N@N

First Potomac Realty Trust Acquires Corporate Campus at Ashburn Center in Northern Virginia

^{Published on 2010-01-06 19:40:30 - Market Wire}
 

BETHESDA, Md.--([ BUSINESS WIRE ])--First Potomac Realty Trust (NYSE: FPO), a regional leader in the ownership, management and development of business parks and industrial properties, announced that on December 31, 2009, it acquired Corporate Campus at Ashburn Center for $14 million. Located in Northern Virginia, Ashburn Center is a three-building, Class-A business park that was built in 2009.

The 194,183 square-foot property is located approximately five miles north of Dulles Airport and complements the Company's nearby Sterling Park Business Center. The property, which has been partially built out as a data center, is currently 45% leased to three tenants that specialize in technology and data storage. First Potomac acquired the property from MRP Realty, which negotiated a discounted payoff of its construction loan as part of the transaction. MRP Realty will be paid additional consideration if certain returns are achieved over the next five years. The purchase price of $72 per square foot is a 45% discount to estimated replacement cost. First Potomac financed the acquisition through a draw on its recently expanded line of credit and available cash. The Company expects to spend an additional $6 million to bring the property to stabilization, at which point the property is expected to generate a 13% yield on invested capital. As part of the transaction, the Company incurred approximately $0.6 million in acquisition costs that it will expense in the fourth quarter of 2009.

Nicholas R. Smith, chief investment officer of First Potomac Realty Trust, stated, "Ashburn Center is another example of our ability to take advantage of our market knowledge and relationships to directly source attractive off-market opportunities. We especially like the property's location in this growing market for technology companies and its proximity to George Mason University's future Loudoun campus and a future Metro station."

Update on Fourth Quarter Capital Activity

First Potomac also provided an update regarding the Company's controlled equity offering program. During the three months ended December 31, 2009, the Company sold 620,700 common shares at a weighted average price of $11.97 per share, generating net proceeds of approximately $7.3 million. Since launching the program in May 2009, the Company has sold a total of 2.76 million common shares, generating net proceeds of $29.7 million.

About First Potomac Realty Trust

First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping industrial properties and business parks in the Washington, D.C. metropolitan area and other major markets in Virginia and Maryland. The Company's portfolio totals approximately 12 million square feet. The Company's largest tenant is the U.S. Government, which along with government contractors, accounts for approximately 20% of the Company's revenue.

Forward Looking Statements

The forward-looking statements contained in this press release are subject to various risks and uncertainties. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, there can be no assurance that its expectations will be achieved. Certain factors that could cause actual results to differ materially from the Company's expectations include changes in general or regional economic conditions; the Company's ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; the Company's ability to complete acquisitions on acceptable terms; and other risks detailed in the Company's Annual Report on Form 10-K and described from time to time in the Company's filings with the SEC. Many of these factors are beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of performance. For forward-looking statements herein, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.