Easterly Government Properties Acquires 138,125 SF Satellite-Production Facility Near Greenwood Village, Colorado, 100% Leased to York Space Systems

Easterly Government Properties expanded its mission-critical portfolio with a strategic acquisition in Colorado, obtaining a 138,125-square-foot facility in Greenwood Village that is fully leased to York Space Systems. The deal reinforces Easterly’s focus on Class A properties that serve the U.S. Government and its defense and space ecosystem, while underscoring demand for secure, mission-critical spaces with long-term visibility. The York – Greenwood property stands out as a purpose-built, production-focused facility featuring clean rooms and a renovation completed in 2020 to accommodate York Space Systems’ satellite manufacturing operations. The lease arrangement is structured as a triple net, with annual escalations, set to expire in 2031, and with an option for York Space Systems to extend the term for up to 10 additional years at market terms prior to expiration. This acquisition adds a high-quality asset to Easterly’s portfolio and reinforces the company’s stance on stable, long-duration income streams anchored by government-adjacent tenants and critical national-security infrastructure.

Transaction Overview

The acquisition represents a strategic addition to Easterly Government Properties’ growing portfolio, aligning with the company’s core investment thesis of owning mission-critical, government-adjacent real estate assets leased to the U.S. Government and its essential partners. The 138,125-square-foot facility, known as York – Greenwood, is located near Greenwood Village, Colorado, within a market that benefits from proximity to the Denver metropolitan area, a region recognized for its burgeoning aerospace, defense, and technology clusters. The property is fully leased to York Space Systems, a company specializing in the mass production of standardized small satellite platforms. Notably, York Space Systems focuses on the S-Class satellite bus, which is designed to reduce production costs and accelerate deployment timelines relative to traditional, custom-built satellites. This positioning places York Space Systems at a strategic intersection of affordable, scalable space hardware and rapid mission readiness, aligning with broader U.S. defense and space priorities.

York – Greenwood was renovated-to-suit for York Space Systems in 2020, with facilities that include clean rooms dedicated to the production of satellites and satellite components. The presence of clean rooms underscores the asset’s mission-critical nature, enabling precise manufacturing environments required for high-reliability space hardware. The lease accompanying the property is a triple net (NNN) arrangement, meaning York Space Systems is responsible for real estate taxes, insurance, and most maintenance costs, while Easterly remains insulated from many ongoing operating expenses. The agreement includes annual rent escalations, providing a built-in mechanism for rent growth aligned with inflation and market dynamics. The lease term runs through 2031, offering a stable revenue stream for Easterly over the mid- to long-term horizon. Importantly, before expiration, York Space Systems has the option to extend the lease for an additional 10 years, at terms that reflect prevailing market conditions at the time of exercise. This provides Easterly with predictable cash flow and the potential for extended income visibility tied to a tenant with strategic importance in the U.S. defense and space sectors.

In the broader context of Easterly’s portfolio, the York – Greenwood acquisition contributes to the company’s footprint of 103 properties totaling 10.3 million square feet, a milestone that reflects the scale and diversification of Easterly’s investments across mission-critical government-adjacent real estate. The closing of this deal exemplifies Easterly’s ongoing strategy to acquire high-quality properties that support essential government and defense activities, while leveraging long-term, creditworthy tenants to drive resilient earnings. The transaction is part of Easterly’s disciplined growth approach, which emphasizes asset quality, long-duration leases, and strong tenancy that aligns with national-security priorities. While the terms of the purchase, including the acquisition price, were not disclosed in the formal release, the nature of the asset and the tenant mix reinforce the anticipated aligned cash flows and risk-adjusted returns typical of Easterly’s investment program.

From an operations perspective, the facility’s positioning—coupled with York Space Systems’ business model and SDA-related ecosystem—helps illustrate how government-adjacent assets can serve as critical nodes in national security and space logistics. The asset supports demand for standardized satellite platforms and the infrastructure required to produce, test, and deploy satellites that underwrite modern space capabilities. The combination of a renovated, specialized facility and a long-term, tenant-funded lease structure highlights Easterly’s ability to identify assets that combine physical integrity, strategic relevance, and robust occupancy, thereby contributing to a diversified, defensible revenue base for the company.

