Texas Dept of Criminal Justice 13 Founders Blvd 14,812 SF 100% Leased Office Building El Paso, TX 79906 $6,655,068 CAD ($449.30 CAD/SF) 8.25% Cap Rate

Northmarq is pleased to offer for sale to qualified investors the opportunity to acquire the leasehold interest in the single-tenant State of Texas office facility located in El Paso, Texas (the "Property"). The Property is leased to the State of Texas, operating as the Department of Criminal Justice ("TDCJ"). The State of Texas carries an investment-grade credit rating of AAA by Standard & Poor's and Aaa by Moody's.
The TDCJ has been at this location since 2015. Their lease granted them a renewal option of 5 years. Instead, they have exercised a 10-year extension along with a 45% expansion into the remaining building vacancy. The lease features annual increases equivalent to 25% of the CPI Annual Increase.
The Property is located at the El Paso International Airport and therefore sits on a Ground Lease. The Ground Lease currently has 31 years of initial term remaining plus two options of 5 years each. The Ground Lease rent is a nominal amount equal to less than 5% of the monthly rent paid by the TDCJ (see Lease Abstract page for details).