Easterly Government Properties Closes on Department of Energy Building in Colorado, First Acquisition Since IPO, Easterly Now Leases 1.9 Million Square Feet to U.S. Government Agencies
WASHINGTON, D.C. – April 6, 2015 – Easterly Government Properties, Inc. (NYSE: DEA) announced today that it has closed on the acquisition of the 115,650-square foot Department of Energy (DOE) Western Area Power Administration (WAPA) headquarters building in Lakewood, Colorado, a suburb of Denver, at a purchase price of $20.25 million. This is Easterly’s first acquisition since the close of its $207 million initial public offering on February 11, 2015.
Easterly Government Properties focuses on the acquisition, development and management of Class A commercial properties that are leased to the U.S. government. Easterly now wholly owns approximately 2.2 million square feet of office, laboratory and specialized space in 30 properties throughout the U.S. Currently, it leases more than 1.9 million square feet to U.S. government agencies, and derives more than 96 percent of its income from its U.S. government tenants.
The new acquisition represents the company’s second asset in Lakewood, Colorado, a major federal agency center in the Rocky Mountain region, joining another Lakewood building occupied by agencies of the U.S. Department of Transportation.
“The Lakewood WAPA office plays a critical role within the Department of Energy, and we are pleased to add this property to our high-quality portfolio of U.S. government-leased assets,” said William C. Trimble III, chief executive officer of Easterly Government Properties. “The Lakewood WAPA’s role of marketing and delivering clean, renewable and reliable power directly aligns with our strategy of partnering with the federal government to support mission-critical government agencies and functions.”
WAPA is one of four energy marketing administrations in the U.S. that are primarily responsible for wholesale power distribution from federally-owned hydroelectric power plants to regional and local retail power distributors. The property is leased to the General Services Administration (GSA) on behalf of the DOE.
Built in 1999, the Lakewood building is a Class A facility leased to the GSA on behalf of the DOE until 2029. The building is 100 percent occupied by WAPA and provides engineering, accounting, human resources, legal and training support to four regional offices that operate and maintain the DOE’s Western Transmission System which covers a 1.3 million square mile service area.
“We continue to see strong opportunities to build our portfolio of mission-critical government-leased properties,” said Darrell Crate, chairman of Easterly Government Properties, Inc. “With available capital including more than $350 million under a revolving credit facility, we believe that we are well positioned to capitalize on these opportunities with the goal of growing earnings through accretive acquisitions in the U.S. government-leased property market.”
About Easterly Government Properties, Inc.
Based in Washington, D.C., Easterly Government Properties, Inc. (NYSE:DEA) focuses on the acquisition, development and management of Class A commercial properties that are leased to the U.S. government. Easterly Government Properties’ experienced management team brings specialized insight into the strategy and needs of mission-critical U.S. government agencies leased through the U.S. General Services Administration (GSA). For further information on the company and its properties, please visit www.easterlyreit.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on March 30, 2015. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
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Alison M. Bernard
Chief Financial Officer
Easterly Government Properties, Inc.