Hampton Roads GSA Asset Changes Hands

By Mihaela Coste

Norfolk, Va.—HC Government Realty Trust Inc. recently announced that it has entered into an agreement with USAA Real Estate Co. to acquire a 53,917-square-foot Social Security Administration (SSA) building located in Norfolk. The aggregate purchase price is $14.5 million and the closing of the transaction is scheduled for the end of March.

Located at 5850 Lake Herbert Drive, the three-story property is 100 percent leased to the United States of America through June 2027. SSA is the building’s sole tenant since the construction of the asset was completed, as a build-to-suit property, back in 2007. The asset offers convenient access to US Route 13, State Route 165 and Interstate 64, while Norfolk International Airport is situated just 10 miles away.

“The Norfolk property is an ideal addition to our growing GSA asset portfolio. This high-quality property features modern, built to suit features, is operated under a long-term lease and provides critical Social Security Administrative services to the residents of downtown Norfolk and Virginia Beach communities,” said Edwin Stanton, director & CEO of HC Government Realty Trust Inc., in a prepared statement. “We look forward to completing this transaction and closing on other properties for which we are currently negotiating purchases or conducting due diligence. The asset class is ripe with opportunities and we intend to pursue this strategy to build our portfolio and generate value for tenants, partners and key stakeholders.”

The buyer’s strategy is to acquire and operate General Services Administration (GSA) single-tenant properties across secondary or smaller markets, the asset being the eleventh addition to the company’s portfolio. The firm started in 2016 and has identified more than 1,300 potential acquisition targets between 5,000 and 50,000 rentable square feet.

“The opportunity to build a portfolio of GSA-leased properties capable of delivering stable, predictable income supported by the superior credit and backing of the U.S. Government, is large. Through acquisitions like today’s GSA SSA building in Norfolk, we are committed to capitalizing on the investment potential of government-backed properties and further building the value of HC Government Realty Trust and our growing portfolio of real estate assets,” added Robert Kaplan, president of HC Government Realty Trust Inc.

Image courtesy of HC Government Realty Trust Inc.