First Potomac Buys D.C. Office Building for $49.5M
- Dec 10, 2010
December 10, 2010
By Allison Landa, News Editor
First Potomac Realty Trust has made its seventh office purchase this year, which brings the REIT to a total of 1.3 million square feet in additional office properties. First Potomac bought 1211 Connecticut Ave. in Washington, D.C. for $49.5 million.
The property was purchased from Harbor Group International. It is an eight-story, 137,754-square-foot building first constructed in 1967 and then renovated in 1998 and 2008. Fully leased to 25 tenants, it is slated for renovations to the façade and lobby.
According to First Potomac chairman & CEO Douglas Donatelli, the purchase reflects the company’s strategy to leverage its strong financial position. It is the third D.C. purchase this year.
First Potomac projects an intitial cash yield of 6.5 percent and an initial accrual yield of 7.2 percent. Other acquisitions this year include Atlantic Corporate Park in Sterling, Va., Redland Corporate Center II and III in Rockville, Md., and Three Flint Hill in Fairfax County, Va.