Great West Casualty Company Headquarters: South Sioux City, NE
INVESTMENT GRADE TENANT
Great West Casualty Company has been rated A+/Stable from Standard & Poors, A2 from Moody’s, A+ (superior) from A.M. Best, and a double “AA” credit rating by Egan-Jones Rating Company.
ASSUMABLE NON-RECOURSE DEBT WITH ONLY A 10.7% EQUITY REQUIREMENT(2)
This offering allows an investor to acquire the property with just 10.7% cash down and by assuming the existing, non-recourse financing. The subject property is structured as a zero cash flow offering. The rent, including all scheduled increases for the remining 17 years, match the monthly debt service from the existing financing.
91% RETURN-TO-EQUITY THROUGH AMORTIZATION IN THE FIRST 5-YEARS OF THE LEASE(2)
The offering allows an investor to recapture 91% of their down payment in the first five years, with the entire down payment recaptured in just over five years through amortization (as a percentage of their initial equity investment, before taxes).
RECENTLY-EXPANDED BUILT-T0-SUIT OFFICE SPACE
The property consists of 148,089 square feet of office space on approximately 36.25 acres of land. The latest 48,589 square-foot portion was completed in 2017. The location serves as the corporate headquarters and midwest regional office for Great West Casualty Company.
17 YEARS REMAINING ON ORIGINAL 22-YEAR ABSOLUTE NNN LEASE
The Property is 100% leased to Great West Casualty Company on an Absolute NNN basis with 2% annual rent increases. There are currently 17 years remaining on the original 22-year lease term, which expires in December 2037.
SIOUXLAND METRO LOCATION
South Sioux City is located in the northeast corner of the State of Nebraska, known as the Tri-State-Area or Siouxland, a metropolitan area of over 150,000 people and includes Sioux City, Iowa across the Missouri River, and Sioux Falls, South Dakota is to the North.
(1) Rentable Area, Lot Size, Guarantor, Lease Terms, Building Specifications, Year Built, Total Amortization, and Percentage Amortization to Equity are estimates. Buyer is responsible for verifying during the Due Diligence process.
(2) Warning-This is a projection model only and in no way guarantees the performance of the subject property. Buyer will need to rely on their internal projections only in determining the suitability of this investment.
Warning-IRS Circular 230 Disclosure: Marcus & Millichap and its affiliates do not provide tax advice and nothing contained herein including, without limitation, the provision of the following preliminary cost segregation estimate, should be construed to be tax advice. Please be advised that any discussion of U.S. tax matters contained herein (including any attachments) (I) is not intended or written to be used, and cannot be used, by the recipient of any Information for the purpose of avoiding U.S. tax-related penalties; and (II) was written to support the promotion or marketing of the transaction or other matters addressed herein. Accordingly, any recipient of this marketing brochure should seek advice based on your particular circumstances from an independent tax advisor.
Nebraska Broker of Record: John Ruzicka
License: 20200223
