BITCO Insurance Headquarters

Sentinel Net Lease, LLC (“Sentinel”) is acquiring the headquarters of BITCO Insurance Companies (the “Property” or  “BITCO”), a Class A office building located in Davenport, Iowa. The single-story building totals 42,676 square feet of rentable area on 7.16 acres with an above-average parking ratio of 4.2/1,000 SF. The building is 100% leased to BITCO with a remaining lease term of 7.75 years. We are acquiring this property at an attractive cap rate of 7.9% with highly accretive assumable debt, which we believe will produce a strong risk adjusted return on this opportunity. With a long lease duration and excellent cash-on-cash returns from lease income, this opportunity is projected to return approximately 77% of invested capital from the existing contractual lease. Despite being constructed in 2016 with an investment-grade tenant under an in-place long-term lease, we are acquiring the property for less than replacement cost and $1 million less than the Seller paid in 2018.