106 Plaza Dr
Vallejo, CA 94591
Federal Govt Office in San Francisco Bay Area · Retail Property For Sale

The Social Security Administration (SSA) Branch Office in Vallejo, California is a 11,381 square foot commercial building, situated in an excellent outparcel location to Costco and surrounded by other major national retail tenants including Best Buy, Kohl’s, Target, and more. This location benefits from direct access to Interstate 80, providing the waterfront city of Vallejo (population exceeding 115,000) with needed Social Security services. This facility was built-to-suit for SSA in 1999, and was designed and developed according to the strict standards and specific requirements of the U.S. Federal Government and leased via the General Services Administration (GSA). The property is 100% occupied, with GSA accounting for 93% of the rental income and the remaining income derived from an Allstate Insurance office branch. Following the original 10-year lease term that commenced in 1999, the GSA executed a lease renewal for a new 15-year term beginning in 2009. In March 2017, the tenant relinquished their termination right for the final 5 years of the lease term, leaving a current remaining firm, non-cancellable term of approximately 6.5 years. By removing the standard right to terminate that is in the vast majority of all government leases, the SSA has demonstrated their ongoing commitment to this location. The GSA lease is guaranteed by the United States of America, which has a credit rating of Aaa from Moody’s Investor Services. The GSA has a long-standing reputation as a tenant with one of the highest possible renewal probabilities in the commercial real estate industry. Historical data published by the GSA regarding their portfolio of over 8,000 leases nationwide reflects a retention rate that typically exceeds 95. This offering presents a rare opportunity to acquire an asset leased on a long-term basis to tenant with investment-grade credit, with a location in the highly sought-after San Francisco Bay Area region.