The New York City-based firm is in the business of owning buildings leased to the federal and state government, preferably to a single agency, and this property fits the bill. The three-story building is 100% leased to the U.S. Dept. of Fish & Wildlife, which inked a new 10-year leased in 2002.
Company principal Lee Elman tells GlobeSt.com the property was purchased on behalf of private investors, but Elman is a co-investor and general partner. Elman says he expects the property to produce a cash-on-cash return in the "high teens" over a five-to-seven year period, including liquidation.
Elman acquired the building from Tom and Rita Gittins. It was built in sections beginning in the 1970s and has been upgraded periodically. The USDFW has occupied the property since 1977. There are 9.5 years left on its current lease commitment.
Elman tells GlobeSt.com he began pursuing government-leased buildings about six and a half years ago and has invested some $300-million and now controls such properties in 19 states. Elman has sold nine buildings during that time to create a track record.
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