Tenant Profile: York Space Systems and the SDA Context

York Space Systems operates in a niche that emphasizes standardized satellite platforms designed to deliver cost efficiencies and deployment speed. The company’s focus on the S-Class satellite bus represents a strategic approach to mass-producing proven satellite platforms rather than pursuing bespoke, bespoke-built configurations for every project. This standardization helps reduce development risk and shorten production cycles, enabling York Space Systems and its partners to meet evolving defense and space requirements with more agility. The Greenwood facility’s amenities, including clean rooms dedicated to satellite production, are a direct enabler of this manufacturing model. By combining scalable production capabilities with a standardized product line, York Space Systems positions itself as a key supplier for customers seeking reliable, quickly deployable space assets.

York Space Systems has established itself as part of a broader ecosystem of defense and space industry players, including partners of the U.S. Space Development Agency (SDA). The SDA is a federal initiative focused on advancing space-based capabilities, procurement, and rapid deployment of space systems to support national security objectives. The Greenwood property’s tenant aligns with this strategic backdrop, illustrating how private real estate investment players can support the physical infrastructure required for space-related innovations and national security initiatives. The property’s 2020 renovation to accommodate York Space Systems demonstrates a proactive approach to ensuring the space, equipment, and production environments meet rigorous standards for satellite manufacturing and testing. The asset’s clean rooms, specialized electrical infrastructure, and controlled environments reflect the precise considerations needed to sustain advanced aerospace manufacturing in a commercial real estate setting.

The lease structure—long-term, with escalations and a 2031 expiration—reflects a balance between tenant certainty and landlord protection, a hallmark of government-adjacent real estate investments. For York Space Systems, the proximity to a secure production facility, supported by a stable landlord with a focus on mission-critical properties, translates into a favorable operating environment that can help sustain production efficiency and delivery timelines. For Easterly, the tenant’s SaaS-like production model, combined with the SDA context and the asset’s specialized equipment, provides a compelling basis for stable cash flow and long-duration income. The option to extend the lease for up to 10 years at market terms prior to expiration adds an additional layer of strategic flexibility, potentially allowing Easterly to capture value through rent adjustments that align with evolving market dynamics and tenant demand for secure, high-quality manufacturing space.

In the broader market narrative, the York – Greenwood asset illustrates how government-adjacent properties serve as essential infrastructure for the U.S. space and defense economy. The presence of a leading satellite producer as a tenant in a renovated-to-suit facility demonstrates the importance of aligning property characteristics with tenant needs. This alignment is central to Easterly’s investment philosophy, which prioritizes properties that are mission-critical, challenging to replicate, and capable of delivering durable cash flows under long-term lease arrangements. The combination of a first-class tenant, a facilities footprint designed for satellite production, and a highly defensible lease structure helps to illuminate why such assets are considered cornerstone components of a diversified, resilient real estate portfolio in the government-adjacent sector.

Strategic Rationale and Market Context

The acquisition occurs amid broader market dynamics that emphasize demand for secure, specialized facilities capable of supporting defense, space, and national-security priorities. As the space economy expands and satellite technology becomes more standardized, there is growing interest in properties that can accommodate manufacturing, testing, and assembly activities under controlled environments. York Space Systems’ business model—producing standardized satellite platforms—fits a trend toward cost efficiency, faster deployment, and scalable production that aligns with government and commercial space initiatives. The Greenwood facility’s existing clean rooms and 2020 renovation create a turnkey solution for a tenant that relies on controlled environments to maintain quality and reliability in its production processes. This combination of tenant capability and asset readiness strengthens the asset’s strategic value within Easterly’s portfolio.

