301 Voyager Way NW, Huntsville, AL 358065030 Bradford Dr NW, Huntsville, AL 358055000 Bradford Dr NW, Huntsville, AL 358057037 Old Madison Pike, Huntsville, AL 35806200 Clinton Ave W, Huntsville, AL 35801
Huntsville Office Portfolio
Asset ClassOffice
Extraordinary cash-on-cash return | 3.41% assumable fixed rate
Overview
OFFERS DUE THURSDAY AUGUST 8th, 2024 3:00 PM
Transwestern has been retained on an exclusive basis to arrange the sale of the iconic CRP I & III Office Portfolio, located in the world-renowned Cummings Research Park (CRP) and at the core of thriving Downtown Huntsville, Alabama, with exceptional depth of tenant demand from corporate tenants choosing to co-locate in this landmark research and development hub.
- Five of the Portfolio’s assets enjoy prominent, high profile, locations in the Cummings Research Park, which is the second largest research park in the country and the fourth largest in the world. As one of the world’s leading science and technology business parks, it is a magnet for Corporate America, attracting a mixture of Fortune 500 companies, local and international high-tech enterprises, U.S. space and defense agencies, thriving business incubators and competitive higher-education institutions.
- Regions Center, the sixth asset is located at the core of vibrant Downtown Huntsville and it is the most recognizable and dominant asset in the CBD.
- Northrop Grumman, rated BBB+, provides cash flow stability and credit, and continues to expand throughout the Portfolio, currently leasing 40% of the Portfolio. Northrop has been in the Portfolio for over 17 years, renewed early for 5 years, and is growing its presence in this mission critical location.
- Leased with a world-renowned anchor tenant located in one of the leading R&D parks in the world, the Portfolio offers an investor stable cash flow through existing tenancy with the opportunity for increased returns through rent spikes as leases roll in a surging market with extraordinary rent growth.
Investment Highlights
- Cummings Research Park: World-Renowned business center. 2nd Largest in US and 4th Largest in World. Center of Science and Technology in the Southeast.
- High Quality Cash Flow / Credit Tenancy: Portfolio is anchored by Northrup Grumman and Regions Bank. Majority of tenants are credit rated.
- Northrop Grumman Secure Cash Flow: 40% of the Portfolio. Tenant for 17+ Years.
- Exceptional Long Term Demand Drivers: The Redstone Arsenal, Nasa, and the Cummings Research Park are important economic engines thriving and sourcing tenant demand for both the private and public sectors.
- Significant Leasing Upside: Over $800,000 of potential leasing opportunity in addition to existing NOI.
- A Billion Reasons to Invest in Huntsville: Home of US National Defense, Huntsville receives $6 billion in annual Federal funding. NASA’s division alone received $2.8 billion.
- Resilient & Well Balanced Economy Outperforming Southeast Competitors: Huntsville is proven to be one of the strongest markets in the Southeast, with unprecedented stability and the proven lowest vacancy rate in the region during economic downturns and during the pandemic.
- Priced Well Below Replacement Cost: A highly competitive acquisition basis.
- Proximate to Expanding Amenities: Bridge Street Town Center and Midcity high quality mixed use retail and dinning are projects that attract tenants from across the region.
- Attractive Assumable Financing: 3.41% interest rate, drives exceptional cash-on-cash returns.
- Stable with Upside: 95% leased, with rising rents and highly leasable vacant space.
- Long Term Tenure of Tenants: Portfolio has an average length of tenant occupancy at 8.6 years and high percentage of renewals.
- Growing & Diversified Economy: Private sector is booming as well, exemplified by Meta/Facebook’s $750 million data center and Toyota/Mazda’s $1.6 billion manufacturing facility.
- Strong Office Market Demand: National defense, government, missile defense, military, aviation and space program tenants are a necessity.
- Instant Critical Mass and Operating Efficiencies.
- Institutional Quality Assets: Tenant spaces configured to dominant demand size.
- Ground Lease: The property is subject to a ground lease through 11/2106.
- Booming Downtown: Regions Center is the most recognizable asset in the CBD, which has a growing residential and amenity base. Attracts corporate, government related, and law firms in droves.
- Tenant “Stickiness”: Significant tenant TI co-investment, and need to be at this national defense business hub, results in high historical tenant retention rates and more renewals that require lower capital requirements.
Photo Gallery
301 Voyager Way NWHuntsville, AL 35806301 Voyager Way NW, Huntsville, AL 358065030 Bradford Dr NW, Huntsville, AL 358055000 Bradford Dr NW, Huntsville, AL 358057037 Old Madison Pike, Huntsville, AL 35806200 Clinton Ave W, Huntsville, AL 35801620 Discovery Dr NW, Huntsville, AL 35806
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TRANSWESTERN | SOUTHEAST INVESTMENT SALES TEAM
Listing provided by Revere CRE