Easterly Government Properties (NYSE: DEA) has agreed to buy two Department of Veterans Affairs medical centers for a combined purchase value of $260 million.
Washington-based Easterly is a real estate investment trust that acquires, develops and manages Class A buildings leased primarily to the federal government.
The company said Tuesday the first deal covers the acquisition of the VA ambulatory care center in Loma Linda, California, that opened in 2016 to provide outpatient services to nearly 72,000 U.S. military veterans.
VA-Loma Linda is the department’s second-largest outpatient facility in the country with 327,614 square feet of rentable space and is 100-percent leased to the government through an initial 20-year lease agreement that will run through May 2036.
Easterly will also acquire and complete the development of the VA-South Bend outpatient clinic under construction in Mishawaka, Indiana, under the second deal.
The company noted it aims to lease the facility to the department for an initial period of 15 years once the medical building is finished.
Easterly CEO William Trimble III said the transactions support the company’s efforts to enter into the VA market.
The company expects to close the VA-Loma Linda purchase in the second quarter of 2017 and the VA-South Bend acquisition in Q3.
Both facilities are designed to comply with the U.S. Green Building Council’s Leadership in Energy and Environmental Design certification requirements.