From a macro perspective, the trend toward longer-duration, utilization-driven real estate plays is well-suited to government-adjacent assets. Government agencies and related contractors often require facilities with enhanced security, reliability, and continuity of operations. In the space domain, mission-critical manufacturing spaces that can support satellite production and integration are assets with particularly resilient demand profiles. Long-term leases with escalations help protect against inflation and provide predictable revenue streams, a feature that aligns well with Easterly’s investment objective of delivering stable, inflation-protected cash flows to investors. The option to extend the lease for an additional decade at market terms introduces strategic flexibility for both landlord and tenant, enabling adjustments to reflect changes in satellite production demand, regulatory conditions, and the evolving landscape of space defense partnerships.

The Greenwood asset also benefits from its location in Colorado, a state with a robust aerospace and technology ecosystem. The region’s proximity to a skilled labor pool, advanced manufacturing capabilities, and strong infrastructure supports the operational needs of satellite production facilities. In addition, the Denver metropolitan area context offers advantageous logistics for high-tech manufacturing, including access to transportation networks, suppliers, and a defense-friendly business environment. This geographic positioning enhances the asset’s appeal as a long-term, mission-critical facility and reinforces Easterly’s strategic emphasis on diversified, high-quality assets anchored by credible, government-related tenants.

In terms of portfolio strategy, the York – Greenwood acquisition complements Easterly’s existing concentration on government-adjacent properties and Class A assets with stable, long-duration income. The company’s portfolio now encompasses 103 properties totaling 10.3 million square feet, underscoring its scale and the breadth of its asset base. This scale provides economies of scale in property management, leasing, and asset management, while the focus on mission-critical properties helps mitigate some of the cyclicality that other real estate sectors may experience. The combination of diversified geography, tenant quality, and mission relevance supports Easterly’s objective of delivering resilient earnings and sustainable growth over time. Furthermore, such assets can act as strategic anchors within a portfolio, offering downside protection during market downturns while maintaining upside potential from lease escalations and long-term occupancy stability.

The acquisition also highlights the evolving value proposition of defense- and space-oriented real estate strategies. As the U.S. government continues to prioritize secure, reliable infrastructure for space capabilities and defense operations, properties that host critical manufacturing, testing, and mission-support functions become increasingly important. The integration of York Space Systems into Easterly’s portfolio reflects a broader trend toward aligning real estate holdings with mission-critical activity that supports national security and strategic autonomy in space. This alignment is not merely about maintaining facilities; it is about embedding the physical infrastructure necessary to innovate, produce, and deploy space systems that can meet current and emerging security imperatives. In this sense, the York – Greenwood asset embodies a forward-looking approach to real estate investing—one that recognizes the interdependence between secure space infrastructure and the broader, strategic objectives of the U.S. government and its partners.

Lease Economics, Financial Considerations, and Portfolio Impact

The lease for York – Greenwood is structured as a triple net arrangement, transferring the majority of ongoing operating responsibilities and expenses to the tenant. This leasing construct offers Easterly clearer visibility into cash flows, reducing ownership-related operational variability and enabling more accurate forecasting of net operating income over the life of the lease. Annual escalations are embedded in the contract, which helps preserve purchasing power against inflation and rising operating costs for the duration of the lease term. The lease is set to expire in 2031, providing a long horizon of tenant credit stability and occupancy certainty, with York Space Systems holding a significant stake in the property’s income profile for nearly a decade.

Prior to the expiration date, York Space Systems retains an option to extend the lease for an additional 10-year period at market terms. This extension option adds optionality to Easterly’s investor thesis, allowing the landlord to capture potential rent growth and leverage favorable market conditions at the time of the extension. The market-term determination for the extended period would reflect prevailing real estate and tenant funding dynamics, ensuring that the extension remains economically viable for both parties. This feature supports a stable, long-duration revenue stream while preserving the opportunity for value appreciation if market conditions align with higher rent levels at the point of renewal.

From a financial perspective, the addition of York – Greenwood to Easterly’s portfolio expands the company’s scale to 103 properties totaling 10.3 million square feet. This scale contributes to efficiency in asset management and leasing activity, as well as diversification across tenants and sectors within the government-adjacent space. The asset’s specialized nature, including the renovated-to-suit status and clean-room capabilities, positions it as a high-quality property that can attract and retain a technically sophisticated tenant in a critical sector. The long-term lease structure supports stable, predictable revenue streams that can improve portfolio-level metrics such as earnings stability, debt service coverage, and overall capital allocation flexibility.

