Regency Affiliates, Inc. Reports the General Services Administration Announces that it Proposes to Exercise 10-Year Renewal Option to Lease Up to 824,563 Rentable Square Feet of Space for the Social Security Administration
April 16, 2018 at 07:28 am EDT
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Regency Affiliates, Inc. reported that the General Services Administration (GSA) announced that it proposes to exercise a 10-year renewal option to lease up to 824,563 rentable square feet (RSF) of space for the Social Security Administration (SSA) at the Security West complex at 1500 Woodlawn Drive in Woodlawn, MD. Regency owns a 50% limited partnership interest in the Security West complex. The GSA factsheet describing the lease extension proposal, a copy of which can be found at the link below, indicates that the GSA proposes remaining at the Security West complex through exercise of an existing 10 year renewal option in light of a pending evaluation of the long-term need for additional leased space surrounding the SSA's headquarters in Woodlawn. The renewal option under the lease contemplates the lease of 824,563 RSF at a monthly rental rate of $1.15 per square foot which is consistent with the current rental rate, with full or partial termination rights in favor of the GSA starting after the second year of the new lease. The existing mortgage balance on the property is expected to be amortized down to approximately $10 million as of the projected October 2018 lease renewal date contemplated by the GSA's proposal.
Regency Affiliates, Inc. invests in assets that generate predictable and sustainable returns on capital. The Companyâs objective is to generate long-term value for its shareholders. Its management seeks sound investment opportunities to meet its business characteristics and valuation criteria. The Company holds a limited partnership interest in Security Land and Development Company Limited Partnership (Security Land), which owns and operates 34.3 acres of land and rental property of approximately 717,000 square feet in Woodlawn, Maryland. Its wholly owned subsidiary is RSS Investments LLC (RSS). RSS acquired majority ownership (80%) of SSCP Harrisburg Holdings, LLC (Harrisburg Holdings). Harrisburg Holdings is the sole member of SSCP Harrisburg Intermediate Holdings, LLC. Through its controlling interest of SSCP Harrisburg Holdings, LLC, it is focused on the ownership, operation, and acquisition of self-storage properties located within the Harrisburg, Pennsylvania area.
Regency Affiliates, Inc. Reports the General Services Administration Announces that it Proposes to Exercise 10-Year Renewal Option to Lease Up to 824,563 Rentable Square Feet of Space for the Social Security Administration