Business & Finance
Business and Finance
Business and Finance
Tue, February 1, 2011
Mon, January 31, 2011 Akridge and First Potomac Realty Trust to Acquire 1200 17th Street, NW for Redevelopment of Class A Office Building
WASHINGTON--([ BUSINESS WIRE ])--First Potomac Realty Trust (NYSE: FPO), a leading owner of office and industrial properties in the greater Washington, D.C. region, and Akridge, a comprehensive commercial real estate firm based in Washington, D.C., today announced that they are purchasing 1200 17th Street, NW in downtown Washington, D.C. for $39.6 million. The sale is expected to close in the fourth quarter of 2011.
"To partner with First Potomac and develop a beautiful new freestanding building in a prime CBD location is an exceptional opportunity"
The building is currently the headquarters of the National Restaurant Association, and the site was recently rezoned to allow for up to 170,000 square feet of new development. Akridge and First Potomac plan to construct a new LEED-certified building on the property with demolition of the existing building scheduled to begin in mid-2012 following a careful design process. The companies are focused on incorporating the highest quality and sustainable features into a trophy-class office building that they expect to be completed and available for occupancy in 2014. The total cost of the project is expected to be approximately $110 million. Financing is expected be provided through a combination of a construction loan and equity from the companies, with First Potomac providing approximately 95% of the equity.
aTo partner with First Potomac and develop a beautiful new freestanding building in a prime CBD location is an exceptional opportunity,a said P. Brian Connolly, Senior Vice President of Akridge. aThe National Restaurant Association and its consultants thoroughly planned and prepared in bringing this property to market, and we put in a great deal of time researching and then pursuing this asset. In the end, I think all of the strategizing on both sides has resulted in an incredibly exciting transaction.a
aWe are excited to be partnering with Akridge, who has a track record as one of the most innovative and successful developers in the city, to develop a project that both enhances and capitalizes on this neighborhooda™s excellent location and amenity base," said Nicholas Smith, Executive Vice President and Chief Investment Officer of First Potomac Realty Trust. "This is one of the last great development sites in the CBD, easily accessible by car and Metro, surrounded by great hotels and retail, and adjacent to the corridors of power. There is significant demand for smart, cutting-edge office space, and we plan to deliver a gem in this great setting. This property is another example of First Potomaca™s execution on its business strategy of growing its office portfolio and focusing on high-quality Washington, D.C. assets."
About Akridge
Akridge is a comprehensive real estate services company that provides acquisition, development, construction management, asset management, property management, leasing, and consulting services. Founded in 1974, the company has acquired or developed more than 11 million square feet of commercial space and currently manages seven million square feet throughout the D.C. area. The industrya™s foremost benchmarking firm, CEL & Associates, has ranked Akridge the number one real estate firm in the country for Client satisfaction, among firms of similar size, ten times since 1999. Akridge has been honored with the National Capital Business Ethics Award, awarded by the Society of Financial Service Professionals, and has also been recognized as the Best Place to Work in Greater Washington by the Washington Business Journal. For more information, please visit [ www.akridge.com ].
About First Potomac Realty Trust
Headquartered in Bethesda, Maryland, 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 more than 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 ].
