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BLOOMINGTON, IL-A 134,000-sf building, constructed this year to house the Internal Revenue Service National Distribution Center, is being sold by a private owner. The asking price for the building, at 1201 N. Mitsubishi Motorway, is $18.5 million. The tax forms warehouse is the IRS’ sole location of this nature in the country, after consolidating facilities in California, Virginia and Illinois into this building earlier this year.

The IRS has a 15-year lease for the facility, and pays more than $1.4 million a year in rent. “It’s a government lease, so it’s a great lease with good credit and stable cash flow,” Ken Szady, executive director of Cushman & Wakefield’s capital markets group, tells GlobeSt.com. “It’s a new building, and a good location the government wanted to be in.” Szady and Jim Carpenter, senior director of the capital markets group, are marketing the building.

Szady says construction was completed just two months ago on the warehouse, which offers 17,000 sf of office build-out, 28-foot clear height, 8 exterior docks, one drive-in door and 400 parking spaces. Szady says the building would be a solid investment for anyone, including a private buyer. He says given the stock market’s recent volatility, investing money into a building such as this one with a long-term lease from a reliable tenant like the government would guarantee a strong return. The building’s cap rate is around 7.5%, Szady says.

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