gsa net lease for sale

NET LEASED INVESTMENT OFFERING

GSA – Social Security Administration353 West Alto Road

Kokomo, IN

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com



TABLE OF CONTENTS

TABLE OF CONTENTS

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Maps

Aerial

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

Financial Overview



CONFIDENTIALITY & DISCLAIMER

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be

reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity

without the written consent of The Boulder Group. This Marketing Brochure has been prepared to provide summary,

unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.

The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not

made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject

property, the future projected financial performance of the property, the size and square footage of the property and

improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and

Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in

this Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has not

verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation

regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

The Boulder Group is pleased to exclusively market for sale a GSA property with the Social Security Administration. The property was recently constructed in 2008 and is located in Kokomo, Indiana. This 9,684 square foot property is located just west of US Route 31, which is the primary north-south thoroughfare connecting Kokomo to Indianapolis. The three top manufacturers in the area include the DaimlerChrysler Corporation, employing close to 6,800 people, Delphi Delco Electronics Systems, employing nearly 5,300 people, and Haynes International, comprised of a workforce reaching 750. In 2010, The National Association of Home Builders has declared Kokomo as “the most affordable” smaller housing market in the U.S. In Kokomo, families with incomes of $61,400 could afford 96 percent of the homes sold.

The property is located on East Alto Road, which is a major thoroughfare connecting the residential neighborhoods of west Kokomo with the main commercial district along Highway 31. The property is located next to a Lowe’s Home Improvement Center. Other major retailers in the area include a Marsh, Walgreens, Keybank, McDonalds and a Ford dealership.

The property was a built-to-suit for the Social Security Administration with the United States Government guaranteeing the original ten year lease. The lease commenced in May 2008 and expires in April 2018. The lease is modified gross with adjusting operating expenses by CPI as well as a base year for taxes. The United States Government is rated AAA by Standard and Poors.

Investment Highlights



EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

United States of America government guarantees the leaseTenant is rated AAA by Standard & Poors Property is newly constructed in 2008In 2010, The National Association of Home Builders has declared Kokomo as “the most affordable” smaller housing market in the U.S.GSA renewal probability was 89.5% in 2009



PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Renewal Options:

Lease Commencement Date:

Lease Expiration Date:

Tenant:

Credit Rating:

Year Built

Lease Type:

Rentable Square Feet:

Land Acreage:

:

$2,278,000

8.35%

$190,175

None

May 1, 2008

April 30, 2018

GSA – Social Security Administration

AAA

2008

Modified Gross

9,684

1.04



FINANCIAL OVERVIEW

FINANCIAL OVERVIEW

Gross Annual Income:

Operating Expenses

Total Operating Expense

Net Operating Income

1.

2.

$267,145

$13,079

$1,360

$9,721

$1,309

$976

$2,947

$2,648

$2,795

$10,548

$1,210

$46,593

$3,996

$2,226

$24,155

$190,175

Cleaning Services:

Supplies:

Snow Removal

Maintenance:

Trash Removal:

Landscaping:

Water/Sewer:

Heating:

Electricity:

Pest Control / Association Fees / Fire Life Safety:

Management Fee:

Insurance:

Taxes :

Operating Expenses are adjusted annually by CPI, and any such increase shall be paid for by the Government.

The Government pays for all real estate taxes over a base year amount of $30,000.

(1)

(2)



AERIAL

Kokomo Sports Center



MAPS

MAPS

SITE

SITE



TENANT PROFILE

TENANT PROFILE

The General Services Administration (GSA) is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S. government offices, provides transportation and office space to federal employees, and develops government-wide cost-minimizing policies, and other management tasks. GSA’s mission is to use expertise to provide innovative solutions for our customers in support of their missions and by so doing foster an effective, sustainable, and transparent government for the American people. GSA oversees the business of the U.S. federal government. GSA’s acquisition solutions supplies federal purchasers with cost-effective high-quality products and services from commercial vendors.

GSA employs about 12,000 federal workers and has an annual operating budget of roughly $26.3 billion, approximately 1% of which is appropriated from taxpayer dollars. GSA oversees $66 billion of procurement annually. It contributes to the management of about $500 billion in U.S. The GSA owns and leases over 354 million square feet of space in 8,600 buildings in more than 2,200 communities nationwide.

The United States Social Security Administration (SSA) is an independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits. To qualify for these benefits, most American workers pay Social Security taxes on their earnings; future benefits are based on the employees' contributions.

SSA is headquartered in Woodlawn, Maryland, just to the west of Baltimore, at what is known as Central Office. The agency includes 10 regional offices, 8 processing centers, approximately 1,300 field offices, and 37 Teleservice Centers. As of 2007, about 62,000 people were employed by the SSA. Social Security is currently the largest social welfare program in the U.S., constituting 37% of government expenditure and 7% of GDP.



DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Population

Total Population

Total Households

Income

Median Household Income

Average Household Income

1-mile

5,863

2,628

$51,889

$62,149

3-mile

35,542

15,556

$56,274

$66,681

5-mile

63,863

27,421

$54,470

$64,574



LOCATION OVERVIEW

LOCATION OVERVIEW

is ideally positioned in the Midwest and the state for shopping, recreational activities, business endeavors and

cultural events.

Several prominent resources have recently recognized Kokomo’s strong business sector. In 2005 and 2006, the

DaimlerChrysler Kokomo Transmission Plant was acknowledged as the number one company throughout the

continent in transmission manufacturing productivity by Harbour Report. The three top manufacturers in the area

include the DaimlerChrysler Corporation, employing close to 6,800 people, Delphi Delco Electronics Systems,

employing nearly 5,300 people, and Haynes International, comprised of a workforce reaching 750. In addition,

about 3,000 businesses reside in Howard County. Leading industries include automotive parts and accessories,

specialized electronic components, injection molding, and medical instruments.

Indiana University, Purdue University and Ivy Tech State College are located in Kokomo, offering two- and four-year

degrees, as well as some graduate studies. In addition, several more top-rate colleges and universities are within an

easy driving distance from the community.

A major roadway traversing through Kokomo, U.S. Route 31 has become one of the state's most congested

roadways. In Howard County, there are currently 15 traffic signals on US 31. US 31 connects Indianapolis, Kokomo,

and South Bend. In the next decade, Kokomo will see a new interstate-style roadway on the east side of city limits. It

will have interchanges at SR 26, Boulevard, Markland Avenue, Touby Pike, as well as where the current US 31 meets

the new US 31. There will be similar changes to areas near South Bend and Indianapolis. The construction in Howard

County will cost roughly $340 million. Construction started on the County Road 200 South Bridge on November 1,

2008 and construction will continue for the next 6 years.

Kokomo, the county seat of Howard County, is located

approximately 51 miles north of Indianapolis, and sits a

mere 160 miles from both downtown Chicago, Illinois and

Cincinnati, Ohio. The city is the 13th most populous in the

State of Indiana. The Howard County/Kokomo region



CONTACT INFORMATION

CONTACT INFORMATION

666 Dundee Road Suite 1801Northbrook, IL 60062

|

Randy [email protected]

Jimmy [email protected]

gsa net lease for sale

Real Estate

gsa property

subject property

property andimprovements

square foot property

standard poors property

lease tenant

net operating income1

unverified information