Published on 7 Mar 2024 on Zacks via Yahoo Finance
Easterly (DEA) Secures Lease to Develop Courthouse in Flagstaff
Easterly Government Properties, Inc. DEA recently announced that it has been awarded a lease to develop a 50,777 rentable square foot Federal courthouse in Flagstaff, AZ.This cutting-edge project represents Easterly's first net-zero development endeavor, signaling a pivotal moment in the company's commitment to sustainable real estate solutions. The 20-year non-cancelable lease, slated to commence upon project completion, underscores Easterly's recognized expertise in the specialized market of government property development.The Flagstaff courthouse, designated as JUD - Flagstaff, is envisioned as a state-of-the-art, three-story facility constructed in accordance with Level III security standards. Embracing Crime Prevention Through Environmental Design principles, the courthouse integrates robust safety features, such as perimeter fencing, natural barriers and setback requirements. Furthermore, it is intended to be a LEED Silver-certified, net-zero facility, setting a new standard in Easterly's portfolio and reinforcing its dedication to environmental, social and governance principles.Beyond its sustainability credentials, JUD - Flagstaff prioritizes functionality and security. The design incorporates secured parking and a designated pathway for transporting defendants to ensure safe and efficient court proceedings. With three independent paths of travel throughout the facility, the separation of defendants, judges and the public is meticulously ensured, upholding the integrity of the judicial process.Darrell Crate, Easterly’s chief executive officer, expressed enthusiasm for the partnership with the U.S. Government, emphasizing the company's ability to deliver mission-critical infrastructure while maintaining a competitive edge in the market. The anticipated commencement of site work in late 2024 or early 2025 sets the stage for timely project delivery, with expectations for completion in the first half of 2026. Following delivery, a 20-year firm-term lease with the General Services Administration will serve the U.S. Judiciary's needs, ensuring long-term value for Easterly and its shareholders.Headquartered in Washington, D.C., Easterly Government Properties specializes in acquiring, developing and managing Class A commercial properties leased to the U.S. government. With a focus on innovation, security and environmental responsibility, DEA reaffirms its position as a leading player in the government property sector, poised for sustained growth and value creation in the years ahead.However, reflecting broader market concerns, shares of this Zacks Rank #3 (Hold) company have declined 0.5% in the past month against the S&P 500’s increase of 2.4%.
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