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First Potomac Realty Trust Strengthens Office Portfolio with Purchase of 1211 Connecticut Avenue in Washington, D.C.

^{Published on 2010-12-09 13:10:33 - Market Wire}
 

WASHINGTON--([ BUSINESS WIRE ])--First Potomac Realty Trust (NYSE:FPO), a leading owner of office and industrial properties in the greater Washington, D.C. region, today announced the acquisition of 1211 Connecticut Avenue in Washington, D.C., for $49.5 million from Harbor Group International. The purchase is the seventh in a series of office building acquisitions the company has executed in 2010 that have added a total of 1.3 million square feet to its portfolio of office properties. It is the Companya™s third office acquisition in Washington, D.C.

"As our seventh office building acquisition this year, and the third acquisition in downtown Washington, D.C., this purchase is a reflection of our strategy to leverage our strong financial position and market expertise to execute deals that deliver long-term value to our shareholders."

1211 Connecticut Avenue is an eight-story 137,754 square-foot office building originally constructed in 1967 and subsequently renovated in 1998 and 2008. First Potomac Realty Trust is planning to renovate the propertya™s faade and lobby in order to enhance the propertya™s position in the market. The building is 100 percent leased to 25 tenants and is highly desirable due to its strategic location in the Washington, D.C. central business districta™s Golden Triangle, offering direct access to numerous shops, restaurants, hotels and daily conveniences, as well as its close proximity to several stops on the Metro subway line. The Company projects an initial cash yield of 6.5% and an initial accrual yield of 7.2%.

aThe acquisition of 1211 Connecticut Avenue adds another strong, stabilized asset to our portfolio of DC-area properties,a said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. aAs our seventh office building acquisition this year, and the third acquisition in downtown Washington, D.C., this purchase is a reflection of our strategy to leverage our strong financial position and market expertise to execute deals that deliver long-term value to our shareholders.a

Other acquisitions completed by First Potomac Realty Trust in 2010 include Atlantic Corporate Park in Sterling, Va.; Redland Corporate Center II & III in Rockville, Md.; 1750 H Street NW in Washington, D.C.; 500 First Street NW in Washington D.C.; and Three Flint Hill in Fairfax County, Va.

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 Companya™s expectations include changes in general or regional economic conditions; the Companya™s ability to timely lease or re-lease space at current or anticipated rents; changes in interest rates; changes in operating costs; the Companya™s ability to complete acquisitions on acceptable terms and successfully integrate such acquisitions into the Companya™s portfolio; the Companya™s ability to manage its current debt levels and repay or refinance its indebtedness upon maturity or other required payment dates; the Companya™s ability to obtain debt and/or financing on attractive terms, or at all; changes in the assumptions underlying the Companya™s expected rates of return on acquisitions and other risks detailed in the Companya™s Annual Report on Form 10-K and described from time to time in the Companya™s filings with the SEC. Many of these factors are beyond the Companya™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.

About First Potomac Realty Trust

Headquartered in Bethesda, Md., First Potomac Realty Trust is a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping office and industrial properties in the greater Washington, D.C. region. The Company's portfolio totals over 13 million square feet. The Company's largest tenant is the U.S. Government, which along with government contractors, accounts for more than 20 percent of the Company's revenue. For more information, please visit [ www.first-potomac.com ].