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Easterly Enters Joint Venture to Acquire VA Portfolio for $636M
Washington, D.C.-based Easterly Government Properties, Inc., has formed a joint venture to acquire a 1.2-million-leased-square-foot portfolio of 10 properties fully leased by the Department of Veterans Affairs. The portfolio is expected to close on a rolling basis by the end of 2023 for a purchase price of approximately $635.6 million under predominately 20-year firm term leases.
Easterly will retain a 53% stake in the venture, receive asset management fees from the JV partner, and be responsible for the day-to-day property management.
Each of the 10 facilities will house vital medical, dental, and mental health care services for veterans. To ensure the portfolio meets its mission, the VA plans to invest more than $174 million into its tenant finishes and state-of-the-art medical equipment and technology.
“In addition, all are built-to-suit, Class A, mission critical, green facilities and will help provide enhanced medical care for our nation’s deserving veterans,” said William C. Trimble III, Easterly’s CEO.
- ◦Financing
