Benzinga | Jul 26, 2021 09:12AM EDT

Easterly Government Properties Says Acquires 61,384 Square-Foot Multi-Tenanted Facility In Cleveland, OH

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.