UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Current
Report Pursuant to Regulation A
Date
of Report: March 7, 2017
(Date
of earliest event reported)
HC
GOVERNMENT REALTY TRUST, INC.
(Exact
name of issuer as specified in its charter)
Maryland
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51-1867397
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(State or other
jurisdiction of incorporation or organization)
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(I.R.S. Employer
Identification No.)
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1819
Main Street, Suite 212
Sarasota,
Florida 34236
(Full
mailing address of principal executive offices)
(941)
955-7900
(Issuer’s
telephone number, including area code)
ITEM 9. OTHER EVENTS
The
disclosure below describes our anticipated investment in the
Norfolk Property
On
December 28, 2016, HC Government Realty Holdings, L.P., a Delaware
limited partnership, or the Operating Partnership, being the
wholly-owned operating partnership of HC Government Realty Trust,
Inc, a Maryland corporation, or the Company, entered into a
Purchase and Sale Agreement, as amended from time to time, or the
PSA, with USAA Real Estate Company, a Delaware corporation, or the
Seller, pursuant to which the Seller agreed to sell and the
Operating Partnership agreed to purchase that certain Class A
office building located at 5850 Lake Herbert Drive, Norfolk,
Virginia, or the Norfolk Property. The purchase price for the
Norfolk Property will be approximately $14,500,000, subject to
customary adjustments and prorations, of which we anticipate
approximately $10,875,000 will be funded by a first mortgage loan
secured by the Norfolk Property. The Company expects to invest
approximately $3,975,000 of equity in the Norfolk Property,
including financing fees and other closing costs aggregating
approximately $350,000, all of which are intended to be funded out
of the proceeds of the Company’s common stock offering,
pursuant to Regulation A. The Operating Partnership has paid
$350,000 in the form of an initial deposit, additional deposit and
an extension fee, or the Deposits and Fees. The Deposits and Fees
will be applied to the purchase price at closing, which is expected
to occur on or before March 30, 2017. On or before closing, it is
expected that the Operating Partnership will assign the PSA to a
wholly-owned subsidiary formed for the sole purpose of acquiring
the Norfolk Property.
The
Norfolk Property is a three-story, Class A office building with
53,917 rentable square feet. It is 100% leased to the U.S.
Government on a non-cancellable lease through June 2027, having
recently executed a new 10-year lease. The Social Security
Administration has been the sole occupant of the building since
construction was completed for them as a build-to-suit in 2007.
Annual rent for the Norfolk Property is expected to be
approximately $1,429,000, which is inclusive of an operating cost
base of approximately $364,000. Beginning with the second year of
the lease and each year thereafter, the annual rent will be
adjusted based on the Cost of Living Index, as measured by the
Department of Labor's revised Consumer Price Index published by the
Bureau of Labor Statistics.
The foregoing description of the PSA, as amended, is a summary and
is qualified in its entirety by the terms of the PSA and each
amendment to the PSA, copies of which are filed as Exhibit Nos.
6.1, 6.2, 6.3 and 6.4 to this Current Report on Form 1-U and
incorporated by reference into this Item 9.
SIGNATURES
Pursuant to the
requirements of Regulation A, the issuer has duly caused this
report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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HC Government Realty Trust,
Inc.,
a Maryland
corporation
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By:
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/s/
Edwin
M. Stanton
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Name:
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Edwin M.
Stanton
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Its:
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Chief Executive
Officer
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Date:
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March 7,
2017 |
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Exhibit Index
Exhibit
No.
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Description of
Exhibit
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Purchase and Sale
Agreement by and between USAA Real Estate Company and HC Government
Realty Holdings, L.P., dated as of December 28, 2016.
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First Amendment to
Purchase and Sale Agreement by and between USAA Real Estate Company
and HC Government Realty Holdings, L.P., dated as of January 19,
2017.
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Second Amendment to
Purchase and Sale Agreement by and between USAA Real Estate Company
and HC Government Realty Holdings, L.P., dated as of January 27,
2017.
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Third Amendment to
Purchase and Sale Agreement by and between USAA Real Estate Company
and HC Government Realty Holdings, L.P., dated as of February 8,
2017.
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