HC Government Realty Trust Inc. acquires Social Security Administration building in Norfolk

By Sandra J. Pennecke

 

HC Government Realty Trust Inc. has acquired a U.S. General Services Administration-leased commercial property in Norfolk.

The three-story, 53,917-square-foot building at 5850 Lake Herbert Drive is home to the local Social Security Administration.

The property, which is 100 percent leased through June 2027, has had the SSA as its sole tenant since the building was built in 2007.

The aggregate purchase price was $14.5 million.

“We are pleased to have quickly completed our latest property acquisition, our first in the Commonwealth of Virginia and the first SSA building added to our growing real estate portfolio,” said Edwin M. Stanton, director and chief executive officer of HC Government Realty Trust Inc., in a news release. “Over the coming months, we intend to add additional properties to our holdings, as we are currently in discussions to acquire a number of GSA properties that meet our stringent investment criteria.”

Michael Glickman with GW Communications, which is representing HC, said that criteria includes properties with 5,000 to 50,000 rentable square feet, mission-critical or direct citizen service functions, a single tenant agency of the U.S. government and tertiary markets.

The GSA property must also be in its first term after construction or retrofitted to post-9/11 standards.

Glickman said the company was formed in 2016 with the intent to raise capital through Regulation A under Title IV of the JOBS Act which was signed into law by President Obama in 2012. The company’s Regulation A Offering Statement was qualified by the SEC on Nov. 7.

HC Government’s portfolio to date includes 11 properties. Glickman said they have identified 1,200 to 1,300 opportunities.

“We are confident in our ability to execute and believe 2017 will be a strong year for HCGRT, especially as we continue to raise capital and expand our reach throughout the United States,” Stanton said.

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