Easterly Government JV Closes on Texas VA Clinic

The VA clinic in Corpus Christi, Texas is a two-story building that sits on 6.3 acres. Image courtesy of Hoefer Welker

Easterly Government Properties, in a joint venture with a global investor, has completed the acquisition of a 69,276-square-foot medical office building leased to the Department of Veterans Affairs in Corpus Christi, Texas. The property is the ninth facility to be purchased in a previously announced portfolio transaction in which U.S Federal Properties Co. was the seller.

The joint venture was created in October 2021 for the purchase of a 1.2 million-square-foot portfolio consisting of 10 outpatient clinics leased to the VA for 20 years, on average. The group of assets, trading for a total of $635.6 million, encompasses Class A facilities located in several states across the U.S, such as Texas, Tennessee, Kansas, Georgia, Alabama, Arizona and Florida.

The Corpus Christi facility is a two-story building that had Two Green Globes Certification pending at the time of the portfolio sale announcement. The clinic offers various services such as audiology, mental health, pathology, radiology and homeless care.

The 6.3-acre property is near U.S Route 358 at 925 S. Padre Island Drive, some 8 miles from downtown Corpus Christi. Other medical facilities in the surrounding area include Driscoll Children’s Hospital, Saratoga Medical Center, Conviva Care Center and Physicians Plaza East, among others.

Easterly owns a total of 87 assets totaling 8.6 million square feet. In late 2022, the REIT sold a portfolio of Class A commercial properties leased to the U.S government agencies for a total of $205.3 million.