Easterly Government Properties (EGP) announced its first mezzanine loan investment, providing $7 million in financing for the development of a new 120,000-square-foot Veterans Affairs outpatient clinic in Kennewick, Washington.
The loan carries a 12% yield and supports a fully leased, 20-year firm term commitment from the Department of Veterans Affairs, with an expected project completion date of October 2028. EGP is a fully integrated REIT focused primarily on the acquisition, development and management of commercial properties leased to the U.S. government and its adjacent partners.
The transaction is sponsored by an experienced developer and allows Easterly the opportunity to acquire the property upon completion. “We entered 2026 with clear priorities, and the first quarter demonstrates progress toward them,” said Darrell Crate, President & CEO of Easterly Government Properties. “Stable operating performance and the successful execution of our first mezzanine investment highlight our strategic approach to capital allocation and earnings growth.”
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