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Easterly Adds Nearly 1.5M SF in $430M U.S. Government-Leased Portfolio Buy
Easterly Government Properties, Inc. acquired a nearly 1.5-million-square-foot portfolio of 14 properties from affiliates of an unnamed independent third party for roughly $430 million. The properties are 94% leased to the U.S. Federal Government, and 99% leased overall. The Washington, D.C.-based REIT believes the aggregate purchase price represents a capitalization rate of roughly 6.5%.
The deal is expected to close between July and December of 2018, and grows Easterly’s portfolio by approximately 39% on a rentable square foot basis. The properties are located in Buffalo, NY, Chicago, Portland, OR, Parkersburg, WV, Charleston, WV, Pittsburgh, College Park, MD, Clarksburg, WV, Charleston, SC, Sterling, VA, Baton Rouge, LA, Dallas and Bakersfield, CA
Based on lease count and property count respectively, 88% of the U.S. Government leases are still under their original lease contract, and 79% of the properties are build-to-suit or renovation-to-suit construction.
(Pictured from left to right) Easterly executives Michael Ibe, Bill Trimble and Darrell Crate ring opening bell at the NYSE in 2015, the day of its IPO.
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