JLL is pleased to offer for sale the leasehold interest in a single-tenant office building leased to the State of New Hampshire’s Department of Health & Human Services (“NH DHHS”) located in Portsmouth, New Hampshire. Recently developed in 2018, the asset is in the Pease International Tradeport, a 3,000-acre, world-class office/industrial park, which is home to many major corporations and other government tenants.
This lease has over seven years of term remaining and features annual rental escalations, allowing investors the opportunity to acquire a long-term, stable investment with consistently increasing cash flow backed by an S&P ‘AA’ credit rating.
LONG-TERM OCCUPANCY WITH STEADILY INCREASING CASH FLOWS
- Over seven years of lease term remaining on the in-place lease.
- Between 2.0% and 3.0% annual rent increases offer yield growth and incremental value.
- Recent 2018, build-to-suit construction minimizes landlord’s obligations under the gross lease structure.
INVESTMENT-GRADE, STABLE GOVERNMENT TENANT IN PREFERRED LOCATION
- The NH DHHS is the largest agency in the state of New Hampshire state government. Charged with managing the health, safety, and well-being of New Hampshire’s citizens, the NH DHHS is more critical now than ever.
- The State of New Hampshire (S&P: AA / Moody’s: Aa1 / Fitch: AA+) funds the tenant and serves as the lease’s financial backstop.
- The asset is one of NH DHHS’ newest offices and serves as the Seacoast District Office.
DYNAMIC OFFICE/INDUSTRIAL MARKET
- The Pease International Tradeport is a world-class office/industrial park situated in an amenity-rich region just minutes from Portsmouth’s CBD.
- Located in the heart of Portsmouth, the Pease International Tradeport is bordered by U.S. Route 4 (±61,000 VPD), Interstate 95 (±85,000 VPD), and the Pease International Airport.
- Limited supply within the Tradeport has pushed office rents within the micro-market approximately 7.0% higher than those of the Rockingham submarket.
- Pro-forma 2021 NNN rent is below-market when compared against other leases in the market.