For Sale
$750,000

636 Pine St Michigan City, IN 46360

SS Admin Lease, 10-Year Firm Term

Property Records

Overview

Added:
Dec 11, 2024
Days on market:
139
Exceptional investment opportunity: A Class A, 6,240 sq ft office building in Michigan City, Indiana, fully occupied by the Social Security Administration (SSA) under a new 15-year lease with a 10-year firm term. The property, built in 1999 as a build-to-suit, features 20 parking spaces on a 0.67-acre lot. The GSA is investing over $773,000 in tenant improvements, creating a virtually new interior. This represents a significant commitment to the location and provides long-term stability for the investor. The asking price is $750,000, offering a 7.75% cap rate and a pro-forma cap rate of 9.56%. The property's strong financials are further enhanced by the SSA's AA+ S&P credit rating. The building is well-maintained and situated in a convenient location, approximately 50 miles east of Chicago and 40 miles west of South Bend, with easy access to public transportation. Michigan City boasts a low-income tax, moderate business costs, and a diverse resource base, contributing to its attractiveness for businesses. The construction drawings are complete, and the project bid totals $894,470. The GSA will pay $528,016 of the TI cost as a lump sum upon completion and acceptance of the improvements, with the remaining amount amortized over the lease term. This is a rare opportunity to acquire a stable, high-quality investment with a long-term, creditworthy tenant.

Highlights

  • 15-Year Lease with 10-Year Firm Term.
  • $773,346 in U.S. Government building upgrades.
  • 1999 build-to-suit for GSA/SSA, with 2009 and 2025 improvements.
  • Well-maintained masonry construction.
  • AA+ S&P U.S. Government credit rating.

Property Details for 636 Pine St

Property type
Office properties
Class
A
Year Built
1999
Buildings
1
Stories
1
Lot Size (sq. ft)
29,185 SF

Location Insight

City
Michigan City
County
LaPorte
State
Indiana
Latitude
41.7158185
Longitude
-86.8991116

FAQs

What type of property is this?
Office property - SS Admin Lease, 10-Year Firm Term
Where is the office property located?
The property is located at 636 Pine St Michigan City, IN.
What is the asking price?
The asking price for this property is $750,000.
What are key features of this property?
This property features: 15-Year Lease with 10-Year Firm Term.; $773,346 in U.S. Government building upgrades.; 1999 build-to-suit for GSA/SSA, with 2009 and 2025 improvements.
How can I contact the broker?
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636 Pine St
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