636 Pine StMichigan City, IN 46360

Property Details for 636 Pine St

Year built

1999

Construction

TYPE NOT SPECIFIED

Lot size

0.15 AC

Property size (Sq ft)

7,680 SF

Property type

Office properties

APN

46-01-29-427-009.000-022

APU

460129427009000022

Description

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.

• CAP approach

  CAP return

  Valuation

  6%

  $2,468,133

  6.5%

  $2,278,277

  7%

  $2,115,543

• Comparable approach

  Method

  Valuation

  Relative Method

  $1,000,320

  Geo Method

  $1,000,320

• Alternative Use

  Use

  Valuation

  Residential

  $2,825,063

  Hospitality

  $2,587,743

  Educational

  $2,152,972

  Medical

  $2,227,016

  Retail

  $3,349,067

Location Insight

City

Michigan City

County

Laporte

State

Indiana

Latitude

41.7157

Longitude

-86.8991

CBSA code

33140

CBSA name

MICHIGAN CITY-LA PORTE, IN METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

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