With a focus on Class A properties leased to the U.S. Government and related entities, Easterly’s approach emphasizes resilience, credit quality, and the economics of mission-critical real estate. The York – Greenwood asset, as part of this strategy, contributes to a portfolio that prioritizes secure, stable cash flows reinforced by long-term commitments. The company’s emphasis on government-adjacent real estate aligns well with a diversified revenue mix that includes direct government leasing, as well as relationships with entities like the U.S. Space Development Agency and other defense-oriented agencies and partners. This combination supports a robust investment thesis aimed at delivering steady returns while maintaining an emphasis on national security and strategic infrastructure.

Beyond immediate cash-flow implications, the acquisition expands Easterly’s strategic footprint in a region characterized by growing defense and space partnerships. The asset complements existing holdings that emphasize secure facilities with mission-critical capabilities, reinforcing Easterly’s ability to serve a diversified tenant base across government agencies, defense contractors, and space technology innovators. The property’s production-oriented layout, combined with the tenant’s standardized satellite platform approach, suggests potential for continued relevance in a market that prizes operational efficiency, scalability, and security in equal measure. This enlarged portfolio footprint can also enhance the company’s ability to attract new tenants seeking similarly high-quality, secure environments for sensitive manufacturing and mission-oriented activities.

In the context of investor relations and financial performance, this acquisition is anticipated to contribute to ongoing revenue stability and long-term growth. Easterly’s management team has consistently emphasized disciplined capital allocation, robust credit quality among tenants, and a focus on properties that deliver durable cash flows through long-term leases. The York – Greenwood asset aligns with these priorities by offering a reliable, long-tenured tenancy, a high-grade facility suitable for advanced satellite production, and a lease construct designed to protect against inflation and occupancy risk through escalations and renewal options. While any single-property acquisition carries inherent risks—such as tenant concentration, regulatory changes, or market fluctuations—the asset’s characteristics and the tenant’s market position provide a favorable risk-adjusted profile within Easterly’s broader portfolio strategy.

Portfolio Strategy, Growth Outlook, and Industry Dynamics

Easterly Government Properties has positioned itself as a premier real estate investment trust dedicated to Class A assets that serve the U.S. Government and its essential partners. By focusing on mission-critical properties with long-term leases, the company seeks to deliver stable, inflation-protected cash flows and durable shareholder value. The York – Greenwood acquisition aligns with this strategic vision by acquiring a high-quality, renovated-to-suit asset that is 100% leased to a credible tenant engaged in mission-critical satellite production. The asset’s fit within the portfolio’s government-adjacent mandate reinforces Easterly’s ability to maintain occupancy stability and revenue resilience across market cycles.

From a market perspective, the demand for secure, specialized facilities continues to be a compelling driver for the government-adjacent real estate sector. The U.S. defense and space priorities require infrastructure that can accommodate sensitive manufacturing, testing, and support operations, and properties like York – Greenwood provide the physical capacity and security profile necessary to support these activities. In an environment where long-term leases with escalations are prized for their income stability, Easterly’s portfolio structure is well-suited to navigate inflationary pressures and evolving tenant needs. The company’s growing scale—now at 103 properties totaling 10.3 million square feet—helps support competitive leasing strategies, better cost structures in property management, and a diversified revenue base less prone to volatility tied to any single tenant segment.

The strategic emphasis on government-adjacent assets also reflects broader industry dynamics, including a continued emphasis on national security, space resilience, and the modernization of satellite infrastructure. As government agencies pursue modernization programs and space-related capabilities, the demand for facilities that can host high-tech manufacturing, testing, and assembly activities is likely to remain robust. Easterly’s asset class, tenant mix, and long-term lease commitments position the company to benefit from these secular trends, while also addressing the risk factors that come with government-related investments. Potential risks include changes in defense spending, shifts in the broader space economy, regulatory impacts on space manufacturing, and the potential for tenant concentration if a significant portion of income is tied to a limited set of strategic partners. The company’s ongoing focus on portfolio diversification, robust asset management, and disciplined capital allocation is designed to mitigate such risks and preserve long-term value for shareholders.

