A fully leased Downtown office building has traded hands for more than twice its assessed value.
309 Monroe Property LLC purchased the 22,792-square-foot property at 309 Monroe Ave. for $3.3 million. The Shelby County Assessor of Property’s 2011 appraisal was $1.5 million.
Brian Califf and Hank Martin with NAI Saig Co. represented the seller, 309 Monroe LLC, in the transaction. 309 Monroe LLC is an entity of Farnsworth Holdings.
The building is 100 percent occupied by the Social Security Administration Office of Disability Adjudication and Review. The property has a 15-year lease to the government with seven years remaining, which made it appealing to the buyer, Califf said.
“The buyers bought it as an investment property based on a cap rate,” Califf said. “So that’s why it sold for that.”
The Virginia-based buyer was put together specifically to acquire government buildings, said Michael Mullis, Farnsworth Holdings principal. The Memphis property is one of several the group has closed on recently.
“Government leases right now are as good of credit as you’re going to get,” Mullis said. “Buyers will typically pay more for better credit deals.”
Source: Daily News Article written by Sarah Baker
