The subject property is a build-to-suit development for the United States of America’s General Services Administration and is located in the southeast Arizona city of Sierra Vista. The property is 100% occupied by the Federal Bureau of Investigation on a 15 year lease lease, with the initial 10 years being non-cancelable. The building was completed in 2008 and contains 10,727 rentable square feet on 1.65 acres of land. Sierra Vista has an estimated population of 49,000 and is situated about 15 miles north of the border with Mexico. Sierra Vista is the economic center for Cochise County and northern Sonora Mexico, with Fort Huachuca military facility, the Mall at Sierra Vista and the Sierra Vista Regional Hospital. Fort Huachuca is under the command of the U.S. Army Installation Management Command. Its tenants include the Army Network Enterprise Technology Command and the U.S. Army Intelligence Center. Libby Airfield shares the runway with Sierra Vista Municipal Airport. It is also an alternative landing site for the space shuttle. Several government agencies including the Drug Enforcement Administration maintains a presence here. Sierra Vista is a key location for a number of Department of Defense forces who secure the United States border with Mexico.

Lease Type:
The lease is a GSA Gross Lease, which is the common form used by the U.S. General Services Administration (GSA) for similar projects on the west coast. The initial term is 15 years with the initial 10 years non-cancelable, after which the tenant can give a 60-day notice. The Seller has estimated all expenses based on a partial year of operation. All Operating Expenses are the responsibility of the Landlord. A 2.5% Management Fee has been included in the expenses if the investor is seeking a passive investment. Any expense overage will be reconciled at the end of the 1st year. The tenant is responsible for reimbursement of all “overtime hours” that the Property is being operated. It is reported that GSA leases run their full lease term more than 90% of the time. The tenant has invested significant capital improvements for tenant improvements relating to building security. The GSA represents hundreds of federal agencies including the D. E. A., F.A.A., Social Security, Depts. of Agriculture, Commerce, Defense, Education, I.R.S., F.A.A., F.E.M.A. to name a few.relating to building security. The GSA represents hundreds of federal agencies including the D. E. A., F.A.A., Social Security, Depts. of Agriculture, Commerce, Defense, Education, I.R.S., F.A.A., F.E.M.A. to name a few.