Question · Q3 2025
Meryl Ross asked for details on the York Space Systems acquisition, including total investment, cap rate, and the history and mission-critical nature of York's government contracts. She also questioned the company's long-term target mix of federal, state/local, and government-adjacent lease income, and whether the GSA is considering more modern lease structures, such as escalators.
Answer
Allison Marino, EVP and CFO, stated the York acquisition price was $29 million with a low 11% cap rate, noting its function as York's headquarters with specialized facilities for government contracts. Darrell Crate, President and CEO, highlighted York's deep talent base in Colorado and strong lease. Marino outlined a long-term target mix of 70% GSA, 15% state/local, and 15% government-adjacent. She confirmed the GSA is evolving, citing a recent successful embedding of lease escalators in a USFS Albuquerque renewal as an example of their willingness to entertain modern lease structures.