RARE FEE SIMPLE OWNERSHIP OF LAND WITH 99-YR GROUND LEASE In Place

$20.8M

OFFERING PRICE

$2.87M

TOTAL REQUIRED EQUITY

Kidder Mathews is pleased to offer for sale the fee simple ownership in ground leased property at 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 149,000 SF, 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 96 years remaining through March 2121, and features 2.5% annual increases. The tenant, Permian Resources Operating LLC, is a consolidated subsidiary of Permian Resources ($11B 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/ re-advance feature, enabling 1031 buyers to match the debt and equity precisely.



Listing Details

Address 300 Marienfeld St, Midland, TX
Remaining Term 96 years
Price $20,811,000
Equity Required $2,870,000
Equity Over Loan Balance 16%
Lease Absolute NNN with 2.5% annual escalations (through year 55)
Other Investment Grade Tenant



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.