RARE 99-YEAR GROUND LEASE (ZERO CASH FLOW)

$20.7M

OFFERING PRICE

$2.85M

TOTAL REQUIRED EQUITY

Kidder Mathews is pleased to offer for sale the fee simple ground lease interest in 300 Marienfeld Street in Midland, Texas, the fastest growing economy among the 100 largest midsize cities in the country. The 1.38-acre property sits beneath a 12-story Class A office building and an adjoining 7-story parking garage in the heart of Downtown Midland.

The underlying absolute NNN ground lease has 97 years remaining through March 2121, and features 2.5% annual increases. The tenant, Permian Resources Operating LLC, is a consolidated subsidiary of Permian Resources ($13.6B Market Cap).

The asset is being offered with assumable, fixed-rate, high-leverage, non-recourse financing, making this an ideal asset for low-equity 1031 exchange buyers. The zero-cash flow structure also allows for a paydown/ readvance feature, enabling 1031 buyers to match the debt and equity precisely. Additional mezzanine debt of up to $3 million is also available.



Listing Details

Address 300 Marienfeld St, Midland, TX
Remaining Term 97 years
Price $20,686,114
Equity Required $2,853,257
Equity Over Loan Balance 16%
Lease Absolute NNN with 2.5% annual escalations (through year 55)
Other Additional mezz debt available



99-YEAR ABSOLUTE NET LEASE

99-year lease term with 2.5% annual rental increases through year 55. Absolutely no landlord responsibilities.



INSTITUTIONAL QUALITY ASSET

1.38-acre property underneath a Class A office Highrise and 391-stall parking garage in Downtown Midland.



ZERO CASH FLOW STRUCTURE WITH PAYDOWN/ READVANCE

Assumable non-recourse financing, with optional paydown/readvance feature.



LOCATED IN THE EPICENTER OF PERMIAN BASIN

The thriving city of Midland sits at the epicenter to the Permian oil region, the 2nd largest oil & gas shale producer on earth.