2 E Market St - Greenwood Post Office 2,692 SF Specialty Building Offered at $1,308,740 CAD at a 6% Cap Rate in Greenwood, DE 19950

The Greenwood Post Office recently executed a new five-year Lease.
The building was built as a post office approximately 50 years ago and the U.S. Postal Service has been renewing the lease every five years ever since. The post office is located at the center of town next to the Greenwood Town Hall and the Greenwood Library. We anticipate that the U.S. Postal Service will continue to renew the lease every five years.
The current annual rent is $59,762 ($4,980.17 per month).
The lease is nearly a triple net lease (NNN), with the only expenses being paid by the landlord are insurance, roof/structural repairs and other minor repairs.
In 2022 the unreimbursed landlord expenses paid were $2,007.
In 2023 the unreimbursed landlord expenses paid were $4017, although $1,002 were for capital expenses.
To calculate a projected 2024 Net Operating Income (NOI) the landlord expenses of 2022 and 2023 were averaged, which translates to $3,062. Deducting this amount from the current annual rent of $59,762 results in a projected 2024 NOI of $56,700.
At a 5% cap rate with an NOI of $56,700 the purchase price is $1,134,000.