Easterly Government Closes $128M Medical Financing

By Mihaela Coste

26001 Redlands Blvd, Loma Linda, Calif.

Easterly Government Properties Inc. closed on a $127.5 million mortgage loan for the Department of Veterans Affairs Ambulatory Care Facility in Loma Linda, Calif. Easterly acquired the 327,614-square-foot asset in June 2017. The 10-year non-amortizing loan carries a fixed interest rate of 3.59 percent per year.

State-of-the-Art Medical Facility

Located on a 37-acre site at 26001 Redlands Blvd., the asset traded for $212.5 million (less than the expected sale price) and is  second-largest Veterans Affairs outpatient facility in the country. JLL’s Capital Markets Government Solutions team led by Executive Vice President Brian Saal and Senior Managing Director Bill Prutting closed the transaction.

The property is 100 percent leased to the U.S. Government through May 2036 for a total initial, non-cancelable lease term of 20 years, offering comprehensive medical services to the 72,000 U.S. veterans who live in the region. The building is situated in close proximity to Interstate 10 and two miles northeast of the federally-owned Jerry L. Pettis Memorial VA Center.

“We are pleased to take advantage of the current low-interest rate environment to lock in a competitive rate, and further extend the average maturity of the Company’s debt to 8.9 years,” said Meghan Baivier, Easterly Government Properties’ chief financial and operating officer, in a prepared statement. “We believe this transaction highlights the company’s capital markets expertise and is indicative of the credit quality of its portfolio.”

Washington, D.C.-based Easterly Government Properties focuses primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government.  

Image courtesy of U.S. Department of Veterans Affair