Defense Health Agency Facility in Aurora Under New Ownership
Easterly Government Properties, Inc. (the “Company” or “Easterly”), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government, has acquired the 116,500-square-foot Defense Health Agency (“DHA”) mission critical facility in Aurora.
DHA – Aurora, a build-to-suit property specifically constructed for the DHA, was originally built in 1998 and underwent a sizeable renovation in 2018 upon the execution of a new 15-year lease. The facility is 87 percent leased to the GSA for the beneficial use of the DHA with a lease expiration of April 2034.
This facility houses a portion of the DHA’s health insurance program, referred to as TRICARE. The TRICARE Program is responsible for providing insurance to approximately 9.5 million beneficiaries through private medical providers or the DHA’s own network of 51 military hospitals, 424 military medical clinics and 248 dental facilities located worldwide. Specific functions within DHA – Aurora include its General Law Division, the Appeals, Hearings and Claims Collection Division, and the Program Integrity Office. To facilitate these needs, the property includes an upgraded data center with raised flooring, a conference facility, security, lighting and other specific tenant finishes. The facility is also located less than half a mile from Buckley Air Force Base, which serves over 92,000 service members.
“We are pleased to start the new year with the acquisition of another mission critical facility,” said William C. Trimble, III, Easterly’s chief executive officer. “Our robust acquisition pipeline continues to provide us with the means to grow accretively the Company’s total enterprise.”
The DHA falls under the Defense Department’s Military Health System, which is designed to improve the readiness of America’s forces and the health care provided to warfighters, retirees and their families. The DHA is a joint, integrated Combat Support Agency that enables the Army, Navy and Air Force with the medical services needed for Combatant Commands in both peacetime and wartime.