Easterly Government Properties (DEA) announces $636 million JV acquisition.

Easterly Government Properties, Inc. (DEA) announced today that it has entered into a joint venture agreement to acquire 10 newly constructed Class-A office properties for $635.6 million.  The portfolio is 100% leased to the Department of Veterans Affairs (VA) under predominantly 20-year leases.  Easterly said that it would retain a 53% stake in the JV and receive asset management fees on the 47% interest of the institutional partner.

All of the properties were constructed on a build-to-suit basis for the VA and are said to be "state-of-the-art, Class A Green Globe® Certified facilities."  The joint venture has already acquired two of the ten properties and expects to close on the remaining eight properties on a rolling basis by the end of 2023.

Established in 2015, Easterly Government Properties specializes in the ownership and management of single-tenant office properties leased to the General Services Administration on behalf of individual agencies of the U.S. Government.  As of June 30, 2021, the portfolio included 83 properties with 7.6 million square feet and was 99% leased. As of June 30, 2021, DEA had a total market capitalization of approximately $3.0 billion.