Texas Department Of Criminal Justice
NEW 10-YEAR LEASE EXTENSION | EXCELLENT 1031 EXCHANGE OPPORTUNITY
Marketing description
Northmarq is pleased to offer for sale to qualified investors the opportunity to acquire the leasehold interest in the single-tenant State of Texas office facility located in El Paso, Texas (the "Property"). The Property is leased to the State of Texas, operating as the Department of Criminal Justice ("TDCJ"). The State of Texas carries an investment-grade credit rating of AAA by Standard & Poor's and Aaa by Moody's.
The TDCJ has been at this location since 2015. Their lease granted them a renewal option of 5 years. Instead, they have exercised a 10-year extension along with a 45% expansion into the remaining building vacancy. The lease features annual increases equivalent to 25% of the CPI Annual Increase.
The Property is located at the El Paso International Airport and therefore sits on a Ground Lease. The Ground Lease currently has 31 years of initial term remaining plus two options of 5 years each. The Ground Lease rent is a nominal amount equal to less than 5% of the monthly rent paid by the TDCJ (see Lease Abstract page for details).
Investment highlights
State of Texas Lease
The Property is leased to the State of Texas, operating as the Department of Criminal Justice (TDCJ). The State of Texas carries an investment-grade credit rating of AAA by Standard & Poor's and Aaa by Moody's.
Long-Term Tenant
The State of Texas – TDCJ recently exercised a 10-year extension, making this an excellent 1031 exchange opportunity. The TDCJ has been at this location for over 10 years, since 2015. The lease features annual increases equivalent to 25% of the CPI.
Significant Renovations
The Tenant expanded their space in the building by just over 45%. The Landlord has spent upwards of $1.3 Million on the recent expansion and other improvements to the property.
El Paso International Airport
The El Paso International Airport is the gateway to West Texas, Southern New Mexico and Northern Mexico. There are seven airlines that serve approximately 3.5 million passengers, 92,000 tons of cargo and 87,000 aircraft operations. Situated on 6,800 acres, the Airport also includes a 600-acre industrial park, seven hotels, and numerous industrial and commercial sites.
Fort Bliss
Just to the west of the Property is Fort Bliss, home to the 1st Armored Division. Fort Bliss is comprised of 1.12 million acres of land in Texas and New Mexico. Fort Bliss supports a population of close to 160,000 including active military, retirees, family members and civilians.
Demographics
In addition to the population of Fort Bliss, within 5 miles of this location, there are over 173,000 people with an Average HH Income nearly $64,000.
Listing Contacts
Valuation Calculator
Valuation Metrics
Broker Selected Comps View More Comps
Property History
Similar Properties
Is there information that looks off?
