10.87% CAP RATE GOVERNMENT BUILDING

This is a rare opportunity to acquire a fully leased, single-tenant government investment backed by the State of New Mexico Corrections Department. The property underwent a complete renovation in September 2024 and is secured by a new 10-year lease, providing stable, predictable cash flow with built-in reimbursements and long-term upside. Strategically located in Alamogordo near major employment drivers including Holloman Air Force Base and White Sands Missile Range, this asset offers a high-yield, low- management investment profile with strong credit tenancy and minimal deferred maintenance.

• KEY INVESTMENT HIGHLIGHTS
• » Government-backed tenant (strong credit profile)
• » Brand new renovation – minimal capital expenditures
• » Passive income structure with expense reimbursements
• » Long-term lease with extension options
• » Strong surrounding economic drivers (military + federal)
• » High-yield return at a 10.87% cap rate

• TENANT: New Mexico Corrections Adult Probation and Parole Division
• INITIAL ANNUAL INCOME: $141,040.02 (Lease Year 1. Includes Annual Base Rent, TI Reimbursement, Operating Expense Reimbursement)
• INITIAL NOI: $119,040 ($69,552 Annual Base Rent + $49,488.42 Annual TI Reimbursement
• INITIAL ANNUAL REPORTING COST REIMBURSEMENT: $21,999.60 (built-in 2.50% Annual escalations)
• LEASE TYPE: Modified Gross
• LANDLORD RESPONSIBILITIES:Landlord maintains the property in its entirety
• LEASE TERM: 30 year lease with base period of 10 year and two 5 year extensions
• LEASE COMMENCEMENT: October 1, 2024
• LEASE EXPIRATION: September 30, 2034
• RENTAL INCREASES: 10% at option
• OPTION TERMS: 2 x 5-Years extensions
• TENANCY: Single
• TENANT REIMBURSEMENTS: Operating expenses + TI reimbursementGUARANTY: State of New Mexico