This government office is 100% leased and guaranteed by The State of Texas, a best-in-class tenant rated S&P AA+. The government office has 6 years remaining on an initial 10 year Gross Net Lease with annual increases at 25% of the Consumer Price Index with options. The property was built to meet the exact specifications needed by the state department. The tenant, the Texas Department of Criminal Justice, manages offenders in state prisons, state jails and private correctional facilities that contract with TDCJ. The agency also provides funding and certain oversight of community supervision (previously known as adult probation) and is responsible for the supervision of offenders released from prison on parole or mandatory supervision.
The subject property is located on the southwest shoreline of Galveston Bay in Texas City, Texas. Texas City is a busy deepwater port on Texas Gulf Coast, as well as a petroleum refining and petrochemical manufacturing center. The Texas City Industrial Complex is a leading center of the petrochemical industry. Within this complex the Texas City Refinery, operated by Marathon, is the 2nd largest petroleum refinery in Texas and the 3rd largest in the US. The Port of Texas City, operated by the Port of Texas City/Texas City Terminal Railway, is the 8th largest port in the US and the 3rd largest in Texas with waterborne tonnage exceeding 78 million net tons. The Texas City Terminal Railway Company provides an important land link to the port, handling over 25,000 car loads per year. The Port of Texas City’s success as a privately owned port has been aided by its shareholders, the Union Pacific and Burlington Northern Santa Fe Railroads, whose connections allow for expeditious interchange of their traffic.