($170 per foot).

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.