First Potomac Realty Trust Improves D.C.-Area Office, Business Park Portfolio
- Jul 04, 2014
First Potomac Realty Trust is improving its portfolio of office and business park properties in the greater Washington, D.C., region. The real estate investment trust recently paid $41 million for a Class A office building in Reston, while selling its corporate campus in Ashburn for the same sum in a separate transaction.
The five-story Class A office building at 1775 Wiehle Ave. was completed in 2001. It has 130,048 square feet of space and is located just two blocks from the Wiehle-Reston East Silver Line Metro station, expected to open this month. According to First Potomac, the property was fully leased at the time of the sale.
According to PropertyShark, the building’s previous owner was Normandy Real Estate Partners. The Morristown, N.J.-based real estate firm purchased the property in 2006 for $35.7 million. PropertyShark lists the office building’s current market value at $24.5 million.
The $41 million sale of the Corporate Campus at Ashburn Center represents a significant return on investment for First Potomac. It purchased the 194,184-square-foot, single-story business park in 2009; it paid $14.7 million in an off-market transaction. The company invested an additional $5 million in the property and managed to raise its occupancy from 45 percent at the time of the acquisition to 100 percent at the time of the sale.
“With this capital recycling transaction, we are trading from a single-story business park in a less desirable location to a high-quality office asset located near a Metro station,” said Nicholas Smith, chief investment officer of First Potomac, in a news release. “The acquisition of 1775 Wiehle Ave. further strengthens our portfolio with a stable, cash-flowing asset in a strong submarket where we see future growth potential, and continues our strategic transformation into an office-focused company in the greater Washington region.”
Photo credit: www.first-potomac.com