In sum, the York – Greenwood acquisition exemplifies Easterly’s strategic approach to building a resilient, diversified, and mission-focused portfolio. By investing in assets that are tightly aligned with U.S. government priorities and the growth of the space economy, Easterly seeks to deliver enduring value through stable cash flows, protected rent escalations, and optional renewal opportunities that extend the life and relevance of its properties. The asset’s specialized facilities, long-term lease terms, and strategic tenant mix collectively strengthen Easterly’s capacity to navigate a dynamic macro environment while maintaining a commitment to national security and the advancement of critical space capabilities.

Location Focus: Greenwood Village, Colorado, and the Colorado Space Corridor

The Greenwood Village property sits within a region notable for its proximity to Denver and the broader Colorado aerospace and technology ecosystem. The location provides strategic access to a dense transportation network, skilled labor pools, and a mature supply chain that supports high-tech manufacturing and testing activities. Greenwood Village and the surrounding metro area are part of a broader Colorado space economy narrative, which has gained momentum in recent years as private sector players and government agencies collaborate on satellite systems, launch initiatives, and space-based capabilities. The asset’s near-term productivity is enhanced by its 2020 renovation, which positioned it to accommodate York Space Systems’ production needs while incorporating modern infrastructure and clean-room environments essential for satellite manufacturing.

From a market perspective, the Colorado aerospace and defense landscape continues to attract investment, talent, and partnerships. The combination of favorable business conditions, access to specialized contractors, and proximity to research institutions makes the region an attractive destination for companies involved in space technology and defense-related activities. The York – Greenwood asset benefits from this regional context, as it provides a purpose-built facility that can support sophisticated production workflows in a secure environment. The location’s alignment with Easterly’s objective of owning mission-critical properties in strategic markets strengthens the portfolio’s resilience and reinforces the long-term value proposition for investors seeking exposure to government-adjacent real estate with ties to the space economy.

In addition to its strategic location, the Greenwood Village asset contributes to the narrative of diversified geographic exposure in Easterly’s portfolio. While the company has a national footprint, the Greenwood acquisition adds a key growth node in the Mountain West region, complementing other asset concentrations and expanding the geographic reach of its government-adjacent holdings. This geographic diversification enhances the portfolio’s ability to weather regional economic variations, while maintaining a consistent focus on high-quality properties with reliable tenancy in essential sectors. For investors, the asset represents an opportunity to participate in a market that benefits from a steady demand for secure, specialized production spaces and a tenant base that is deeply embedded in national-security infrastructure and space initiatives.

Leadership Perspective and Strategic Commentary

Darrell Crate, President and CEO of Easterly, underscored the strategic value of the acquisition by highlighting its alignment with the company’s mission to invest in assets that directly support the U.S. Government and its essential partners. Crate emphasized that the property’s state-of-the-art features and long-duration lease contribute to a portfolio designed for stable growth and national security. The leadership commentary reflects a belief that the demand for specialized facilities—particularly those that support defense and space initiatives—will continue to expand, reinforcing Easterly’s conviction that mission-critical assets can deliver durable, inflation-protected returns even as broader market conditions evolve.

Crate’s remarks illuminate the broader narrative of Easterly’s strategy: to acquire high-quality properties that are integral to the functions and capabilities of the U.S. Government and space ecosystem, and to manage these assets with a disciplined, long-term focus. The combination of a renovated-to-suit facility, a tenancy anchored by York Space Systems, and a lease structure designed to capture annual escalations positions Easterly to realize steady cash flow while maintaining the flexibility to adapt to changing market dynamics through renewal options and strategic asset management. This perspective aligns with Easterly’s long-standing emphasis on governance, risk management, and portfolio resilience as core drivers of shareholder value.

