Description

Marcus & Millichap is pleased to present the opportunity to acquire a portfolio of nine government-occupied buildings leased to the State of Indiana. The primary tenants are the Department of Child Services and the Department of Family Resources, both of which have maintained long-term occupancy and executed multiple lease renewals across the portfolio. The portfolio is attractively priced with an 8.19% capitalization rate on a current net operating income exceeding $580,000, and an average price of $108 per square foot—approximately half of current replacement cost. Each property is individually valued based on factors such as remaining lease term, building age, and location strength, offering flexibility for investors to purchase assets either individually or as a complete portfolio. The State of Indiana boasts exceptional financial stability, holding a rare Triple-A credit rating from S&P, Moody’s, and Fitch—one of only 13 states nationwide with this distinction, and notably stronger than the current credit rating of the United States. Although government leases often include termination-for-convenience clauses, the State of Indiana has a strong track record of retaining occupancy and seldom relocates, underscoring the reliability of these mission-critical facilities. This offering represents a rare chance to invest in a diverse and stable portfolio of government-leased assets backed by one of the nation’s strongest credit tenants. Each property has been continuously owned by its original developer since construction, further emphasizing the long-term stability and quality of the portfolio.