SARASOTA, Fla., June 20, 2017 (GLOBE NEWSWIRE) -- HC Government Realty Trust Inc. announced that it has entered into a definitive agreement to acquire its latest U.S General Services Administration (“GSA”)-leased commercial property. The new property, the first acquired by the Company in the State of Alabama, is a U.S. Citizenship and Immigration Services (CIS) field office located in Montgomery.
The tenant currently occupies 16,036 sq. ft. out of the total 21,116 sq. ft. available in the single-story property. It is anticipated the tenant will take occupancy of the remaining 5,080 sq. ft. in the next 12-18 months. It is located at 3381 Atlanta Highway, Montgomery, Alabama, and was purchased from Cushman & Wakefield. The property is 100% leased to the United States of America through December 2031. The CIS Montgomery office currently serves as the USCIS headquarters for the entire State of Alabama. The aggregate purchase price of the property is approximately $4.8 million and closing of the transaction is scheduled on or about July 30, 2017. As with all GSA properties, the lease is backed by the full faith and credit obligation of the United States of America.
“CIS Montgomery, the first in the State of Alabama, is the latest example of the many GSA properties that we have identified that fits the requirements of our asset acquisition program. Serving as the HQ for the entire State of Alabama and having recently been renovated and secured under a new 15-year lease, CIS Montgomery has all the elements which make it an attractive and valuable addition to our growing portfolio,” said Edwin M. Stanton, Chief Executive Officer and Director of HC Government Realty Trust Inc.
In connection with the sale of approximately $4 million of common stock since May 22, 2017 under the Company’s Regulation A+ Offering Statement under Title IV of the JOBS Act, the ownership interests in seven GSA properties owned by affiliate and sponsor Holmwood Capital, LLC., were contributed to the Company’s real estate portfolio. The contributed properties have aggregate Rentable Square Feet (RSF) in excess of 104,000 and currently house GSA tenants including the CIS, FBI, Social Security Administration, and Customs and Border Protection, among others, and bring the total number of properties in the HCGRT portfolio to 12, comprising over 210,000 RSF (approximately 230,000 RSF with the inclusion of CIS Montgomery).
The Company’s strategy is to acquire and operate GSA properties that fulfill mission-critical or direct citizen service functions primarily located across secondary or smaller markets. HCGRT has identified more than 1,300 potential acquisition targets which fall within size ranges of 5,000-50,000 rentable square feet, and within their first term after construction or retrofitted to post-9/11 standards. As of Fiscal Year 2014, the six largest customers of GSA-leased inventory were the Department of Justice, Department of Homeland Security, Social Security Administration, Department of the Treasury, Department of Health & Human Services, and the Department of Defense.
Robert R. Kaplan, Jr., President of HC Government Realty Trust Inc., added, “Our business plan is built around the unique investment opportunity of GSA-leased properties and their potential to generate superior risk-adjusted returns. The addition of CIS Montgomery and the seven newly contributed GSA properties are important milestones, ones that we believe will significantly increase the value and cashflow of our portfolio. With these new proprieties, and others in our pipeline, we are committed to further building our REIT and generating value for our growing base of shareholders.”
About HC Government Realty Trust, Inc.
HC Government Realty Trust, Inc. was formed in 2016 with the purpose of acquiring and operating GSA properties, which are full-faith credit obligations of the U.S. Government. GSA-leased real estate asset classes typically possess a highly stable tenant base, long-term lease structures and low risk of tenant turnover. The Company’s initial portfolio consists of U.S. Government tenant agencies, including a number of the U.S. Government’s largest and most essential agencies, such as the Drug Enforcement Administration, the Federal Bureau of Investigation, the Social Security Administration and the Department of Transportation. For more information, please visit our corporate website at www.hcgovtrust.com.
