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. This lease has a high yield, leveraging 28% down and annual return. The tenant, the Department of Family & Protective Services, just renewed their lease early with a substantial rental increase. The mission of the DFPS is to protect children, the elderly, and people with disabilities from abuse, neglect, and exploitation by involving clients, families and communities. The other tenant, the Texas Workforce Commission, is expected to renew in 2018. The mission of the TWC is to support a workforce system that creates value and helps employers, individuals and communities achieve sustainable economic prosperity.
The subject property is located in New Braunfels, Texas, the principal city of the San Antonio-New Braunfels Metropolitan Statistical Area. San Antonio-New Braunfels is the 3rd largest metro area in Texas and is also the 2nd fastest growing large metropolitan area in the state – the population is over 1MM. Companies like Walmart Distribution Center, The Coleman Company and Vanguard Health Systems have relocated to the area due to the pro-business leadership attitude, competitive incentives and low tax burden.