15400 Civic Drive, Victorville, CA
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- 15400 Civic Drive, Victorville, CA
Government Leased Investment Opportunity
Challenge
Our client, a real estate developer that specializes in BTS for County and State Government Agencies, constructed the subject property for the County of San Bernardino Child Protective Services Department. One of the challenges was/is most investors avoid government leased investments due to the “Early Lease Cancellation Clause” even though it is a stabilized investment with 7 years remaining on a 10-year term and 2 additional 5-year options.
Solutions
The goal of the seller was to achieve premium pricing at the then prevailing CAP Rate. We were able to overcome the initial pushback from potential lease cancellation by the County by informing potential buyers that we were able to negotiate the “Early Lease Cancellation Clause” out of the lease, thus creating an exceptional investment opportunity. In addition, through the utilization of our digital marketing platform, e-mail and phone campaigns we were able to procure much interest and sourced multiple offers.
This transaction allowed our client to significantly strengthen their financial position and provided additional capital to be used for other Build to Suit opportunities netting higher returns.
Results
Offers: 6
Targeted Sale Price: $5,300,000.00
Final Sale Price: $5,150,000.00