Business & Finance
Business and Finance
Business and Finance
Wed, February 23, 2011 First Potomac Realty Trust Adds Three Office Buildings to Portfolio
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 that it has acquired three office buildings for $33.8 million. The buildings, Cedar Hill I & III in Tysona™s Corner, Virginia, and the Merrill Lynch Building in Columbia, Maryland, total 240,309 square feet.
"We are continuing to create long-term value for our shareholders through the execution of our balanced acquisition strategy."
aThe acquisition of these office buildings further strengthens our portfolio with stable, cash-flowing assets in two of Washingtona™s leading suburban submarkets,a stated Nicholas Smith, Executive Vice President and Chief Investment Officer of First Potomac Realty Trust. aWe are continuing to create long-term value for our shareholders through the execution of our balanced acquisition strategy.a
Cedar Hill I & III, three-story office buildings totaling 102,632 square feet located in Tysona™s Corner, were acquired for $22.8 million and are 100 percent leased, primarily to the General Service Administration on behalf of the State Department. The Company expects these buildings to generate an initial unleveraged return on the purchase price of 8.7% on a cash basis.
The Merrill Lynch Building, a 12-story 137,677-square-foot office building adjacent to The Mall in Columbia was purchased for $11 million. The building is currently 70 percent leased to more than 25 tenants, including Bank of America, Merrill Lynch, Tricerat, Inc., and A2Z, Inc. The Company expects this property to generate an initial unleveraged return on the purchase price of 8.0% on a cash basis.
First Potomac Realty Trust financed the acquisitions with the assumption of an existing $30.0 million first mortgage loan and a draw on the Companya™s revolving credit facility.
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 approximately 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 [ http://www.first-potomac.com ].
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.