Forward-Looking Statements, Risk Factors, and Compliance Context

As with many corporate disclosures of this nature, the press materials associated with the York – Greenwood acquisition include forward-looking statements that reflect current expectations regarding future results, market conditions, and strategic objectives. These statements are inherently subject to risks and uncertainties, including changes in defense and space program budgets, shifts in tenant demand, regulatory developments, and broader macroeconomic factors that could influence the performance of government-adjacent real estate assets. The company typically identifies certain factors that could cause actual results to differ materially from forward-looking projections, such as fluctuations in occupancy levels, changes in lease terms, and the impact of interest rate movements on financing and asset valuations. While such statements are intended to provide insight into management’s expectations, investors are cautioned not to rely on these statements as guarantees of future performance. The company’s actual results may differ significantly from those anticipated in forward-looking disclosures due to a variety of risks and uncertainties.

The press materials also note that the information is as of the date of the release, and the company undertakes no obligation to update forward-looking statements to reflect subsequent events or changes in the expectations. This context is important for readers to understand when evaluating the implications of the acquisition within the broader scope of Easterly’s business plan and the evolving market environment for government-adjacent real estate. The company’s governance structure, risk management framework, and ongoing disclosure practices are designed to promote transparency and accountability, helping investors understand the pipeline of acquisitions, occupancy dynamics, and the long-run implications for portfolio value. As Easterly continues to execute its strategy, stakeholders can anticipate ongoing updates about new properties, tenant relationships, lease terms, and performance metrics that illustrate how mission-critical real estate investments contribute to stable, long-term growth.

About Easterly Government Properties, Inc.

Easterly Government Properties, Inc. is a specialized real estate investment trust focused primarily on acquiring, developing, and managing Class A commercial properties that are leased to the U.S. Government. Based in Washington, D.C., Easterly draws on a management team with extensive experience in the governance, strategy, and needs of mission-critical U.S. Government agencies for properties leased either directly to the government or through the U.S. General Services Administration (GSA). The company’s investment thesis centers on stable, long-duration cash flows from high-quality assets that serve as essential infrastructure for national security and government operations. Easterly’s portfolio strategy emphasizes diversification, asset quality, and a disciplined approach to growth, aimed at delivering resilient performance in a range of market conditions.

For more information about Easterly Government Properties and its portfolio of properties, stakeholders can rely on the company’s publicly available materials and disclosures that detail property characteristics, tenant profiles, lease structures, and ownership metrics. The portfolio includes a mix of properties that support defense, space, and government-wide operations, reflecting Easterly’s commitment to long-term value creation through strategic real estate investments that align with national security priorities and the evolving needs of government agencies and their partners. The company’s leadership remains focused on sustainable growth, operational excellence, and a stakeholder-friendly governance framework that supports its mission and investor objectives.

Notes on the broader corporate information are reflected in standard disclosures that accompany public company communications, including the emphasis on forward-looking statements, risk disclosures, and non-GAAP considerations where applicable. The company’s investor relations materials aim to present a clear, comprehensive picture of its strategic positioning, asset quality, and growth trajectory, while removing extraneous or non-essential details that do not pertain to the core narrative of mission-critical government-adjacent real estate investments.

Conclusion

Easterly Government Properties’ acquisition of the 138,125-square-foot York – Greenwood facility in Greenwood Village, Colorado, represents a meaningful expansion of its government-adjacent, Class A portfolio. The property’s 100% occupancy by York Space Systems, a producer of standardized satellite platforms, underscores a strategic fit with Easterly’s emphasis on mission-critical assets that support national security and space priorities. The renovated-to-suit environment, the presence of clean rooms for satellite production, a long-term triple net lease with annual escalations, and an extension option to maintain income visibility through a decade-long horizon all contribute to a solid investment thesis for Easterly and its investors. Together with Easterly’s broader portfolio—now totaling 103 properties and 10.3 million square feet—the York – Greenwood acquisition strengthens the company’s position in the government-adjacent real estate market and reinforces its commitment to stable, growth-oriented performance grounded in strategic assets that serve essential national functions. The asset also signals Easterly’s ongoing strategy of acquiring high-quality properties in strategic markets that align with evolving U.S. defense and space priorities, reinforcing confidence in the company’s ability to deliver durable value to shareholders over the long term.