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New Homeland Security Building Sells

CARLSBAD, NM-A small private investor trading out of a multifamily asset pays about $3.6 million for the 10,400-sf high-tech facility leased long-term to the federal government.

By Brian K. Miller | Updated on January 11, 2005

CARLSBD, NM-Amelang Archway Development of Houston has sold a new building here that is leased to the federal government. The sale price was $3.6 million, or about $340 per sf. The 10,400-sf building is one of a new type of amalgamated facilities that combines Border Patrol, Customs, and Homeland Security functions. The building is leased to the federal government for 20 years.The building is located in an industrial park at the intersection of Commerce Drive and Buena Vista Drive. The property site is five acres, which allows for the building’s future expansion. Both sides of the transaction were represented by Ted Gibbons, whose Bellevue, WA-based Investment Realty Advisors Inc. business specializes in the sale of government properties nationwide. Gibbons tells GlobeSt.com the buyer is The Peninsula Group, a small private investor who was trading out of an apartment property and looking for a more passive investment. Gibbons adds that because of the attractive financing that can be had given the tenants, the in-going capitalization rate was just under 8%, which will provide the new owner a double digit cash-on-cash return.

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