LONG TERM LEASE WITH RENTAL INCREASES
The Tenant is operating under a 15 year lease with approximately 8.75 years remaining on the primary term and there are options to extend the lease for up to ten years. Additionally, the Tenant is obligated to scheduled rental increases of 5% every three years throughout the lease term.
HIGHLY PASSIVE LEASE STRUCTURE
The Landlord has zero obligations under the lease agreement. The Tenant is operating under an Absolute NNN lease and pays their Real Estate taxes directly to the taxing authority without the Landlord having to be reimbursed for this expense. Maintaining the building and the premises is the responsibility of the Tenant.
ECONOMIC DRIVERS IN THE MARKET
The Subject property is located in the Eagle Ford Shale Play which is the 2nd largest shale play in the United States, only behind the Permian Basin. The first well was drilled in 2008 and there are currently over 1.2 million barrels of oil extracted each day and there are over 6 billion cubic feet of natural gas extracted each day.
INCOME TAX FREE STATE
This property is located in Pearsall, Texas; Texas is one of seven states that do not impose a State Income Tax.