TOP TIER CREDIT - The Government of the State of Georgia carries an investment-grade credit rating by all major rating agencies, including an AAA rating with a stable outlook from S&P. With a GDP of $776B, if Georgia were a stand-alone country, it would be the 21st largest economy in the world.
BRAND NEW LONG-TERM LEASE W/ PREFERRED ESCALATIONS - After a thorough RFP process, DFCS entered into a ten (10) year full service lease with 2.00% annual escalations to base rent.
RELOCATION AND EXPANSION - The Landlord's property tax expenses are fixed at the base year, which are anticipate to be $1.50/sf. This allows for a more predictable NOI stream over the life of the lease and in the event of a future sale.
LIKELIHOOD OF RENEWAL – Government Tenants have a market-leading retention rate of their first-generation leases and generally are a long-term occupant of their properties.
SUPERIOR VISIBILITY & TRAFFIC COUNTS – The Property is strategically positioned on a major thoroughfare in Toccoa along Big A Road (19,355 VPD).
RARE CAP ON PROPERTY TAXES – The Landlord's property tax expenses are fixed at the base year, which are anticipated to be $1.50/sf. This allows for a more predictable NOI stream over the life of the lease and in the event of a future sale.
RECENT & MID TERM CAPITAL IMPROVEMENTS – The building is currently undergoing interior and exterior renovations prior to the State taking occupancy. The lease also requires the landlord to provide a refurbishment allowance of $10/sf ($80,000) after the fifth year of the lease. Tenant may credit any unused portion of the allowance to their lease. The Seller will credit Buyer with the cost of the Mid Term TI Allowance at closing.
MISSION-CRITICAL LOCATION – The Property will serve the state as the operations hub for DFCS in Stephens County. DFCS is one of the largest agencies in state government with an annual budget of $1.8 billion and approximately 8,500 employees.