State of Texas Leased Office - Lufkin

Listing was updated at: 04/23/2020
Property Overview
Price/Rent PSF $ 2,800,000.00
Asset Type Office
Trade Type Sale
SQ. FT. Available 28,000
Date Available 11/28/2018
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Floors 2
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On 58 / S. Chestnut Street

This was a build to suit and lease in 2002. New 5 year lease renewal through 9/30/2022. The lease states that is may be renewed up to 5 times for periods up to 60 months each for a total of 300 months. Originally through 2012, it has been renewed once for a 10 year period.

All tenants are stable with a strong history and all of the leases are guaranteed by the State of Texas, with an AAA credit rating.
Annual rent increases are available based on the Consumer Price Index changes, with no early termination clauses.
Texas Health and Human Services Commission (HHSC), oversees several state departments such as:
Texas Department of Aging and Disability Services, Texas Dept. of State Health Services and Texas Dept. of Family and Protective Services, along with itself.
HHSC provides many benefits and services throughout Texas including: Medicaid, Children's Health Insurance Program, Texas Women's Health Program, temporary assistance for needy families, SNAP food benefits and nutritional programs, family violence services, refugee services, and disaster assistance.
This is an excellent opportunity for potential investors looking for great cash flow, and the ability to create equity through mortgage reduction from tenant paid rents. This type of asset is appealing to banks and financial institutions, and debt quotes are available.