single tenant net leased GSA property for sale

1. NET LEASED INVESTMENT OFFERING
GSA – Social Security Administration
353 West Alto Road
Kokomo, IN
CONFIDENTIAL OFFERING MEMORANDUM
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2. TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Financial Overview
5) Maps
6) Aerial
7) Tenant Profile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
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3. CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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.
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4. EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
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
United States of America government guarantees the lease
Tenant is rated AAA by Standard & Poors
Property is newly constructed in 2008
In 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
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5. PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $2,278,000
Cap Rate: 8.35%
Net Operating Income: $190,175
Renewal Options: None
Lease Commencement Date: May 1, 2008
Lease Expiration Date: April 30, 2018
Tenant: GSA – Social Security Administration
Credit Rating: AAA
Year Built 2008
Lease Type: Modified Gross
Rentable Square Feet: 9,684
Land Acreage: 1.04
:
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6. FINANCIAL OVERVIEW
NET LEASED INVESTMENT OFFERING
FINANCIAL OVERVIEW
Gross Annual Income: $267,145
Operating Expenses
Cleaning Services: $13,079
Supplies: $1,360
Snow Removal $9,721
Maintenance: $1,309
Trash Removal: $976
Landscaping: $2,947
Water/Sewer: $2,648
Heating: $2,795
Electricity: $10,548
Pest Control / Association Fees $1,210
/ Fire Life Safety:
$46,593
Total Operating Expense (1)
$3,996
Management Fee:
$2,226
Insurance:
(2) $24,155
Taxes :
$190,175
Net Operating Income
1. 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
2. $30,000.
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7. NET LEASED INVESTMENT OFFERING
AERIAL
Kokomo
Sports Center
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8. MAPS
NET LEASED INVESTMENT OFFERING
MAPS
SITE
SITE
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9. TENANT PROFILE
NET LEASED INVESTMENT OFFERING
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.
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10. DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population 1-mile 3-mile 5-mile
Total Population 5,863 35,542 63,863
Total Households 2,628 15,556 27,421
Income
Median Household Income $51,889 $56,274 $54,470
Average Household Income $62,149 $66,681 $64,574
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11. LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
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
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.
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12. CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road | Suite 1801
Northbrook, IL 60062
Randy Blankstein Jimmy Goodman
President Partner
847.562.0003 847.562.8500
rblank@bouldergroup.com jimmy@bouldergroup.com
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