Property Summary

ESSENTIAL INFORMATION

  • 100% Occupied by United Healthcare on a NNN lease
  • Acquiring at approximately 58% of replacement cost
  • Strong cash-on-cash return from existing lease
  • 22 years of historical occupancy (original tenant)
  • Located in a very desirable submarket of San Antonio
  • 1,001 parking spaces on-site
  • Status CLOSED
  • Area 142,500 Square Footage
  • Location San Antonio. TX
  • Type Customer Service Center
  • Strategy Opportunistic Institutional

Description

United Healthcare, or previously acquired companies, have been the sole occupant in the building since its completion in 2000. The property is in excellent condition, and we are acquiring it significantly below replacement cost with existing rents substantially below market as well. Based on our on-site interview with United Healthcare, it appears this location is an important asset operationally and the relative affordability of the market and access to qualified bilingual labor gives the site additional appeal. Although UNH only has 2.5 years remaining on the lease, UNH has two 5-year renewal options at fair market rent and they are planning to consolidate two different business units totaling more than 300 employees into this location on top of the existing workforce, indicating a high likelihood of renewal beyond the remaining term.

Key Metrics

  • Purchase Price: $26,260,000
  • Lease Term Remaining: 2.5 Yrs
  • Net Rentable SF: 142,500
  • Price Per Square Foot: $184.28
  • Projected Investment Period : 2.6 Years
  • Year 1 Cap Rate: 8.96%
  • Projected Yr 1 Cash-on-Cash Return: 13%
  • Projected Net Return on Equity: 2.0x
  • Projected Net IRR: 38%

Location

Address

6200 Northwest Parkway, San Antonio, TX 78249