2550 N State St
Ukiah, CA 95482
Govt Office | Mendocino County | 20-Yr Leases · Office Property For Sale

The Ukiah Government Office is a newly reconstructed, 24,391 square foot facility located between Highway 101 and State Street in Ukiah, the center of the highly sought-after Mendocino County region. The property is 100% leased via three government tenants, Bureau of Land Management (BLM) U.S. Geological Survey (USGS) and County of Mendocino (Health & Human Services). This building has been the long-term home for BLM and USGS as a build-to-suit project for the tenants in 1993, serving as the Ukiah Field Office for BLM and Water Resources Division for USGS. In November 2015, the U.S. General Services Administration (GSA) executed two new leases on behalf of BLM and USGS in conjunction with an extensive renovation of the interior space, exterior upgrades, new HVAC units, and installation of a new solar photovoltaic system. Construction completed in July 2017, at which time the new 20-year lease terms commenced. 20 years is the maximum allowable time for any federal lease, thus demonstrating the tenant’s strong, on-going commitment to this facility. Both GSA leases include scheduled base rent increases occurring every 5 years throughout the lease term. The GSA leases are 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%. The renovation of this facility increased space efficiency for BLM and USGS, allowing these tenants to reduce their footprint to optimize employees per rentable square foot, in line with stated federal leasing goals. This adjustment in space left 9,349 square feet available for re-leasing. In August 2017, the County of Mendocino signed a new 10-year lease for the entire vacant space, with two 5-year renewal options, and base rent increases occurring every five years throughout the primary term and option periods. This location is utilized by the County of Mendocino for the Health and Human Services department, with the State of California occupying a smaller portion of the space for the Employment Development Department via a sharing agreement with the County. The County of Mendocino has an AA- credit rating from Standard & Poor’s, providing investment-grade tenancy for the entire building. The Ukiah Government Office benefits from an excellent location in Ukiah, the largest city in Mendocino County and a center of the major wine production industry within this region. The subject property is situated between highway 101 and State Street, a primary arterial in Ukiah running parallel to highway 101. Other tenants in immediate proximity on state street include In-N-Out Burger, McDonald’s, Carl’s Jr, Raley’s, KFC, Pacific Gas & Electric, Cal Fire Ukiah Station, Harley-Davidson, and dealership centers for Honda and Dodge/Jeep/Ram.