Easterly Government Properties Expands California Footprint
- May 05, 2020
Easterly Government Properties has again expanded its portfolio of properties leased to the Department of Veterans Affairs. The REIT that focuses on owning buildings occupied by U.S. government agencies has acquired VA – Chico, an outpatient clinic in Chico, Calif.
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The 51,647-square-foot property was completed in mid-2019 as a build-to-suit outpatient clinic for the Department of Veterans Affairs. The facility includes space for a variety of departments including primary care, audiology, laboratory services, mental health, nutrition, otolaryngology, pharmacy, social work and women’s health.
Hamstra Group, the developers of the outpatient clinic, replaced the former VA center at 280 Cohasset Road with the $43 million facility that was twice the size of the previous property. The modern building has been designed to achieve LEED Silver certification for health-care projects. The developers incorporated multiple sustainability features including lights that turn on and off when people enter and leave, and auto-dimming lights based on the outside lighting.
Located at 1601 Concord Ave., VA – Chico is also next to the Chico VA Readjustment Counseling Service Center. The Department of Veterans Affairs has an initial 15-year, non-cancelable lease term for the property, extending until June 2034.
Seeking value in Veterans Affairs properties
As a REIT that looks for government-leased buildings, Easterly now owns seven buildings that are leased to the Department of Veterans Affairs. In April, the REIT purchased a 79,212-square-foot build-to-suit outpatient facility occupied by the Veterans Affairs. Easterly’s other Veterans Affairs properties include two assets in California, one in Golden, Colo., one in South Bend, Ind., and one in Baton Rouge, La.
William Trimble III, Easterly’s CEO, said the REIT is continuing its pipeline of “bullseye properties” that have steady cash flow thanks to strong lease agreements with U.S. government agencies.