Purchasing a Rural Post Office

[Lynette Thueson]

I am looking at purchasing a rural post office with USPS being the only tenant. 

A few details:

- Current lease through 2028, has a 90 day cancelation clause

- Population of 500

- No mail routes, only mailboxes inside the post office

- Would cash flow $300 a month after mortgage (Purchase price of $110K)

-USPS reimburses property taxes and maintains the grounds and building

Does anyone own a post office?  Thoughts?  Thank you! 

[Ujwal Velagapudi]

That seems really interesting. I have seen a few of these government entities, single tenant NNN lease types, and it's intrigued me.

But with this in specific, the 90 day cancellation clause is a deal breaker. All the others I've seen were usually 5, 10, 15 yr fixed terms. If they pull out, then it's a significantly lower valued asset. Population of 500 town is scary to consider as well since that is way too small where anything could impact your cash flow, and the asset. 

If there is any way to firm that lease up, that would be a solid buy as it is stable, government backed, and fixed (albeit at a lower CAP).