12429 Avalon Blvd
Los Angeles, CA 90061
Office Property For Sale

Federal Govt Office in LA 6.68% Cap in Year 6 The Los Angeles Social Security Administration (SSA) Branch Office is a single-tenant, 16,600 square foot office facility situated in a dense, urban, infill setting in Los Angeles. This office is centrally located, with immediate access to Interstate 110 and Interstate 105 and positioned near the main thoroughfares of S Main Street and E El Segundo Boulevard. This SSA Branch Office experiences strong demand for SSA services, and has approximately one million residents within a 5-mile radius. This facility was built-to-suit for SSA in 2001, 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). GSA executed a lease renewal for a new 10-year term commencing in March 2017, demonstrating the tenant' s ongoing commitment to this location. Additionally, SSA consolidated employees from other locations into this branch office, further demonstrating the importance of this facility within the SSA network. The lease is guaranteed by the United States of America, which has a credit rating of Aaa from Moody' s Investor Services, and includes a very rare structure with a 20% base rent increase in Year 6 of the lease term. 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 a single-tenant asset leased on a long-term basis to a tenant with investment grade credit, with a location in the highly desirable market of Los Angeles.