Transwestern is pleased to present the exclusive opportunity to buy 2931 Fallon Drive (the "Property"), a 5,242-square-foot office building in Sherman, Texas.
The Property offers investors a stable, government-backed income stream supported by a financially strong state agency. Constructed in 2015 specifically for its sole occupant, the Texas Department of Criminal Justice (TDCJ), the Property is 100% leased to the State of Texas and serves as a missioncritical government facility. TDCJ recently exercised a five-year renewal option, extending its lease term through June 30, 2030, and retains four additional five-year renewal options. The renewal demonstrates the agency's continued commitment to the facility and reinforces the long-term durability of the tenancy.
The lease is structured as modified gross, with the tenant responsible for utilities and janitorial expenses while ownership covers most remaining operating costs. Annual rent adjustments tied to the Consumer Price Index (CPI) provide inflation protection and support long-term income growth. Backed by the credit of the State of Texas, the Property offers dependable cash flow, limited operational risk and future upside through the potential exercise of the remaining renewal options.
Located along the U.S. 75 corridor in Sherman, Texas, the Property benefits from strong regional connectivity and proximity to the rapidly growing Dallas-Fort Worth metro area.
Recent semiconductor and advanced manufacturing investments have elevated Sherman's economic profile and supported demand for government services throughout the region.
Built in 2015 for the State of Texas, the Property consists of a 5,242-square-foot, single-story Class B office building on 0.66 acres with surface parking.
The purpose-built facility is well suited for long-term government occupancy, and the modified gross lease structure helps keep ownership responsibilities and operating expenses low.