Overview
Transwestern is pleased to present the exclusive opportunity to acquire 1670 Highway 155 (the "Property"), a 10,463-square-foot single-tenant office asset in Palestine, Texas.
The Property is fully leased to the Texas Department of Criminal Justice (TDCJ) and provides a stable, governmentbacked income stream supported by the credit of the State of Texas. TDCJ has occupied the facility since 2016 and recently exercised a renewal option, extending its lease term through Dec. 31, 2035.
The lease is structured on a full-service gross basis, with ownership responsible for all operating expenses other than the tenant's telecommunications and data services. The Property serves as a specialized parole facility in a region that contains one of the state's largest concentrations of TDCJ correctional facilities, reinforcing the agency's long-term operational need for the location. Annual rent adjustments tied to the Consumer Price Index (CPI) provide inflation protection and support long-term income growth.
Backed by State of Texas credit, the tenancy offers a highly secure income stream with minimal default risk. With four remaining five-year renewal options and modern 2015 construction, the Property provides dependable government-backed cash flow and significant potential for long-term occupancy.
Investment Highlights
Located at 1670 Highway 155 in Palestine, Texas, the Property benefits from direct highway frontage and strong regional connectivity within East Texas.
As the seat of Anderson County and home to one of the state's largest concentrations of Texas Department of Criminal Justice facilities, Palestine provides a strategic and difficult-to-replicate location for parole services.
Constructed in 2015, the Property consists of a 10,463-squarefoot, single-story facility situated on 2.02 acres and was purposebuilt to support long-term government occupancy. The specialized nature of the facility would be costly to replicate, creating a strong incentive for continued tenancy.
A full-service gross lease provides stable cash flow supported by annual CPI-based rent increases. The first renewal option has been exercised, extending the lease through Dec. 31, 2035, with four additional five-year renewal options remaining, offering long-term income stability and future upside through continued occupancy.
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