Easterly Government Properties Acquires 61,384 SF Multi-Tenanted Facility in Cleveland, OH

Rhea-AI Summary

Easterly Government Properties, Inc. (NYSE: DEA) has acquired a 61,384 sq. ft. multi-tenanted facility in Cleveland, Ohio, leased to U.S. Government agencies. Key occupants include Immigration and Customs Enforcement (66% lease until August 2031), National Weather Service (15% lease until September 2040), and VNA Health Group (19% lease until December 2028 with renewal options). This acquisition is part of Easterly's strategy to reach a target of $300 million in acquisition volume for 2021, having already secured six properties valued at $134.2 million year-to-date.

Positive

• Acquisition of a strategically located facility leased to multiple U.S. Government agencies.
• Long-term leases provide steady income, enhancing revenue stability.
• Acquisition aligns with Easterly's growth strategy and pipeline strength.

Negative

• None.

Easterly Government Properties, Inc. (NYSE: DEA) (the “Company” or “Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, announced today that it has acquired a 61,384 leased square foot multi-tenanted facility in Cleveland, Ohio (“Various GSA - Cleveland").

Various GSA - Cleveland, a three-story renovated-to-suit facility for the U.S. Department of Homeland Security (DHS), was substantially renovated in 2016 and 2021 and is leased to several key agencies within the U.S. Government. Immigration and Customs Enforcement (ICE) occupies 66% of the building under a first generation 15-year lease that does not expire until August 2031. The National Weather Service (NWS) occupies 15% of the building under an initial 20-year term that does not expire until September 2040. Finally, the VNA Health Group (VNA), a nonprofit health care organization, occupies 19% of the building under an initial 10-year lease that does not expire until December 2028. In addition, the VNA has two five-year renewal options that, if exercised, would extend the lease term until December 2038. In total, and assuming the VNA exercises its renewal options, the facility is 100% occupied with a weighted average lease expiration of June 2034.

Several key functions are housed within this facility, including ICE’s department of Homeland Security Investigations (HSI), which is responsible for investigating criminal organizations and terrorist networks. Various GSA - Cleveland also serves as the NWS’s Cleveland Weather Forecast Office.

“The strength of the Company’s acquisition pipeline has been clearly demonstrated in the first half of 2021,” said William C. Trimble, III, Easterly’s Chief Executive Officer. “With a robust opportunity set and the ability to scale the Company, we continue to deliver on our stated goal of delivering growth and accretion to our shareholders.”

The U.S. Government has significantly invested in this designated Facility Security Level III asset as evidenced by its secured entry and parking, sally port, generator and uninterrupted power supply battery system, as well as additional enhanced security measures.

Year to date, Easterly has acquired six properties for a combined total contractual purchase price of approximately $134.2 million, which is 45% of the Company’s latest acquisition volume target of $300 million for 2021. Pro forma for this acquisition, Easterly has 85 properties totaling 7.7 million square feet.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. (NYSE:DEA) is based in Washington, D.C., and focuses primarily on the acquisition, development and management of Class A commercial properties that are leased to the U.S. Government. Easterly’s experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. Government agencies for properties leased through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 24, 2021. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210726005184/en/

FAQ

What recent acquisition did Easterly Government Properties announce?

Easterly Government Properties announced the acquisition of a 61,384 sq. ft. facility in Cleveland, Ohio, leased to various U.S. Government agencies.

How many properties has DEA acquired in 2021?

Year-to-date, DEA has acquired six properties with a total purchase price of approximately $134.2 million.

What is the significance of the leases associated with the Cleveland facility?

The Cleveland facility has long-term leases with occupants including ICE, NWS, and VNA, providing stable income until at least 2031.

What is Easterly's acquisition volume target for 2021?

Easterly's acquisition volume target for 2021 is $300 million.

What percentage of occupancy does the Cleveland facility have?

The Cleveland facility is 100% occupied with a weighted average lease expiration of June 2034.