GlobeSt.com EXCLUSIVE: 2M-SF Sale/Leaseback Portfolio Coming to Market

SAN ANTONIO, TX-The locally based United Services Automobile Association has retained CB Richard Ellis to execute a sale/leaseback of its four regional offices in California, Colorado, Virginia and Florida. The portfolio totals 1.57 million sf. The initial leaseback term is 10 years, plus four five-year options, according to a flyer on the portfolio. An offering memorandum won’t be ready for a few more days, says Russ Ingrum, a senior vice president in CBRE’s Dallas office and the lead broker for the disposition effort.

USAA was founded in 1922 as a member-owned association providing financial services to members of the military and their families. Today, it is five million members strong and carries a AAA credit rating. The properties, developed by USAA between 1986 and 1996, range from 300,000 sf to 517,000 sf and are located in the cities of Sacramento, CA, Colorado Springs, Norfolk, VA and Tampa, FL.

Ingrum declined comment on a potential sales price, but other local brokers familiar with the transaction tell GlobeSt.com the portfolio could sell for as much as $400 million, or $254 per sf, and that the initial capitalization rate on the deal would likely be in the 6% range. If those numbers turn out to be true, the buyer would need to garner rent equal to $15 per sf per year for 17 years to fully capitalize the investment.