Recently Closed Sales

If you are a GSA leased property owner, have you considered that now may be an excellent time to sell? Among other trends, we are noticing that GSA investors are pursuing acquisitions of shorter lease term deals with increasing frequency where the renewal story is strong. As expected, pricing for these shorter lease term deals is also increasingly competitive. Two of our recent completed transactions, a U.S. Immigration and Customs Enforcement (ICE) facility in Rapid City, SD and a U.S. District Courthouse in Alpine, TX illustrate this trend and are profiled below. Both deals had approximately 7.5 years firm lease term remaining at the time of sale. The ICE Rapid City facility sold at an 8.0% cap rate, while the Alpine Courthouse traded at an 8.2% cap rate.  We contend that all things being equal, 18-24 months ago these deals would have sold at cap rates 50-100 basis points higher.

Want Capitol Markets articles delivered straight to your inbox?