Stable Occupancy - The Property is 100% occupied and provides historically stable occupancy with over half of the building’s GLA occupied by D.A. Davidson and SG Long Financial, who have both recently extended their terms. Historical tenancy averages over 13 years for in-place tenants and over 75% of tenants have occupied the Property for over 20 years.
New Leasing - The Landlord just negotiated a three-year extension for Bohyer, Erickson, Beaudette & Tranel (BEBT), alongside two newly executed leases for the park level floor at market rents and the recent extensions for D.A. Davidson and SG Long Financial.
Substantial Rent Growth - Annual scheduled rent increases take place on January 1st of every year, for all tenants. Rent increases are based on the annual rate of CPI increase, which results in a higher year-2 yield of an estimated 35 basis points.
Preeminent Location - The Property is easily accessible and located just blocks from the primary I-90 interchange serving Missoula’s central business district. The Property is also in close proximity to Orange St. Bridge, one of the main connectors between the CBD & Riverfront/Rose Park neighborhoods, including the newly developed Old Sawmill District. Both neighborhoods have high-density surrounding residential and are highly walkable with a population of 104,000 residents and average household incomes of $83,000 within a 10-mile radius.
Tight Office Submarket - Downtown Missoula has an extremely low submarket vacancy of 4.20% for Class A vacancy space, per CoStar. Alongside historically stable occupancy, the Property has never had a delinquency, nor any rent abatements granted during Covid. This is an extremely rare offering, as the only other Class A, fee simple offerings in the trade area are individual office condos at 1K SF and $1M in price.
High Quality Construction - Current ownership has invested over $2.5M into building improvements over the last seven years, including a new roof membrane in 2018 with a transferable warranty, and new HVAC units and systems installed in 2018 and 2021, among many other upgrades. D.A. Davidson remodeled their space in 2022-2023 and contributed over $350k of their own money into the suite.
Ample City Parking - The Property benefits from its location adjacent to the city-owned Caras parking lot where the Landlord has exclusive access to 55 stalls which are made available to building tenants.
Favorable Zoning - The Property is zoned Central Business District (CBD4), which allows for a number of uses that include retail, residential, and office.