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BETHESDA, Md.--([ 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 added four fully leased Class A suburban office buildings to its portfolio.

"Both of these acquisitions are compelling for a number of reasons"

The acquisitions are:

• Metro Place III and IV, two Class A office buildings, totaling 325,328 square feet in Merrifield, Virginia, in a 51/49 joint venture with the Coakley family; and
• Hillside Center I and II, a pair of Class A office buildings totaling 86,189 square feet in Columbia, Maryland.

aBoth of these acquisitions are compelling for a number of reasons,a stated Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust. aBoth properties are fully leased and very well located, providing us with the opportunity for future growth. The Metro Place buildings are located adjacent to the Metro station in Merrifield, Virginia, a burgeoning mixed-use, transit-oriented community. Hillside Center presents an opportunity for us to purchase two stabilized office buildings with quality tenancy in a strong submarket that we know well and where we already have a significant presence.a

The Company acquired a 51 percent interest in Metro Place III and IV from GE Asset Management, which held a 75 percent interest in the property in a joint venture with the Coakley family. As part of the transaction, GE sold its remaining 24 percent interest to the Coakley family, which now owns a 49 percent interest in the property. The implied value of the property is $105 million, and the transaction included the assumption of a first mortgage loan with a balance of approximately $51.5 million.

The seven-story buildings were constructed in 2001 and are fully leased, primarily to the U.S. Government and government contractors. The buildings include 1,010 parking spaces and are located adjacent to the Dunn Loring-Merrifield Metro Rail station at the intersection of Interstate 495 and Interstate 66. The Metro Place properties are expected to generate an initial unlevered cash yield of 7.1 percent and an initial unlevered accrual yield of 9.1 percent.

The Company also acquired Hillside Center I and II for $16.15 million. Built in phases between 2001 and 2005, the buildings are 100 percent leased to six tenants, with BAE Systems occupying approximately 60 percent of the property. The property benefits from the recent expansion of Fort Meade in conjunction with the Defense Departmentas Base Realignment and Closure (BRAC) initiatives. The property has easy access to Route 29 and Interstate 95. The transaction included First Potomacas assumption of a first mortgage loan on the property with a balance of $13.25 million. The Company expects the property to generate an initial unlevered yield of 8.4 percent on both a cash and accrual basis.

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 office and industrial properties in the greater Washington, D.C. region. As of September 30, 2011, the company's portfolio totals over 14 million square feet and consists of 40 percent office, 39 percent business parks, and 21 percent industrial properties. FPO shares are publicly traded on the New York Stock Exchange [ (NYSE:FPO) ]. For more information, please visit [ www.first-potomac.com ].

For more information, please visit [ http://www.first-potomac.com ].