Cap Rate: 7.25%
Net Operating Income: $564,480
Lot Size: 0.49 AC
This represents a fee simple ground lease in a 21,456 square foot PNC Bank located in Fairfax, VA. This single-tenant property is corporately guaranteed by PNC Bank (NYSE:PNC). PNC Bank maintains an Investment Grade ‘A-’ Rating from S&P.
This ground lease calls for zero landlord obligations. The tenant has two, 5-year renewal options with 12% increases in rent every five years. The building is ideally located on a major retail thoroughfare. Neighboring tenants include Nordstrom’s Rack, Barnes and Noble, Old Navy and Men’s Warehouse.
Fairfax, colloquially known as Fairfax Courthouse, Downtown Fairfax, or Fairfax City, and officially named the City of Fairfax, is an independent city in the Commonwealth of Virginia. As of the 2010 census the population was 22,565, which had risen to an estimated 24,013 as of 2015.
The city of Fairfax is an enclave surrounded by the separate political entity Fairfax County. Fairfax City also contains an exclave of Fairfax County, as detailed below.