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First Potomac Realty Trust Participates in the Recapitalization of Americaa?s Square in Washington, D.C.

^{Published on 2011-04-18 14:30:21 - 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 that it has originated a $30 million mezzanine loan on Americaa™s Square, a 461,484-square-foot trophy office complex in Washington, D.C.

"We look forward to growing our relationship with Dweck Properties, which has a strong portfolio of high-quality office properties in the Washington metro area, and continuing to act on opportunities that further strengthen First Potomaca™s market-leading position."

Americaa™s Square, which is owned by local developer-investor Dweck Properties, is comprised of 51 Louisiana Ave., a 205,580-square-foot historic office building, and 300 New Jersey Ave., a 255,904-square-foot newly developed office building delivered in April 2009. Combined, the buildings occupy an entire city block just one block north of the U.S. Capitol Building and two blocks south of Union Station and have achieved some of the highest rents in the city.

Americaa™s Square is currently 93 percent leased with a very strong tenant roster. Major tenants at the property include Jones Day, Comcast, Carr Workplaces and Siemens, which recently relocated its U.S. headquarters from New York City to the property.

aThis investment supports our strategy of building relationships with local private developers and investors to create ownership interests or mezzanine positions in Class A assets,a said Douglas J. Donatelli, Chairman and CEO of First Potomac Realty Trust. aWe look forward to growing our relationship with Dweck Properties, which has a strong portfolio of high-quality office properties in the Washington metro area, and continuing to act on opportunities that further strengthen First Potomaca™s market-leading position.a

The 5-year mezzanine loan for Americaa™s Square has a 9.0 percent interest. The transaction was completed in conjunction with a $220-million, 5-year first mortgage loan with MetLife.

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 more than 14 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 ].

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 the repayment in full of the loan, the ability of the Company to successfully enforce its remedies under the loan and related documents, 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.