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Easterly Government Properties to Acquire 10-Property VA Portfolio for $635.6M

VA-Chattanooga

The portfolio acquired by Easterly Government Properties includes VA Chattanooga, a 94,566-square-foot Class A facility in Tennessee that was completed in November 2020.

WASHINGTON, D.C. — Easterly Government Properties Inc. (NYSE: DEA) has entered into an agreement to acquire a 1.2 million-square-foot, 10-property portfolio of facilities leased to the Department of Veterans Affairs (VA) for $635.6 million. 

The properties will be purchased in a joint venture with an undisclosed global investor, with Easterly retaining a 53 percent stake in the portfolio. Two of the properties are open, while the other eight are currently under construction.

Acquisitions include: 

  • VA Chattanooga, a 94,566-square-foot Class A facility in Tennessee that was completed in November 2020. The property offers audiology, imaging, pathology, lab, dental and mental health services. 
  • VA Lubbock, a 120,916-square-foot facility in Texas completed in December 2020. The facility is located on the Texas Tech medical campus and features an ambulatory surgery center as well as general health, dental, audiology, ophthalmology, MRI, radiology, pharmacy, lab, physical therapy and mental health services.
  • VA Lenexa, a 31,062-square-foot facility in Lenexa, Kan., that was delivered in May 2021. The property offers primary and specialty care, including audiology, dental, pathology and lab services, as well as radiology. 
  • San-Antonio-VA

    VA San Antonio

    VA San Antonio, a 226,148-square-foot development currently underway in Texas. The three-story facility will feature six patient aligned care team (PACT) modules serving 128 exam rooms and will offer general and mental healthcare, surgery, imaging, lab, pharmacy and CT/MRI services to the area’s approximately 150,000 veterans. 

  • VA Birmingham, a two-story, 77,128-square-foot facility currently under development in Alabama. 
  • VA Columbus, a 67,793-square-foot outpatient facility currently under development in Columbus, Ga.
  • VA Phoenix, a 257,294-square-foot outpatient facility in Arizona — the largest asset in the portfolio acquired by Easterly — which will offer multi-specialty and telehealth clinics, an education center, pathology and imaging upon completion. The second floor of the facility is expected to house one of the largest outpatient mental health clinics in the region.
  • VA Marietta, a 76,882-square-foot clinic currently under development in Marietta, Ga., which will replace an older regional VA facility. The property will provide primary care, mental health, radiology, audiology, vision and dental care services. 
  • VA Corpus Christi, a 69,276-square-foot facility currently under development in Texas that will offer an audiology clinic, a mental health clinic, pathology, radiology and homeless care.
  • VA Jacksonville, a 193,100-square-foot, two-building outpatient facility currently under development in Florida that will replace two smaller regional facilities.

The VA will occupy each of the new facilities under a 20-year lease upon completion with the exception of VA Chattanooga, which features a 15-year lease term. Easterly will act as the manager of the portfolio. 

Two of the 10 assets have been acquired, with the remaining set to be acquired on a rolling basis as they are completed through the end of 2023.

Citigroup Global Markets Inc. acted as financial advisor and Goodwin Procter LLP and Stroock & Stroock & Lavan LLP acted as legal counsel to Easterly. Newmark advised the undisclosed seller in the transaction. 

Washington, D.C.-based Easterly Government Properties focuses on the acquisition, development and management of Class A commercial properties leased to the U.S. Government. The company’s stock price closed at $21.21 per share on Wednesday, Oct. 13, slightly down from $21.61 on the same date last year. 

Katie Sloan 

Content Partners
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