Renovated & Fully Leased Investment on the Near East Isthmus

2250 Pennsylvania Avenue is a fully leased, renovated 10,475 SF commercial building on a 0.80-acre infill parcel on Madison's Near East Isthmus. THE INCOME: Leased through December 31, 2031 with two 5-year options to 2041. In-place base rent of approximately $111,129 with 3.0% annual escalators on an NNN structure: the tenant pays real estate taxes, insurance, utilities, routine maintenance and CAM. The result is an approximately 8.2% yield on in-place rent at the $1,350,000 list price, rising to $114,463 (8.48%) at the July 2027 escalation. Luna Pet Resorts is a unique downtown pet boarding facility and the lease is corporately guaranteed by Wags N Whiskers, a multi-state operator of ~13 pet-care facilities across Wisconsin, Illinois, Indiana and Ohio. THE BUILDING: Ownership completed a ~$450,000 capital program in 2025-26 - new roof ($238K), full HVAC replacement ($138K), plus gutters, insulation, plumbing and stucco (~$74K) - and the parking lot was resealed and striped in June 2026. The next owner is not facing near-term roof or mechanical replacement. The grandfathered animal-services entitlement is effectively un-replicable under today's isthmus zoning (IL). The rear MG&E easement along the rail corridor may be used by the owner for parking and storage. The University of Wisconsin purchased the adjacent 2.7-acre parking-lot parcel at 2230 Pennsylvania and, concurrently, the nearby warehouse at 2180 Pennsylvania (recorded Dec 2025). The sale prices indicate land values around $1.3M per acre - at that basis, 2250's land alone supports roughly $1.0M of the list price. A proposed ~500-unit redevelopment of the former Hooper campus is advancing next door, and the Madison Public Market opens ~0.3 mi south in July 2026. Approximately 2 miles to Capitol Square, 2.7 miles to Dane County Regional Airport, with quick Hwy 30/151 access.