First Potomac Takes Pair of Maryland Properties
- Oct 09, 2008
First Potomac Realty Trust has acquired two office properties in Maryland for a total of some $46.8 million.The firm purchased Rivers Park I & II, a 300,000-square-foot , six-building complex with office and flex facilities located in Columbia. The property was purchased from General Growth Properties for $42.3 million. In addition, First Potomac also snagged Triangle Business Center for $4.5 million. Triangle Business Center is a four-building, 74,000-square-foot flex and office facility in Baltimore. Rivers Park I & II is a strategic purchase for First Potomac as it is located near Fort Meade and the National Security Agency. The two sites will be the recipients of a projected 20,000 jobs from the Base Realignment and Closure process. The property is currently 100 percent leased, with all vacancy leased by the seller at closing. The Triangle Business Center is currently only 68 percent leased. The purchases were partially funded by a $28 million loan with the remainder of the costs coming from the company’s unsecured line of credit. “We have been very patient in the acquisitions market over the past year and a half because we did not feel pricing made sense,” Nicholas Smith, First Potomac’s chief investment officer, stated in a release. The firm has experience in the region and in office/flex complexes, so Smith believes that the properties will flourish under the management of First Potomac Realty. First Potomac Realty Trust is a REIT that deals mainly in business parks and industrial properties in the Washington, D.C.. metropolitan area. The firm currently has a portfolio of approximately 12 million square feet. The federal government is First Potomac’s biggest client. CPN reported in June that First Potomac had signed a renewal lease with Stock Building Supply Inc. for approximately 172,000 square feet in the firm’s Plaza 500 property located in Alexandria, Va.