HC Government Realty Trust Inc., a Regulation A REIT that invests in federally-leased properties, has purchased an Immigration and Customs Enforcement facility in San Antonio, Texas for approximately $8.4 million.
The ICE facility is an approximate 39,000-square-foot, single-tenant office building which was redeveloped to meet the requirements of the Department of Homeland Security. The property is located at 1015 Jackson Keller Road and is 100 percent leased to the United States of America under a 10-year commitment ending in April 2027.
HC Government Realty Trust acquires and operates built-to-suit properties leased to the United States of America “that fulfill mission-critical or direct citizen service functions” primarily located across secondary or smaller markets.
The company focuses on acquiring properties that range between 5,000-50,000 rentable square feet, and that are newly constructed or retrofitted to post-9/11 standards. The company said that it has identified more than 1,300 potential acquisition targets that fall within these parameters.
HC Government Realty Trust was formed in 2016 and oversees a portfolio of 13 properties occupied by federal agencies, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the Social Security Administration, and the Department of Transportation. The company is externally managed and advised by Holmwood Capital Advisors LLC and raised $5.9 million in investor equity as of November 2017, according to a filing with the Securities and Exchange Commission.