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4221 Tower Ave

Superior, WI 54880

$1,100,000

Office For Sale  •  7,344 Sq Ft

Property Details

  • Property Type Office
  • Total Building Size 7,344 Sq Ft
  • Lot Size 1.01 ac
  • Building Class C
  • Year Built 2006
  • Cap Rate 7.14 %
  • Tenancy Single
  • Zoning C2
21 Transit Score
31 Walk Score

Description

Marcus & Millichap is pleased to bring to market a single tenant government office building occupied by the United States Social Security Administration. The property is a 7,344 square foot single story office building located on Tower Avenue which is a well traveled road in Superior, Wisconsin. The property was a brand new build-to-suit in 2006 and recently went through extensive tenant improvements in 2018. The property is encumbered with
a brand new second generation 10 year lease with 5 years on the firm term remaining which is set to expire in 2023.
The 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. The annual budget for fiscal year 2018 was increased to $1.06 trillion which is higher than the previous year.
This offering is ideal for an investor who is seeking to invest in a single credit tenant building occupied by the United States Government with a high 7.14% going-in capitalization rate for approximately 5 years. The Pro-Forma capitalization for this asset is approximately 7.25%. The Department for the Social
Security is committed to this location since it is the only SSA in the State of Wisconsin for approximately 94 miles. They also recently spent additional money in tenant improvements just before signing a new 10 year lease.

Highlights

Single Tenant Investment Property with AAA Credit (Fitch, Moody's, and S&P) - U.S. Government
Brand New 10 Year Lease with 5 Years Firm Signed June 2018
8.41% Cash on Cash Return on Current and 9.19% Cash on Cash on Next Rent Increase
10 Year Fixed Financing Available with 25% Down Payment
Only Social Security Administration within 94 Miles
Property was a Brand New Build to Suit in 2006 and being offered at Only $149 Price Per Square Foot

Financial Summary

Cap Rate: 7.14 %

Major Tenants

Tenant SF Occupied Lease End Date
Social Security Administration 7,344 SF

Public Transportation

AirportDriveWalkDistance
Duluth International Airport 22 min - 14.0 mi

Parking Details

Parking Available: Yes
Reserved: No
Spaces Provided: 35
Type: Surface
Included in Rent: Yes
Alex Mobin 949-419-3276 Marcus & Millichap
Alex Mobin 949-419-3276 Marcus & Millichap