First Potomac Realty Trust completed the acquisition of 840 First St. NE in Washington, DC for $90 million from the Stephen A. Goldberg Co. according to a Washington Business Journal article. The building was acquired at below replacement cost, said Nicholas R. Smith, Chief Investment Officer of First Potomac Realty Trust. The contract leaves room for an additional $10 million of consideration payable depending on the terms of any lease renewal by the existing tenant or re-tenanting of the property according to a GlobeSt.com report.
"This strategically located, fully leased office building is a very attractive investment opportunity for First Potomac," said Smith. "We were able to acquire 840 First Street in an off-market transaction at below replacement cost, once again demonstrating how our local market expertise and relationships allow us to execute on high-quality transactions that strengthen our portfolio and deliver long-term value to our shareholders."
The fully-leased Class A office building adjacent to Union Station boasts 248,576 square feet of space and was constructed in 2003. The property is leased to Group Hospitalization and Medical Services, Inc., an independent licensee of the Blue Cross and Blue Shield Association. The health care insurer is the building's original tenant and has sole access and control of the building's facilities, including its 222 underground parking spaces and cafeteria.
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