U.S. Department Of Veterans Affairs

3132 Lynnhurst Blvd, Chesapeake, VA 23321, USA
$1,654,950

Description

Marcus & Millichap is pleased to present for sale this single tenant net leased U.S. Department of Veterans Affairs building in Chesapeake, Virginia. The subject property consists of a 5,000 square foot freestanding building on a 2.5-acre parcel of land.
Strategically located in the heart of Chesapeake, Virginia, the property benefits from quick access to Interstate 664 with traffic counts in excess of 85,000 vehicles per day just off of the Pughsville Road exit with traffic counts of over 23,000 vehicles per day. The area offers attractive demographics with 3.5 percent population growth, a population of 64,267, and an average household income of $97,486 within a three mile radius.
The twenty-year (20) gross lease is guaranteed by the U.S. Government, Department of Veteran Affairs, part of the GSA, with a AAA credit rating. The lease has ten years of firm term, with approximately 7.4 years remaining and two additional five-year soft term options. The GSA invested over $600,000 into constructing the buildout and tenant improvements, completed in
September of 2019. A new HVAC system was also recently installed. The landlord benefits from a rent increase of 5 percent in the soft term. The parcel is large enough to support the additional development of up to 7,000 square feet of gross leasable area. All operating expenses associated with landlord responsibilities are subcontracted to third-party vendors and scheduled on autopay.
Chesapeake, Virginia, is part of the Norfolk MSA, boasting solid demographics and a strong job market. The government sector is still the most dominant sector locally, as the largest naval base globally, Naval Station Norfolk is located here. Those jobs tend to be among the most resilient during economic downturns as most contractors are considered mission essential. In recent years the area has also experienced tremendous growth within the private sector. Leading the charge within that space has been Amazon. The Seattle based e-commerce giant announced in March 2020 would be bringing two new state-of the-art facilities to the area, with one in Chesapeake and the other in Suffolk. Those two facilities, which are only about six miles from one another and are slated to complete in the coming months, will collectively amount to nearly 4.5 million square feet and bring about 1,500 jobs to the metro.

  • Single Tenant Investment Property with AAA Credit – U.S. Government, Department of Veteran Affairs – Veterans Administration Office
  • 20-Year Lease with the Department of Veterans Affairs Signed in April, 2019; 10 Years Firm Term, with Additional Two 5-Year Soft Terms
  • Located in the Heart of Chesapeake, Virginia
  • Over $600,000 of Construction Build-Out/Tenant Improvements (Completed in September, 2019)
  • Scheduled Increases in Options Periods
  • Operating Expenses are Primarily Subcontracted with Auto Payments – Hands Off Landlord Responsibilities
  • Site is Large Enough to Support an Additional Building Up to 7,000 SF
  • New HVAC Recently Installed
  • Strong Demographics & Population Growth
  • 30 Min Drive from Norfolk International Airport
  • Norfolk is Home to 15 Military Installations, Including Naval Station Norfolk, The World’s Largest Naval Base
  • With more than 80,000 Active-Duty Military personnel, the Region has One of the Largest Concentrations of Armed Forces in the United States

Property Documents

  • VA-office-Chesapeake-VA-om-ib
  • City: Chesapeake
  • State/county: Virginia
  • Zip/Postal Code: 23321
  • Country: United States

Detail

  • Price: $1,654,950
  • Year Built: 2004

Additional details

  • CAP RATE: 6.00%
  • NOI: $99,297

Features