Insulated from Macro-Economic Movements
The U.S. Federal Government is a catalyst in the U.S. economy as it is the largest employer and largest occupant of real estate; additionally, the function of the BLM's Field Office insulates this use from future market disruptors due to technological advances in ecommerce.
Likelihood of Renewal
The GSA and BLM have a market-leading retention rate of its build-to-suit leases and generally is a long-term tenant.
BLM has operated a Folsom/Mother Lode Field Office since 1966 and has been operating out of the Property since 2009.
The United States Government carries an investment-grade credit rating by all major rating agencies including an AA+ rating with a stable outlook from Standard & Poor’s Rating Services and its tax revenues exceeded $3.3 trillion for 2017.
With around eleven years remaining, brand new renovations and a stable operating history, the Lease provides prospective investors stable and increasing returns for years to come.
The Property serves as one of five locations the Tenant operates in Central California and it oversees nearly 230,000 acres of public lands in fourteen counties.
The Property is used by the Bureau of Land Management which is one of very few profitable portions of the Federal Government, as such, is well insulated from potential discretionary budget cuts in the future.
Free From TI Amortization
The Lease does not include any decreasing rental revenue due to expiration of Tenant Improvement Amortization, something very atypical for a Government lease.
Affluent Area in Northern California
El Dorado Hills is an extremely affluent area outside of Sacramento, halfway between San Francisco and Lake Tahoe in Northern California with average household incomes in the one-mile radius approaching $160k.
Near New Development
The Property is located immediately adjacent to Lennar Corp.'s newest 1,100-acre senior retirement community and near popular retail, dining and entertainment hubs in the community.