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Chase Bank (Ground Lease)
18221 Midway Rd.
Dallas, Texas
Lease Terms
• Twenty (20) Years
• NNN Ground Lease
• Four (4) x 5-year options
• 10% rent increases every 5 years
Land Area: ± 0.72 (± 31,363 SF)
Building Area: ± 5,196 SF
Purchase Price: $2,200,000
Cap Rate: 5.0%
Annual Rent: $110,000 Years 1 - 5 |
Willis Ventures is excited to announce that our brokerage has closed escrow on a Chase Bank Ground Lease in Dallas, Texas. The property sold for $2,200,000 with a 5.0% capitalization rate. The lease is for twenty years with fixed rate rental increases of 10% paid every 5 years of the primary lease term including the option periods.
This property is a much-desired type of real estate investment. Ground leases are similar to triple net leases in that there are no landlord responsibilities. The tenant pays the ground lease payments monthly to the landowner. Most often the tenant owns the building on the land and there are no landlord responsibilities. The tenant is responsible for he building maintenance, property taxes, and property insurance.
A ground lease is a long-term lease of the land only; such a lease typically involves commercial investment property, and any improvements built by the tenant usually revert to the landlord. Ground leases provide a number of advantages to a landlord. A ground lease will usually involve the tenant constructing improvements (i.e., buildings) on the land, and such improvements can be of great benefit to the landlord. The property owner may benefit from the anticipated appreciation in the land after the tenant builds improvements on the land. Since the landowner maintains ownership of the land, the landowner can pass on the appreciated value of the land to their estate and/or heirs.
Furthermore, the landowner may not have the knowledge and/or capital required to develop the land. A ground lease arrangement with a sophisticated tenant can result in development of the land in such a way as to maximize its potential. Additionally, a ground lease can provide a landlord with a stream of rental income.
This Chase Bank Ground Lease is an exceptional property for several reasons. Dallas JPMorgan Chase (NYSE: JPM) is one of the oldest financial services firms in the world. The company is headquartered in New York City and is a leader in investment banking, financial services, asset and wealth management, and private equity. With assets of $1.3 trillion dollars, JPMorgan Chase is currently the 3rd largest banking institution in the United States, behind Bank of America (1) and Citigroup (2). If a high credit bank ground lease opportunity is of interest to you, please contact us for information on other bank ground lease properties available for sale.
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