Senators Cite Steward Real Estate Scheme, Concerns About Private Interests in Letter to Administration

Letter Text (PDF)

Boston (March 20, 2025) - Senator Edward J. Markey (D-Mass.) and Senator Elizabeth Warren (D-Mass.) today sent a letter to U.S. General Services Administration (GSA) Acting Administrator Stephen Ehikian, questioning the GSA’s purported designation of nine federal facilities in Massachusetts as “non-core assets,” or properties designated for sale or disposal. Included on the list are both the John F. Kennedy Federal Building and the Thomas P. O’Neill Jr Building, two of the largest federal buildings in New England. These two properties are home to thousands of employees and more than a dozen government tenants, including the Department of Veterans Affairs, Social Security Administration, Boston Passport Agency, U.S. Small Business Administration, National Labor Relations Board, and the Senators’ Boston offices.

In the letter the lawmakers write, “Massachusetts is very familiar with how these real estate schemes benefit private interests at the public’s expense. Cerberus Capital Management, a private equity firm run by now-deputy Secretary for the Department of Defense Stephen Feinberg, and Steward Health Care executives worked hand-in-glove to sell Massachusetts hospital property to Medical Properties Trust, a real estate investment trust. While Steward and Cerberus made quick profits from the sale, the hospitals were then saddled with unsustainable rent obligations and sunk into bankruptcy.”

The lawmakers continue, “Additionally, GSA and the so-called Department of Government Efficiency (DOGE), recently terminated 17 leases in Massachusetts including for the Internal Revenue Service, Food and Drug Administration, Small Business Administration, and Occupational Safety and Health Administration (OSHA). The OSHA office in Andover handles millions of violations of worker safety standards each year. The US Fish and Wildlife Service headquarters in Hadley provides enforcement, fire response, municipal support, and information technology services to the entire northeast.”

The lawmakers request answers to the following questions by March 31, 2025:

1. What factors led to the inclusion of nine federal properties in Massachusetts on GSA’s list of properties “designated for disposal”?
2. Are the John F. Kennedy Federal Building and the Thomas P. O’Neill Jr Building still being considered for disposal? If so, what is the plan for ensuring that the federal agencies and offices housed in these buildings will continue their work uninterrupted?
3. Will it be reposted? If so, will it be revised, and what criteria will determine whether a property remains on any revised list?
4. Is GSA considering sale-leaseback arrangements for properties in Massachusetts? If so, how will GSA ensure that private profit does not come at the public’s expense. For example, how will GSA guarantee that building maintenance is improved and rental costs do not escalate over time?
5. What factors went into GSA’s decision to cancel or not renew 17 leases in Massachusetts? How does GSA anticipate work performed at these locations will continue?

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