Correction: This story was updated Friday, Dec. 6, 2019, at 7:50 p.m. to correct the spelling of Eastgate in the headline.
A year after the shut down of the Chattanooga campus of Virginia College, the building that housed the college and the adjacent Eastgate Post Office has a new owner.
Tennessee Postal Holdings LLC, a subsidiary of the Cedarhurst, New York-based real estate investment trust owned by Postal Realty Trust, Inc., acquired the 63,940-square-foot building on Eastgate Loop near the Eastgate Town Center for $2.05 million. The structure was built in 1965 by the former Osborne Enterprises and now houses a U.S. Postal Office and the headquarters of Logistics Made Simple (LMS), one of the nation's fastest-growing freight brokers which moved into the complex earlier this year following the closing of the Virginia College facility at the end of last year.
The purchase the Eastgate Post Office and related facilities is part of a growing portfolio of Postal properties that Postal Realty Trust has acquired and leased to the federal government and other tenants. The company has nearly 500 properties in 44 states, including more than 200 added since its initial public stock offering in May.
"Our success identifying and engaging with sellers of USPS (U.S. Postal Service) properties continues to build as evidenced by our entry into a contract for a second large portfolio of postal properties since our IPO earlier this year," Andrew Spodek, Postal Realty Trust, Inc.'s CEO said in a statement. "Our top priority remains the scaling of our platform through the addition of high quality, accretive properties to support our dividend and ensure value creation for our shareholders over time."
The building was once part of Osborne Enterprises, which Bob Corker acquired before he was elected Chattanooga mayor in 2001 and was later sold as part of the disposal of most of Corker's real estate holdings in 2006 before he ran and was elected U.S. senator from Tennessee.
Henry Luken, who is selling most of the Chattanooga office buildings he once owned, said he has sold all of his Eastgate property holdings except one lot across from the Brainerd Walmart supercenter.