GSA Real Estate
While the amount of General Services Administration (GSA)-owned space has remained relatively static for the past 50 years, GSA-leased space has increased from 46 million sq. ft. to 178 million sq. ft. during the same period. By investing in GSA and Fortune 500 properties with long-term leases, high lease renewal rates, and the tax advantages of direct real estate ownership, The Salus Group recognizes steady, long-term risk-adjusted returns, paid monthly. The Salus program is not a fund. Each property performs on its own merits and is not co-mingled with other properties.
Currently, there are 8,137 GSA-leases across the continental United States, averaging 23,342 rentable sq. ft. each. The Salus Group targets mission-critical properties over 40,000 sq. ft. with leases that span 10 years or more and are backed by the full faith and credit of the US government (the same guaranty as a Treasury note, a general obligation of the Federal government). It also targets NNN mission critical Fortune 500 facilities.
Salus typically holds a property for 5-10 years. All acquisitions are underwritten through at least one lease renewal and one refinance. Salus also continually analyzes each property for market opportunities relative to that asset. Some companies have sold in 4 years after acquisition, and others have enjoyed lengthy lease renewals.
For the last 15 years, annual cash-on-invested cash return from the portfolio has averaged 10.50% with an average total annual return, before appreciation, of 13.07% (all performance data compiled by CBRE/Richmond). This does not include profits derived from the sale of properties.